mt4 vs mt5

MT4 or MT5? What are the main differences? Which of these two trading platforms will best fit your trading style? Some would say the simplicity of MT4 is its biggest selling point. It has been called the industry standard, as most Forex brokers use the MT4 terminal as their primary trading interface. Others would say the MetaTrader 5 (MT5) platform, released in 2010, features some significant changes from its predecessor. It is aimed at a different market user and therefore can be understood as a definitively different platform rather than a different version of MetaTrader 4 (MT4).

We are frequently asked by our readers to evaluate whether MT4 or MT5 is more suitable for them, therefore we have prepared the following MT4 vs. MT5 guide. 

About MetaTrader

In the retail foreign exchange business, everyone believes that this field is dominated by only two front-end trading platforms from one company – MetaQuotes’ MT4 and MT5.

Without any doubt, MT4 which launched in 2005 has proven itself well against the test of time. It has an unrivaled reputation and has all the features traders need. Such as numerous charting software, over 1,700 EAs, over 2 thousand kinds of technical indicators in the MT4 market, copy trade, alerts, financial news, and mobile trading.

In 2010, MetaQuotes launched MT5. MT5 is a diversified financial trading platform that allows the use of an account to trade multiple assets and supports assets such as foreign exchange (FX), CFDs, futures, options, stocks, funds, bonds, and cryptocurrencies. MetaQuotes’ ambition for MT5 is to position it as “the best trading platform in foreign exchange and financial markets”. But it had lived in the shadow of the massive success of MT4 for quite some time until recent years. From our vantage point, there are even days MT5 trading volume actually exceeded MT4’s. MT5 has become a force to be reckoned with finally.

The debate over the two platforms has never stopped; MT4 and MT5 each have a group of loyal supporters. So, what causes customers to split up into two teams? We can take a look at the differences between the two platforms and the advantages of each.

So, MT4 or MT5? We’ve analyzed the MT4 MT5 differences, we’ve compared the common features, and explained the updates of the latest version from MetaQuotes

  • MetaTrader 4 Download
  • MetaTrader 5 Download

Comparison of the MT5 and MT4

1. Partial Order Filling Policies: availability of the partial order filling option, in which a trade with a maximum volume that is now available in the market is executed, not exceeding the volume requested in the order, while unfilled volume is canceled.

  • MT5: YES
  • MT4: NO

2. Depth of Market: the depth of market option, which features bids and offers for financial security at different prices depending on the volume. 

  • MT5: YES
  • MT4: NO

3. Time & Sales (Exchange data): ability to receive Time and Sales from the Exchange.

  • MT5: YES
  • MT4: NO

4. Economic Calendar: the fundamental analysis tool featuring publications on various countries’ economic indicators, which can affect the prices of the financial instruments.

  • MT5: YES
  • MT4: NO

5. Transfer funds between accounts: a possibility to transfer funds between accounts on the same server.

  • MT5: YES
  • MT4: NO

6. Embedded MQL5.community chat: possibility to chat with other traders directly in the MetaTrader platform.

  • MT5: YES
  • MT4: NO

7. Netting: support for the netting accounting system, which only allows having one open position of a financial instrument.

  • MT5: YES
  • MT4: NO

8. Exchange Trading: trading on an exchange that offers stocks, futures, bonds, options.

  • MT5: YES
  • MT4: NO

9. Multilingual Unicode: support for the Unicode character encoding standard that ensures the correct display of characters and symbols in any language.

MT5: YES

MT4: NO

MT4 and MT5 Common Features

1. Order Fill Policy: you can set additional order execution conditions

  • MT5: Fill or Kill, Immediate or Cancel, Return
  • MT4: Fill or Kill

2. Pending Order Types: types of forex orders requesting a broker to buy or sell a financial security under predefined conditions in the future.

  • MT5: 6
  • MT4: 4

3. Technical Indicators: the number of technical indicators, which can automatically detect chart patterns in the financial instruments price dynamics and help users to make trade decisions.

  • MT5 indicators: 38
  • MT4 indicators: 30

4. Graphical Objects: the number of graphical objects that help to identify instrument price trends, to detect support/resistance levels, time cycles, trendlines, channels, and more.

  • MT5: 44
  • MT4: 31

5. Timeframes: the number of timeframes – time intervals in which quoted financial instruments are grouped.

  • MT5: 21
  • MT4: 9

6. Email System: the features of the built-in email service, which enables users to receive important information from the broker directly into MetaTrader.

  • MT5: With attachment
  • MT4: No attachment

7. Strategy Tester: backtesting and optimization mode supported by the built-in Strategy Tester

  • MT5: Multi-threaded + Multi-currency + Real ticks
  • MT4: Single thread

8. Hedging: support for the hedging accounting system, which allows having more open forex positions, both in the same direction and opposite direction.

