MT4 vs MT5: What Is the Difference Between MetaTrader 4 and 5?
MetaQuotes is a financial technology company that built two of the world's most commonly used trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). However, what are the differences between MT4 vs MT5, and which one is better?
This guide explores the similarities and differences between MT4 and MT5, outlining their technical and functional differences. This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.
What is MT4 and MT5?
MT4 and MT5 are two different trading platforms built by MetaQuotes Software Corp, a financial technology company based in Cyprus. Many brokers offer access to one or both of these platforms as they can be used on desktop, web and mobile devices.
MetaTrader 4 (MT4)
Released in 2005, MT4 is a well-established trading platform primarily designed for forex trading. It supports manual and automated trading and is renowned for its stability and widespread broker support.
MetaTrader 5 (MT5)
Launched in 2010, MT5 was developed as a multi-asset platform supporting forex, as well as stocks, commodities, indices, and futures. It offers more advanced features and is intended to meet the needs of both retail and institutional traders.
MT4 vs MT5: Key Differences
The table below provides a detailed comparison between the two platforms:
| Feature | MetaTrader 4 (MT4) | MetaTrader 5 (MT5) |
| Release Year | 2005 | 2010 |
| Primary Market | Forex and limited other asset classes | Thousands of multi-asset class instruments |
| Programming Language | MQL4 | MQL5 |
| Order Types | 4 pending, 2 market orders | 6 pending, 2 market orders |
| Execution Modes | 2 | 4 |
| Hedging | Supported | Supported |
| Netting | Not available | Available |
| Timeframes | 9 | 21 |
| Built-in Indicators | 30 | 38 |
| Analytical Objects | 31 | 44 |
| Strategy Tester | Single-threaded | Multi-threaded + Real tick data |
| Economic Calendar | Not included | Built-in |
| Market Depth (DOM) | Not available | Available |
| Partial Order Filling | Not supported | Supported |
| Platform Architecture | Single-threaded (32-bit) | Multi-threaded (64-bit) |
| File Format for Reports | HTML only | HTML and XML |
| Community Features | Codebase, Market | Codebase, Market, App Store, Enhanced integration |
MT4/MT5 Functional Overview
Here are some of the similarities and differences between MT4 and MT5 regarding their functional uses.
Trading Instruments
- MT4 is forex-focused and suited for currency traders. Depending on the broker, a limited number of other asset classes may be available.
- MT5 expands beyond forex to include global stocks, commodities, indices, futures and more, making it more versatile for multi-asset class traders.
Charting and Analysis
MT5 offers more timeframes, indicators, and graphical objects for technical analysis than MT4. It also includes tools like an integrated economic calendar and depth of market (DOM) that MT4 does not have.
Performance and Architecture
MT4 operates on a 32-bit, single-threaded architecture, which can limit performance under heavy usage. In contrast, MT5 is a 64-bit, multi-threaded platform that runs faster and handles more complex operations efficiently, which is how it can offer more markets and tools with stability.
Order Execution and Types
MT5 supports a broader range of order types and offers partial fills. This has been designed for those trading large orders in fast-moving markets or trading low-liquid instruments.
Backtesting and Strategy Development
MT5 includes a multi-threaded strategy tester that allows real tick data backtesting. This is a major upgrade over MT4’s slower, single-threaded backtester.
Programming and Automation
Both platforms offer automated trading capabilities. MT4 uses MQL4, which is a simpler language but limited in its functions. MT5 uses MQL5, which is a more advanced, object-oriented programming language that allows for more complex calculations.
Both MQL4 and MQL5 create Expert Advisors (EAs) which can be backtested on the platforms and used for automated trading strategies.
What is the MetaTrader Supreme Edition (MTSE)?
Some brokers offer additional add-ons and plugins for both MT4 and MT5. For example, Admiral Markets offers a MetaTrader upgrade to the MetaTrader Supreme Edition (MTSE) plugin, which offers extra features like:
- Global Opinion widgets
- A mini terminal with OCO order types
- A Trade Terminal for multi-currency and order management
- Tick chart trader
- Real-time economic news
- Additional indicators:
- Candle countdown
- Day session
- Pivot points
- Renko charts and more
Here's a 10-minute video on how to use the Mini Terminal from the MT4 Supreme Edition. This video is for educational purposes only and does not constitute investment advice.
MT4 vs MT5: Which One Should You Use?
Every trader has different preferences. What platform works for one trader may not work for another. Most brokers will allow the use of a demo trading account on each of the platforms. This is a good way to test the functionality and features of each one to see if it aligns with your style.
However, here are a few considerations to start with:
| Trader Type | Platform |
| New forex traders | MT4 |
| Traders using legacy EAs and indicators | MT4 |
| Traders wanting to trade global stocks | MT5 |
| Users needing advanced backtesting tools | MT5 |
| Institutional and multi-asset class traders | MT5 |
| Programmers building complex EAs | MT5 |
Final Thoughts
Should you trade with MetaTrader 4 or 5? This depends on the individual trader and what they are seeking from a platform. When comparing MT4 vs MT5, then MT5 does offer more features, tools and markets, but these may not be relevant to your style of trading.
When deciding between MetaTrader 4 and 5, your trading goals, strategies, and instrument selection should guide your choice. Whichever you choose, consider testing them on a demo trading account in a virtual environment.
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Continue Reading
- The Ultimate MetaTrader 5 Guide
- How to Open a MetaTrader 5 Account
- Overview of the Top MT5 Indicators
FAQs
Which is better MT4 or MT5?
MT4 has been designed to cater to the needs of forex traders and algorithmic traders. MT5 offers more timeframes and indicators, as well as the ability to trade more asset classes such as global stocks. Which platform is best depends on the individual trader's style and preferences.
Why do people still use MT4 instead of MT5?
While MT5 has more features, many people are happy with the features that MT4 provides. Many traders will also have gotten used to their setup in MT4 and may not want to switch setups to a new platform.
Which is the best trading platform?
The best trading platform depends on what the trader is seeking. For multi-asset class traders trading global equities, the MT5 platform may be the most suitable as it's been designed for that purpose. For automated forex traders, the MT4 platform might be more suitable due to its MQL4 programming language and strategy backtest features.
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