MT5 vs MT4: A Side-by-Side Comparison of the Two Trading Platforms

By Shilpa Annie Joseph, Official Reporter
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Creative: Alavudheen Majeed

As a trader, choosing the right platform to execute your trades is a crucial decision that can make all the difference in your success. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular trading platforms used by traders worldwide.

Both platforms are developed by MetaQuotes Software, and while they share some similarities, there are also significant differences between them. In this article, we’ll provide a side-by-side comparison of MT4 vs MT5 to help you decide which platform is best for you.

1. Overview

MetaTrader 4 VS MetaTrader 5 _ Overview
Image: Gerd Altmann @Pixabay

MT4 was released in 2005 and has since become one of the most widely used trading platforms globally. It is primarily designed for Forex trading and offers a user-friendly interface, advanced charting capabilities, and an extensive library of technical indicators and automated trading tools. MT5, on the other hand, was released in 2010 and is an updated version of MT4. While it also caters to the Forex market, MT5 is more versatile and designed to handle a more extensive range of financial instruments, including stocks, futures, and commodities.

2. User Interface

Both platforms have a similar layout, with charts displayed in the main window and essential trading information such as open positions, account balances, and orders on the sides. MT5, however, has a more modern and user-friendly interface, making it easier for new traders to navigate the platform.

It is important to be sure to always use an official platform. By MT5 download, you can access the various charting options and explore the user-friendly interface. With its enhanced features and more comprehensive charting capabilities, MT5 is a popular choice for traders looking to take their trading to the next level.

3. Order Types and Execution

MetaTrader 4 VS MetaTrader 5
Courtesy: TIF

MT5 has a more extensive range of order types than MT4, including four types of pending orders, while MT4 offers only three. MT5 also has a more sophisticated trade execution system, with a depth of market (DOM) feature that displays the current market depth for a specific financial instrument. This feature allows traders to see the buy and sell orders at different price levels, enabling them to make more informed trading decisions.

4. Backtesting and Automated Trading

Both MT4 and MT5 offer backtesting and automated trading capabilities. However, MT5 has an upgraded strategy tester that allows for multi-currency backtesting, making it easier to test trading strategies across different financial instruments. MT5 also has an improved MQL programming language that allows for more sophisticated automated trading systems.

5. Availability of Markets and Assets

MT4 is primarily designed for Forex trading, with support for trading in other markets such as CFDs, commodities, and indices. MT5, on the other hand, is designed to handle a more extensive range of financial instruments, including stocks, futures, and options, in addition to the markets supported by MT4.

6. Mobile Trading

MetaTrader 4 VS MetaTrader 5 _ Mobile Trading
Image: Sergei Tokmakov @Pixabay

Both platforms have mobile versions that are compatible with Android and iOS devices. However, the MT5 mobile app has more advanced features than the MT4 mobile app, including a new chat feature that allows traders to communicate with other traders directly through the platform.

7. Customization Options

Both MT4 and MT5 offer customization options that allow traders to personalize the platform to their preferences. However, MT5 has more extensive customization capabilities, including the ability to add custom indicators, chart templates, and custom timeframes. MT5 also has a new feature that allows traders to create and save their own trading algorithms.

8. Security

Security is essential in any trading platform, and both MT4 and MT5 have robust security features to protect traders’ accounts and information. Both platforms use 128-bit SSL encryption to ensure that all communication between the platform and the server is secure. MT5 also has an additional security feature called two-factor authentication, which provides an extra layer of protection by requiring traders to enter a unique code sent to their mobile device before they can log in to their account.

9. Community and Support

MetaTrader 4 VS MetaTrader 5 _ Community and Support
Image: Markus Winkler @Pixabay

Both platforms have a large user community, with many online forums and resources available to help traders learn and improve their trading skills. However, MT5 has a more active community and a more extensive range of support resources, including tutorials, webinars, and a dedicated section on the MetaQuotes website for MQL programming.

10. Cost

Both MT4 and MT5 are available to traders for free, with no monthly subscription or usage fees. However, brokers may charge a fee for using the platform or provide it for free to their clients as part of their trading services. As a result, the cost of using either platform will depend on the broker you choose.

In conclusion,

Choosing between MT4 and MT5 depends on your trading preferences, the financial instruments you want to trade, and the broker you choose. If you are primarily focused on Forex trading, MT4 may be the best choice, while MT5 is more versatile and suitable for traders looking to trade a broader range of financial instruments. Ultimately, the platform you choose should provide the trading features and capabilities that best suit your trading style and goals.

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