MetaTrader 4 and MetaTrader 5: comparison

MetaTrader 4 and MetaTrader 5 are the most popular trading softwares among Forex and multi asset traders today. Both of them have a lot in common as they both were developed by the same company MetaQuotes Corp. Despite having a lot of similarities, there are quite substantial differences between the two. Which one is the best for you to choose? In this guide, we’ll help you answer that question by reviewing each trading platform in detail.

MetaTrader 4

MetaTrader 4 is one of the oldest trading platforms that is still highly in demand by Forex traders. Millions of FX traders choose MT4 as the platform offers simplicity, reliability, precise execution and is mainly built for trading currency pairs.

The platform was released by MetaQuotes in 2005. MetaQuotes is a Russian software giant that was founded in 1996. MetaTrader 4 was built for Forex traders and includes all of the necessary tools traders need to conduct technical analysis and trade effectively. There’s not much changed in terms of how the platform works since its creation. As a result, the trading platform looks outdated for many traders. There are more modern looking platforms that are available for forex traders but most traders stick to using MT4 as its reliable performance remains unchallenged. Some traders use other trading softwares and charting methods to conduct analysis and place orders using the MT4 platform.

You can hardly find a forex broker today that doesn’t offer MetaTrader 4 to its clients. The platform is extremely popular. It’s even more popular than its younger brother MetaTrader 5. MT4 sets an industry standard when it comes to trading currency pairs. However, keep in mind that some of the brokers do not have full compatibility with the trading platform but still offer access by using a bridge.

MT4 uses the MQL4 programming language for creating trading algorithms. Trading algorithms are often referred to as trading robots and are used for automating trading. MetaTrader’s robots are called Expert Advisors (EAs). Traders can learn coding and build EAs themselves, pay someone to create the robots using their ideas or simply purchase ready to use algorithms. The fact that the MT4 was created many years ago and remains highly popular explains the great number of EAs that are available on the MetaTrader Market today. However, keep in mind that many EAs that you can purchase or acquire for free are not working properly. It’s important to do your research in order to avoid getting scammed by EA sellers. Algorithmic trading with MT4 makes it easier to test trading strategies. The software comes with strategy tester capabilities.

MetaTrader 4 can be used for trading currency pairs, analyzing currency markets, trading using algorithms, and signal providing. What’s more, you can trade using mobile and web versions of the software.

When it comes to the benefits of trading with MT4, it is important to take into account the following:

• MT4 offers 3 different execution models
• 2 types of market order
• 4 variations of pending order
• Stop and trailing stop orders
• Various interactive charts
• 9 different time frames
• 30 technical indicators and 23 analytical objects

MetaTrader 5

MetaTrader 5 looks very much like MetaTrader 4 and shares a lot of similarities, however, MT5 is totally different. MetaTrader 5 was released in 2010 and quickly gained popularity. However, it’s worth mentioning that MT4 is more popular among traders than MT5.

MetaTrader 5 is a multi asset platform that enables traders to trade CFDs, commodities, indices, stocks, futures and crypto currencies along with the currency pairs. Novice forex traders usually choose MT4 over MT5 as the platform is a bit more complex for beginners. However, for those who want to trade various asset types, MT5 is a great choice. Similarly to the MT4, there’re mobile and web versions of the MT5 available for traders.

When it comes to trading automation, MT5 uses the MQL5 programming language. Keep in mind that the programs that were written for Metatrader 4 cannot run on MT5.

MetaTrader 5 is available in 31 most spoken languages, which makes it easier for global traders to use the software.

MetaTrader 4 compared to MetaTrader 5

Now that we have discussed the two platforms separately, it’s time to make a MT4 and MT5 comparison. As already mentioned, the MT4 is 5 years older than the MT5. MT4 is mainly used for trading currency pairs, whereas MT5 is a multi asset trading platform.