  • MT5: YES
  • MT4: YES

9. Symbols: the number of financial instruments that can be traded in MetaTrader.

  • MT5: Unlimited
  • MT4: 1024

10. Supported Markets: financial markets, on which the user can trade into MetaTrader.

  • MetaTrader 5: FX/Futures/Options/Stocks/Bonds
  • MetaTrader 4: FX

What is the Difference Between MT4 and MT5

Mobility

  • Having to step away from the trading station can be difficult, particularly if you’re in a trade or a setup is within striking distance of its buy/sell line.
  • By employing the use of the mobile versions offered through MT4 and MT5 via iOS and Android powered smartphones and tablets, traders are able to access their trading platforms from anywhere in the world 24 hours a day.
  • The functionality offered on mobile versions includes interactive quote charts, full set of trading orders, popular analytical tools, the ability to monitor account status and buy and sell financial instruments.

Analytics

Analytical objects are certainly one of MetaTrader’s strong points.

  • Both platforms allow users to customize the interface to suit trading needs.
  • Interactive charts come fully loaded with nine timeframes to choose from on MT4, though MT5 boasts a whopping 21 timeframes to work with.
  • 30 built-in technical indicators are available on MT4, whereas MT5 offers 38. In terms of drawing tools, the MT5 platform provides some additions over its counterpart, including more Fibonacci studies and Elliot wave drawing tools. All in all, MT4 brings 31 graphical objects to the table while MT5 supplies 44.
  • It is also worth noting both platforms have alert functionality with audio and the latest financial news. This is handy if you trade multiple markets. Another nice addition to MT5 is the economic calendar. Attached to the bottom of the chart in the shape of a small, yet trendy, time function, it alerts traders when high-impacting macroeconomic news is about to hit the wires.
  • A key difference between the two platforms also worth highlighting is MT5 offers market depth (DOM – depth of market), allowing clients to view where bids and offers are priced across markets.

Algorithmic trading

Algorithmic trading is trading with the assistance of an automated trading system – sometimes referred to as ‘trading robots’.

  • MetaQuotes Language 4 (MQL4) and MetaQuotes Language 5 (MQL5) are built-in programming languages serving to address traders’ needs and requirements for writing trading programs.
  • By adopting and understanding this language, traders are able to produce Expert Advisers (Forex EAa). Just about any trading strategy can be implemented as an EA, automating your trading process. In addition to this, traders can also create custom indicators.
  • Systems coded with MQL4 are not compatible with MQL5 programs.
  • Another key difference worth noting is the trading system setup. MQL4 is used for developing trading programs based on the order system and MQL5 is utilized to implement a positional system.
  • MQL5 is said to be more efficient and easier to use than its MQL4 counterpart. MQL4 requires several functions to complete each trading operation. It might also be worth penciling in the improved Strategy Tester for EAs on MT5, with Agent Manager for remote optimization.

Trading and orders

MT4 and MT5 have similar execution modes. Three execution modes: Instant execution, execution on request, and execution by market are available on MT4, though MT5 offers an addition in the form of ‘exchange execution’. In this mode, orders are sent to an external trading system (exchange).

In terms of pending orders – execution modes used to buy or sell a market at a predefined price in the future –MT4 has four order types available: buy stop, buy limit, sell limit and sell stop, while MT5 offers six. The additional two orders provided in this program are the buy/sell stop limit.

  • MT4 allows only hedging. MT5, however, permits both hedging and netting. An example of netting is if a trader were to enter into a long position for 1 lot on say the EUR/USD and then enter a second lot in the same market, the initial order entry would simply become one position, as opposed to two separate positions.
  • Embedded MQL5 community chat function.
  • Funds are able to be transferred between accounts on MetaTrader 5.
  • MT4 is designed for CFD forex instruments, whereas MT5 is an all-in-one state of the art multi-asset trading platform, covering both centralised and non-centralised financial markets, including, stocks, futures and FX trading instruments.
  • MT5 is faster and more efficient than MT4. MT5 is a 64-bit, multi-threaded platform, whilst MT4 is a 32-bit, mono-threaded platform.
  • Both MT4 and MT5 contain internal mailing systems, though MT5 offers this service with attachments. Just to be clear, on both platforms traders are unable to send emails outside of the Metatrader system, only to administrators of the trading server.

MT4 vs MT5

Advantages of MT4 compared to MT5

The positioning of the MT4 trading product is relatively precise, focusing on financial investment trading varieties such as foreign exchange, gold and silver.

