Deciding which forex trading platform is right up your alley is essential in the world of online trading. When it comes to automated trading, MetaTrader 4 (MT4) and MetaTrader (MT5) are the two most prominent trading platforms.
Each platform has unique strengths and features that make it attractive to mobile trading enthusiasts in the financial markets.
This guide will help you unravel the benefits and key differences between the platforms. At the end of this read, you will be able to determine which platform better suits your trading style and needs.
Overview:
- MT4 and MT5 are the most well-known trading platforms, each offering robust functionality for online trading.
- MT4 offers features such as copy trading, focusing primarily on forex trading and CFDs. In contrast, MT5 offers a wider variety of trading assets that you can trade with more advanced tools and technical indicators.
- Although MetaTrader 5 is more powerful in the trading system, MT4 remains a long-standing favorite of trading experts in forex.
What is the MetaTrader Platform?
MetaTrader is a mobile trading platform that fundamentally transformed how retail traders gain access to the market.
Functioning as a virtual trading command center, it allows you to perform trades, analyze markets, and manage your portfolios from your computer or mobile device.
Released by MetaQuotes Software Corporation in 2005, MetaTrader gained popularity in the market—mainly in the forex industry. However, it is also widely used for other assets, such as indices, cryptocurrencies, and commodities.
One of the standout features of the MetaTrader platform is its ability to provide expert support for traders and brokers, utilizing essential analytical objects and trading tools.
With MetaTrader, you can achieve versatility using seamless algorithmic trading and technical analysis tools.
You can also benefit from automated trading capabilities by developing your own Expert Advisors (trading robots) and technical indicators of any complexity. You can do this with their proprietary programming language: MetaQuotes Language (MQL).
Several brokers trade on MetaTrader and consider it their primary platform for trading due to its robust and secure nature.
Although it may not be the most recently developed or the most sophisticated on the market, it is considered the industry standard. With MetaTrader 4 and MetaTrader 5, you’ll get the best support for your trading strategies.
What is MetaTrader 4 for?
The MetaTrader 4 (MT4) platform is a widely popular and trusted trading platform in the retail trading industry.
After its launch in 2005, it rapidly became a benchmark trading platform favored by forex traders worldwide.
At its core, MetaTrader 4 is an extensive platform that you can use best for forex trading. It also allows you to trade CFDs and futures.
You can benefit directly from a perfect balance of user-friendliness and functionality. With MetaTrader 4, you can have the best arsenal of traders, from basic charting tools to more advanced technical indicators and trading robots.
While these features can be overwhelming if you are a novice trader, the MetaTrader 4 platform is built to present these features in an intuitive, user-friendly interface.
A favorite feature of traders when it comes to the MetaTrader 4’s platform is its Expert Advisors (EAs). These automated trading programs can be useful for executing trades since they are based on predefined parameters.
With the MetaTrader 4’s trading robots, you can implement your trading strategies without needing constant manual involvement.
MetaQuotes Language 4 (MQL4) is MetaTrader 4’s propriety programming language that permits you to create custom indicators and trading robots. It is a great way to foster a community in which you can share a lot of your tools with other traders and developers.
To any trader, it won’t be a great platform to trade in if its charting capability is not as good as that of the MetaTrader 4’s robust and practical charting. It offers over 30 built-in technical indicators and nine timeframes.
MT4 enables efficient trading, allowing traders to benefit directly from the seamless navigation of multiple charts. As a result, traders can analyze multiple currency pairs simultaneously.
Its platform also supports several order types, from basic market orders to more complex conditional ones.
Other features that people recognize MetaTrader 4 for are its reliability and stability. The platform maintains its performance even during periods of trading with high market volatility or when employing complex automated trading strategies.
Its reliability, as well as its relatively low system requirements, strong security features, and indicators, indicate why many traders still opt for MT4—even with the emergence of MetaTrader 5.
What is MetaTrader 5 for?
Launched in 2010, MetaTrader 5 (MT5) is the successor of MT4 and is considered a representation of the next generation of trading platforms.