	MetaTrader 5	MetaTrader 4
Partial Order Filling Policies	Yes	No
Order Fill Policy	Fill or KillImmediate or CancelReturn	Fill or Kill
Number of Pending Order Types	6	4
Depth of Market	Yes	No
Time & Sales (Exchange data)	Yes	No
Number of Technical Indicators	38	30
Number of Graphical Object	44	31
Number of Timeframes	21	9
Economic Calendar	Yes	No
Email System	Yes (with attachments)	Yes (no attachments)
Transfer funds between accounts	Yes	No
Embedded MQL5.community chat	Yes	No
Strategy Tester	Multi-threaded+ Multi-currency+ Real ticks	Single thread
Multilingual Unicode	Yes	No
Netting	Yes	No
Hedging	Yes	Yes
Symbols	Unlimited	1 024
Supported Markets	Forex / Futures /Options / Stocks / Bonds	Forex
Exchange Trading	Yes	No

What can you trade using the platforms?

While it’s true that MT4 is for Forex and MT5 is for trading various asset classes, some brokers manage to offer a limited number of CFDs on metals, oil, etc using MT4 to their clients. Before making a decision on which platform to choose, do your research and find out exactly which assets are offered by your broker.

Technical indicators

In case you are interested in using technical indicators, MT4 offers 30 built in indicators and MT5 offers 38. However, you can easily increase that number by downloading indicators from MetaTrader marketplace. There are around 2,000 free and 700 paid indicators available.

Charting tools and timeframes

MetaTrader 4 offers 31 objects that include lines, channels, Fibonacci tools, etc. MT5 comes with 44 graphic objects.

MT4 has 9 time frames that include – Minute: M1, M5, M15, M30, hourly: H1, H4, daily: D1, weekly: W1, and monthly: MN. It may seem few and indeed most trading platforms offer a much larger number of timeframes but it’s totally enough to conduct technical analysis.

MT5 offers 21 timeframes – minute: M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30, hourly: H1, H2, H3, H4, H6, H8, H12, daily: D1, weekly: W1, and monthly: MN.

Pending order types

MT4 offers four types of orders that include: buy stop, buy limit, sell stop, and sell limit. MT5 offers all of the four order types in 2 more that include – buy stop limit and sell stop limit.

Which one to choose?

In case you are going to trade various asset classes, the answer is obvious, MetaTrader 5 offers such capabilities. In case you are planning to solely trade currency pairs, MetaTrader 4 seems a great deal as the platform is simpler to use.

For most Forex traders the MetaTrader platforms look outdated. And rightfully so. The design has not been changed since the creation of these platforms. With each passing year, computers became much more capable and increased computing power, however, these two trading platforms remained the same. One might argue that the lack of change is bad, however, it might actually be very good for the platform. The fact that MetaTrader softwares remained simple, means that there’s very little to go wrong. Consequently, both platforms are very reliable and that’s the reason they remain the most popular today. Many traders do not care about looks. All they care about is execution. Many traders use more modern charting methods and trading platforms to conduct technical analysis and place orders using the MetaTrader platforms. Which enables them to focus on security and low trading fees when searching for a new broker.

The main takeaways

To sum everything up, MetaTrader 4 and MetaTrader 5 are the most widely used trading platforms today. MT 4 was developed in 2005 and MT5 was released in 2010. Both platforms were created by a Russian software giant MetaQuotes corp. Both platforms have their strengths and weaknesses. The MT4 is simpler to use and therefore it’s a preferred choice for novice forex traders. On the other hand, MT5 is built for trading various asset classes and offers more technical indicators, timeframes, order types and market depth to traders.

Both trading platforms are highly reliable and most Forex brokers offer them to their clients.

FAQs on MT4 and MT5 platforms in Forex

Should a beginner use MT4 or MT5?

MT4 is simpler to use and is created for trading Forex pairs. MT5 is a multi-asset platform. However, keep in mind the number of assets and types of assets on your trading platform depends on your broker. Some brokers manage to offer CFDs on a limited number of indices, metals and oil on MT4. While others might be offering only currency pairs on MT5 platforms.

Is MetaTrader free?

Yes, both MetaTrader 4 and MetaTrader 5 are completely free to download. What’s more, most Forex brokers offer free demo trading accounts to help you get used to brokers’ policies and trading platforms before going live.

Can I trade in MetaTrader without a broker?

No. In order to trade currency pairs using MetaTrader platforms you need a broker. Brokers aggregate liquidity from various liquidity providers and offer you the best prices possible. Therefore, when searching for a perfect broker, make sure your broker has a large number of liquidity providers and can offer you tight spreads.