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What is the Difference Between MetaTrader 4 and MetaTrader 5 – mt4 vs. mt5?

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mt4 vs mt5 difference – Should I use MT4 or MT5?

Metatrader is the most famous and the most used platform for forex and CFDs trading. There are two versions of this platform that we will compare: mt4 vs mt5 forex platforms.

MT5 MT4 difference
Metatrader 5 was designed to be able to trade into a centralized trading exchange, to trade markets such as stocks and commodities. Metatrader 5 automatically aggregates all positions and it is designed for the USA market (accept FIFO rule).In simple words, MetaTrader 4 can deal with hedging and Metatrader 5 can not deal with hedging. MT5 is designed to attract non-Forex markets and USA markets and Metatrader 4 to specialize for Forex, Indices, and major stocks. The MT5 platform is based on a programming language called MQL5 and Metatrader 4 platform is based on MQL4 language (different programming languages).

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As it seems the traders are given a choice to make MetaTrader 4 vs. 5 while opening an account. Brokers can also make this decision. It’s up to the individual broker to make a decision for selection between MetaTrader 4 and 5 that must be accessible to traders or should support the MetaQoutes terminal platform. Users are having usage experience of MetaTrader 5 (MT5) willing to make use of MetaTrader 4 (MT4). Most of the traders make use of most famous and older one platform known as Mt4, MetaQoutes has stopped introducing variations in their platforms, but has not made criticism or compel brokers to purchase a license for MetaTrader 5. Brokers who are keen on getting the issuance of MT4 License, MetaQOutes clogged the issuance of a new MT4 License to those brokers on January 12, 2018, which means that these brokers have to make use of another platform or can accept MetaTrader 5. Decisions can become complex when there is an insufficient provision concerning the server capital for the existing Mt4 License Holders. Having this perspective, let’s make a detailed study of two types of terminal regarding their languages correspondingly.

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mt4 vs. mt5

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MetaTrader 4 vs. 5 deals with the substance of acquaintance, how much simple or easy to use, and all MQL languages.
MetaTrader 4 vs 5 (MT$ vs MT5) Languages (MQL4 vs MQL5)
MetaTrader 4 was introduced globally in 2005 whereas MetaTrader 5 released in 2010. Language has similar syntax along with the prominent and major changes in keywords that distinguish both and make it hard for an MQL4 file to function in MT5 smoothly and vice-versa of it as it implements the MQL5 and MT4.

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MQL4 and MQL5 have many similarities with the programming language, C++. MQL4 has maintained its position or popularity in the industry even after the release of MQL5, which has helped a lot in distinguishing the programming language.
However, this feature makes the MQL4 and MQL5 interesting and offers a flat contest to everyone because the programming language is such as which requires updates to programming languages like Python or Ruby. Variation in MQL4 and MQL5 give a meaning of going beyond the side of marketing from the MetaQoutes platform which is the major source of the promotion set it and forget it kind of tactics to make a trade with “robots” (Expert Advisors) and custom indicators. This kind of elevation creates hurdles for newcomers who just found out that their MT4 version has been updated or would find that their MT5 version will be updated and they seem like a real victim of the never terminated Software Development Life Cycle.
There will be no updates in MQL4, but there shall be continuous variation in MQL5. It will reduce the hurdles for newcomers who want to enter in MetaTrader 4. It all deals with the game of Relaxed and Comparative Limitations in Competence vs. Stimulating and Vigorous Aptitude.

Pros and Cons of MetaTrader 4 vs. 5 (MQL4 vs. MQL5)

MetaTrader 4

Advantages
There will be no variation regarding updates due to which no need to change or alter the programs comprise of new versions.
Expert Consultants and Indicators are independent to choose a file from the .mq4 file, and the — ex4 file for implementation.
MQL4 is of many benefits as it has seen that many brokers make use of MT4.
It’s pretty easy to code. An expert Advisor can make it is short and make a structure with ease.
Disadvantage
Variation in currency competences.
No circumventing proficiencies.
Overall, it is limited to the skills and capabilities that a terminal maintains.

MetaTrader 5 (MQL5)

Advantages
Language proficiency is improved by bringing some variations.
A rapid change in language syntax with the advancement in terminal technologies is a plus.
Hedging abilities.
Currency variation skills.
More stipend for more complexity.
Disadvantage
In the case of transitioning from MQL4, this is considered as the most difficult and complex language.
Libraries are important.
One expert can handle many libraries and the files attached to it.
Not anything is independent.
Most of the individuals are familiar with MQL4 are now moving towards MQL5 because MQL5 has more features and capabilities that are required at this time concerning the language structure and efficient building structure of programs compel others to learn a complex one as compared to the simpler one that is of no worth.
MQL does not demand a new programmer in mind, but it is a basic object-oriented language.
Languages can vary a little bit in their structure and syntax, of course, it demands to learn things from the very beginning while moving from MQL4 to MQL5. It is an impossible task for those people who try to convert .mp4 file in MetaTrader 5. Conversion tools fail in case of binding the huge divide concerning the code structure between Meta Trader4 and MetaTrader5. This is the matter where the structure of different files .mqh and .mq5 have to be made or sometimes various mq5 files to carry out the same task, but the real code is more vigorous incompetence, more important in backtesting.