MetaTrader 5 is an all-in-one solution for trading in the financial industries of all sorts.
MT5 has a broader scope and improved capabilities. Compared to MT4, which focuses mainly on forex, MetaTrader 5 is used virtually for every tradable asset. It handles stocks, commodities, forex, futures, indices, and cryptocurrencies.
MT5 comes with a platform with the following technological advancements:
- MetaQuotes Language 5 (MQL5): a more sophisticated programming language
- 21 frames (compared with MT4’s nine frames): more advanced charting
- Multiple currency texting: improved backtesting capabilities
- Built-in economic calendar: fundamental analysis
- More advanced pending order types: better trade execution
All the above-mentioned advancements lead to better functionality, but they also come with increased system requirements and a steeper learning curve.
MetaTrader 5 is designed for traders with more modern and comprehensive market access in the financial industry. Since it also requires more advanced analytical objects, MT5 is most popular among traders with a wide range of asset classes for trading.
You need to have a more sophisticated analysis capability, as the platform is built with modernized financial markets in mind.
MetaTrader 5 supports both netting and hedging systems. It features native 64-bit support and a centralized strategy tester, enabling better performance on modern hardware.
MetaTrader 4 vs MetaTrader 5: Key Differences
MT4 and MT5 represent separate generations of trading technology—both have their own strengths.
Either MT4 or MT5 can be a good choice for any trader, depending on their trading needs.
For a summary of their common differences, here is a summary of their features:
|
Feature |
MetaTrader 4 |
MetaTrader 5 |
|
Market Access |
Forex and CFDs |
Multiple Industries, such as CFDs, Forex, Stocks, Bonds, and Futures |
|
Technical Indicators |
30 Built-In Indicators |
38 Built-In Indicators, Along With Custom Indicators |
|
Timeframes |
Nine Timeframes |
21 TimeFrames |
|
Programming Language |
MQL4 |
MQL5 |
|
Economic Calendar |
Not Included |
Built-In Economic Calendar |
|
Trading Strategy |
Hedging System |
Hedging and Netting Systems |
|
System Requirements |
Lower System Requirements |
Higher System Requirements |
|
Community & Resources |
Larger community |
Growing community |
|
Chart Types |
3 Types (Bar, Candlestick, Line) |
3 Types (Bar, Candlestick, Line) |
For a more detailed comparison of MetaTrader4 vs MetaTrader5, you can also see this comprehensive blog from TradersUnited.
Nonetheless, here are five key differences between MetaTrader 4 and MetaTrader 5:
1) Scope and Intended Use
While MT4 remains the preferred choice for forex traders due to its simplicity and reliable community support, MT5 offers broader market access and more advanced features.
MT4 is proven to be better for forex trading, while MT5 is better suited for a trading expert who aims to access multiple markets and command more advanced analytical objects.
With MT5, you can trade assets of your choice, such as:
- stocks
- forex
- commodities
- futures, and
- indices
Besides this wider scope of assets, MT5 also comes with more advanced technical analysis tools, including additional timeframes and indicators.
2) Educational Resources
MT4 is an older yet more established platform with a wealth of educational resources, user support forums, and tutorials available online.
Some of the topics they cover include:
- chart analysis
- platform navigation and indicators, and
- expert advisors development
Other brokers offer comprehensive training materials and customer support services that you can access on the MT4 platform.
MT5 also provides educational resources and user support. However, the availability and depth of these materials are not as extensive as those of MT4.
MT5 continues to gain traction on the market, with more educational resources and user support becoming available.
3) Security Features
You can download MetaTrader 4 or MT5 with ease of mind, knowing they prioritize their trader’s account and data security.
Both platforms use industry-standard security measures like:
- encryption protocols
- secure login procedures, and
- protection against unauthorized access
As the newer platform, MT5 offers more advanced security features compared to MT4. Among these features is two-factor authentication.
MT5’s modern architecture also offers better protection against cyber threats, including hacking and malware.
