When trading, having the right platform can make all the difference. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most often used options in online trading. However, with so many features on both platforms, how can you decide which is best?
For traders, MT4 has been the preferred platform since its launch in 2005. Its simplicity and emphasis on forex trading are well known. For those new to trading or primarily trading forex, MT4 may appear as the best option.
On the other hand, MetaTrader 5 (MT5) is the more advanced, younger sibling. It was released in 2010 and has a ton of extra features. More seasoned traders seeking remarkable accuracy and versatility are drawn to it because of its quicker execution speeds and several order types.
So, the question is: is MT4โs simplicity sufficient, or do you require the extra functionality of MT5? In this article, we will analyse the main differences between these platforms. You will know which platform best fits your trading style.
Overview of MetaTrader 4
Retail traders can access various trading tools and leverage with Metatrader 4. You can use these tools to create and refine an advanced trading algorithm or use the platform your broker offers to day-trade financial products. With a client and server component, traders worldwide can access MetaTrader 4. This indicates that neither MT4 nor any brokerage owns MT4. Brokers use this third-party platform to facilitate trade.
Features
- MT4 gives traders access to various interactive charts showing real-time price fluctuations.
- There is an integrated market in MT4 where you can buy more than 1,700 Expert Advisors and trading robots.
- The platform supports several order types, such as market, limit, stop, and trailing stop orders.
- The platform uses 128-bit encryption to guarantee the security of every transaction.
Overview of MetaTrader 5
With its sophisticated features and extensive capabilities, MetaTrader 5, the much-anticipated successor to the enormously popular MT4, elevates trading to new heights. The robust automated trading platform MetaTrader 5 provides cutting-edge features for profitable trades and analysis in the financial markets. The MT5 platform allows you to trade stocks, CFDs, futures, and forex. Because of its many order types and execution mechanisms, traders can utilise customised trading techniques even when their machine is not online.
Features
- With the ability to alter charts, apply different timeframes, and access 38 technical indicators, traders may understand market patterns comprehensively.
- It offers flexibility in trading strategies and risk management, including IF-DONE orders and OCO (One Cancels the Other).
- A Depth of Market (DOM) feature in MT5 displays the volume of buy and sell orders at various prices.
- With its more modern, updated user interface, MT5 provides a better overall user experience and additional customisation options.
MT4 vs MT5
| Features | MT4 | MT5 |
| Markets Supported | Forex, CFDs, Indices, Commodities | Forex, Futures, Indices, Cryptocurrencies, Commodities, Bonds, Stocks, Options. |
| Order Types | Market, pending, stop, trailing stop | Market, pending, stop, trailing stop, and additional fill policy orders |
| Strategy Tester | Single thread | Multi-threaded, + Multi-currency, + Real ticks |
| Timeframes | 9 timeframes | 21 timeframes |
| Technical indicators | 30 | 38 |
| Email System | Allowed but without attachments | Allowed but with attachments |
| Multilingual Unicode | Does not exist | Exists |
| Programming Language | MQL4 (less complex and widely known) | MQL5 (more powerful and versatile) |
| Economic Calendar | Not integrated | Integrated |
| User Interface | Simple and straightforward | Modern and customisable |
| Depth of Market (DOM) | Not available | Available for better market liquidity insight |
| File ZIP Compression | Not allowed | Automatic |
| Accounting Groups | 512 | Unlimited |
| Risk Management | Hedging | Hedging and Netting |
1.ย ย ย Market Types Supported
MT4: Primarily designed for forex trading, MT4 offers a variety of currency pairs and, depending on the broker, access to CFDs on indices and commodities as well. Its primary strength, though, is FX trading.
MT5: MT5 covers a broader range of markets in addition to forex. With its support for futures, cryptocurrencies, stocks, and commodities in addition to FX, traders may diversify their portfolios on a single platform.
2.ย ย ย Order Types
MT4: The platform allows multiple order types, including trailing stops, market orders, and pending orders (buy/sell limit and stop). It does, however, have few fill policies.
MT5: MT5 features more fill policies, like Fill or Kill and Immediate or Cancel, along with a more excellent range of order types, including all MT4 orders. More flexibility in trade execution is made possible by this variation, particularly in markets that move rapidly.
3.ย ย ย Charting and Technical Analysis
MT4: With nine selectable timeframes and thirty built-in technical indicators, MT4 offers all the necessary charting tools, although its features are pale compared to those of MT5.
