What is MetaTrader?
MetaTrader is a popular trading platform. Traders use it to buy and sell financial assets. Also, they prefer it because it has powerful tools for charting and technical analysis. It supports automated trading and works on any device from anywhere. Well, it has two versions – MT4 and MT5.
MetaTrader 4 (MT4) has been the go-to platform for traders worldwide for many years but MetaTrader 5 ((MT5) provided improved features and capabilities. Now, traders may want to compare MT4 vs MT5 to decide which one is the best for your trading style.
This blog will discuss both these platforms in detail and compare them to help you understand which one you should use.
What Is MT4?
MetaTrader 4 (MT4) – developed by MetaQuotes Software and launched in 2005 – is used for trading in the Forex market. Moreover, it supports other markets too such as CFDs, commodities, and indices.
Also, it provides automated trading through Expert Advisors (EAs). You can use real-time charts and access technical analysis tools. All in all, MT4 offers everything you need to execute trades effectively.
What is MT5?
MetaTrader 5 (MT5) was launched in 2010. It is the successor to MT4. Its goal was the same as MT4 i.e. to provide traders with a reliable and user-friendly platform. So, what is MetaTrader 5? Well, MT5 is much more advanced than MT4. It is better in terms of features, charting & automated tools, and overall performance. Moreover, it was made to handle more financial instruments apart from Forex trading such as stocks, bonds, futures, and other other instruments.
MT4 vs MT5 – Key Differences Between Both Platforms
User Interface: Easy Navigation vs Extra Features
MT4 is simple and easy to use. It has a clean layout with basic charts and all tools placed in easy-to-access areas. Most traders are already familiar with it as it has been in use for many years now. So, learning MT4 is also easy; therefore, it is great for beginners.
On the other hand, the MT5 version has a more advanced interface with extra features. You get additional windows due to that. There are more charting tools and built-in market analysis features too. Resultantly, it may feel complicated initially but these extra features prove to be helpful for experienced traders.
Moreover, MT5 supports more timeframes and provides better graphics. Thus, it is great for traders who need a broader view of the market.
Market Availability: Forex vs Other Assets
The main focus of MT4 is forex trading. So, it is fine for you if you are only trading currency pairs. It supports all the major and minor pairs. However, MT5 supports forex but also includes trade stocks, commodities, futures, and even cryptocurrencies.
Order Types and Trading Tools
MT4 version offers market, pending, and stop-loss orders i.e. the basic order types. It has all the tools you need for regular forex trading but does not support more advanced order types.
Whereas, MT5 adds more advanced order types like “Fill or Kill” and “Immediate or Cancel.” These features are useful for professional traders. Furthermore, it also supports more execution methods so that you have more flexibility in fast markets.
Speed and Execution
MT4 does a great job with quick order execution. This is why it remains a popular choice for many traders. However, MT5 is faster due to its more advanced technology. It can support your need for fast order execution or to handle a lot of trades quickly.
Timeframes and Charting
MT4 offers basic charting tools but only supports 9 timeframes. This can be limiting if you need more detailed data or want to look at a broader view of the market. Talking about MT5, it improves on this with 21 different timeframes and 100 charts. This also includes tick charts and 2-minute charts. This variety of timeframes gives you more options for analysis in scalping or day trading.
Indicators and Customization
MT4 and MT5 come with many technical indicators. However, MT5 offers more built-in options and includes an economic calendar for traders who follow fundamental analysis.
Well, MT5 is better for customization too with a more advanced and faster coding language (MQL5).
Multi-Device Support: Trading On The Go
MT4 and MT5 both have mobile apps that are user-friendly and include most of the features available in the desktop version. However, MT5’s mobile app is slightly more advanced. It has features like an economic calendar and news updates. So, traders can stay informed at all times.
Broker Compatibility
Many brokers offer MT4 as their default platform (especially for forex traders) and is still the most widely used. MT5 has advanced features but has not been adopted that much. Well, some brokers support both but MT4 is a more common choice.
Thus, some brokers and automated trading systems are still more compatible with MT4. Therefore, you might face limitations with MT5 if you rely on specific third-party tools.
Backtesting and Strategy Testing
They both offer backtesting of trading strategies. However, MT5 offers more advanced features. You can test strategies across multiple currency pairs and optimize strategies better. Professional traders get faster and more detailed backtesting. Well, MT4 is still good for backtesting but has fewer options.
