MetaTrader 4 and MetaTrader 5 are both forex trading platforms for traders. A trading platform is a trader’s work environment that allows him or her to execute trades in international financial markets and monitor accounts with financial brokers.
Consideration should be given to a number of aspects when selecting an appropriate trading platform, including functionality, available tools, and interface.
The most popular trading platform in the world is MetaTrader. It’s widely used by traders as well.
Platforms like this one are developed by companies such as MetaQuotes Software Corporation, which has been developing trading software since 2000.
MetaTrader 4 and MetaTrader 5 are two versions of the trading platform. Both platforms support algorithmic trading i.e. trading using expert advisors (trading robots).
These are the advanced trading tools traders are now looking for when choosing a trading terminal.
Can’t decide which platform to use? Below are the specific features and capabilities they offer that will help you make a decision. We’ll be comparing MetaTrader 4 vs MetaTrader 5.
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MetaTrader 4 vs MetaTrader 5: General
Meta Trader 4 (MT4) and Meta Trader 5 (MT5) are available for third-party trading platforms. The interface may be installed on your computer and then connected to your preferred broker. MT4 and MT5 enable research, analysis, and trading — but they are not brokers in the traditional sense. However, MT4/MT5 will send your orders to your brokerage business in real-time.
There are several reasons why professional traders prefer MT4 and MT5 over a broker’s proprietary online trading platform.
The sheer quantity of advanced technical indicators, chart design tools, and order types available are at the forefront of this. This is very beneficial to traders who depend on technical analysis and price research.
MetaTrader 4 vs MetaTrader 5: Tradable Instruments
It’s vital to understand that neither MT4 nor MT5 define which resources you had access to when it came to trading instruments. The broker with whom you join MT4/5 determines this.
- If your selected MT4 broker supports USD/TRY and EUR/USD markets, you’ll be free to trade these pairs using the MT4 platform.
- Likewise, if your selected MT5 broker has a Bitcoin and gold market, you may trade these currencies using the MT5 platform.
MT4 is incredibly popular among forex traders. In reality, hundreds of the greatest forex trading platforms online support MT4.
In the case of MT5, this 3rd party platform is often used by people looking to acquire non-forex CFDs. This could include energies, precious metals, stocks, cryptocurrencies, or indexes.
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MetaTrader 4 vs MetaTrader 5: Automated Trading
One of the most enticing features of utilizing a 3rd trading platform such as MT4 or MT5 is using a forex EA and automatic robot. In layman’s words, this implies that your selected robot will trade on your account 24 hours a day, seven days a week.
The process is identical on both platforms because you will first have to acquire a robot software file, which you will then install into MT4/5. You will then be given a chance to configure the robot’s settings.
MetaTrader 4 vs MetaTrader 5: Programming Language
MT4 and MT5 each use their own custom programming language, which provides different trading capabilities and customizations depending on your trading needs. On MT4, though, there’s a greater assumption that traders will be seeking a platform that can be quickly installed and launched, requiring minimal steps to set up functionality or develop a trading program.
This makes MT4 ideal for beginning or amateur traders, or for traders who aren’t interested in creating their own scripts or algorithms to support their trading strategy. MT5, by contrast, has a more complex programming language, but it also offers the ability to write or alter scripts.
On MT5, trades can also be executed with a single function, unlike the user experience offered on MT4.
MetaTrader 4 vs MetaTrader 5: Usability
Our MT4 vs. MT5 comparison discovered that both systems look, feel, and perform virtually identically. In truth, there isn’t much to distinguish the two systems in terms of usefulness. Importantly, unless your main goal is to use a forex EA, automated robots or both MT4 and MT5 are best suited for professional ones.
Because MT4 and MT5 are largely focused on price movement, technical indicators, charts, neither platform is user-friendly. As a result, you will notice a significant difference between MT4/5 and leading retail platforms like Robinhood and eToro.
