MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the world’s most popular trading platforms, developed by MetaQuotes Software Corp. Millions of traders all over the world use them every day and enjoy superior service. But what is the difference between MT4 and MT5, and which platform is better for you? Here’s a guide with a complete MT4 vs MT5 comparison. Read, choose, and start trading!
What is a MetaTrader 4
MetaTrader 4 is the most popular online trading platform used by Forex traders. It was released in 2005, giving millions of users easy access to the financial markets. Although MT4 was specifically built for Forex trading, the platform can also be used to trade other assets such as stocks, indices, and commodities via CFDs.
Both beginners and experienced traders appreciate MT4 because it is multi-functional, user-friendly, and allows users to customize the interface to their needs. It also offers advanced trading tools that allow traders to implement their favorite strategies.
What is a MetaTrader 5
MetaTrader 5 is a multi-asset trading platform that was released in 2010. MT5 is faster and more efficient than MT4, but it doesn’t replace the previous platform as it is different and simply offers more than MT4 does. MT5 provides the ability to trade more instruments in almost all financial markets, including Forex, stocks, indices, commodities, and even cryptocurrencies.
MT5 provides all the necessary tools for successful trading: advanced technical and fundamental analysis, trading signals, algorithmic and copy trading, as well as trading robots.
MT4 vs MT5: The main differences
FBS offers trading on both MetaTrader 4 and MetaTrader 5. Let’s compare them by the most important parameters.
|
|
MT4 |
MT5 |
|
Markets |
Forex and CFDs |
Forex, futures, stocks, bonds, and options market |
|
Technical indicators |
30 |
38 |
|
Graphical objects |
31 |
44 |
|
Timeframes |
9 |
21 |
|
Pending order types |
4 |
6 |
|
Order fill policy |
Fill or Kill |
Fill or Kill, Immediate or Cancel, Return |
|
Partial order fill policy |
No |
Yes |
|
Economic Calendar |
No |
Yes |
|
Email system |
Yes (no attachments) |
Yes (with attachments) |
|
Fund transfer between accounts |
No |
Yes |
|
Depth of market |
No |
Yes |
|
Hedging |
Yes |
Yes |
|
Netting |
No |
Yes |
|
Exchange trading |
No |
Yes |
|
Programming language |
MQL4 |
MQL5 |
As you can see, MT5 has more indicators, timeframes, and trading functionalities in general. Nevertheless, MT5 is not necessarily better than MT4, rather just different. But let’s get into the details.
Tradable instruments
Neither MT4 nor MT5 defines the list of assets you can trade. It only depends on the broker you open a trading account with. At FBS, you can trade all CFDs through either MT4 or MT5. The available trading instruments are:
- Forex
- Metals
- Energies
- Forex Exotic
- Stocks
- Indices
The only exception is that you can trade cryptocurrencies on MT5 only.
Technical indicators
MT4 offers 30 built-in technical indicators. If it is not enough, you can download any of the 2000 custom indicators from the free Code Base. In addition, MT4 also offers over 700 paid ones in the Market. This is definitely enough for market analysis. In contrast, MT5 provides 38 built-in technical indicators to get insights into market direction. As in MT4, you will have access to a large number of free custom indicators from the Code Base and thousands of paid ones from its Market.
Charting tools
MT4 has 31 graphical objects such as lines, channels, the Gann and Fibonacci tools, shapes, and arrows to predict future price movements. In terms of drawing tools, MT5 offers 44 graphical objects, including geometric shapes, channels, Gann, Fibonacci, and Elliott tools, and more.
Timeframes
- MT4 only offers 9 timeframes: minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1), and monthly (MN). It may not seem that much compared to MT5, but these indicators are enough for swing and long-term traders.
- MT5 provides 21 timeframes: minute (M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30), hourly (H1, H2, H3, H4, H6, H8, H12), daily (D1), weekly (W1), and monthly (MN). Such a wide selection gives traders an advantage for deeper analysis of their favorite assets.
Trading orders
MT4 offers four types of orders: buy stop, buy limit, sell stop, and sell limit. Unlike MT4, there are six types of pending orders available in MT5: those offered by MT4 and two more – buy stop limit and sell stop limit.
Economic Calendar
There is no built-in Economic Calendar in MT4. But you can easily use a third-party calendar to keep track of the relevant financial news. For example, FBS has its own Economic Calendar to follow the macroeconomic events that move the markets. MT5 offers an integrated Economic Calendar with useful and real-time information about macroeconomic events. It helps traders track the important financial announcements which may affect the price of the assets. The Economic Calendar is a must if you want to better plan your trading.
Demo trading
Both MT4 and MT5 support Demo trading. This means you can try trading in real-life market conditions without the risk of losing capital. All you have to do is open a free Demo account. It works exactly like a Real account, except that you trade with virtual, not real money. A Demo account is the best way for every beginner to check out the MT4 or MT5 platform and test the trading tools.
Usability & mobility
MT4 and MT5 platforms are available in three formats: desktop, mobile, and browser.
- Desktop: Windows, macOS, Linux
- Mobile: Android, iOS
- Browsers: Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, Opera, and Internet Explorer
Both MT4 and MT5 are very similar in terms of design and usability. The main menu is slightly different, but the most commonly used features remain the same. You can customize the interfaces to suit your individual trading needs. All you need to work with these platforms is an internet connection.
MT4 vs MT5: Pros & Cons
If you’re still hesitating about whether MT4 or MT5 is more suitable for you, let’s compare their pros and cons.
MT4 pros
- MT4 is perfect for beginner traders because it is easier and simpler to use than MT5.
- MT4 is the best platform to trade Forex as it was initially designed for the needs of Forex traders.
MT4 cons
- MT4 has fewer trading options than MT5.
- MT4 is a little bit slower than MT5.
MT5 pros
- MT5 allows trading Forex, as well as stocks, indices, commodities, and cryptocurrencies.
- MT5 has more charting tools, technical indicators, and timeframes than MT4.
MT5 cons
- The MT5 can appear to be a more complex platform for beginners.
- Few Robot and Expert Advisor developers opt for MT5.
Whether you choose MT4 or MT5, you need a broker. We have free education materials, including the video lessons about MetaTrader (“How to open your first trade in MT4”, ”Technical indicators in MT4”, and more).
FAQ
- Which platform is better for me, MT4 or MT5? Both platforms – MT4 and MT5 – are popular among traders. In short, if you are new to trading, MT4 is the right choice. The basic functions in MT4 are more than enough for trading. If you already have trading experience, try MT5 as it has more features. FBS broker provides access to both MetaTrader 4 and MetaTrader 5.
- Can I use both MT4 and MT5? Yes, you can trade on both MT4 and MT5 if your chosen broker supports both platforms. However, you will need to have two separate accounts because you cannot log in to the MT5 platform with your MT4 account and vice versa.
- Is MetaTrader free for me? Yes, both MT4 and MT5 are completely free to download and use. There are no fees or charges for using the platform.
- Can I trade in MetaTrader without a broker? No, you cannot trade without a broker. MT4 and MT5 are trading platforms that provide the necessary tools for making trades. But in any case, you will need to open an account with a broker, like FBS.
- How to download MetaTrader with FBS? Go to the FBS website, choose MetaTrader 4 or MetaTrader 5, and find the appropriate format to download. You can find full instructions in this step-by-step video guide.
