MetaTrader 4 and MetaTrader 5 are both industry-leading trading platforms. They were both created by the same Russian company, MetaQuotes.
MetaTrader 4 was released in 2005, and since then, it has set a standard of what a polished trading platform should be. As for MetaTrader 5, which was released in 2010, it is less commonly offered by Forex brokers. However, it still has many users.
Both trading platforms offer pioneering automated trading systems with expert advisors. However, MT4 and MT5 often serve a very different function. MetaTrader 4 was established specifically for Forex traders, while MT5 was designed to provide traders access to CFDs, Stocks, and Futures.
There are many differences and similarities between MT4 and MT5. In this MT4 vs MT5 review, we are going to discuss what makes these platforms differ from one another and talk about the similarities as well. So, if you are having a hard time deciding which platform to use, follow our guide to learn which one will work best for you.
MetaTrader 4 vs MetaTrader 5 – Overview
Before discussing the differences between these two platforms, let’s talk about each of them individually and learn how they work. MetaTrader 4 is a leading electronic trading platform, which is very widely used by retail Forex traders. As we have already said, it was developed by a Russian company, MetaQuotes, and was released in 2005.
MT4 is known for its user-friendliness, and the design of the platform is very simplistic. For maximum convenience, it is available for a wide range of devices, such as desktop computers and mobile phones. There also is a web-based version of MT4, which can be used directly from the browser.
As for MetaTrader 5, it was released in 2010, five years after the creation of MT4. Contrary to popular belief, MetaTrader 5 is not an upgrade of MT4. MT5 was specifically designed to provide retail traders access to the markets like CFDs, futures, and stocks.
MT5 is a multi-asset trading platform, which also offers professional technical and fundamental analysis tools. It can be accessed with any browser and works perfectly for mobile devices as well.
Both of these platforms are very good, but there are some differences between them. So, let’s compare MT4 vs MT5 and see which one could work better for you.
MetaTrader 4 and MetaTrader 5 compared
The biggest difference between MT4 and MT5 platforms is the function and purpose of them. As we have already said, MT4 was specifically designed and crafted for Forex trading. As for MetaTrader 5, it was created mostly for other assets.
The design of MT4 and MT5 is very similar. It is very hard to find any major differences between these two, after all, both of them were created by the same company.
Both of these platforms offer many trading indicators and tools, generally, depending on the broker you are using. The standard version of the MT4 platform includes about 30 built-in indicators. However, it is very customizable.
There are over a few thousand free, and hundreds of paid indicators available online. These include high-low indicators, Renko indicators, chart group indicators, and thousands of others. The same goes for MT5. You can find many indicators online, and even create some yourself.
Which is better, MT4 or MT5 for Forex charts?
For trading platforms, charts are among the most important features. They represent the historical data of the price movements of specific assets. Both MT4 and MT5 offer four individual charts for different assets.
However, you can also maximize one chart if you prefer that way. Both of these platforms support line, bar, and candlestick charts. Changing the chart types is very simple and works the same way on both platforms, you can simply right-click the actual chart and choose the one you prefer, or go to the chart menu at the top-right corner and choose it from there.
In addition to types, you can also choose the timeframes for your charts.
Trading platform MT4 vs MT5 – Programming Languages
Although they were created by the same company, MT4 and MT5 use different programming languages. MT4 uses MQL4, and MT5 uses MQL5. While there are many differences between these two, the major one is that MQL5 is more for some, MQL5 is more efficient and easy-to-use.
With MQL5, traders can create and change the scripts on their own. Another thing is that most of the programs that were designed for MT4 can’t be used for MT5, which is a big disadvantage for MetaTrader 5. MT4 has been around for 15 years, and many retail and professional traders have created very useful programs for it.
MT4 vs MT5 trading instruments
The instruments that you will have access to while trading largely depends on a Forex broker. On their own, both of these platforms offer access to trading instruments. It is true that MT4 is largely used for Forex trading, but it does offer access to other assets as well.
As for MT5, it usually offers more instruments, such as stocks, futures, and commodities. Instruments can be selected from the Market Watch window on the left side of the screen on both of the platforms.
MetaTrader 5 focuses a lot on offering traders the widest variety of trading and analysis tools. Compared to MT4, it also offers a larger number of execution types. Simply put, it expands on many of the features that are already available at MetaTrader 4.
Many people ask which one is better, MT4 or MT5 for beginner trader. This is a very personal decision and solely depends on the trader themselves. Many people say that because of the more simplistic services of MT4, it could be a better option for beginners, but, on the other hand, MT5’s advanced tools could also be very helpful for newcomers. At the end of the day, it simply depends on your needs.
While talking about MT4 vs MT5 Forex trading, it is essential to discuss automatic trading. Both of these trading platforms use Expert Advisors, which are manually coded programs for different types of automated tasks.
