MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are among the most widely used trading platforms today, each providing distinct features and capabilities. But how to select the option that suits you best? It’s important to understand their basic characteristics. This article will explore the difference between MT5 and MT4, helping you make a reasoned decision based on your trading style, preferences, and goals.
What is the MetaTrader platform?
MetaTrader is the world's leading trading platform used for trading financial markets such as forex, stocks, futures, and other assets. Since its launch, MetaTrader has earned the trust of traders and investors due to its high reliability, flexibility, and powerful functionality. The platform allows not only trading, but also analyzing market data, automating trading, and setting up individual trading strategies.
The main feature of MetaTrader is its user-friendly interface. Users can easily navigate through the platform and access various tools without any hassle. Additionally, it offers a wide range of indicators and charts that help traders make wise decisions and manage their investments more effectively.
What is MT4 and MT5? MT4 and MT5 are the two main versions of MetaTrader. What's the difference between MT4 and MT5? Let's examine them more closely and identify MetaTrader 4/5 (MT4/MT5) key features.
What is MetaTrader 4?
MetaTrader 4 (MT4) was created by MetaQuotes in 2005 and since then has gained immense popularity among traders, brokers, and investors, becoming an integral part of the Forex market and financial markets in general. It is a powerful tool for market analysis and trading automation, providing traders with all the necessary features for effective work in the currency markets.
Basic features of MetaTrader 4:
- Ease of use. MT4 is known for its intuitive interface. Novice traders can quickly master the platform and begin trading with little effort. Experienced traders, in turn, may fine-tune and optimize the interface to suit their specific needs.
- Technical analysis. The platform offers a wide range of technical analysis tools: indicators, oscillators, trend lines, and channels.
- Automated trading. MT4 opens up opportunities for automated trading. Many traders around the world use this feature to create trading strategies that can work around the clock without human intervention.
- Scripts and indicators. MT4 supports the use of custom scripts and indicators, allowing traders to personalize their experience and adapt the platform to their trading strategies.
Besides, the platform supports mobile devices and web versions, allowing traders to stay connected to the market anytime, anywhere.
Advantages of MT4:
- simplicity and accessibility for beginners;
- a huge number of ready-made trading robots and indicators;
- automated trading strategies;
- large user community.
Despite its popularity and stability, MT4 has some limitations. This platform is primarily designed for Forex traders and does not have such powerful features for working with more complex financial instruments, such as futures or stocks. That’s the reason why, as the market develops, more and more traders and brokers are starting to switch to MT5, which is a more modern and functional platform.
What is MetaTrader 5?
MetaTrader 5 (MT5) is a newer and more advanced version, released in 2010. It was created to expand the capabilities of traders and add new tools for working in the financial markets. MT5 offers users all the benefits of MT4, but with some additional features that make the platform more flexible and powerful.
Main features of MetaTrader 5:
- Wide choice of markets. Unlike MT4, which focuses primarily on Forex, MT5 supports stocks, futures, options, and other financial tools. This platform is more versatile for traders working with different assets.
- New programming language (MQL5). MT5 uses the MQL5 programming language, which is much more powerful than MQL4 in MT4. This way, developers can create more complex and effective trading robots, indicators, and experts for automated trading.
- Fast and reliable charting. The MT5 platform offers improved charts that update faster, which is especially important for traders working on short-term time frames. MT5 also has more time frames for analysis and more accurate charts with improved visualization.
- Improved order system. MT5 has a more flexible order system. Traders can set limit orders, stop orders, and other types with greater precision, enjoying convenient and efficient trading.
- Updated economic calendar. The built-in economic calendar on the MT5 platform provides traders with up-to-date data on the most important events that can affect the market. This is an indispensable tool for traders working with fundamental analysis.
- Improved strategy testing. You can test trading strategies using data collected over a longer period of time. This is a major improvement over MT4, where access to historical data was limited.
- Mobile version and WebTrader. Like MT4, MetaTrader 5 also supports iOS/Android mobile versions, as well as WebTrader, which allows trading via a web browser without the need to download and install the program.
What is the difference between MT4 and MT5 when it comes to benefits? Here's what to expect from MetaTrader 5:
- versatility (working with various markets: forex, stocks, futures, etc.);
- powerful programming language for creating trading robots and strategies;
- improved order system and new tools for analysis;
- informative charts;
- automated trading;
- built-in economic calendar for news trading.
Thus, MT5 is a more powerful and functional platform, suitable for those who want to expand their trading capabilities and work with more diverse assets.
MT4 vs MT5: key differences between MT4 MT5 trading
When comparing MetaTrader 4 and MetaTrader 5, it’s essential to understand that each platform was created for specific purposes. MT4 has become the standard for Forex-focused traders due to its simplicity and functionality. MT5 is a more modern platform that offers advanced capabilities for analysis, trading, and automation. The differences between MT4 and MT5 are detailed in the paragraphs below.
Order types
MT4 is primarily focused on Forex trading and limited to four basic order types: market, limit, stop order, and trailing stop. MT5 has an increased number of order types. You can trade stocks, futures, options, and bonds. This creates new opportunities for traders interested in working with different assets.
Financial instruments support
MT4 MT5 – the second version of the platform significantly expands the range of available tools. MT4 offers a more limited selection, primarily focused on Forex pairs and a few CFDs. In contrast, MT5 supports a broader array of financial instruments, including stocks, futures, options, and bonds, making it more versatile for traders who wish to diversify their portfolios across different asset classes.
