The right trading platform is an important factor in a trader’s success. In this guide, we have described the detailed difference between MetaTrader 4: MT4 VS MetaTrader 5: MT5.
I hope you will get better know your optimal choice for trading after reading this post. So, let us check it out.
Table of Contents
About MetaTrader
Meta Trader is basically a trading software system accessible via mobile and PC used by forex brokers. This software automates their trading process and is widely used by foreign exchange speculative traders. On this platform, traders trade with brokers of their preference and get connected to other different trading software.
However, the Meta Trader platform has 2 versions.
- MetaTrader 4
- MetaTrader 5
MetaTrader 4
This version of Meta Trader, also known as MT5, was released in 2005. since it gives millions of traders access to the financial markets, including forex, cryptocurrencies, and others. Novices and expert traders can work with the MT4 platform to automate their trade with algorithms that open and close trades on the trader’s behalf.
MetaTrader 5
This version, also known as MT5 this software was recently launched specifically for online trading for the forex market. It features an automated system, copy trading, trading robots, freelance database technical analysis tools, and many more that help traders in forex trading.
Differences Between MT4 VS MT5
| Functions | MT4 | MT5 |
| Finance Markets | Forex, CFDCs | Forex, futures, stocks, bonds, and options market |
| Indicators | 30 | 38 |
| Execution | On request, instant by-market executions | On-request, instant, by market,and exchange executions |
| Timeframes | 9 | 21 |
| Graphical objects | 31 | 44 |
| Order types | Buy/sell stop and limit orders | Buy/sell stop limit and stop limit orders |
| Filling policy of orders | Fill or kill | Fill or kill, immediate or cancel return |
| Economic Calander | No | Yes |
| Email function | Yes, without attachments | Yes, with attachments |
| Transferring amounts | No | Yes |
| Depth of market | No | Yes |
| Hedging | Yes | Yes |
| Netting | No | Yes |
| Exchange trading | No | Yes |
| Programming Language | MQL4 | MQL5 |
| Community Chat | No | Yes |
| Strategy tester | Single-thread strategy tester | Multi-thread strategy tester |
Differences Between MetaTrader 4 and MetaTrader 5 in Detail
Analytics Tools
The analytical objectives are crucial to identify cycles and trends that ease the overall trading procedure. The MT5 version of the Meta Trader platform has introduced additional features in EA: Expert Advisor for trading purposes. Traders can also integrate third-party expert advisors like Reversedo for trading ease.
Pending Orders
In addition to the basic differences between the MT4 and MT5 software, the developer of MetaTrader has added a lot of features to the MT5 platform. However, MT4 has four types of pending orders available, while MT5 releases two additional pending order types. This addition allows limits to be placed on conditional orders. It gives the traders more control over stop-loss orders.
Indicators
Meta Trader 4 includes most of the standard indicators that a beginner trade need though MT5 include eight additional indicators. At the same time, it is not an important addition because users can download any indicator and add it to both of the software versions.
Timeframes
Meta Trader 5 has 21 different timeframes, whereas MetaTrader 4 has 9 timeframes. MT4’s 9 timeframes are standard. But MT5 software has 2, 3, 4-, 6-, 10- and 20-minute charts and 2-, 3-, and 6-hour charts.
Backtesting Strategy
The strategy backtesting feature of MT5 is more advanced and multithreaded. It gives multiple simulations to run at the same time for traders who want to create automated strategies. In the meantime, MT4 has a single-threaded strategy tester, which is quite less advanced than MT5.
Automated Downloads
The tick data and 1-minute data features are also handled differently in both of these versions. In the Mt4 version of MetaTrader, users have to download this data manually. But in MT5 traders, you don’t need to download and update manually as it will automatically. It helps the finance market traders to access the sales data and save time.
Transferring Amounts Between Accounts
MT5 can also be used to trade multiple asset classes with multiple accounts using more than one currency. Trading with more than one account and transferring the cash from one account to another is a plus point for traders it is not available in MT4.
Economic Calendar
There is no in-built economic calendar in the MT4 platform, but traders can integrate the third-party calendar into it to keep track of the relevant finance market news. Meanwhile, MetaTrader 5 has a built-in economic calendar that offers real-time data about microfinance events. It helps traders to track the important financial announcements that affect the price of the assets.
So, Which Platform Traders Should Choose?
As we mentioned in this post, MT5 has some additional features than MT5. For novice traders, these additional features may cause complications. The beginners who are new to trade may get MT4 as genuine and easy to navigate.
In that case, MT4 turned out to be a clear choice. At the same time, MT4 is an ideal and extensively used software globally than MT5.
However, traders always need software that is reliable, user-friendly, and that does not rattle every so often. According to experts and traders’ reviews, MetaTrader 4 is an optimal choice for them.
