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MT4 vs MT5: Which is Better?

MetaTrader is one of the most popular online trading platforms used globally and its two main versions are MetaTrader 4 and MetaTrader 5. But between MT4 and MT5, which is one best for you? Both MT4 and MT5 are built to enable seamless trading of Forex, Stocks, Futures and CFDs. Offering high flexibility and real-time access to market prices, they allow you to trade multiple orders simultaneously. Using MetaTrader can be beneficial for both beginners and experienced traders. But, to make the most of MetaTrader, you need to know when and how to use MT4 and MT5.

What is MT4?

MetaTrader 4 is an online trading platform used by Forex traders. You can also trade Commodities and Indices through a Contract for Difference (CFD). With MT4, traders view real-time currency prices, perform technical or fundamental analysis, automate trades through custom algorithms, and open or adjust orders. You can also customise charts, orders, and more through MT4 as per your own trading preferences.

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What is MT5?

MetaTrader 5 is a multi-asset trading platform that enables you to trade Stocks, Forex and Futures. It offers advanced tools for price analysis, algorithmic trading (Expert Advisor and trading robots), and copy trading. Launched in 2010, MT5 is considered to be improved and more diverse with charting, exclusive indicators, and its widespread ability to trade over 500 markets including Forex, indices, Commodities, Cryptocurrencies, and Stocks.

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MT4 vs MT5: Comparing key features

Algorithmic trading

Algorithmic trading uses lines of codes to get detailed instructions for the trader, including tools such as volatility analysis, chart analysis, price arbitrage analysis, or trends analysis in the movement of prices. What makes algorithmic or automated trading attractive is its capacity to remove common human errors. With algorithmic trading, traders limit the chance of making decisions based on emotions. This is why institutions such as investment banks and hedge funds spend significant amounts of money building algorithmic trading models and getting a competitive edge.

MT4 executes algorithmic trading based on an order system. However, MT5’s algorithmic trading function is designed to implement a positional system that allows traders to hold and carry a position for a longer period.

Purpose

Neither MetaTrader 4 or MetaTrader 5 is an upgrade of the other since both serve a different function altogether. While MT4 is specifically focused on Forex trading, MT5 allows you to trade Stocks, Futures, other Commodities. However, there are a few factors wherein MT5 has the edge over MT4:

  • MT5 has faster backtesting, which allows traders to see how well an investment or trading strategy would have performed considering actual results through historical data.
  • MT5 has a depth of market functionality that helps measure the supply and demand for assets on the basis of all open positions.

Analytics

Analytics in both MT4 and MT5 help forecast price movements and assist traders in analysing which assets offer ideal trading opportunities.

  • Both MT4 and MT5 allow custom analytics to suit individual trading needs.
  • MT4 includes interactive charts with 9 timeframes, whereas MT5 has a total of 21 timeframes.
  • MT4 offers 30 built-in technical indicators, while MT5 offers 38.
  • Some indicators like the Fibonacci and Elliot tools are available only on MT5.
  • MT4 includes 31 graphical objects, whereas MT5 has 44 of them.
  • Both platforms include an alert functionality and provide traders with ongoing financial news.
  • MT5 has an economic calendar, while MT4 does not. This helps MT5 deliver macroeconomic news from across the globe to the trader instantly.
  • Only MT5 offers a multithreaded strategy tester that enables traders to use all computer resources to test and optimise trades.
  • An embedded community chat and fund transfer between different accounts is available on MT5.
  • MT4 comes with over 2,000 custom indicators and 700 paid indicators.
  • MT5 has an unlimited number of charts.

Interface

Both MT4 and MT5 have an easy-to-use interface with a few differences:

  • MT4 is comparatively simpler and easier to use. It allows traders to customise the interface of the platform as per their individual trading needs and goals.
  • MT5 is more complex as it consists of more trading features and markets.
  • MT5 has a simple interface layout, but it comes with 11 types of minute charts, 7 types of hourly charts and 365 daily, weekly, and yearly timeframes, which are not available on MT4.

Accessibility

Both platforms enable you to access all your buy and sell orders through a mobile phone.

  • MT4 and MT5 offer mobile versions in both iOS and Android. Through this functionality, you can access the markets from anywhere in the world, throughout the day.
  • The mobile version includes charts, all trading orders, and analytics. It also allows you to monitor your account statuses.
  • Both MT4 and MT5 are compatible with Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, Opera, and Internet Explorer.

Trading and Orders

Both MT4 and MT5 platforms have similar trade execution methods. Traders place orders on MT4 and MT5 through a third-party platform, and the trades are executed real-time.

  • MT4 executes trades on request mode, instant execution, and execution buy market.
  • MT5 offers an additional execution mode known as an ‘exchange execution’, where you can send orders to an external trading exchange as well.
  • MT4 includes four types of orders: buy stop order, buy limit order, sell stop order, and sell limit order.
  • MT5 offers the four orders offered by MT4 and two others: the buy stop limit order and the sell stop limit order.

