MT4 vs MT5 – Which Platform is Better?
Since their launch in 2005 and 2010, the all-famous MetaTrader 4 and 5 have been the prime choices of retail traders.
Key Differences of MetaTrader 4 and MetaTrader 5
- MetaTrader 4 has nine timeframes for chart analysis, while MT5 offers 21.
- MT5 has market depth available while MT4 doesn’t. The former also has two additional chart types, i.e., Renko and range, in addition to candlesticks.
- MetaTrader 5 has advanced multi-threaded backtesting functionality compared to single-threaded in MT4.
- MT4 uses MQL4, a much simpler programming language than MQL5 in MT5.
- Limited to 1 market order execution mode
- Offers basic order types: Market, Limit, Stop, Trailing Stop
- Limited support for editing custom indicators and EAs
- Smaller historical data storage capacity (up to 5 years)
- Light on system resources, making it suitable for low-end devices
- More widely supported by brokers and traders
- Multiple execution modes: Market, Instant, Request
- Includes advanced order types: Market, Limit, Stop, Trailing Stop, Buy Stop Limit, Sell Stop Limit
- Supports more complex custom indicators and EAs with better performance (MQL5)
- Enhanced data storage (up to 90+ years of historical data)
- More resource-intensive due to advanced features and multi-asset support
- Gaining popularity but still not as universally adopted as MT4
Overview of MetaTrader 4
MetaTrader 4 was primarily launched in 2005 by MetaQuotes Software to trade on currencies. Due to its user-friendly interface, stability, and powerful technical tools, it became the first choice of many retail market participants.
The software is known for its low resource usage and the availability of many trading algorithms on the MQL 5 marketplace. Traders can install the platform on their PCs or mobile devices. Due to its simplicity, MT4 remains the first choice for most retail traders and brokers despite the launch of MetaTrader 5.
Some of the main features and benefits of MT4 are:
- User-Friendly Interface: It is easy to navigate, making it the primary choice for many novice and professional traders. Due to its lightweight nature, it can run smoothly on low-spec systems.
- Wide Broker Coverage: Almost all major brokers support the MT4 platform. Traders can log in to the software by downloading it from their broker and entering the relevant credentials.
- Large Community: A large community of traders is actively discussing the developments in MT4 and associated algorithms. Anyone can participate and ask questions.
- Charting Tools: A variety of charting tools are available, including access to various chart types (bars, candlesticks, and lines). Traders can also carry out their technical analysis on the software.
Overview of MetaTrader 5
MetaTrader 5 was the successor to MetaTrader 4. It was released in 2010 and was built on the foundation of MT4, introducing more advanced charting tools, added timeframes, better order execution options, and improved also testing.
In general, MT5 is catered to more advanced users who require more functionality and flexibility.
Some of the main features and benefits of MT5 are:
- Advanced Order Types: MT5 supports advanced orders such as buy stop limit and sell stop limit.
- Market Depth: Traders can use the level 2 market data to analyze the order flow.
- Improved Strategy Tester: Backtesting in MT5 supports testing multiple instruments simultaneously. Traders can also use forward testing and adjust the order execution delay to mimic real trading conditions.
- MQL5: MetaTrader 5’s trading systems are coded in MQL 5 language, a complex language that allows traders to conduct advanced trading analysis.
Factors to Consider Between MetaTrader 4 & MetaTrader 5
While both MetaTrader 4 and MetaTrader 5 offer a range of functionalities to their users, there are some differences that users can gauge to see which one is suitable for them. Here is a detailed comparison.
Available Instruments and Market Access
MetaTrader was originally developed to trade only on currencies. While it has extended its support for other market instruments, its optimization remains focused on forex. In contrast, MT5 expanded the support beyond currencies to other assets such as stocks, options, bonds, and so on. Due to its multi-asset trading capabilities, it is best suited for those looking to diversify their portfolio.
User Interface and Customization
While MetaTrader 4 is best suited for those looking for simplicity, MetaTrader5 offers better personalization features. MT4 provides a straightforward layout, customizable charts, windows, and toolbars. MT5 adds more to the original structure of MT4, for, e.g., enhanced chart types, additional time frames, and better backtesting.
Performance and Security
MT5 excels at handling complex tasks and larger data sets, making it a better option for institutional traders. On the other hand, MetaTrader 4 is better suited for retail traders who prefer fast execution and stability. MT5 also allows for the same in addition to handling big market data.
MetaTrader 4 incorporates standard security protocols, including encrypting passwords and securing login methods. MetaTrader 5 adds an additional security layer with two-factor authentication.
Switching Between MetaTrader 4 and 5
Traders moving on from MT4 to MT5 will face some difficulty as the latter is more complex due to its more advanced order types, a wide range of charting tools, and a new programming language, i.e., MQL 5. Market participants who use expert advisors on any MT4 or 5 software will have to recreate them from scratch due to the difference in programming language. Moving from MT5 to MT4 is relatively easy as the latter, in this case, is easy to navigate.
A Better Option: TradingVIew
Traders adore MT4 and MT5 because they have many features and are very functional, but sometimes, they can be quite complicated to master. Fortunately, TradingView offers a modern-day interface and is far superior to both apps in charting, social trading, features, and overall ease of use.
Exclusive Deal: 30-Day FREE Premium Access + Bonus Credit
Don’t Miss Out – Sign up for TradingView Now!
- Advanced Charts
- Real-Time Data
- Track all Markets
TradingView does not need to be installed because it is web-based. You can view your charts anywhere with an internet connection. Its efficient design, versatile tools, and advanced charting system allow traders to analyze markets more efficiently and post their concepts to a wide audience.
Also, with all the brokers provided in TradingView and social trading opportunities, you can interact with traders and get more information quickly. TradingView is a more competent and smooth platform that will improve your trading experience many times over for both beginners and experienced traders than MT4 and MT5.
