“MT4 or MT5”, which one should I go for now, which one is better and why? These questions confused many new traders, and unfortunately, they could not find the best of their answers all in one place. I compiled this guide that will compare these two platforms in detail and hopefully will help you reach a final decision at the end.
MT4 and MT5 enable seamless forex, stocks, futures, and CFDs trading. MetaTrader platforms enable you to trade multiple orders simultaneously while providing high flexibility and real-time access to market pricing. Using MetaTrader may be advantageous whether you are a novice or a seasoned trader. To get the most out of the MetaTrader platforms, you must first understand when to use MT4 over MT5 and vice versa. Yes, there are indeed some key differences.
MetaTrader 4, also known as MT4, is a sophisticated trading platform that allows users to create and automate complicated trades. It also offers customers a wide variety of indicators to use while placing trades.
It’s notably beneficial for foreign currency (forex) trading, although it may be used in an epic range of markets. MetaTrader is free to download and use.
It has been there since 2005 and is a very popular trading platform. MetaQuotes, a software business, created it. It has many versions, as the name implies, with MetaTrader 4 being the most multiple. While Metatrader 5 was released in 2010, most users have continued to use MT4.
See our how to use MetaTrader 4 guide article for insight on how to utilise the platform and get the most out of it.
MetaTrader 5 is the upgrade of the MT4 trading platform that allows forex and stock traders to automate trading via the use of trading robots, signals, and fundamental research. Web trading, algorithmic trading, mobile trading app, and expert technical analysis are the prominent features of MT5.
Traders using MetaTrader 5 may anticipate future market moves by doing extensive price research and forecasting. Users may use the app to monitor all necessary financial instruments, as well as evaluate short-term price variations and long-term trends.
You may also use the platform to read news stories from worldwide news sources, examine various economic indicators, and estimate their impact on currency prices. Furthermore, it enables traders to place pending orders and conduct full market research using various graphical elements and technical indicators.
Users may also establish protective Take Profit and Stop Loss levels, issue pending orders, and trade using iPads, iPhones, or Android devices using MetaTrader 5.
See our how to use MetaTrader 5 guide article for insight on how to utilise the platform and get the most out of it.
Algorithmic or automated trading entails automating the whole trading process and allowing you to execute profitable trades even while your computer is turned off and you are asleep.
Algorithmic trading is available in both MT4 and MT5, although in distinct ways. MT4 performs automatic trading based on an ordering mechanism. MT5’s automated trading feature, on the other hand, is meant to establish a positional system that enables traders to hold a position for a longer time.
MetaTrader 4 and MetaTrader 5 are not just normal upgrades of one another since they perform entirely separate functions. While MT4 is just for forex trading, MT5 enables you to trade stocks, futures, and forex. However, there are a few areas that MT5 excels at above MT4.
When compared to MT4, MT5 backtesting is faster, allowing traders to evaluate how well a trading strategy would have performed based on previous data.
MT5 provides a wealth of market functionality that assists in calculating supply and demand for assets based on all open buy and sell orders.
Analytics on both platforms is designed to help traders. The analytical tools help traders in making trading decisions by projecting asset price changes.
Both MT4 and MT5 have a simple interface, with a few exceptions:
I think that both third-party platforms provide outstanding charting tools. For example, MT4 has 24 analytical objects that range from charting shapes and arrows to lines and the Gann. MT5 goes one step further yet again, as the platform is home to 44 analytical objects.
When it comes to chart time periods, MT5 is unrivalled. The third-party platform has 21 time-frames, but MT4 only has 9. Having said that, both MT4 and MT5 provide an infinite number of fully customisable charts. This enables you to monitor the price movement of as many assets as you want.
The mobility function on both platforms enables you to be close to your trading system by allowing you to access all of your buy and sell orders by mobile phone.
The mobile app of MetaTrader contains charts, all trading orders, analytical tools, and the ability to track your account status. You may also buy and sell all of your financial instruments in the same way that you would on a personal computer.
