Using MT4? Is it time to switch to MT5 yet?

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MT4 has been the leading platform of choice for most independent day traders for some years now but recently MT5 was launched but take up from brokers and traders alike has been slow.

So does MT5 not warrant the switch over? Is MT4 so much better or are traders just too stuck in their ways? We examine the key issues with using the new MT5 platform.

Installing The Platform

Installing the MT5 was easy as it only required me to fill in some details and follow the on-screen instructions.

Installing MT5 is much like installing MT4 except that in MT5, you need a couple more passwords to complete the installation. In MT4, all you need was an account number and its corresponding password to install the program. In MT5, you will need an account number, password and another certificate password. However, I understand that this is only a minor setback since the additional password gives me an additional security layer, making MT5 more secure that its predecessor. When it comes to file size, you will be surprised that MT5 require 3 times more disk space than MT4 which consequently means that it takes a lot longer to finish installing MT5 compared to MT4.

Is The Charting Better Than In MT4?

The interface of MT5 is more or less similar to MT4 except that its icons are spaced apart and the buttons are relatively larger supposedly to make it easy for those with vision problems. However, as a trader myself, I know the importance of every inch of workspace available so I was not too excited when I found out that the interface of MT5 takes much more chart space than MT4.

One thing that grabbed my attention was with the number of time frames I can view with MT5. As with MT4, you can view various timeframe standards from M1 to W1 but only after customizing MT4. At MT5, these timeframes are set on default, which makes it very convenient and time-saving. Additionally, you can no view timeframes between timeframes at your convenience without much tweaking.

Something seems to wrong with the Fibonacci Retracement feature of MT5. Instead of extending the yellow line to the right, MT5 extends it towards the left which distorts your projection of a fib line, giving you price projection of the line back instead of into the future.

Backtesting Can Only Be Better Than In MT4 Surely?

Backtesting remains an issue. Different platforms often get different results. This is often due to data differences but there is something in metatrader platforms which makes you feel testing results are uncertain to some extent. Both MT4 and MT5 throw up different results for the same tests. The problem comes in not knowing why the results are different. It could be down to how they manage/time open and closing of price periods or it could be down to how they manage the spread/bid/ask. Who knows but I don’t think this version beats MT4 as one would hope.

What About Indicators And Expert Advisors?

What is great about MT5 is that it easily allows you to organise your MT5 indicators and advisors folder. The default setup of MT5 already includes 4 folders for Oscillators, Bill Williams, Trend and Volumes which you can easily access by clicking on the small plus sign embedded on the icon folder. Like in MT4, you can create additional customized folders.

A major downside of MT5 is that you would not be able to use the Expert Advisors and MT4 indicators. What is the purpose of releasing a newer version of a program when it does not support its previous versions? Again, I know this can be solved by releasing a new build or plugin but as it is, MT5 should not be called MT5 at all since it seems to be incompatible with MT4.

It also takes way longer for MT5 to compile indicators but compiling is usually a one-time action so it does not really add up much to the list of worries I have using MT5.

Use Of Computer Resources

I checked and found out that MT5 uses 3 times more memory space than MT4. This means that you will probably end up upgrading your PC if you badly need MT5 to run smoothly in your system. MT5 is a resource hog but I hope that once the official release came out, it is much more efficient when I test it with the various indicators compared to the demo version that I tested. I am crossing my fingers.

I think it is reasonable to see why the move to MT5 has been slow and I expect it will be a few more years before we are talking about MT5 with such affection as we have done MT4 over the last few years. But let’s face it; the move to MT5 will happen so we’d better be ready for it.

5 Responses

  1. High Leverage Forex Brokers says:

    We should always be ready for change.Mt4 for now is a big help for traders,time will come they will also embrace MT5 to make their work efficient.

  2. forex community says:

    MT4 is still better.

  3. GreatTradingSystems says:

    It is.

  4. fx forum says:

    I agree too.

  5. FX- says:

    I won’t be embracing MT5. I know many say this when they resist changes, but it is not possible to trade with that platform. It is a nice tool for brokers that pay $100K or so for its licence and expect only Americans to trade it. It is engineered purely for American regulation, not a traders TA trading tool, but one for regulators ass kissing! There are numerous other platforms already out there that have been better for TA for many years, and as easy to use. some are free at no cost while others cost a little to the end user. At least then they respect traders and listen to them, as opposed ot only listening to brokers.

    I am moving onto to better things, I have already prepared for this and ready for the transition, I suggest you do the same :P To all hardcore MT4 fans!

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