MetaTrader 4 vs MetaTrader 5: Mobile App
If you want the option of being able to place orders on the move – you’ll be pleased to know that both MT4 and MT5 offer a fully-fledged mobile app. Both mobile apps are compatible with Android, iPhone, and iPads.
There really isn’t much to separate the two mobile trading apps – as both allow you to enter positions, check the progress of your forex EA, and perform research. In fact, you simply need to log in with your MT4/5 credentials via the app and your account particulars will be readily available.
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MetaTrader 4 vs MetaTrader 5: Difference Between The Two
The two major differences have already been covered, but there are a number of others worth mentioning within any MT4 and MT5 comparison.
Metatrader 5 uses a programming language called MQL5 as opposed to the MQL4 used by Metatrader 4. The exciting thing about MQL5 is that it allows “black box” programming which, in a nutshell, means that it is easier to program and so will logically be a better framework for users and developers of trading robots and other expert advisors.
However, MetaQuotes expanded this capability into MQL4 in 2014, so it is not a difference between the platforms any more, although there is a likelihood that if the language is upgraded at some time in the future, MetaQuotes will not extend any upgrades into MQL4 as well as MQL5.
It should be noted that there is no backwards compatibility. Programs written for Metatrader 4 cannot run on Metatrader 5. This can be a serious drawback for traders who were wishing to “upgrade”, and is a key reason why such a change shouldn’t be seen as an upgrade.
It is true that Metatrader 5 retains two key programming-related advantages over Metatrader 4. Firstly, its back testing functions where you can test programmed trading strategies execute at a much faster speed, which is a feature that can save you a lot of time if you are the kind of trader who needs to run a large number of back tests. It also allows simultaneous multi-currency pair back testing. Together this can speed up back testing procedures immeasurably.
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Frequently Asked Questions On MetaTrader 4 vs MetaTrader 5
Can I Use MetaTrader 4 Account In MetaTrader 5?
No, but many brokers offering the MetaTrader 4 trading platform also offer the MetaTrader 5 trading platform and will allow you to switch.
Which MetaTrader Is The best?
We feel that despite the hype, MetaTrader 4 is generally seen as better by most traders. Otherwise why would MetaQuotes force MT5 on people trying to download MT4 from its website?
Will MetaTrader 4 Be Phased Out?
No. Although Metaquotes announced several years ago they would no longer be supporting MetaTrader 4, it is still available from their website for free download and remains by far the most popular and widely used trading platform.
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MetaTrader 4 vs MetaTrader 5: CONCLUSION
In summary, both MT4 and MT5 service a core purpose. That is to say, both platforms are ideal for those of you that wish to perform advanced technical analysis and deploy custom trading strategies.
Both platforms are available in the form of desktop software, web-browsers, and mobile apps – and offer full support for forex EAs and robots.
With that said, MT4 is arguably the better option if you are a seasoned currency trader – as more than 1,200 only forex brokers are compatible with the platform. MT4 also stands out when it comes to automated trading – as most developers choose it over MT5.
On the other hand, if you want to take your technical analysis and research to the next level and you wish to trade non-forex CFDs – MT5 could be the better option.
This is because you will have access to more indicators, drawing tools, execution types, and orders.
Irrespective of which third-party platform you opt for – you will need to choose a suitable broker. In this respect, Libertex offers support for both MT4 and MT5.
The CFD broker charges no spreads and offers markets on everything from forex and stocks to cryptocurrencies and commodities. Plus, Libertex offers a demo account that you can access on both MT4 and MT5.
Nevertheless, Most seasoned traders will tell you that all they really want from a trading platform is something that is reliable and easy to use, intuitive, and doesn’t crash.
They will also tell you that although Metatrader 4 might have a few annoying features, it works well enough, and allows them to stay on top of their trades and charts at the same time.
As the choice of broker is really more important than choice of platform, all the platform-centered advertising and Metatrader reviews are mostly just gimmicks that are best overlooked since practically every broker offers access to Metatrader 4.