MT4 vs MT5 comparison: which is better?

Two of the most widely used trading platforms worldwide are MetaTrader 4 (MT4) and MetaTrader 5 (MT5), each with special features and functionalities. The main distinctions between MT4 vs MT5, including cost, learning materials, third-party integrations, security features, compatibility, and transitioning between the two systems, will be examined in this post.

What is MetaTrader 4 or MT4?

The most popular forex trading platform in the world is probably MetaTrader 4 (MT4). It is a part of the MetaTrader trading platform suite, which was created by Meta Quotes Software Corp. Since its 2005 inception, MT4 has gained recognition for its extensive array of integrated technical indicators, customizable features, programming language, automated trading, and advanced analytical tools.

MetaTrader 4 is a third-party trading platform that links to a forex broker for forex trading; it is not a broker. Whether you want to utilize MT4 or MT5, you still need to pick a good forex broker.

What is MetaTrader 5 or MT5?

The next-generation trading platform, MetaTrader 5, is the replacement for MetaTrader 4. As long as your forex broker has paid to license the platform for its customers, MT5 is free to use, just like MT4. Even though the two platforms seem the same, multi-asset traders who want to trade commodities, equities, CFDs, futures, options, and bonds may find that MT5’s greater selection of tradeable instruments better suits their needs.

The MQL5 programming language, more graphical objects and indicators, more statistical functions, an improved version of Strategy Tester, and the capacity to hedge and net transactions are just a few of the more sophisticated tools and features that MT5 provides.

Objectives and Market Access

MT4 was developed specifically for fiat currency trading. It offers a wide range of tools designed to facilitate efficient forex transaction execution and currency market research. To accommodate different trading methods, MT4 offers a variety of order types, comprehensive charting with multiple time frames, and real-time price quotations. Numerous currency pairs are supported. Both newcomers to the forex market and experienced traders seeking reliable and straightforward features can benefit from its user-friendly layout.

MetaTrader 5 improved that much more. Several asset kinds are available for trading on this platform. Because they may access many financial markets from a single platform, its customers can diversify their portfolios across a range of asset classes. By linking to both controlled exchanges and over-the-counter markets, MT5 offers insights into order flow and market liquidity. There are tools like the Depth of Market tool. This is especially helpful when trading stocks and futures, where knowing the depth of the market is crucial.

What is the main difference between MT4 and MT5? 

The most significant difference between MetaTrader 4 and Metatrader 5, is that the former was created only for forex trading, while the latter also concentrates on other trading products such as stocks, futures, and CFDs.

MetaTrader 4 (MT4) vs MetaTrader 5 (MT5) Tabular Comparison

Feature	MT4	MT5
Markets	Forex	Forex, stocks, futures, bonds, options
Executions	Execution on request, execution by market, instant execution	Execution on request, execution by market, instant execution, exchange execution
Orders	Buy/sell stop orders, buy/sell limit orders	Buy/sell stop orders, buy/sell limit orders, buy/sell stop limit orders
Timeframes	9	21
Graphical Objects	31	44
Technical Indicators	30	38
Economic Calendar	No	No
Community Chat	No	Yes
Risk Management	Hedging	Hedging and Netting
Strategy Tester	Single-thread strategy tester	Multi-thread strategy tester
Programming Language	MQL4	MQL5

Although MT4 has been adequate for Forex-focused trading, MT5’s sophisticated features make it the best platform and a vital resource for traders looking to participate fully in international financial markets.

Tradeable instruments

The list of assets you can trade is determined by the broker you choose, not by MT5 or MT4. Forex, commodities, energy, exotic Forex pairings, equities, and indices are just a few of the asset types you can trade at FBS.

Technical indicators

With 38 integrated technical indicators, MT5 raises the bar and offers more profound insights into market trends and directions. A wide range of custom indicators, both free and paid, that are suited to complex trading techniques and advanced analysis are also available to traders utilizing MT5 through its Code Base and Market.

On the other hand, MT4 comes with 30 built-in technical indicators in addition to over 700 paid indicators from the Market and almost 2,000 free custom indicators from the Code Base. Although this might be adequate for simple analysis, MT4 appears to be fairly restricted and out of date for modern trading requirements because it lacks the more advanced capabilities and extensive features that MT5 offers.

Trading orders

With six different kinds of pending orders, MT5 offers a more advanced order management system that expands traders’ strategic possibilities. MT5 adds two new types: buy stop limit and sell stop limit, to the four types provided by MT4: buy stop, buy limit, sell stop, and sell limit. The improved capability of MT5 is reflected in these additional options, which enable more accurate entrance and exit tactics.

Mobility and Usability

There are three versions of the MT5 and MT4 platforms: desktop, mobile, and browser.
Desktop: Linux, macOS, and Windows
Mobile: iOS, Android
Browsers: Internet Explorer, Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, and Opera

Both MT5 and MT4 are very similar in terms of design and usability. The main menu is slightly different, but the most commonly used features remain the same.

MetaTrader 4 Pros & Cons

Before choosing between MT4 and MT5, traders should weigh the advantages and disadvantages of the MT4 trading platform, which are listed below.

Pros

1. 24/7 market access through VPS hosting for algorithmic trading API trading
2. The most adaptable trading platform
3. Mobile trading, copy trading, and MAM/PAMM accounts
4. Broad accessibility

Cons

MT4 support was discontinued by MetaQuotes because of its outdated user interface.

MetaTrader 5 Pros & Cons

The following lists the benefits and drawbacks of MT5 over MT4, which have many commonalities with MT4.

Pros

1. Additional time periods
2. Additional technical indications
3. Additional graphics elements
4. Enhanced capacity for backtesting.
5. A calendar of integrated economics
6. Additional order types
7. Policy for partial order fills
8. Emails that contain attachments

Cons

1. Reduced improvements,
2. Limited availability 

Which is a Better Platform for Beginners?

Beginners should think about MT5 as backward comparability is practically an option, unless they want to utilize any of the 25,000+ MT4 custom indicators, templates, and EAs that aren’t accessible on MT5. Both trading platforms guarantee that traders have the resources they need.

In conclusion

Realizing the differences between MT4 and MT5 can help you select the platform that best suits your trading goals. MT4 is still a reliable and powerful choice for forex traders; MT5 offers additional capabilities for individuals who wish to trade multiple assets. You may increase your trading success and make an informed decision by carefully examining the specific features and tools offered by each platform.

At Launchfxm, We assist you to start or expand your own brokerage by acting as a one-stop service provider of every kind of knowledge and related assistance that may be required.

A Trader’s Perspective

The majority of experienced traders will tell you that their only requirements for a trading platform are that it be dependable, simple to use, intuitive, and crash-free. They will also tell you that Meta trader 4 is functional enough and enables them to simultaneously monitor their charts and transactions, despite a few irksome aspects. Since almost all brokers provide access to Meta trader 4, the platform-centered advertising and Meta trader evaluations are essentially gimmicks that should be ignored because choosing a broker is much more significant than choosing a platform.