MT4 vs. MT5: What’s the Difference? Which is better?
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Metatrader 4 (MT4) and Metatrader 5 (MT5) are professional trading platforms developed by MetaQuotes corporation. For experienced professional traders, it is no longer strange to both these platforms. However, new investors who do not have much time to approach them, not everyone understands them and should choose MT4 or MT5. The following article shares the pros, cons of MT4 vs MT5 and their remarkable difference.
What is MT4 and MT5?
MT4 is a trading platform that allows traders to trade on the foreign exchange market and other financial products. MetaTrader 4 is currently the most popular trading platform, allowing to trade Forex, commodities, and CFDs. When trading on MT4, you will be provided with many fundamental technical analysis tools and indicators.
Similar to MT4, MT5 is an online trading platform released by MetaQuotes. This is a new and improved version of MetaTrader 4, which offers many additional financial products, features, and tools, such as new order types and more drawing tools.
Similarities between MT4 & MT5
First, we discuss the similarities between MT4 and MT5. Overall, this similarity is only actual in fundamental aspects: financial products, order matching, account support,…
- Full support of financial products: both platforms offer currency pairs, cryptocurrencies, stocks, commodities, energies, stocks, etc.
- Hedging: all available
- Order execution speed: instant and market-based
- Demo account support: all available
- Indicators and drawing tools: all available
- Trading Robot (EA): all available
The key differences between MT4 and MT5
Following is a list of key differences between MT4 vs MT5 versions:
|Comparison Criteria||MetaTrader 4||MetaTrader 5|
|Pending orders||4 types: Buy stop, Buy limit, Sell stop, Sell limit||Sell limit 6 types: Buy stop, Buy limit, Sell stop, Sell limit, Buy stop limit, Sell stop limit|
|Timeframe||9 timeframes (default only)||21 timeframes (default and custom)|
|Technical indicators||30 technical indicators||38 indicators|
|Account Types||Standard Cent, Standard, Pro, Raw Spread and Zero||Standard, Pro, Raw Spread and Zero|
|Stored Orders||Orders older than 35 days will be converted to archive||Orders that are not archived|
Note: Although MT4 and MT5 are both Metaquotes products. However, these 2 platforms have separate systems and are not compatible with each other. If you open a MetaTrader 4 account, you will not be able to use MetaTrader 5 with your MT4 login and vice versa. If you want an account for both MT4 and MT5, you must open a separate trading account for the two platforms.
Comparison of the pros & cons between MT4 and MT5
1. Metatrader 4 (MT4)
MT4 has some advantages and disadvantages as follows:
- Supported by over 1,200 online brokers
- Ideal for Forex traders
- There are many technical indicators and charting tools available
- The vast majority of robot vendors and EAs choose MT4
However, MT4 has some limitations as follows:
- Fewer technical indicators than MT5
- More suitable for Forex than other asset classes
2. Metatrader 5 (MT5)
MT5 has some advantages as follows:
- More technical indicators and charting tools than MT4
- Very advanced command types and execution models
- More support for CFDs other than Forex
Some disadvantages of MT5 are as follows:
- Less number of indicators
- MT5 supported brokers are much less than MT4
- Very few robot developers and EAs choose MT5
Should I choose MT4 or MT5 trading platform?
Metatrader 4 and Metatrader 5 are both the two most popular trading platforms, so choosing which platform to use is up to the trader himself.
MT5 launched 5 years after MT4. And the main difference between the two platforms, MT4 and MT5, is that the newer platform supports more markets, not just Forex. Therefore, this will be a more flexible option for investors who want to trade on multiple markets. In addition, MT5 also comes with some features not available on MT4.
However, the reality is that the number of traders using MT5 is still dominating. Because not every improved version is suitable for you to choose from, sometimes you get used to using MT4. It is more effective to trade than upgrade.
Similarly, the number of brokers that support MT5 trading is not as many as MT4. And that’s not to say it’s not worth exploring.
So, in my opinion, based on your investment needs, whether you want to trade on the forex market or want to experiment on other markets, you decide to choose MT4 or MT5. In addition, one more important thing than choosing a platform is to research a reputable exchange because it greatly affects your investment results and the safety of your money.
Read more: MT4