Security Features
Both use strong encryption to protect your personal data and trades. However, MT5 has more advanced security protocols. It is more secure for larger amounts of capital or complex strategies.
| Feature | MT4 | MT5 |
| Year of Release | 2005 | 2010 |
| Market Instruments | Primarily Forex and CFDs | Forex, Stocks, Commodities, Futures, CFDs |
| Order Types | 4 types (Market, Limit, Stop, Stop Limit) | 6 types (Market, Limit, Stop, Stop Limit, Buy Stop Limit, Sell Stop Limit) |
| Charting & Timeframes | 9 timeframes, 30 indicators | 21 timeframes, 38 indicators |
| Automated Trading | Expert Advisors (EAs) | Improved Expert Advisors (EAs) and better speed |
| Fundamental Analysis | Limited to news feeds | Built-in Economic Calendar |
| Speed | Fast but limited features | Faster execution and more features |
| User Interface | Simple & easy to use | More complex but still user-friendly |
| Multi-Asset Support | Focused on Forex | Forex, Stocks, Commodities, and more |
| Backtesting | Limited backtesting options | Advanced backtesting and optimization |
| Community Support | Huge and with many resources | Growing community but is newer |
| Hedging vs. Netting | Supports hedging | Uses netting (by default) & hedging |
| Depth of Market (DOM) | Basic | Advanced DOM |
| Server Infrastructure | Single-threaded | Multi-threaded MT5 is more efficient for handling multiple trades |
| Regulatory Compliance | Less preferred by regulators | Meets modern regulations so MT5 is better suited for stocks and futures due to compliance |
| Broker Availability & Cost | More widely available, lower costs | Fewer brokers support it due to licensing and market demand and has possible higher costs as some brokers charge higher commissions on MT5 due to additional features. |
| Programming Language | Uses MQL4 | Uses MQL5 |
MetaTrader 4 vs MetaTrader 5 Advantages
Advantages of MT4
- MT4 is made to be intuitive so you can learn how to use it quickly.
- MT4 is known for its stability and reliability.
- It can run smoothly on most devices.
- Its performance is top-notch for executing trades quickly.
- MT4 has automated trading through Expert Advisors (EAs). So, you can set up to automate your trades according to specific strategies.
- MT4 has been used for many years so it has a large community of traders and developers who provide tutorials, strategies, and tools.
- The platform takes up very little space on your device. It is fast to install too.
Advantages of MT5
- MT5 has more advanced features and is feature-rich.
- MT5 supports a wide range of assets apart from Forex trading.
- MT5 offers advanced backtesting tools for testing trading strategies. You can test them with a more comprehensive set of data and fine-tune your approach.
- MT5 has a built-in economic calendar.
- MT5 offers faster execution speeds for orders so your trades are filled quickly in high market volatility too.
MT4 vs MT5 – Which One Should You Choose?
MT4 vs MT5 – the choice depends on your trading style, requirements, goals, or preferences. MT4 is great if you are a beginner or if you focus mainly on Forex trading. In summary, it is simple, stable, and with all the tools that you need for trading successfully.
However, MT5 is right if you need more advanced features and better automation tools. MT5 offers more powerful capabilities for EAs. Also, you can trade multiple asset classes in the MT5 version. All in all, it offers greater flexibility, speed, and more tools for experienced traders.
Conclusion
So, what is MT4 and MT5? They both are great trading platforms. MT4 remains popular as it is simple and stable. On the other hand, MT5 is the future of online trading because it offers more features and flexibility.
Try them both and choose the one that best fits your trading strategy. However, no matter which MetaTrader platform you use, high-performance and secure Forex VPS hosting is a must. Cantech offers top-notch MetaTrader VPS hosting solutions. We prevent system slowdowns and maintain a strong network with stable server uptime to make trading super-speedy. Trading involves high risk and market ups and downs so the right setup is necessary to avoid losses. Learn more today!
FAQs
Can I use MT4 and MT5 on my mobile?
Yes, MT4 and MT5 have mobile apps so you can trade on the go. However, the MT5 mobile version is a bit more advanced. It has extra features such as an economic calendar, integrated news updates, etc.
Can I use both MT4 and MT5 at the same time?
Yes, you can use both at the same time but separate accounts are needed if your broker supports them. In that case, you can trade different assets or try both platforms to see which one works better for you.
Which platform is faster – MT4 or MT5?
MT5 is faster with better order execution speed and better high-frequency trading handling. It can manage more trades and complex strategies due to its advanced abilities.
Can I trade cryptocurrency on MT4?
No, MT4 does not support cryptocurrency trading. However, MT5 has a range of assets and that includes cryptocurrencies like Bitcoin and Ethereum.