MT4/MT5 timeframes
MT4 has nine timeframes available for analysis, which is already enough for most traders: minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1), and monthly (MN). However, MT5 offers 21 timeframes, including unique ones such as 2 minutes, 3 minutes, 6 hours, and 12 hours. This allows you to fine-tune your chart analysis and get more data on price movements.
Market depth and order book
Is MT4 or MT5 better? One of the most striking differences is the presence of the market depth feature in MT5, which allows you to see all available buy and sell orders in real time. This is especially important for traders who are actively trading and work with a large volume of orders. MT4 does not have this feature.
Programming and trading robots
Both versions of MetaTrader have their own programming languages (MQL4 and MQL5) that enable the development of trading robots and indicators. Nevertheless, MQL5 in MT5 is more powerful and versatile. It offers more options for creating complex trading strategies, and also provides access to large libraries for data processing.
Market and community connection
Market and community connection in both MT4 and MT5 is robust, offering traders access to a vast array of resources, forums, and support. Active communities around both platforms facilitate knowledge sharing and collaboration, enhancing the overall trading experience for users.
Multi-trading support and performance
MT5 is more productive than MT4. Users can work with multiple charts at the same time, perform complex calculations, and still maintain high speed. MT4, although stable, is not as optimized for high-performance trading as MT5.
Updates and support
MT4 vs MT5: which is better in terms of updates and support? MetaTrader 5 continues to develop actively, receiving updates and improvements from developers. While MT4 remains popular, its updates are much less frequent.
Broker compatibility
Despite the obvious advantages of MT5, many brokers still use MT4 as their main platform for working with clients. This is because MT4 has been on the market for a long time and has acquired a large number of users.
Forex MT4 vs MT5: Why choose MT4 instead of MT5?
There are several reasons why traders may prefer MT4:
- Simplicity and ease of use. MT4 or MT5 for beginner? Most likely MT4. MetaTrader 4 is a very simple trading platform. It is more accessible for beginners and is not overloaded with unnecessary features. Unlike MT5, which may seem complicated due to additional functionality, MT4 focuses on the main trading tasks, such as technical analysis, opening, and closing orders.
- Broker support. As mentioned, many brokers still prefer MetaTrader 4. So, if you're just starting out in Forex trading, or working with a broker who primarily supports Forex pairs, MT4 may be the better choice.
- Large user base. MT4 has a huge user base, which means there is a wealth of resources available for traders, including tutorials, forums, and expert advisors. This extensive community can provide valuable insights and support for beginners and experienced traders alike.
Moreover, MT4 is known for its performance and stability, especially on lower-end devices. The platform is lightweight and can run smoothly even on less powerful computers, which is crucial for traders who rely on consistent execution.
MT5 vs MT4: Why choose MT5 instead of MT4?
Is MT5 better than MT4? MetaTrader 5 is great for those looking for a wider range of tools and features:
- Multi-functionality. If you plan to work not only with Forex but also with other assets such as stocks, futures, or options, MT5 will be the best choice. It supports different markets and offers multi-functional analysis.
- More advanced analytical tools. This is the key difference between MT4 and MT5. With additional timeframes, indicators, and the ability to work with market depth, MetaTrader 5 provides traders with more tools for analysis and decision making.
- Powerful trading strategies. For experienced traders who use complex algorithmic strategies and automated advisors, MT5 will provide more opportunities to implement such approaches.
- Future prospects. As the Forex market continues to evolve, MT5 is expected to gain higher popularity among traders, reflected in MT4 MT5 trading software Forex ratings. With its advanced features and capabilities, MT5 is well-positioned to meet the demands of modern trading.
Switching from MT4 to MT5 is a good way to take advantage of a more comprehensive trading environment that caters to diverse asset classes and advanced analytical needs.
MT4 or MT5 – the final thoughts: which is better for trading?
Therefore, MT4 and MT5 differences are clear, yet the choice should depend on your personal preferences and objectives. If your main goal is to trade Forex with maximum efficiency and simplicity, then MT4 may be your best choice. However, if you want to go beyond Forex and work with other assets, such as stocks or futures, then MT5 will give you more options.
FAQ
Which is better Meta Trader 4 or 5? The main difference between Meta Trader 4 v 5 lies in the functionality. MT5 supports various financial markets such as stocks, futures, and options. MT5 also has a more advanced charting system and analytics, improved performance, and multitasking support.
The minimum deposit depends on the broker you work with. Some MT4 MT5 brokers require a minimum deposit of $1, while others may set higher requirements. It is important to clarify this point when registering on the platform.
First, download and install the platform from your broker's website. Once installed, select the option to open a demo account, fill out the required information, and choose your preferred account settings. After completing the setup, you can practice trading with virtual funds and explore the platform's features without any financial risk.
You need to go through the registration procedure, fill out the necessary personal and financial information, and choose your preferred trading platform. After verification, you will receive account details, allowing you to start trading with real funds.
Yes, Meta Trader 4 and 5 can be installed on the same device and used simultaneously for different types of trading, making it easier to take advantage of the offerings from the best MT4 MT5 brokers in USA.
MT4 is an easier choice for beginner traders because it features a user-friendly interface and more accessible options to get started. Nevertheless, MT5 offers advanced tools that can benefit those willing to learn and develop their trading skills over time.