This includes technical analysis of price data and opening and closing positions on specific instruments. When discussing the Expert Advisors of these two, it comes down to the programming language.
It is a fact that MQL4, MT4’s trading language, has been around for a very long time now. Compared to MQL5, MT5’s language, it is five years older. So, it should not come as a surprise that there are more MQL4 pre-written scripts and codes that you can use for creating your own, personal Expert advisors.
However, it should also be noted that for many, MQL5 is a simpler language, and creating your own scripts might be a little easier. Expert Advisors are more popular than other automated trading solutions for a very simple reason: there are simply more people who use MT4 and MT5 than other platforms.
MT4 vs MT5 performance
When it comes to the performance of these two platforms, it should be noted that they are very close. Users of MT4 and MT5 have many times said that both of these platforms offer a very good, smooth performance. But, there still are some things to be discussed.
First, when it comes to speed, MT5 is a little faster than MT4. MT5 is a fully-fledged 64-bit platform, while MT4 is a 32-bit platform. MT5 runs perfectly on 64-bit operating systems, whereas, MT4 is a very good choice for 32-bit operating systems.
Something that also gives MT5 a little advantage in this regard is that it does not slow down your computer. Both of these platforms can run on 32-bit and 64-bit devices, however, MT4 does not work as fast on 32-bit systems.
As for MT4 vs MT5 execution speed, it should be noted that MT5 offers a larger number of execution types. It has exchange execution mode, which is not available for MT4 at the moment.
Benefits of using MetaTrader 4
One of the biggest advantages of using MT4 is that it was designed with Forex trading in mind. This means that it was specifically created for Forex traders. Also, because of its long history, it is loved by many people.
Such popularity means that there are millions of traders who are using MT4, resulting in a higher number of trading indicators and tools created by other traders. MetaTrader 4 is really a perfect platform for Forex trading, and after 15 years, it still is among the most used trading platforms.
In fact, more than 90 percent of all Forex brokers offer this platform. MT4 also offers real-time access to market prices and liquidity. With MT4, traders can also see other details, for example, spreads, contract size, margin currencies, etc.
It also features Depth of Market, which gives you information about real-time market activity. MT4 also has the status of a highly-secured trading platform. Thanks to the high-speed trade execution and stable environment, there is a minimal chance for negative slippage, which makes trading more secure and safe with MT4.
Benefits of using MetaTrader 5
One of the biggest advantages of MT5 is that you will not be restricted to using the built-in analytical resources. Thanks to MQL5, you can create your own technical indicators. For many, the coding language is much simpler on MT5 than on MT4, however, keep in mind that it is very personal.
MT5 is also a multi-market platform, which can give you access to both, centralized and non-centralized markets. MT5 also gives you the ability to access real volume-traded data, and not only the tick volume data. Tick volume is the number of price changes that have occurred in the course of the bar. In the case of MT4, you do not have access to the real volume that has been traded, unlike MT5.
Also, because MT5 was designed for traders who are looking for ways to diversify their portfolios. In addition to currency pairs, MT5 is capable of offering you CFDs, stocks, futures, and commodities trading. However, the number of available instruments also very largely depends on your Forex broker.
Is MT4 or MT5 better than the other?
We have discussed the major differences and advantages of these two trading platforms. Still, saying that one is simply better than the other is very hard. Both of these platforms are industry-leading trading solutions, giving access to thousands of trading instruments.
Both of them feature thousands of free, and hundreds of paid trading indicators, which are designed to make trading easier for you. While it is true that MT4 is largely created for Forex trading, it also offers access to other trading instruments.
In this regard, one might say that MT5 offers access to more trading assets. However, do not forget that this also depends on the Forex broker you are using.
In terms of speed, since MT5 is a newer trading platform, it should not come as a surprise that it loads a little faster. However, for trading execution, both of them are very close. One advantage that MT5 has over MT4 is that it features an exchange execution mode, which is not available for MT4.
As for the MT4, it has a very long history, which makes it very popular among traders. Because of such popularity, there are many indicators online that were created by other traders. Also, you can easily find people who are using MT4 and get tips from them. The community of MT4 is much larger than any other trading platform.
Final thoughts on using MT4 or MT5 for Forex trading
MetaTrader 4 and MetaTrader 5 are among the industry-leading Forex trading platforms. Both of them have a very long history. MT4 was created in 2005, and MT5 was created in 2010.
MT4 was created specifically for Forex traders, while MT5 focuses on stocks, CFDs, and other markets as well. Both of these platforms support 3 major types of charts, such as line, bar, and candlestick.
After researching the major differences between these two, it can be concluded that it all comes down to personal preferences. Depending on your needs and experience in Forex, you can choose the one that fits your needs the best.