MT4 vs. MT5 – Which Trading Platform is Better

The choice of trading platform can significantly impact your entire trading experience. Selecting the right instrument is crucial as it corresponds with your personal objectives, risk tolerance, and technical proficiency. Both platforms have been developed by MetaQuotes and are popular choices for trading forex, commodities, and indices all over the world.

Different people have different requirements. Some people need only the basics, while some advanced users need to delve deeper into analytical charts, need even faster execution, want algorithmic tools, and also require access to a wider range of markets.

By gaining insight into what is, what is metatrader 4 is and what is MetaTrader 5 is, traders can make a well-informed choice of a platform that suits their level of experience, style of trading, and future trading goals.

What is MetaTrader Platform

MetaTrader platform is an effective online trading and market analysis platform. It enables merchants to trade in international financial markets, trade, study price changes, and automatically trade with in-built tools. The platform combines live charts, technical indicators, and a personalized interface,s which streamlines the trading process and makes it informative and data-driven.

MetaTrader has been known to be very reliable, secure, and flexible. It endorses several asset classes, such as forex, commodities, indices, and cryptocurrencies, which are subject to offerings by brokers. Desktop, mobile, and web versions allow traders to trade from any location. There is also the support of an algorithmic trading with Expert Advisors that assist in automating trades according to the previously established rules.

Both of the mentioned, MT4 and MT5, are based on the MetaTrader platform and are a bit different in the needs of their traders. At the same time, MT4 is more of a forex trading platform, while MT5 is more of a multi-asset trading platform, complete with sophisticated analytics tools and a higher processing speed. That is why, to select a platform, it is critical to understand such differences.

What Is MetaTrader 4

MetaTrader 4 is a trading platform that has gained wide popularity all over the world, particularly among forex traders. It stands out for its simple interface, quick execution of orders, and design that is easy to use even for beginners. Lots of traders love the MetaTrader 4 platform mainly because it's stable and super easy to navigate.

MT4 is packed with a great variety of technical indicators, charting tools, and timeframes, which are great for traders of different levels. The platform features let traders go to market instantly or set pending orders, while also setting stop, loss, or take-profit levels. It is possible to run Expert Advisors as well, which means you can implement automated trading easily, this being a great benefit for those who trade using algorithms.

One more big plus that MT4 has is the fact that you can use it on practically any device. For instance, MT4 webTrader gives you the opportunity to access your trading account right from the web without the need to download anything. As if that weren't enough, there are also mobile applications available for Android and iOS, so you can always keep an eye on the market wherever you are.

Overall, MT4 continues to be a very commonly used platform mainly because of how simple it is to operate, how fast it is, and the huge support from the community. A lot of tutorials, trading plans, and custom-made indicators are readily available for MT4 traders, thus making this platform the perfect option for those who are just stepping into the world of forex trading online.

What Is MetaTrader 5

The new version of the MT4 is known as the MetaTrader 5, and it is developed in order to cater to more advanced traders. It is not solely a forex trading platform but also stocks, futures, and options, thus being a multi-asset platform. MT5 has more analytical features about the market and better performance.

The high level of technical possibilities can be considered one of the largest benefits of the MetaTrader 5 trading. It is more time-based, provides more technical indicators, and has an in-built economic calendar. The data about the basic and technical analysis is combined in a single location, enabling traders to make better decisions.

The order system is also more sophisticated in MT5 as compared to MT4. It also has other pending order types and an improved market depth display. The platform is quicker in processing the trades and is appropriate for high-frequency traders and scalawags.

The other advantage of MT5 is that it has a better strategy testing environment. Historical data allow traders to support trading strategies and optimize them more efficiently. This is particularly handy when performance is to be strictly evaluated by an algorithmic trader before live trading.

MT4 vs MT5 Key Differences

The key differences between the two platforms, such as the key distinction of the MT4 vs MT5, are essential to choosing the platform that will suit your trading preferences and goals.

Automation and Programming Language

MT4 is based on the MQL4 programming language to build personal indicators and Expert Advisors, whereas MT5 is based on the more advanced MQL5 language. MQL5 has superior performance, object-oriented programming, and advanced trading strategy design. Nonetheless, the indicators and EAs of MQL4 do not work directly with MT5, which may be a factor to take into account when there is a set of custom tools.

Timelines and Graphical Analysis

The chart analysis timeframes offered by Mt4 are adequate for the majority of forex trading online strategies, and there are nine of them. However, MT5 provides traders with 21 timeframes, providing them with more control over their technical analysis. This increased time frame choice enables us to analyze the market more accurately and to identify the trading opportunities of various time frames better.

