MetaTrader 5 (MT5) and MetaTrader 4 (MT4), created by MetaQuotes Software Corp, are two of the most widely used trading platforms worldwide. They are popular among millions of traders for their high-quality services. But what are the differences between MT4 and MT5 and which one is a suitable choice for you?
This article offers a thorough comparison of MT5 vs MT4. Dive in, make your choice, and start trading with a trustworthy broker.
What is MetaTrader 5?
Launched in 2010, MetaTrader 5 has become the go-to trading platform for today’s savvy traders looking to stay ahead of the game. It’s faster and more efficient than its predecessor, MetaTrader 4, making it the better option for diving into various financial markets, such as Forex, stocks, indices, commodities, and cryptocurrencies.
MT5 is packed with modern features for both technical and fundamental analysis, along with trading signals, algorithmic trading, copy trading, and trading robots. It is designed to meet the needs of competitive traders eager to unlock their full trading potential across various asset classes.
What is MetaTrader 4?
MetaTrader 4 trading platform, which has made a good reputation among Forex traders since its launch in 2005, is known for its intuitive interface and some customization features. However, its main focus is on Forex trading. It needs more flexibility for the large range of assets available today. MetaTrader 5 in comparison to MetaTrader 4 is more technologically advanced and better suited to meet the diverse needs of modern traders.
Key differences between MT5 and MT4
After a comparison of all the essential trading characteristics of MetaTrader 5 (MT5) and MetaTrader 4 (MT4), a person can understand why experienced traders are choosing to trade with the MT5 trading platform.
MT4 has been a good buddy to Forex traders, but, MT5 is the enhanced version of the former. Its wide variety of features makes it indispensable for anyone interested in trading across some global financial markets.
1. Tradable Instruments
MT5 is a complete trading platform that trades instruments like forex, shares, metals, commodities, indices, and cryptocurrencies. On the other hand, MT4 trades in forex, commodities, and indices CFDs.
2. Technical Indicators
Further improvements of MT5 are made by adding 38 standard indicators that provide extended information on the trends of the markets. It also has a comprehensive repository of both free and paid custom indicators for more complex trading and chart techniques on its Code Base and Market.
MT4, for its part, comes with 30 in-built technical indicators. It also gives access to approximately 2,000 free custom indicators in the Code Base and more than 700 paid indicators in the Market. Despite this, it can be sufficient for some sorts of analysis, albeit the MT4 doesn’t contain as many possibilities and functions as MT5 making it somewhat archaic for present-day trading.
3. Charting Tools
On the graphical front, while comparing MetaTrader 4 and MetaTrader 5, MT5 offers 44 graphical objects which are subdivided into basic and advanced tools such as geometrical shapes, and channels, and specific tools such as Gann, Fibonacci, and Elliott wave. It can therefore be concluded that these features help in improving greatly the ability of a trader to make accurate forecasts on future price trends.
On this front, MT4 available 31 graphical objects: lines, channels, Gann and Fibonacci, shapes, and arrows. While all of the above-listed tools are sufficient for some technical analysis, they cannot be compared to the extensive and detailed function of MT5 as the fact helps to understand that MT5 is more suitable for traders in terms of variety of the analytical instruments.
4. Timeframes
In the domain of trading, for the convenience of the trading process, there are 21 data frames in MT5: minute, minute (M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30), hourly (H1, H2, H3, H4, H6, H8, H12), daily (D1), weekly A wider list means traders can assume more details about their preferred assets when making elaborate research.
In contrast with MT5, MT4 offers a more limited selection of 9 timeframes: that they are available for trading are the minute – M1, M5, M15, M30-, the hourly – H1, H4-, the daily-D1-, the weekly – W1, and the monthly – MN.
5. Trading Orders
The trade and commerce capability of MT5 is further complemented by a sophisticated order-tracing system, involving six types of the pending order. To the four that are available in MT4, which are the; buy stop, buy limit, sell stop, and sell limit orders, MT5 has added two more; the buy stop limit and sell stop limit orders.
These additional settings help improve the entry and exit sign further in trading which proves the of the MT5 platform.
Meanwhile, MT4 is more limited to the four basic pending orders: The four major categories of orders based on how they operate include the buy stop order, the buy limit order, the sell stop order, and the sell limit order.
Such a configuration reduces the number of strategies available to the traders and in a way, this is a way of demonstrating the versatility and capability of MT5.
6. Economic Calendar
The economic calendar is embedded in MT5 and as a result, the users of this platform have timely information on the event. This enables traders to know the time for preparation of key financial statements, which in return, affects the values of assets; thus it is a feature that aids traders in planning for the future and economic decisions. This is another major difference between MetaTrader 4 and MetaTrader 5 platform.
For instance, the MT4 platform that the trader adopts does not come with the Economic Calendar – an indication that the trader has no option but to move to other platforms to get alerts on such news.
7. Usability & Mobility
MT5 and MT4 platforms can be used on your desktop, mobile device, or browser. These platforms support Windows, macOS, and Linux operating systems, for usage in desktops. They’re available for Android and iOS, on mobiles.
For web browsing on these platforms, you can easily access them via Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, Opera, and Internet Explorer.
MT5 and MT4 look identical and they can be used by anyone easily. Despite the fact the main menu has a few differences in MT5 and MT4, the features that are utilized by you are most often similar. You can also design the interfaces to match your particular trading preferences. To begin with these platforms, all you need is an internet connection.
Which platform is more suitable to use, MT5 or MT4?
The question may arise in your mind as to which version of MetaTrader will be more suitable for you. Well, both MT5 and MT4 are reputed trading platforms, but MT5 is more favored by the expert traders. MT4, on the other hand, is user-friendly and a good start for beginners. It offers all the important tools to start trading.
MT5 is favored for its modern features, speedy performance, and extensive support for several financial instruments. It’s the immediate platform for traders that aims to have sophisticated trading tools and execute intricate strategies. This makes it an ideal choice for competitive-natured traders.
Can you use both MT5 and MT4?
If your broker offers support, then you can use both MT5 and MT4 for trading. Always remember that you have to make separate accounts for both platforms since you can’t log into MT5 with an MT4 account and vice versa.
Conclusion
Even after MT4 and MT5 being developed by the same company, there are numerous differences between MetaTrader 4 and MetaTrader 5. MT4 is more likely to be straightforward and trader-friendly. Meanwhile, MT5 possesses more features and support systems for a large number of instruments and asset classes, and not just for forex and CFDs. MT5 will become more popular and used among traders than MT4 with time.