Internal mailing systems

An internal mailing system enables a trader to receive important and relevant information from the broker. The information includes platform features, information about open accounts and orders, upcoming events, and more. The information is received in the form of emails and shown in the Mailbox tab on the platform.

  • Both platforms have an internal mailing system, but MT5 offers an attachment feature with it.
  • You can only send emails to the admins of the trading server through MT4 and MT5’s internal mailing system.

Hedging and Netting

Hedging is a type of risk management strategy that allows you to offset any potential losses by opening a position opposite to your current position. Meanwhile, netting is the process of reducing financial risks in contracts by combining several financial obligations and reaching a net obligation amount.

  • MT4 allows you to hedge your trades and protect yourself from potential losses.
  • MT5 allows you to hedge and net your trades, protecting you from potential losses and reducing your financial risk.

Brokers

Even though both MT4 and MT5 come with several research tools, indicators, and analysis tools, the difference in the number of brokers for the two platforms is huge.

  • There are more than 1,200 MT4 brokers in the market, as online brokers prefer this platform over MT5.
  • MT5 brokers are only a handful compared to brokers offering MT4.
  • There are a few brokers that support both platforms, enabling you to switch between MT4 and MT5 as you please. Blueberry Markets offers both MT4 and MT5 to all traders, regardless of your account size.

FIX API Access

Traders use the Financial Information Exchange API (FIX API) to get real-time financial securities information in the financial markets. Traders and market regulators use the FIX API and share related information before a trade takes place and after it is executed. The confirmation of executed trades and new orders is also shared through FIX API.

  • MT4 offers the FIX API integration, enabling you to create strategies and private algorithms for analysing trades.
  • MT5 does not offer a FIX API integration to its traders.

Programming language

A programming language helps MT4 and MT5 function seamlessly. Both platforms use their own custom programming languages with different functions and trading capabilities.

  • MT4 is built on a programming language that makes it suitable for beginner traders that are not familiar with creating their own algorithms for trading strategies.
  • MT4’s programming language is more straightforward and requires only a few steps to develop the trading program.
  • MT5 is built on a more complex programming language that enables traders to write their own trading strategies, alter scripts, and conduct advanced trading analyses.
  • Trades on MT5 can be executed with a single function. This is not possible on MT4.

Demo Trading

Demo trading allows traders to experiment with the platform by putting in trades without investing real money. It involves trading in a live market without the risk of losing any capital. Demo trading also gives you a realistic experience of how you can utilise different features of the platform.

  • Both MT4 and MT5 offer demo trading, providing the trader with a completely risk-free environment.
  • Traders can opt to open a demo account first before creating a live trading account. Blueberry Markets gives traders access to a free demo account for 30 days.

MT4 vs MT5: Summed up

Feature MT4 MT5
Hedging
Netting
Symbols 1,024 Unlimited
Exchange trading
Markets supported Forex market Forex, Futures, Stocks, bonds, and
options market
Timeframes 9 21
Economic calendar
Internal email system Allowed but without attachments Allowed but with attachments
Graphical objects 31 44
Technical indicators 30 38
Fund transfer between accounts
MQL5 community chat Not embedded Embedded
Multilingual Unicode Does not exist Exists
Strategy tester Single thread strategy tester Multi thread strategy tester, real ticks strategy tester and multi-currency strategy tester
Depth of market (DoM)
Time and sales exchange data
Order fill policy Fill or kill only Fill or kill, return, immediate or cancel
Pending order types 4 6
Partial order filling policy Does not exist Exists
Computer bits version 32-bit version 64-bit version
Programming language Simple Complex
Security groups 32 Unlimited
Types of transactions Balance and credit Balance, credit, bonus, commission agent,
correction, charge and interest
Reports Only tables Charts and tables
Accounting groups 512 Unlimited
Types of order execution 3 4
File ZIP compression Not allowed Automatic

MT4 vs MT5: Pros and Cons

Pros

MT4 MT5
MT4 is ideal for new Forex traders It offers more technical indicators, timeframes,
graphics, and chart
Majority of online brokers supports MT4 Supports non-Forex assets
Most Expert Advisor providers opt for MT4 Includes advanced execution modes and order types
Several chart drawing tools and technical
indicators exist in MT4
It fits well with seasoned technical traders

Cons

MT4 MT5
Less features than MT5 Not beginner-friendly
Only supports Forex assets Few brokers offer MT5
Fewer Expert Advisor developers opt for the MT5 platform

MT4 vs MT5: The final verdict

Both MT4 and MT5 are built with different individual purposes. Since they are not interdependent nor are they an upgraded version of each other, both of them are suitable for different traders. If you are a beginner trader who wants to explore the Forex market, MT4 is the right pick for you. However, if you are an experienced trader who wants to trade other markets and diversify your portfolio, MT5 is the right choice. Blueberry Markets gives you access to both MetaTrader 4 and MetaTrader 5 platforms. You can start using MT4 and MT5 by signing up for a live account or a demo account

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