Order Execution and Types

MT4 has four outstanding order types, and it mainly works on a hedging system, enabling traders to have more than one position in the same instrument. MT5 has six pending order types and both hedging and netting systems. The netting facility in MT5 occurs in the same instrument, which may be advantageous to traders who also wish to use a cleaner manner of managing positions. MT5 also has a depth of market (DOM) functionality, which ensures more transparency in terms of order execution.

Assets and Market Coverage

Whereas MT4 is more oriented to forex and CFD trading, MT5 applies to a wider set of financial tools such as stocks, bonds, commodities, and futures. This renders MT5 more appropriate to the traders who may wish to put their money in a diversified portfolio of different types of assets using a single platform. In case you are strictly involved with forex trading, the specialized approach of the MT4 can be a better option.

Analytical Tools and Technical Indicators

MT4 has 30 inbuilt technical indicators and 24 analytical objects, which offer all possible tools in market analysis. MT5 complements this with 38 built-in indicators and 44 analytical objects, as well as an in-built economic calendar. The other indicators and tools of MT5 equip more complex analytical functions for traders who may need advanced technical analysis.

Speed and Performance

The architecture on which MT5 is built is more modern, provides better backtesting features, and better performance than that of MT4. The platform is more effective at processing larger volumes of data and therefore suits better traders who have complicated automated trading models or conduct extensive historical analysis. But in simple trade activities, the difference in performance might not be evident to the mass users.

Web and Mobile Trading Experience

MT4 webTrader enables traders to open their trading accounts right from the browser, which is great for those who don't want to install software. MT5 similarly supports browser-based trading with better performance.

Trading via mobile on both platforms works perfectly and is quite responsive. Traders have the freedom to check the market, execute trades, and analyze charts anytime and anywhere. Compared to MT4, MT5 mobile apps have more features, thus offering greater functionality.

Security and Reliability

Both MT4 and MT5 are extremely secure systems where the data transmission is encrypted, and the login process is safe. Regulated brokers across the world have a high level of trust in them.

The stability of servers is good in both platforms, but MT5 has more advanced technology, which might offer a little advantage in the form of performance in the midst of high trading volumes.

Which Platform Should You Choose?

The decision whether to go for MT4 or MT5 hinges on your particular trading requirements and tastes.

If mainly forex trading is what you are after, are a fan of a straightforward interface, desire to tap into the enormous collection of existing EAs and indicators, or your broker grants you better trading conditions on MT4, then simply pick MT4. Its popularity among traders means that you can find extensive community support and resource materials. Besides, you can also use the MT4 Web Trader to conveniently trade via your browser without the need to install any software.

If, however, trading multiple asset classes is your thing, you require more advanced analytical tools, wish to have additional timeframes and order types at your disposal, or are going to create complex automated trading strategies with MQL5, then go for MT5. MT5, with its new generation infrastructure and wide, ranging functionalities, is an ideal choice for traders who are eager to embrace the next technological wave in electronic trading.

Starting with a demo trading account on either platform is a wise decision for novice traders. It helps you get used to the platform's functionalities, try out your trading strategies, and build your trading confidence before using real money.

Final Thoughts

Both trading platforms, MT4 and MT5, are very good, each with its own benefits. The number one choice of forex trading within the industry has been observed to be the MT4 because of its simplicity, reliability, and large community support. MT5 has superior features, performance, and multi-asset trading, with features that attract traders to use the trading solution as a whole. Your decision would be in accordance with your trading goals, asset classes of interest, and technical needs.

We favor both platforms at Inveslo so that you are able to get the tools you require in order to trade successfully. Our platform suits your trading experience regardless of which side you choose between the reliability of the long-tested MT4 and the power of the newest and most technologically advanced MT5. Contact our specialists today and discuss which platform will fit your needs and goals the best. Our team is committed to assisting you in initiating your trading business with the most relevant tools and resources to already succeed in the long-term.

FAQs

Q1. Which is easier, MT4 or MT5?

The simple interface and basic terminal tools of MT4 make it simpler to use than MT5.

Q2. Can I trade stocks on MT4?

The platform's main function of MT4 limits users to trading only forex and CFDs.

Q3. Is MT5 faster than MT4?

The newer technology of MT5 enables it to execute trades at a faster rate than MT4.

Q4. Can I use Expert Advisors on both?

Users can run automated trading in both platforms because both platforms allow Expert Advisors.

Q5. Do brokers charge extra for MT5?

Brokers provide free access to their platforms while they charge customers based on their trading activities.

Q6. Should beginners start with MT4?

Most beginners find MT4 to be the most straightforward option for their first learning experience.