The difference between MT4 and MT5
MT4 was initially designed for retail forex trading. Metatrader 4 is very popular because it is multifunctional, easy to use and mobile. The platform has a user-friendly interface; It is not overloaded with information, panels, and many buttons. Some functions can be operated through the menu on the toolbar and the menu called up with the right mouse button.
More: Introduction to MT4
Main features of the MT4 platform:
The platform is designed for forex trading. You can trade currencies as well as CFDs on indices, stocks, bonds, commodities, and cryptocurrencies.
- Metatrader 4 is a single platform for 32-bit operating systems. It will also work on 64-bit operating systems, but there may be compatibility issues.
- The MT4 platform supports more than 30 languages.
Another reason for the popularity of Metatrader 4 is the marketing and technical support from the developer MetaQuotes. The software developer team is constantly working to upgrade and improve the platform code. Licensing is affordable for brokers, so Metatrader products are more popular than other platforms.
If you want to test the functionality of MT4 on a demo account, you can download the desktop version or the mobile version through this link Then run the installation file – the platform will be installed in 5 minutes. In the File menu, choose Open New Account and follow the instructions.
In the demo account, you can try out functions such as placing market and pending orders, learn about technical indicators and charting elements, and try entering your first trades.
The main advantages of the MT4 platform compared to other platforms are:
- Multifunctional. The platform has three ways of executing orders; All kinds of orders, including trailing stops; Thirty built-in technical indicators, nine-time frames
- You can program in. MQL4 The platform allows adding custom tools – scripts, expert advisors, and indicators. You can also create your own trading tools in Meta-Editor.
- It has a test function. You can test manual and automated trading strategies on historical data, evaluate the performance of a trading system, and record back test results for statistical analysis. No other trading platform, apart from TM5, has such functionality.
- Provided support by the community of traders. MQL5.com is one of the largest communities of traders, where you can copy signals, discuss trades, order original indicators, Expert Advisors (EAs) or trading bots, and scripts to be developed. The MQL4 programming language is one of the most popular and suitable for the development of native trading systems, which is another feature of the MT4 platform.
- Safety. In MT4, the exchange of information between the trader, the platform and the platform servers are encrypted with 128-bit keys, based on a special algorithm using a digital signature. Even if a Trojan virus enters the computer, the platform is protected from hacking. · Another important advantage is that the trading platform is free for traders.
MT5 is the latest modified and developed multi-asset platform. Metatrader 5 was first launched in June 2010. The developers believed that MT5 would completely replace MT4, just as MT4 had replaced all previous versions.
At some point, MetaQuotes decided to abandon MT4 support and stop selling licenses to promote the new modified platform. But “something went wrong”. MT5 did not become as successful as MT4 despite the updates and upgrades, so MetaQuotes decided to support both versions.
Metatrader 4 is still the most popular forex trading platform. However, if you want to get acquainted with MT5, you can download the platform via this link
Next, I will explain the difference between Metatrader 4 and Metatrader 5. I will give some advice on which is better for beginners, Metatrader 4 or 5.
Metatrader 5 (MT5) is the latest multi-asset trading platform. In Metatrader 5, the developers tried to upgrade technical analysis, testing and order execution options. Some functions are also more convenient than in the previous version.
Advantages of MT5 vs MT4:
- Depth of Market (DOM) data. In Metatrader 4, the DOM is seldom useful and seldom used. In Metatrader 5, the DOM is a real trading tool. The developers have added significant volumes to the stock trading.
- In MT5, Market Depth data displays information about orders closest to buyers and sellers with the step of changing the price and the actual volume of orders at specified prices.
- Accounting system for orders. The developers added the netting system to Metatrader 5. The chart shows only one order, which is the average value of all open positions of one asset. This is convenient because you do not need to keep track of many transactions.
- test tool. The multi-currency functionality has been added to the MT5 test tool, and the back test statistics have been expanded. Test results and optimization of EA’s or indicator in MT5 have become more accurate due to the introduction of the pre-testing function. What used to be tested in Metatrader 4 for 20 minutes, is now being tested with the same parameters for 5 minutes.
- time frames. Metatrader 5 includes a few non-standard timeframes. In Metatrader 4, you must install an additional script for analysing non-standard timeframes.
- Technical Analysis. MT5 has more built-in technical indicators, while you need to add some manually in MT4. There are also two additional pending orders, buy stop limit and sell stop limit.
Neither MT4 nor MT5 is useful for copying trades. Because it is expensive, there are many bots, because traders are ranked according to unclear principles, and signal providers are not accountable to the investor.
MT4 vs MT5 Summary: Which Platform to Choose?
Metatrader 4 or Metatrader 5- Which do you choose? The developers initially assumed that MT5, as a more advanced version, would replace MT4. But the upgrades offered in MT5 were not enough to encourage traders to translate indicator and expert programs written in MQL4 into MQL5. The advantages of MT5 are still not enough to convince traders to change their usual platform. Therefore, MT4 remains the best platform in its class.
MT4 is the best forex trading platform, and there are hundreds of indicators, scripts, and expert advisors available in it.
If you are trading forex, choose Metatrader 5.
MT5 is a professional trading platform for futures trading and algorithmic trading testing.
If you are a beginner and want to choose between MT4 and MT5, you can start trading on a demo account .