MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most widely used trading platforms, each catering to different types of traders.
MetaTrader 4 (MT4) is designed primarily for forex and CFD trading, while MetaTrader 5 (MT5) supports a wider range of financial instruments, including stocks, futures, and options. MT4 operates on a 32-bit architecture, making it lightweight and efficient for algorithmic trading, whereas MT5 uses a 64-bit architecture for enhanced processing speed and performance.
MT5 provides 38 built-in technical indicators and 44 graphical tools, compared to MT4’s 30 indicators and 31 graphical tools. MT5 also includes an economic calendar, 21 timeframes, and a built-in chat function, features not available in MT4. While MT4 has a more extensive algorithmic trading community due to its longer history, MT5 offers advanced back-testing tools with multi-threaded optimization.
What are the main differences between MT4 and MT5?
The main differences between MT4 and MT5 are about tradable assets, interface, technology, MQL community, and market analysis.
Tradable assets is a difference between MT4 and MT5. MT4 was designed mainly for forex and derivatives trading, making it limited in available markets. Traders using MT4 focus primarily on forex or leveraged trading. MT5, in contrast, supports all markets available on MT4 but additionally allows trading on the stock, futures, options, and cryptocurrency markets, depending on the broker.
The interface of MT4 is minimal, light, and free of distractions, though somewhat dated in design. This simplicity makes it easy to navigate. MT5 has a modern, colorful, and customizable interface, making it more visually appealing for traders who prefer a more adaptable layout.
In terms of technology, MT4 is built on 32-bit architecture, whereas MT5 is based on 64-bit technology. This difference does not impact most trading situations, but MT5 is generally more responsive, providing a smoother experience, especially for traders who handle large amounts of data.
The MQL community around MT4 is significantly larger because of its longer history and the fact that MQL4 and MQL5 are not compatible. Many traders and developers who started using MT4 never migrated to MT5, leading to a more active algorithmic trading environment in MT4.
For market analysis, MT5 offers improved tools compared to MT4. MT4 provides 61 indicators and drawing tools, while MT5 expands this to over 80. Additionally, MT5 features a built-in economic calendar and a chat function for traders to interact. Another major difference is that MT4 supports 9 timeframes, whereas MT5 expands this to 21, allowing for more detailed market analysis.
| Characteristics | MT4 | MT5 |
|---|---|---|
| Tradable markets | forex, CFD | forex, CFD, stocks, futures, opzioni |
| Platform speed | 32 bit | 64 bit |
| Technical indicators | 30 | 38 |
| Graphic indicators | 31 | 44 |
| Algorithmic trading | Yes | Yes |
| Coding language | MQL4 | MQL5 |
| Timeframes | 9 | 21 |
| Chat with other traders | No | Yes |
| Economic calendar | No | Yes |
MT4 vs MT5: which is the better platform?
MT4 is more tailored for forex and CFD traders who focus on algorithmic trading, while MT5 offers more trading opportunities as it offers more tradable markets and asset classes.
MT4 is ideal for traders who prioritize automated trading and do not need access to markets beyond forex and CFD derivatives. It has a strong algorithmic trading community, making it a preferred choice for those who rely on expert advisors (EAs) and custom indicators.
MT5, on the other hand, is the better choice for traders interested in a broader range of assets. In addition to forex and CFDs, it allows trading in stocks, ETFs, cryptocurrencies, futures, and options. This makes MT5 a more versatile platform suitable for traders looking to diversify their portfolio across multiple financial markets.
What are the advantages of MT4?
The advantages of MT4 are listed below.
- Lightweight: MT4 operates smoothly on low-end devices and does not require high computing power. This ensures fast execution and stable performance.
- Minimalist layout: The platform features a clean and intuitive interface, making it easy to navigate for both beginners and experienced traders.
- Large community of algo-traders: MT4 supports a vast network of algorithmic traders who share strategies, indicators, and expert advisors. This provides extensive resources for automation.
What are the disadvantages of MT4?
The disadvantages of MT4 are listed below.
- Limited asset classes: MT4 only supports CFD and forex trading. This restricts access to other financial markets such as stocks and commodities.
- Outdated technology: The platform lacks modern features found in newer trading software. This affects compatibility with advanced trading tools.
- Basic charting tools: The built-in charting functionalities offer limited customization and fewer technical indicators compared to newer trading platforms.
What are the advantages of MT5?
The advantages of MT5 are listed below.
- Many more tradable markets: MT5 provides access to a wider range of financial instruments, including stocks, commodities, and futures. This allows for greater diversification.
- Larger number of analysis tools: The platform includes more technical indicators and timeframes, offering deeper market insights and better decision-making.
- Advanced back-testing tools: MT5 enables traders to test strategies with multi-threaded optimization, ensuring more accurate historical performance evaluation.
What are the disadvantages of MT5?
The disadvantages of MT5 are listed below.
- Slightly heavier than MT4: MT5 requires more system resources, leading to higher memory and processing power consumption. This may affect performance on older devices.
- Less free interface: The platform has a more structured layout, which reduces customization options compared to MT4. This may feel restrictive for traders used to flexible interfaces.
- Lower adoption among traders: Many traders and brokers still prefer MT4, resulting in fewer community-developed tools and strategies for MT5.
How to try the MetaTrader platforms?
To try the MetaTrader platforms traders can open demo accounts with brokers that offer both MT4 and MT5.
Some brokers like AvaTrade, Pepperstone and ActivTrades provide access to both MT4 and MT5, and allow users to open demo accounts where they can trade with virtual funds and explore the features of each MetaTrader platform without financial risk.
Another option is to check rankings of the best MT4 brokers and the best MT5 brokers to open a demo account. This way you can compare different platform experiences and broker conditions before committing to a real account.