Mobile versions of MT4 and MT5 are available for iOS and Android smartphones and tablets. You may access the markets from anywhere in the globe at any time of day with this feature.
Web versions of both MT4 and MT5 are compatible with Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, Opera, and Internet Explorer.
Both MT4 and MT5 are platforms particularly tailored to technical traders who rely on price action and indicators. Both platforms, however, provide essential research tools in the form of financial news feeds.
This includes a broad range of key events, from central bank interest rate adjustments to regional and political happenings. Both platforms also include an economic calendar that shows the date and time of major financial events.
Both the MT4 and MT5 platforms use a nearly identical order execution system. MT4 supports execution on demand, instant execution, and execution buy market.
MT5 includes the four pending orders from MT4 as well as two more, the buy stop limit order and the sell stop limit order.
Orders in MT4 are classified into four pending order types: buy stop orders, buy limit orders, sell stop orders, and sell limit orders.
MT5 has an alternative execution method known as ‘exchange execution,’ which allows you to transmit orders to an external trading exchange.
A trader may get vital and relevant information from the broker through an internal mailing system. The information contains platform features, information about open accounts and orders, upcoming events, and much more. The information is received in the form of emails and displayed on the platform’s Mailbox tab.
Both platforms include an internal email system, while MT5 has an attachment function.
You may only send emails to the trading server’s administrators via the internal mailing system of MT4 and MT5.
Hedging is a risk management strategy that enables you to balance prospective losses by opening a position opposite to your present position. Netting, on the other hand, is the process of lowering financial risks in contracts by merging multiple financial obligations and reaching a net obligation amount.
MT4 enables you to hedge your trades and protect yourself from possible losses.
You may also hedge and net your trades with MT5, protecting yourself from any losses and lowering your financial risk.
Even though both MT4 and MT5 come with several research tools, indicators, and analysis tools, the difference in the number of brokers for the two platforms is huge.
There are more than 1,200 MT4 brokers on the market since online brokers favour this platform over MT5.
In comparison to MT4, there are only a few MT5 brokers.Forex trading for beginners - Follow the experts — 2023
A few brokers offer both platforms, allowing you to move between MT4 and MT5.
Traders in the financial markets use the Financial Information Exchange API (FIX API) to get real-time financial securities information. Traders and market regulators use the FIX API to share information before and after a trade is executed. Through the FIX API, information confirming executed traders and new orders are also shared.
MT4 has FIX API connectivity, allowing you to create strategies and proprietary algorithms to aid in the analysis of forex trades.
MT5 does not provide its traders with a FIX API interface.
A programming language is a computer language designed by software engineers to communicate with computers. This aids in creating machine code output and helps platforms run properly. MT4 and MT5 are both built on their own custom programming languages, with varying customisations and trading capabilities.
MT4 is based on a programming language, MQL 4, making it ideal for novice traders who are not interested in developing their own algorithms for trading methods.
The programming language used by MT4 is simpler and needs just a few steps to create a trading application.
MT5, on the other hand, is constructed on a far more complicated programming language, MQL 5, allowing traders to create their own trading strategies, modify scripts, and do extensive trading analysis.
Unlike MT4, trades on MT5 may be executed using just one function.
Demo trading enables traders to test the platform or their own abilities by placing demo trades without risking real money. It works in the same manner as real trading does, only there is no money involved, and it provides you with a genuine look and feel of how you might use various features of the platform.
Demo trading is available in both MT4 and MT5, providing the trader with a totally risk-free environment.
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Both platforms are outstanding products and a great choice for traders depending on their requirements. They are not perfect, both with their own strengths and weaknesses.