MetaQoutes software has given an overview of MetaTrader 5 for almost seven years ago, but some traders exist who prefer to work on MetaTrader 4. There is a contrasting criticism on MT5 by the market contributors who say that MetaTrader is comparable to MT5 in its all functionalities. Then what is the major difference between MT4 and MT5?

Expert Values

MetaTrader basically designed for “over the counter” Forex tools like CFD whole, on the other hand, MetaTrader 5 was made for the stock instrumentation including shares, geographies and some other offshoots.
MetaTrader 5 platform has been made for the index of RTS standard interchange

Standards of opening positions
MT4: hedging – a lot of the transactions can be made by the trader that comes under the umbrella of multidirectional for the same tool and at the same time with the addition of the place, one-direction trades. Traders know well about this process because this method involves reducing risks.
MT5: netting – the trader can make a trade of instruments in a single direction while multidirectional positions are not permitted.
A trader is allowed to open an account in MT5 and trade instruments too; except stock unavailability at this account.

Market Depth
MetaTrader 5 delivers market depth with the exchange of instruments that are being traded while from the other perspective MT4 only gives a chance or an opportunity to make deals with the resources in the ECN system like OTC. Both give an opportunity to traders to make a clear analysis of orders that how much have to deliver and how much have to buy, measure capacities of the gadgets, and deals with two types of trading functions:
Sell/buy instruments with the exchange of money at the spot

Place trading orders – remaining or pending orders to sell/buy a substituting tool at the fixed price
Market depth in MetaTrader 5

market depth in MetaTrader 5

Market trade seems best to scalpers, traders who desire to perform high but a full risk trading because of market depth boost up the presentation of many people. Experts often make use of some special kind of trading tools for carrying out the processes.
Tester of strategies
MT5 gains multi-tasking and significant tester, who can execute the function by testing a portfolio, which grabs the attention of traders dealing with the standard market equipment. Quotes history can be recovered or downloaded in the terminal.
Testing results appear as a chart
MetaTrader 5 tester is given in MQL Cloud Network with the limitless contribution to make a calculation using tens of thousands of consistent PCs. A trader can only get this function if she/he has installed a special kind of application strategy Tester.

MQL4 vs. MQL5
MQL4 and MQL5 distinguishable from each other on the level of programming language platform. MQL4 is a language (MetaQoutes Language 4) basically used for machines, writings, and pointers used in MetaTrader 4. This language has limited scope as compared to the other languages, as it can be seen that this language is used for basic level calculations or simple commands.
MetaTrader 5 has a major focus on MQL5 language that is brand new, more significant and much closer or similar to the object-oriented C++. The syntax makes programming language easy to operate for developers: a trader can write code or can make changes in it, pointers, and vigorous interchange by using MQL5 language under the platform of MetaEditor, as the language gives the countless opportunities.

MetaEditor – multi-tasking editors are available for the development and adjustment of trading robots and pointers
Custom advisor and trading advisors should learn to track the activities of a computer mouse and keyboard pointer, in case interrelating with some peripheral devices a special thanks or homage to the program installed in MQL5 for the event processing. MQL5 official website contains every kind of library, templates and most popular functions that are used frequently.

Conclusion: Is MetaTrader 4 or 5 better
For me, Metatrader 4 is better because of simplicity, large number Eas and indicators, and the fact that most brokers use this platform.
A time tested platform that is simple to use as compare to others with extra functionalities, basically considered for the Forex equipment, CFDs, and some other OTC byproducts.

Market Execution vs Instant Execution

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MT4: Market Execution vs Instant Execution

Have you ever used the MT4 platform? Do you want to have a better idea of MT4 market execution vs instant execution?

What is Market Execution in forex?


Market execution is a type of execution in which the client places an order and specifies only the volume. If an order can not be executed than the broker will execute the order at the next available price.

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What is Instant Execution in forex?

