In the fast-paced world of online trading, choosing the right trading platform can make all the difference. Two of the most popular options, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), have been go-to choices for traders for years. In this comprehensive comparison for 2023, we will dive deep into the intricacies of these platforms to help you make an informed decision.
MetaTrader 4 and MetaTrader 5 are renowned trading platforms designed by MetaQuotes Software. They serve as the backbone of numerous brokerage firms and provide traders with a wide range of tools and features. Let’s explore their differences and similarities to determine which one suits your trading style best.
MetaTrader 5, or MT5, elevates the idea of multi-asset trading, surpassing MT4 in speed and efficiency. Rather than replacing it, MT5 enriches the trading journey. It provides access to an extensive array of assets, including Forex, stocks, indices, commodities, and even cryptocurrencies.
Read also, How to Update MT4/MT5 to the Latest Version
Difference Between MetaTrader 4 Vs MetaTrader 5
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have long reigned supreme as the trading platforms of choice for millions of traders worldwide. Developed by MetaQuotes Software Corp, both platforms offer a plethora of features and tools, making them indispensable in the trading world. But in 2023, which one should you choose? Join us for an in-depth comparison of MT4 and MT5 to help you make the right decision.
Unveiling MetaTrader 4 (MT4)
MetaTrader 4, introduced in 2005, has been the trusted companion of Forex traders for nearly two decades. Beyond Forex, it serves as a versatile platform for trading stocks, indices, and commodities through CFDs. Its popularity stems from its multi-functionality, user-friendly interface, and the ability to tailor it to individual needs. Additionally, MT4 is equipped with advanced trading tools, empowering traders to execute their preferred strategies with ease.
Meet MetaTrader 5 (MT5)
Released in 2010, MetaTrader 5, often referred to as MT5, takes the concept of multi-asset trading to the next level. It’s faster and more efficient than MT4, and it doesn’t seek to replace its predecessor; instead, it expands and enhances the trading experience. MT5 offers access to a broader range of instruments, spanning Forex, stocks, indices, commodities, and even cryptocurrencies.
MT5 equips traders with an arsenal of tools for success, including advanced technical and fundamental analysis, trading signals, algorithmic and copy trading, as well as support for trading robots.
MT4 vs MT5: A Head-to-Head Comparison
At FBS, you have the privilege of trading on both MetaTrader 4 and MetaTrader 5. Let’s break down the key parameters that set these platforms apart.
|Markets||Forex and CFDs||Forex, futures, stocks, bonds, and options markets|
|Pending order types||4||6|
|Order fill policy||Fill or Kill||Fill or Kill, Immediate or Cancel, Return|
|Partial order fill policy||No||Yes|
|Email system||Yes (no attachments)||Yes (with attachments)|
|Fund transfer between accounts||No||Yes|
|Depth of market||No||Yes|
As evident from the comparison table, MT5 outshines MT4 in several aspects, offering more technical indicators, timeframes, and overall trading functionalities. Nevertheless, it’s essential to understand that MT4 isn’t necessarily inferior; it’s just tailored differently to suit specific trader preferences.
The list of assets you can trade doesn’t hinge on MT4 or MT5 but rather on the broker you choose. At FBS, you can trade a wide range of CFDs on both MT4 and MT5, including:
- Forex Exotic
The only exception is that you can trade cryptocurrencies exclusively on MT5.
MT4 boasts 30 built-in technical indicators, which can be supplemented by over 2,000 custom indicators from the Code Base. Additionally, MT4 offers access to over 700 paid indicators available in the Market. This arsenal is more than adequate for comprehensive market analysis.
On the other hand, MT5 provides 38 built-in technical indicators for deeper insights into market direction. Similar to MT4, MT5 users can access a multitude of custom indicators from the Code Base, with thousands of paid options available in the Market.
MT4 comes equipped with 31 graphical objects, including lines, channels, Gann and Fibonacci tools, shapes, and arrows that enable traders to forecast future price movements with accuracy.
Conversely, MT5 offers 44 graphical objects, expanding the range of tools to include geometric shapes, channels, Gann, Fibonacci, Elliott tools, and more.
MT4 offers nine timeframes, encompassing minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1), and monthly (MN). While this may seem limited in comparison to MT5, these timeframes sufficiently cater to the needs of swing and long-term traders.
MT5, in contrast, presents a comprehensive selection of 21 timeframes, including minute intervals (M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30), hourly intervals (H1, H2, H3, H4, H6, H8, H12), daily (D1), weekly (W1), and monthly (MN). This broad array of timeframes empowers traders with a more detailed analysis of their preferred assets.
MT4 offers four types of orders: buy stop, buy limit, sell stop, and sell limit. MT5, on the other hand, enhances this functionality by introducing six types of pending orders, including those found in MT4, along with buy stop limit and sell stop limit.
While MT4 lacks a built-in Economic Calendar, you can effortlessly utilize third-party calendars to stay updated on relevant financial news. FBS, for example, offers its own Economic Calendar, providing essential insights into macroeconomic events that influence market dynamics.
MT5, on the other hand, incorporates an integrated Economic Calendar that offers real-time information on macroeconomic events. This feature is invaluable for traders who need to stay informed about events that could impact asset prices and their trading strategies.