MT4’s same side / opposite side of trading will be processed as separate tickets, while MT5’s same side orders will be merged into the one position with weighted average price, and positions with opposite sides (buy and sell hedging) are not allowed. MT4 is more convenient.

The stability of MT4 is relatively good. It is easier to use and manage.

>> MT4 how to use

While MT5 offers brokers more advantages

  • Supports symbol groups
  • Supports gateway
  • Supports managing reports through the interface
  • Runs multiple servers separately
  • Settings are more refined
  • Permission management is simplified
  • Support for the trading of exchange symbols
  • Supports managing routing through the interface
  • The decimal number of trading volume has been changed from 2 to 8 digits

And in order to accelerate the use of MT5 in the foreign exchange market, MetaQuotes continued to add traders’ favored features such as locked position, hedging, DOM (Depth of Market), allowing one-click market order and pending orders.

>> MT5 how to use

MetaTrader 4 vs 5 – The Verdict

Is MT5 the future?

When it comes to usage, if you have to comply with regulatory requirements, or need to do a lot of back-testing offline, or want to trade stocks and commodities, MT5 is a better choice over MT4. MT5 is also more popular with the new up-and-coming brokerages that try to bring new innovations to the market.

Other than that, the MT4 platform is currently more popular with established brokerage brands due to its very high usage rate. Some of the limitations in the MT4 platform are tolerable. It runs smoothly and traders are already familiar with various functions, charts, and expert advisors.

Most experienced traders say they just want the platform to be reliable, easy to use, intuitive and uninterrupted. And that is what trading platforms should focus on.

Experts Opinion

MetaTrader 5 Wins Awards in Two Categories During London Summit Awards 2019: Best FX Trading Platform and Best Multi-Asset Trading Platform

Source: FinanceMagnates.com

LIMASSOL, Cyprus, Nov. 20, 2020 / — MetaQuotes is proud to announce that its trading platform has won awards in two categories during Finance Magnates London Summit Awards 2020. MetaTrader 5 has set itself as the best platform in both Forex and multi-asset trading.

The award ceremony was the final accord of the summit and took place on November 13. This year, the event brought together more than 3,000 professionals from the financial and FinTech industries, achieving a historical record of attendance.

As a result of independent voting, MetaTrader 5 outperformed its competitors and gained the majority of votes. The winner in each category was determined in two stages: a shortlist of three participants was formed in each category, and then the registered attendees voted based on a narrowed shortlist.

MetaTrader 5 won two awards in both the “Best FX trading platform” and “Best multi-asset trading platform” categories. These awards set MetaTrader 5 as the industry standard and represent an acknowledgment of the contribution from the industry as a whole.

MetaTrader 5 allows you to enjoy the freedom of movement to the full extent — you can stay active while trading from smartphones and tablets. The Web Platform provides even more possibilities and allows you to work from any web browser and any device. By choosing the most convenient way from a variety of options, you can trade 24 hours a day!

Additional services expand the functionality of the platform making its capabilities almost limitless. MetaTrader 5 offers the built-in Market of trading robots, the Freelance database of strategy developers, Social Trading, and the Virtual Hosting service (Forex VPS). Use all these services from one place, and access new trading opportunities!

Millions of users around the world choose MetaTrader 5, attracted by the platform’s exceptional advantages. For all of these users, we have created the largest community of traders, and we invite you also to join the MQL5.community. On the community website, you can download thousands of free trading robots, subscribe to trade signals and copy deals of successful traders, discuss trading strategies, and much more.

MT4 MT5 which one?

Although there are a lot of MT4 – MT5 differences, this all depends on your personal trading style and preferences. But if you believe in technology and have a focus on all types of trading, then the MT5 platform may be for you. EAs can be applied to both platforms, but keep in mind that MT5 was created to improve MT4 automated trading.

Experience the MT4 – MT5 difference with a risk-free Forex demo account.

MT4 vs. MT5 FAQs

Can I use MT4 account in MT5?

No, but many brokers offering the MetaTrader 4 trading platform also offer the MetaTrader 5 trading platform and will allow you to switch.

Will MT4 be phased out?

No. Although Metaquotes announced several years ago they would no longer be supporting MetaTrader 4, it is still available from their website for free download and remains by far the most popular and widely used trading platform.

What is the difference between MT4 and MT5?

MT4 was built to trade Forex while MT5 was designed to allow easier trading in non-Forex CFDs. They use different programming languages and MT5 allows faster back testing than MT4. MT5 also allows a DOM (depth of market functionality) and is technically supported by MetaQuotes, unlike MT4.

Which MetaTrader broker is the best?

Investing Magnates believes that of the top brokers offering the MT4 and MT5 trading platforms, Admiral Markets is the superior choice for most traders.

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