Instant execution meaning: Instant execution is a type of trading execution when a client is placing an order and specifies both volume and price and the order should be processed instantly. The broker can reject the instant execution of the order and respond with a requote. Prices in instant execution are predefined. The trader can set stop loss and take profit levels before opening a trade.

instant execution in mt4

Mt4 instant execution explanation

Instant execution brokers
For example, instant execution broker Hotforex has the option for clients that can close and manage orders over the phone with the Execution trading desk when necessary.

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When the STP brokers use market execution, the dealing desk brokers are known for using instant execution. You might find it more profitable since it offers more options and flexibility. Here you do not need to wait to establish your position to place the stop loss. In this type, you can set the stop loss and can also place take profit orders while entering the trade. Instant execution forex example :

When a client places an order and specifically selects both the quantity and the price the order should be processed immediately. This model is known as instant execution. If a price were to change instantaneously, a broker would have no power to change the execution price. He does, however, have the power to reject the execution and respond with a requote.

This requote can be accepted or denied. This type of execution is generally utilized by market maker brokers. Instant execution utilizes what is known as a specified spread. This spread is larger than the real market spreads. Since some trading mediums do not support the Depth of Market or DOM the instant execution model is used. In market execution, it would be opportune to explain to prospective clients why the price of an executed order is higher than it was when the order was placed. This would be especially noticeable in large quantities of thirty lots or more. The causes of this are that defined bidding and asking prices are constituted only in defined quantities on the market. The orders of large quantities will be filled according to the quantities of prices that are available. However, there is not anything that averts brokers from utilizing market execution without DOM and computing the price for their clients using their own exclusive algorithm. A broker utilizing instant execution may also experience some obstacles when placing trades at large liquidity providers (LP). This difficulty is linked back to the DOM since nearly all LPs utilize the market execution model.

The main obstacle seems to be due to the fact that the LP that uses market execution can not ascertain a specific price for a broker but the broker must ascertain a price for the client. A potential solution for this issue is to simulate instant execution in the market execution environment with the use of implementing limited orders. Respectively, the limited order would ascertain the execution of a fixed volume at a fixed price. So by placing an order limit with a limited timeout period, we will be able to ascertain execution by the requested price. Although this solution can’t be used for the issue with orders of large quantities. If there are not adequate quantities by the requested price in the DOM the orders can not be filled. This will cause an increase in the amount of requotes for a broker’s customers.

This will also affect the quantity of execution. When a client places an order and only specifies the volume this is known as market execution. The asking price of a product is computed during the process of execution. The main factor that differentiates market execution from instant execution is that a broker can not reject the customer’s request in the event of a price change. The broker will instead fill the order with the present rate. The final price is calculated by taking the necessary quantity available by the prices from the DOM. The majority of the LPs and A-book brokers (STP / ECN), work in accordance with this concept.

Can One Use Both?

Yes, one can use both. However, you can be easily confused when you have different types of execution. If you mostly use instant execution, then it might be hard for you to enter a trade without placing your stop loss. It is worth mentioning that trading without placing stop loss is not going to be easy.

We can learn from the example of Trader John, A scalper. He was used to trading with instant execution. However, Broker A suddenly changed the execution-style making it difficult for him to place stop loss and take profit while entering a trade. This sudden change caused troubles to the scalper, John. He relied on small spikes. But if the price goes off quickly, he will be left with no choice except to lose a major amount and that can affect his account adversely.

Even expert advisor programmers can face this problem while considering market execution. They first need to get in a trade and then the program can set stop loss or profit levels. It can cause problems in the actual creation and execution of the trade.

So, do your research before considering any of these options. You can first try demo trade to know how a broker executes a trade. You cannot afford all your hard-earned money by simply saying that “I had no idea”

Common Error on MT4

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There are a lot of errors in the Metatrader platform. Most often we can see “Common error” (error number 2) in the Metatrader platform.
The common error in the left down corner of the Metatrader platform is a signal that there are connection problems between platform and server account.
common error in metatrader platform

How to fix “Common error” in mt4:
1) Check the internet connection. There can be a problem with Wifi or cable internet or some anti-virus software for some time or any Internet security programs block internet connection of Metatrader and online server.
2) Enter the username, password and IP server address when you log in into Metatrader.If the internet connection is fine then the problem is login parameters. If username and password are OK very often the problem is the server IP address.
Inter to pick “Real 1” or “Demo” server you need to put full IP address (hotforex IP addresses example ).

Trading made simple

How to Login

Step 1: Open your MetaTrader 4 terminal.
Step 2: Click on file at the top left corner of the platform.
Step 3: Select login.
Step 4: Enter your login details.
Step 5: Enter the IP address (ask your broker for IP if you do not know) in the ‘server’ field.
Step 6: Click login.

type server IP in metatrader
If you do not have an IP address ask broker support to give you. Just ask them for example: “What is IP for Live 4 server? Then, they will help you.
This is something that very often we can see when we have problem to log in out Metatrader account.

