Since its inception, MT4 has done an outstanding job connecting retail investors with brokers. However, after a long period of launch and market development, some limitations have gradually arisen with respect to the growing trading needs of investors. MetaQuotes has launched a new software (MT5) that is said to be an improved version of MT4 with additional features. So what is the difference between MT4 and MT5? Let’s find out in the article below.
What is the difference between MT4 and MT5?
Trading activities
MT4 is purpose-built for forex traders, while MT5 offers a wide range of financial instruments, currency pairs, metals and CFDs and allows trading of futures futures contracts, indices, ETFs and stocks.
In addition, MT5 provides market depth, which shows the number of buy and sell orders available at different prices.
Technical indicators
If a trader is thinking of using Metatrader4 or Metatrader5, they should also consider the technical indicators provided by each version.
MT4 offers 30 built-in technical indicators, 2,000 free custom indicators and 700 paid technical indicators.
On MT5, traders have more limited access to the built-in technical indicators, only about 38 indicators. Traders can also purchase a custom technical indicator using MT5.
Charting tools
Metatrader4 and Metatrader5 are both optimized with charting tools. For example, MT4 provides 24 objects that support chart analysis. Meanwhile, MT5 provides up to 44 analytical things. This is an advantage of MT5 over MT4 for traders who like to analyze charts with tools.
When it comes to graphical time frames, MT5 is superior. MT5 offers no less than 21 time frames, while MT4 offers only nine time frames. Both Metatrader4 and Metatrader5 provide an unlimited number of charts that can be fully customized. This allows you to view the price action on all suitable resources.
Programming language
Another difference between these two trading platforms is the programming language used. MT4 uses MQL4, while MT5 uses MQL5. The main difference is that MQL5 is generally considered easier to program as it allows “black box” programming. This means that it provides a better framework for creating and using forex trading robots and EAs.
The MT5 programming language has better backtesting functionality, so you can test and execute programmed strategies faster on MT4. MQL5 allows you to backtest multi-currency pairs at the same time, so overall it can be more profitable than an MT4 programming language.
Another thing to note is that there is no backward compatibility for these languages, which means that programs written for MT4 cannot run on MT5. This may be a limitation for traders who wish to upgrade and it is important to note that in the future program language updates will not be extended to MQL4 or MQL5.
Broker compatible with MT4 and MT5
While MT5 is said to come with more technical indicators and research tools, there is no doubt MT4 is still the preferred choice for online brokers. In fact, there are now more than 1,200 MT4 brokers.
Meanwhile, brokers that support MT5 are just a few. On the other hand, some brokers like that offer support for both MT4 and MT5, so you can switch between them as you see fit.
Should I choose the MT4 or MT5 trading platform?
Metatrader4 and Metatrader5 are both the two most popular trading platforms, so choosing which platform to use is up to the trader himself.
MT5 was launched five years after MT4. And the main difference between the two platforms is that the newer platform supports multiple markets, not just Forex. Therefore, this will be a more flexible option for investors who wish to trade on multiple markets. In addition, MT5 also includes some features not available on MT4.
However, the reality is that the number of traders using MT5 is still dominant. Since not all improved versions are suitable for you, sometimes you get used to using MT4 and so on, it is more effective to trade than to upgrade.
Similarly, the number of brokers that support MT5 trading is not as much as MT4. And that’s not to say it’s not worth exploring.
So, in my opinion, based on your investment needs, whether you want to trade on the forex market or you want to experiment with other markets, you decide to choose MT4 or MT5. In addition, one more important thing than choosing a platform is the search for a reliable exchange because it greatly affects the results of investments and the security of your money.
Frequently asked questions
Can I use MT4 account on MT5?
Although Metatrader4 and Metatrader5 are both Metaquotes products, these two platforms have separate systems and are not compatible. If you open a MetaTrader 4 account, you will not be able to use MetaTrader 5 with your MT4 login and vice versa. If you want an account used for both Metatrader4 and Metatrader5, you need to open a separate trading account for the two platforms.
Will MT4 be phased out in the future?
Although Metaquotes announced a few years ago that it would no longer support MetaTrader 4, until now, MT4 is still meeting the trading needs of traders. MT4 is also the most popular and widely used trading platform offered by many brokers around the world. Therefore, the elimination of MT4 is unlikely.
Which MT4 broker, MT5 is the best?
Currently, the number of trades that offer to trade on Metatrader4 and Metatrader5 is huge. In particular, the number of fraudulent brokers is also quite large. Therefore, you need to be careful when choosing an exchange. Some reliable exchanges you can refer to are:
- XM
- Capital.com
- ICMarkets
- Hotforex
- FXTM
- HotForex
- FxPro
The MT5 interface is quite similar to the previous version of MT4. The significant difference between MT4 and MT5 is the market they provide. Depending on your needs, you can decide to choose Metatrader4 or Metatrader5. More important than choosing any software is to select a reliable exchange, where you open an account and deposit money for profitable trading. I wish you a successful and safe trading!
