MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are both popular trading platforms developed by MetaQuotes Software, but they have distinct differences that make them suitable for different types of traders. While MT4 is widely used for forex trading, MT5 offers enhanced features and tools for traders who require more flexibility and access to a broader range of markets. In this article, we will explore the key differences between MT4 and MT5, helping you decide which platform is best suited for your trading needs.

Overview of MetaTrader 4 (MT4)

MetaTrader 4 (MT4) is a widely used platform primarily designed for forex trading. It was developed by MetaQuotes in 2005 and quickly became popular due to its simplicity, user-friendly interface, and powerful charting tools. MT4 is known for its stability, reliability, and extensive use of Expert Advisors (EAs) for automated trading.

Overview of MetaTrader 5 (MT5)

MetaTrader 5 (MT5) was released by MetaQuotes in 2010 as an advanced version of MT4, designed to cater to the evolving needs of traders who wanted more features, including support for multiple asset classes beyond forex. MT5 includes all the features of MT4 but with additional functionalities such as improved charting, more timeframes, access to a wider variety of financial instruments, and faster execution speeds.

Key Differences Between MT4 and MT5

1. Market and Asset Class Support:
   • MT4: Primarily designed for forex trading, MT4 is highly optimized for currency pairs. While it also supports CFDs (contracts for difference) on commodities and indices, its primary focus remains on forex.
   • MT5: MT5 is a multi-asset platform that supports not only forex but also stocks, commodities, indices, futures, and cryptocurrencies. This makes MT5 a more versatile platform for traders who want to diversify their portfolio and trade multiple asset classes from the same platform.
2. Timeframes:
   • MT4: MT4 offers 9 timeframes (ranging from 1 minute to 1 month). These are suitable for traders who use short-term strategies, such as day trading and scalping.
   • MT5: MT5 provides 21 timeframes, including a greater variety of short-term and long-term options. This flexibility allows traders to conduct more detailed technical analysis across different time periods, making it ideal for swing traders and long-term investors.
3. Order Types:
   • MT4: MT4 supports 4 order types, including market orders, pending orders, stop orders, and trailing stops. These are sufficient for basic trading strategies.
   • MT5: MT5 introduces additional order types, including Buy Stop Limit and Sell Stop Limit orders. These extra order options allow for more precise control over trade entries and exits.
4. Charting and Technical Analysis:
   • MT4: MT4 offers basic charting tools with a range of indicators and drawing tools. While its charting capabilities are functional and adequate for most traders, it lacks some advanced features.
   • MT5: MT5 enhances the charting experience by adding more timeframes, technical indicators, and graphical objects. It also supports depth of market (DOM), which provides traders with more insights into market liquidity. Additionally, MT5 allows for multi-chart layouts, giving traders the ability to view multiple charts simultaneously.
5. Execution Speed and Performance:
   • MT4: MT4 provides reliable execution, but with its limited infrastructure, it may experience slower execution speeds in comparison to MT5, especially during periods of high market volatility.
   • MT5: MT5 has improved order execution speeds, enabling faster trade executions and better performance under high-volume conditions. This makes it a preferred platform for traders executing high-frequency trades or those relying on quick execution for scalping strategies.
6. Strategy Tester and Backtesting:
   • MT4: MT4 has a basic strategy tester that allows traders to backtest their trading strategies using historical data. However, the tester is limited in terms of customization and speed.
   • MT5: MT5 has a more advanced strategy tester that supports multi-currency backtesting, enabling traders to test strategies across multiple pairs simultaneously. It also provides more detailed reports and the ability to backtest with tick-by-tick data, which improves the accuracy of backtests.
7. Programming Language (MQL):
   • MT4: MT4 uses MQL4 (MetaQuotes Language 4) for developing Expert Advisors (EAs), custom indicators, and scripts. While MQL4 is highly effective, it has fewer features compared to MQL5.
   • MT5: MT5 uses MQL5 (MetaQuotes Language 5), a more advanced programming language that offers improved performance and functionality. MQL5 allows for greater customization and more sophisticated strategies, with support for multithreading and event handling, which increases the platform’s flexibility for automated trading.
8. User Interface and Customization:
   • MT4: The interface of MT4 is relatively simple and clean. It is widely considered to be more user-friendly for beginners due to its straightforward design and ease of use.
   • MT5: MT5 offers a more modern and enhanced interface with additional features and customizability. However, some traders feel that MT5’s interface can be overwhelming compared to MT4 due to the increased number of options and features.
9. Broker Support:
   • MT4: Since MT4 has been around for a longer period, it is supported by the majority of forex brokers. Many brokers offer MT4 as their primary trading platform, making it widely accessible.
   • MT5: While MT5 is growing in popularity, not all brokers offer MT5 yet. Traders who want to use MT5 may need to check if their preferred broker supports it.
10. Cost:
    • Both MT4 and MT5 are free to use for traders. However, brokers may charge fees such as commissions, spreads, or account management fees depending on the trading conditions they offer.

Key Differences at a Glance

Feature	MT4	MT5
Asset Classes	Primarily forex	Multi-asset (forex, stocks, commodities, cryptocurrencies)
Timeframes	9 timeframes	21 timeframes
Order Types	4 order types	6 order types
Charting Tools	Basic charting tools	Advanced charting and indicators
Execution Speed	Standard execution speed	Faster execution
Strategy Tester	Basic backtesting	Advanced multi-currency backtesting
Programming Language	MQL4	MQL5
Broker Support	Widely supported	Gaining popularity but less widely supported
User Interface	Simple and user-friendly	More advanced and customizable

Practical and Actionable Advice

• Use MT4 for simplicity: If you are new to forex trading or prefer a simple, easy-to-navigate interface, MT4 is a great option. It offers all the essential features for forex trading and automated trading (EAs).
• Use MT5 for advanced features: If you want access to additional asset classes, more timeframes, improved charting, and faster execution, MT5 is a better choice. It’s ideal for traders who want to expand their trading to multiple markets or use more complex trading strategies.
• Start with a demo account: Whether you choose MT4 or MT5, start with a demo account to practice using the platform and familiarize yourself with the tools and features. This helps you make the most of the platform before trading with real money.
• Check broker compatibility: Before selecting a platform, ensure that your broker supports MT5 if that’s your preferred platform. Some brokers offer both MT4 and MT5, while others may only support one.

FAQs

Which platform is better for beginners, MT4 or MT5?

MT4 is generally better for beginners because of its simpler interface and user-friendly design. It is widely used in the forex community, and there is plenty of support available for new traders.

Is MT5 better than MT4 for forex trading?

MT5 offers more features, such as additional asset classes, improved charting tools, and faster execution, making it a more powerful platform. However, MT4 is still highly effective for forex trading, especially for traders who need a straightforward platform.

Can I use both MT4 and MT5?

Yes, you can use both platforms if your broker supports them. Some traders use MT4 for forex and MT5 for trading other assets like stocks or commodities.

Can I transfer my account from MT4 to MT5?

It is not possible to directly transfer your trading account from MT4 to MT5. However, you can open a new account with your broker and start using MT5, while still retaining your existing MT4 account.

Do I need to pay for MT4 or MT5?

Both MT4 and MT5 are free to use. However, brokers may charge fees, commissions, or spreads depending on their account types and trading conditions.

Conclusion

The choice between MT4 and MT5 depends on your trading needs and preferences. MT4 is simple, reliable, and ideal for forex trading, while MT5 offers more advanced features, including support for additional asset classes, more timeframes, and faster execution speeds. Consider what features are most important to your trading style and try both platforms to see which one suits you best.