Except “Common problem,” there are a lot of MT4 errors.
Please see the list of the most common errors in Metatrader platform:

Trading made simple
ErrorError IDDescription
ERR_NO_ERROR0No error returned.
ERR_NO_RESULT1No error returned, but the result is unknown.
ERR_COMMON_ERROR2Common error.
ERR_INVALID_TRADE_PARAMETERS3Invalid trade parameters.
ERR_SERVER_BUSY4Trade server is busy.
ERR_OLD_VERSION5Old version of the client terminal.
ERR_NO_CONNECTION6No connection with trade server.
ERR_NOT_ENOUGH_RIGHTS7Not enough rights.
ERR_TOO_FREQUENT_REQUESTS8Too frequent requests.
ERR_MALFUNCTIONAL_TRADE9Malfunctional trade operation.
ERR_ACCOUNT_DISABLED64Account disabled.
ERR_INVALID_ACCOUNT65Invalid account.
ERR_TRADE_TIMEOUT128Trade timeout.
ERR_INVALID_PRICE129Invalid price.
ERR_INVALID_STOPS130Invalid stops.
ERR_INVALID_TRADE_VOLUME131Invalid trade volume.
ERR_MARKET_CLOSED132Market is closed.
ERR_TRADE_DISABLED133Trade is disabled.
ERR_NOT_ENOUGH_MONEY134Not enough money.
ERR_PRICE_CHANGED135Price changed.
ERR_OFF_QUOTES136Off quotes.
ERR_BROKER_BUSY137Broker is busy.
ERR_REQUOTE138Requote.
ERR_ORDER_LOCKED139Order is locked.
ERR_LONG_POSITIONS_ONLY_ALLOWED140Long positions only allowed.
ERR_TOO_MANY_REQUESTS141Too many requests.
ERR_TRADE_MODIFY_DENIED145Modification denied because an order is too close to market.
ERR_TRADE_CONTEXT_BUSY146Trade context is busy.
ERR_TRADE_EXPIRATION_DENIED147Expirations are denied by broker.
ERR_TRADE_TOO_MANY_ORDERS148The amount of opened and pending orders has reached the limit set by a broker.

Prohibited by FIFO rule – close trade in Mt4 – problem fixed

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What does prohibited by FIFO rule in mt4 mean ?
The full explanation you can read in detail in our article Prohibited by FIFO rule.
Sometimes when you try to close a trade in the Metatrader platform you will get this error message in the journal tab (mt4 error from journal tab in Metatrade platform): “Prohibited by FIFO rule”. Using the Mt4 platform as FXCM for example, you can see this problem very often especially if you are a frequent trader.

Cause :

Make the trade

First In First Out simply means that when you have multiple positions in the same currency pair, the position which was first opened will be the first to be closed. This execution process is the common practice in the US equities and futures markets.


sort mt4 postions by timeHow to close a trade and fix the problem :

Step 1 : Sort trades by opening time.
step 2 : See the oldest position
Step 3: Close the oldest position and then the second opened position, etc.

If you want to avoid this problem pick the Mt4 brokers platform which allow hedging (hedging is not prohibited) and platforms that do not have FIFO rule. Accounts without FIFO rule you can find at non USA brokers. For example, I had fxcm prohibited by the FIFO rule problem a few years ago and I fixed using this strategy.

Metatrader ex4 write error after Windows 10 upgrade – solved

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After 7 days – problem is solved and fixed!
After I upgraded Windows 7 to Windows 10 I started to use Metatrader. I created expert advisor EA, and after compiling I got : “ex4 write error”.
After that I tried to compile a lot of indicators and EAs and all of them showed the same – ex4 write error.
What this means :
1) Your disk is full and you can not write files. (in my case I have 10GB free.)
2) Folder permission doesn’t allow writing. (in my case everything is fine)
folder security permission
If you see that MQL4 folder allow for system and administrator to write files this is not problem.You can check this if you press in Metatrader (mt4) : File/Open File Folder and than in MQL4 folder you press Properties than go to Security /Advanced and see write permissions.

3) Metaeditor has bug. (This is problem in my case)
On Novemeber 12, Metatrader got new version. 4.00 Build 910. In this version Metaeditor has problem to write compiled files. It will be fixed in next days but meanwhile you need to fix problem.

Make the trade

Solution :
Copy metaeditor.exe file from older version to new version. This is all !!!
In attach you can download version which I use. This is only metaeditor.exe file which you need to copy in installation folder.

Please check new versions of mt4 and mt5 and check article about mt4 vs mt5.

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