4) Compatibility
MetaQuotes made MT4 and MT5 more compatible with several internet browsers, including Mozilla Firefox, Google Chrome, and Microsoft Edge. You can also access them as desktop applications on your Windows or macOS.
Both MT4 and MT5 platforms offer mobile apps to any iOS and Android devices, allowing traders to execute trades and monitor the markets.
This compatibility is not something to overlook, as it provides seamless access to your accounts and trading tools across multiple platforms and devices.
5) Third-Party Add-Ons and Integrations
MT4 offers various third-party add-ons, integrations, and plugins developed by independent providers.
These tools leverage the platform’s functionality and accommodate various trading strategies. With MetaTrader 4, users can enjoy features like automated trading systems, copy trading, and technical indicators that they can customize.
With MetaTrader 4, people can also benefit directly from risk management tools used to improve their trading experience on the platform.
With MT5, the selection of third-party add-ons and integrations may be more limited compared to MT4. However, MT5 has built-in features that were previously only available using third-party plugins found on MT4.
Among these features are:
- an economic calendar
- additional timeframes
- advanced charting tools
FAQs
Why do traders prefer MetaTrader 4?
MetaTrader 4 forex trading enables traders of all expertise levels to execute even complex trading strategies.
The MetaTrader 4 platform combines two market orders, four pending orders, two stop orders, and a trailing stop to make this function possible.
To give users more flexibility, it also supports three executive modes: market, request, and instant.
MetaTrader 4 and MetaTrader 5 belong to different generations of trading technology. However, forex traders tend to prefer MetaTrader 4 more due to its simplicity and extensive community support.
Can I have MetaTrader 4 and MetaTrader 5 together?
By default, it’s not possible to run more than one MetaTrader 4 or MetaTrader 5 platform simultaneously at the same place.
If you want to run two instances of MT4/MT5 platforms on your computer, you need to install a second instance of the platform, though on separate directories on your computer.
Why were MetaTrader 4 and MetaTrader 5 banned from the iOS App Store?
In September 2022, the tech giant Apple placed a ban on MT4 and MT5 apps in the App Store. However, the ban did not take effect for Android users.
Although the reasons behind Apple’s action were unclear, some speculations suggest that the ban was related to trading scams involving impersonating popular trading platforms.
For iOS users, it was a triumph after the trading platforms had been reinstated on the Apple app store.
As of the 6th of March, 2023, users can once again use and download MetaTrader 4 and MetaTrader 5 apps for iOS. The apps are also available for Android.
MetaTrader 4 vs MetaTrader 5: Which Trading Platform is Better?
Choosing which MetaTrader platform to add to your trading tools ultimately depends on your specific trading goals, strategies, and preferred markets.
Suppose your focus is on forex trading, and you want a gold standard platform with proven reliability, extensive community support, and a large depth of trading strategies and resources. In that case, MT4 is a great choice that you should not exclude from your trading strategy.
A demo account is helpful to learn the ropes of MT4 use. Many traders typically start with an MT4 demo account to master the fundamentals of forex trading and take advantage of its simpler interface, copy trading capabilities, and lower system requirements.
However, if simple is not on your alley, and you want to diversify your portfolio using assets from your preferred industries, MT5 is the trading platform for you.
It offers the necessary advanced analytical tools, superior technology, and broader market access for you to get the best of trading in one place.
Before you make a choice, it’s best to test both platforms using a demo account so you can get a first-hand experience of both platforms and see which better suits your trading style.
The best platform will always be the one that matches your trading needs, objectives, and experience level.
Disclaimer:
The information provided in this article is for educational and informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency and Forex markets are highly volatile and carry significant risk. You should conduct your own research, consider your individual circumstances, and consult with a qualified financial advisor before making any investment decisions. The author and publisher of this article are not responsible for any losses or damages resulting from the use or reliance on the information presented herein. Trading, Forex and investing in cryptocurrencies involves substantial risk, and you could lose all of your capital.