MT5: With 21 timeframes and 38 built-in indicators, MT5 improves the charting experience. It also provides more sophisticated analytical tools, like an easier-to-use interface and a more significant number of graphical items, to analyse market patterns.
4.ย ย ย Depth of Market (DOM) Feature
MT4: The lack of a Depth of Market (DOM) feature on this platform restricts tradersโ ability to see order flow and market liquidity.
MT5: The amount of buy and sell orders at various price points may be viewed by traders using the DOM function in MT5. It can help them make better trading decisions by giving them vital market depth and liquidity information.
5.ย ย ย Algorithmic Trading and Customization
MT4: It supports algorithmic trading through Expert Advisors (EAs) composed in MQL4. Automation is made possible by this, but the programming language is limited.
MT5: MT5 allows for creating increasingly intricate and sophisticated EAs because of its improved MQL5 programming language. Because of its improved ability to create personalised indicators and trading methods, MT5 is now the go-to option for algorithmic traders.
6.ย ย ย Economic Calendar
MT4: Because the platform lacks an integrated economic calendar, traders are forced to rely on outside sources for news and events related to the economy.
MT5: An integrated economic calendar in MT5 gives traders up-to-date information on significant economic events that may affect the markets, assisting them in making wise trading decisions.
7.ย ย ย Strategy Tester
MT4: The strategy tester in MT4 is limited to evaluating strategies on a single currency pair at a time, making it challenging to assess strategies across several assets.
MT5: Multi-currency strategy testing is possible by MT5, enabling traders to adjust their Expert Advisors (EAs) across many pairings simultaneously. This can result in more robust trading methods.
8.ย ย ย Hedging and Netting
MT4: With MT4, traders can open numerous trades on the same asset in different directions thanks to its support for hedging.
MT5: MT5 also supports hedging but adds the option of netting, which allows traders to have a single position for each asset, simplifying position management.
9.ย ย ย User Interface
MT4: Beginners may readily use the simple, user-friendly interface of MT4, which makes it a great option.
MT5: By providing a more updated and customisable interface, MT5 generally enhances the user experience. Traders can customise the layout to their preferences, which improves trading performance.
10.ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย ย Performance and Speed
MT4: Although MT4 is a proficient forex trader, its high-frequency trading performance might not be as enhanced as that of MT5.
MT5: MT5 is a good option for high-frequency traders since it provides better order execution speeds and more effective handling of several trades simultaneously.
Which Platform Should You Choose?
When deciding between MT4 vs MT5, the choice largely depends on your trading style, experience level, and the markets you wish to access.
Choose MT4 If You
Focus Primarily on Forex Trading
Since MT4 was created exclusively for forex traders, it is the best option if you are primarily interested in currency pairs.
Prefer Simplicity and Ease of Use
MT4โs intuitive design and simple features make it an excellent choice for beginners who wish to begin trading without a demanding learning curve.
Want a Robust Community
A sizable and well-established community on MT4 offers a wealth of information, guides, and third-party tools to help you along the way as a trader.
Prefer Fewer Features
If you do not need advanced features like market depth or extensive order types, MT4โs more straightforward design might be preferable.
Choose MT5 If You
Trade Multiple Asset Classes
If you want to trade not only forex but also stocks, commodities, futures, and cryptocurrencies, MT5 offers a more comprehensive trading experience.
Value Advanced Features
More timeframes, technical indicators, and a depth of market features are just a few of the enhanced trading tools that MT5 offers, making it appropriate for more complex trading methods.
Are Interested in Algorithmic Trading
MT5 is a superior option for algorithmic traders since it supports the development of more intricate EAs and custom indicators thanks to its MQL5 programming language.
Want Better Testing Capabilities
You may more successfully optimise your strategies using the multi-currency testing and accurate tick data backtesting features of MT5โs sophisticated strategy tester.
Seek Improved Performance
MT5โs improved performance and order processing capabilities can be significant for high-frequency trading or faster execution.
Conclusion
Ultimately, the decision between MT4 and MT5 should be based on your trading style, preferences, and needs. If you are just starting and primarily interested in forex, MT4 is a solid choice. However, if you are looking for a more versatile platform with advanced features that support a more comprehensive range of assets, MT5 is likely the better option. Always try both platforms with a demo account to see which one feels more comfortable and suits your trading strategy best.
