MetaTrader 4 (MT4) and Metatrader 5 (MT5) are two of the most popular trading platform in the world, widely used by Forex and CFD traders. Both platforms are developed by MetaQuotes Software and offer advanced tools for trading, analysis, and automation. Below is a detailed comparison and explanation of MT4 and MT5
Metatrader 4 (MT4)
MT4 was launched in 2005 and quickly became the industry standard for forex trading. it is known for it’s
Key futures
- Trading instrument
- Primarily focused on Forex and CFDs (Contracts for Difference).
- Supports trading in currency pairs, commodities, indices, and cryptocurrencies.
- Charting and Analysis
- Offers 30 built-in technical indicators and 24 analytical objects
- Support 9 times frames (From 1 minute to 1 month)
- Customizable charts with multiple chart types (line, bar, candlestick)
- Automated Trading:
- Supports Expert Advisors (EAs), Which are automated trading robots
- Uses MQL4 programming language for creating custom indicators and EAs.
- Mobile and Web Trading:
- Available on Windows, iOS, Android, and web browsers.
- Security
- Provides secure trading with 128-bit encryption
- Support Two factor authentication (2FA).
- Market Depth:
- Display Level II Pricing (Market depth) for better trade execution.
- Community and support
- Large community of developers and traders
- Extensive library of free and paid EAs, Indicators and Script
MetaTrader 5 (MT5)
MT5 was launched in 2010 as the successor to MT4. It was designed to offer more advanced features and support for a wider range of financial instruments.
Key future
- Trading instruments:
- Support Forex, CFDs, Stocks, Futures, Options and cryptocurrencies
- More versatile than MT4 in terms of assets clasess
- Charting and analysis:
- Offers 38 built-in technical indicators and 44 analytical objects
- Support 21 timeframes (including seconds and minutes)
- More advanced charting tools compared to MT4
- Automated Trading:
- Support Expert Advisors (EAs) and custom indicators
- Use MQL5 Programing language, which is more powerful and flexible than MQL4
- Economic Calender:
- Built-in economic calender to track important financial events and news
- Market Depth
- Display Level 11 pricing and time and sales data for better trade execution
- Multi- Assets trading
- Allows trading on multiple asset classes from a single account
- Strategy Tester
- Advanced backtesting capabilities with multi-threaded strategy testing
- Support testing on historical data with real tick accuracy
- Mobile and Web trading
- Available on Windows, IOS, Android and Web browsers
- Security:
- Provides secure trading with 256-bit encryption.
- Supports two-factors authentication (2FA)
Advantages of MT4 and MT5
MetaTrader 4 (MT4)
- Simplicity: Easier to use for beginners
- Wide Adoption: More brokers and Traders use MT4, making it easier to find support and resources.
- Extensive Library: A vast library of free and paid EAs, indicators and script
MetaTrader 5 (MT5)
- Multi-Assets Trading: Support a wider range of financial instruments.
- Advanced Tools: More technical indicators, analytical object and timeframes.
- Better Backtesting: Multi-threaded strategy tester with real tick accuracy
- Economic Calender: Built- in calender for tracking financial events
Which one should you choose?
Choose MT4 if:
- You are forex trader
- You prefer a simpler, more user-friendly platform
- You rely on a large library of existing EAs and indicators
Choose MT5 if:
- You trade multiple asset clasess (stocks, future, options, etc)
- You need advanced tools and features.
- You want better backtesting and strategy development capabilities
Conclution
Both MT4 and MT5 are powerful trading platforms, but they cater to slightly different needs. MT4 remains the go-to platform for Forex traders due to its simplicity and wide adoption, while MT5 offers more advanced features and supports a broader range of financial instruments. Your choice will depend on your trading style, the assets you trade, and the tools you need.