It is best for beginners
A huge list of forex brokers owns MT4
Most Expert Advisor providers opt for MT4
Adequate chart drawing tools and technical indicators exist in MT4
Fewer features in comparison to MT5
Somewhat outdated user interface
When compared to MT4, it provides many more technical indicators, timeframes, visuals, chart drawing tools, and other features
Supports non-forex CFDs as well
Execution modes and order types are quite sophisticated
It is appropriate for experienced technical traders
Beginner traders should avoid it
The MT5 platform is supported by a small number of brokers
In comparison to MT4, the MT5 platform is used by many fewer expert advisor developers
The most prominent difference between MetaTrader 4 and MetaTrader 5 is that the former was created only for forex trading, but the latter also focuses on other trading instruments such as futures, stocks, and CFDs.
Expert technical traders should go for MT5, whilst rookie traders should use MT4, which is far less difficult and user-friendly.
In comparison to MT4, MT5 provides many more complex technical indicators, visuals, charting tools, and timeframes. It also has a number of additional execution modes and order types.
The MetaTrader 5 platform allows for quick and seamless trading of forex stocks, futures, and CFDs. It gives newbie traders real-time access to the asset values. However, learning how to trade using MT5 might take some time, so it is preferable to start with MT4.
The MT5 deposit for a regular account is little, and the precise amount depends on your forex broker. With this account, the trader has access to all available assets, including CFDs, cryptocurrencies, indices, stocks, futures, and more. Logging into the trader’s room dashboard, scrolling down to the account in which you want to deposit funds, and clicking the ‘deposit’ button make it simple to add funds to your live MT5 account.
Yes, MetaTrader 5 is better than MetaTrader 4 since it provides a wide range of trading features. Furthermore, it provides a wider variety of tools for predicting market movement as well as a quicker processor, making trading a more efficient process. MT5 is also superior in comparison to MT4 in that it enables traders to manage various types of assets in their portfolio, including CFDs, stocks, and forex, on a single platform.
A new MT5 edition is a strong software with enhanced tools for stock trading and order management. The MT4 platform, on the other hand, includes more robust features and tools for forex trading. The little change between MT4 and MT5 makes MT5 a more powerful and efficient software in general.
The new MT5 version is unquestionably more powerful and efficient than MT4, but it cannot completely replace MT4 since the two platforms are used for different reasons. While MT4 is just for forex trading, MT5 allows you to trade multiple financial instruments with a single account, including forex, stocks, commodities, cryptocurrencies, and indices.
MetaTrader 5 is an easy platform to install. It has a basic and user-friendly layout that makes it easy to access all commands from the main menu, with the most often used displayed on the toolbar. The Market Watch provides stock market quotations as well as quotes for other instruments, while the Navigator provides algorithmic trading tools and management of technical analysis.
Opening a demo account is likewise pretty straightforward, requiring just the selection of a trading server and the entry of registration information.
Because the MetaTrader 5 platform is built on a distributed architecture, it is resistant to hacker attacks. Data exchange between the system components is transmitted over an encrypted link. The accounts are safeguarded by built-in advanced authentication systems. All system databases are securely protected and provided with backup and recovery options.
In conclusion, both MT4 and MT5 serve almost the same roles with different names. That is, both platforms are perfect for those of you who want to do sophisticated technical analysis and implement unique trading strategies. Both platforms provide complete support for forex EAs and robots and are available as desktop software, web browsers, and mobile applications.
Having said that, MT4 is likely the better option if you are a beginner forex trader since it is compatible with over 1,200 forex brokers. When it comes to automated trading, MT4 shines out since most developers prefer it over MT5.
On the other hand, MT5 may be a better option if you want to take your technical analysis and research to the next level and trade non-forex CFDs. You will have access to additional indicators, drawing tools, execution types, and orders.
You must select a suitable broker regardless of the third-party platform you use. Some brokers support both MT4 and MT5 in this regard.
MT4 and MT5 are two distinct platforms, each serving a specific purpose. As such, there is no reason to assume that MT5 will ever replace MT4. On the contrary, MT4 is still used by the majority of online brokers.