Both MT4 and MT5 support Demo trading, allowing traders to familiarize themselves with real market conditions without the risk of financial loss. A free Demo account mirrors the features of a real account, enabling traders to practice with virtual funds. It’s an invaluable tool for beginners to explore the MT4 and MT5 platforms and experiment with various trading tools.
TRY DEMO ACCOUNT
Usability & Mobility
Both MT4 and MT5 are versatile platforms available across desktop, mobile, and browser environments. These options ensure accessibility for traders regardless of their device or location.
- Desktop: Windows, macOS, Linux
- Mobile: Android, iOS
- Browsers: Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, Opera, and Internet Explorer
In terms of design and usability, MT4 and MT5 share many similarities. The primary menu structure may differ slightly, but the core features remain consistent. Users can tailor the interfaces to align with their unique trading preferences, with one common requirement being an internet connection.
MT4 vs. MT5: Pros & Cons
Still unsure which platform to choose? Let’s weigh the pros and cons of both MT4 and MT5 to help you make an informed decision.
- Easier and simpler for beginners.
- Originally designed for Forex traders, making it an excellent choice for Forex trading.
- Sufficient for most traders, especially those who are new to trading.
- Limited trading options compared to MT5.
- Slightly slower than MT5.
- Expands beyond Forex to cover stocks, indices, commodities, and cryptocurrencies.
- Offers more charting tools, technical indicators, and timeframes compared to MT4.
- May appear more complex for beginners.
- Fewer Robot and Expert Advisor developers opt for MT5.
Which platform is better for me, MT4 or MT5?
Both MT4 and MT5 are popular choices among traders. In summary, if you’re new to trading, MT4 is the ideal starting point due to its simplicity and focus on Forex. However, for traders with experience and a broader range of assets in mind, MT5’s feature-rich environment may be more appealing. FBS broker provides access to both MetaTrader 4 and MetaTrader 5 to cater to your specific preferences.
Can I use both MT4 and MT5?
Yes, you can trade on both MT4 and MT5 if your selected broker supports both platforms. Keep in mind that you will need separate accounts since you cannot log in to the MT5 platform with your MT4 account credentials and vice versa.
Is MetaTrader free for me?
Yes, both MT4 and MT5 are completely free to download and use. There are no fees or charges associated with using these platforms.
Can I trade in MetaTrader without a broker?
No, trading on MetaTrader requires a broker. MT4 and MT5 serve as trading platforms, equipping you with the tools needed for trading. However, you will still need to open an account with a broker like FBS to access the markets.
How do I download MetaTrader with FBS?
Visit the FBS website, select MetaTrader 4 or MetaTrader 5, and follow the provided instructions for downloading the platform in your preferred format. For a step-by-step guide, refer to the video materials available on the FBS website, covering topics such as “How to open your first trade in MT4” and “Technical indicators in MT4,” among others.
In the ever-evolving world of trading, the choice between MetaTrader 4 and MetaTrader 5 is a crucial one. Each platform brings unique advantages to the table, catering to the diverse needs of traders. So, whether you’re a newcomer looking for simplicity or an experienced trader seeking broader horizons, rest assured that your journey begins with a reliable broker like FBS, offering a wealth of educational resources and two powerful MetaTrader platforms to propel your trading endeavors.
User reviews on MT4 VS MT5 from YouTube channel:
- jlthakad 2 weeks ago
- “I wish they just added more cores to MT4 for backtesting, allowed backtesting on weekly and monthly time frames as well, and MT4 would be perfect.”
- KanalDolar 5 months ago
- “Creators of MT5 say it is better than MT4. Users do not quit MT4 voluntarily. So they force them to adopt MT5, which indicates that MT5 is absolutely a failed project. They spent time and money on developing MT5 hoping for success. In my opinion, like many traders, all new features could be easily accomplished inside the MT4 structure, module by module maybe, without disturbing the MT4 community. In fact, they did that like any other software for years. I think they wrote MT5 without listening to user opinions; therefore, they missed what is needed by users. Users need simplicity, not too many things. They put 2 more order types which users never understand. Worst is that they enlarged the language in which you write many lines of code. Who cares? Average users, who are dominant in the community, know a little amount of code writing. Simple coding is enough for them. After all, Python is growing; why is MQL5 created? They put Python inside the MT5 structure as a secondary language. They could do this inside the MT4 structure or could write a Python version of MT4, maybe pyMT4, and old MT4 codes could be converted easily into pyMT4.”
- perksinc.4674 7 months ago
- “Thank you so much for such an insightful video”
- alexeisosin9203 5 months ago
- “MT5 cannot deal with hedging? What do you mean?”
- MoLtenMetaL7 4 months ago
- “Ok, give me 1 reason why should I prefer MT4 over MT5. I still haven’t heard any from you”
- FXIGOR 3 months ago
- “Hi. Thank you for your reasonable question. You should prefer any platform. The only reason is that there are several times more indicators, expert advisors for MT4 than MT5, and most people use MT4 because of that. I cooperate with 24 forex brokers right now, and all of them tell me that they have more MT4 users than MT5. MT5 is a better platform for sure.”
- parthaschakra 2 months ago
- “Because of its simplicity (remember da Vinci quote – simplicity is the ultimate sophistication). Try making an EA in MT5 and MT4 simultaneously, and you will notice the difference. Instead of making MT5 backward compatible, they simply want to force users to switch to the new programming language – a terrible idea. That’s why MT4 is still there even after 13 years of the release of MT5.”