MT4 vs MT5 Comparison – The Difference Between Metatrader 4 and 5 

The MetaTrader trading platforms – MetaTrader4 and MetaTrader5 (or MT4 and MT5 as they are most commonly known) have grown to become the world’s most popular trading platforms for forex and CFD traders.  

What is MT4? And how does MT5 differ? Even though the two platforms are very similar, there are key differences between MT4 and MT5. 

Knowing as much as you can about each trading platform will help you make a better choice for your personal trading needs, especially when you are weighing the differences between MT4 and MT5. 

Let’s take a closer look at both trading platforms to give you a better insight into the features and to figure out which is most suitable for you. 

Key Points

• MT4, launched in 2005, is preferred for its simplicity in forex and CFD trading, while MT5 offers broader market access and advanced features since its 2010 release. 
• MT5 expands on MT4’s capabilities with more technical indicators, timeframes, and supports a wider range of markets including stocks and cryptocurrencies. 
• The choice between MT4 and MT5 hinges on a trader’s market focus and need for advanced features, with MT4 being simpler for beginners and MT5 catering to more experienced traders seeking versatility. 

What is MetaTrader4? 

MT4 was originally released back in 2005. It instantly became one of the most popular trading platforms because of its versatility and accessibility from a variety of devices.  

While MT4 was originally built for forex traders with an architecture designed to handle positions and orders in a specific way, it also offers the ability to trade commodities and index instruments via Contract For Difference (CFD). 

If you are fairly sure you will primarily be trading forex and CFDs, and you want to keep things very basic, then MT4 is an easier platform to get to grips with. 

Advantages

• User-Friendly Interface: MT4 is well-regarded for its straightforward and clean interface, making it ideal for beginners just starting out in forex trading.
• Customisation Options: It allows extensive customisation to suit individual trading preferences, including the ability to use custom indicators and automated trading scripts known as Expert Advisors (EAs).
• Low Resource Usage: MT4 is known for being lightweight and not demanding on computer resources, which means it runs smoothly on a variety of devices, including older computers.
• Strong Analytical Tools: Despite its simplicity, MT4 does not compromise on the quality of its analytical tools. Traders have access to numerous charting tools, technical indicators, and graphical objects.
• Wide Broker Support: Being one of the oldest platforms, it is supported by a vast majority of forex brokers, thus offering traders a wide range of choices.

Disadvantages

• Limited Financial Instruments: Unlike MT5, MT4 primarily focuses on forex trading and lacks support for trading stocks, futures, and bonds.
• Outdated Architecture: The platform operates on a 32-bit architecture, which can limit its performance and speed when handling highly complex or numerous trading operations.
• No Native Support for Advanced Orders: MT4 does not natively support advanced order types like fill or kill, which are available on newer trading platforms.
• Lacks Market Depth: The platform does not offer a market depth feature, which is a disadvantage for traders who need to view market liquidity and depth of pricing.
• Restricted to Single Threaded Back-testing: For traders who rely on back-testing strategies, MT4 only allows single-threaded testing, making the process slower compared to MT5’s multi-threaded strategy tester.

What is MetaTrader5? 

Released five years after its predecessor, MT5’s popularity has steadily increased since 2010, with many traders being enticed by the improved functionality and increased adaptability.  

MT5 has similar levels of mobility to MT4 including access from most devices, with a key differentiation being that you have a full set of trading orders for flexibility on forex, commodities and indices all at your fingertips. 

Both platforms allow you to trade from anywhere in the world with an internet connection and use custom indicators and trading programs (called Expert Advisors, or EA for short) for trading automation.  

Advantages

• Enhanced Functionality: MT5 includes more advanced features such as additional timeframes, more technical indicators, and analytical tools, enhancing the trading experience.
• Multi-Asset Platform: Unlike MT4, MT5 supports a broader range of markets including forex, stocks, bonds, and commodities, making it suitable for traders looking to diversify their portfolios.
• Market Depth Feature: MT5 offers a market depth feature, providing insights into market prices and available volumes, which is critical for high-volume traders.
• Economic Calendar Integration: The platform integrates real-time economic news and an economic calendar, helping traders make informed decisions based on market events.
• Advanced Order Management: MT5 supports more order types and execution modes, allowing traders to implement more complex trading strategies with greater precision.

Disadvantages

• Higher Learning Curve: Due to its advanced features, MT5 can be more complex and intimidating for beginners compared to the simpler interface of MT4.
• Resource Intensive: MT5’s expanded capabilities mean it requires more processing power, which might slow down older computers or devices not equipped to handle its demands.
• Less Broker Support: Although increasing, MT5 is not as widely supported by brokers as MT4, potentially limiting access to some markets or trading conditions.
• Compatibility Issues: Some MT4 exclusive plugins and Expert Advisors do not work on MT5, which can be a drawback for traders who rely on specific tools developed for MT4.
• Compulsory Hedging Mode: MT5 uses a hedging mode for forex orders, which might not be preferred by traders who are accustomed to the netting system used in MT4.

The Difference Between MetaTrader 4 and MetaTrader 5? 

Knowing the differences in each of these platforms gives you greater insight into what works best for you and your trading strategy. This allows you to prioritise each factor according to its importance before deciding which platforms suits you. 

Please note that certain features listed above may or may not be offered by brokers 

While this illustrates that MT5 has more timeframes, indicators, and trading functionalities in general, it does not necessarily mean that MT5 is better than MT4, it is simply different.  

For example, reporting may not be important to you if you only need the basic information in a table form, while another trader may prefer detailed charts as well as tables to assess the financial data. 

Others may place a high priority on an in-built economic calendar to keep track of the information from events, news or even specific monetary and fiscal policy announcements that will affect forex trading. 

If you are asking yourself ‘Is MT4 or MT5 better?’, then making a list of your priorities in trading is a solid foundation for choosing between the two platforms as your preferred option. 

What can you trade on MT4 and MT5? 

You are able to trade on forex and CFDs on MT4 and it is considered a more appropriate choice for those traders who want to keep things simple and may be new to trading.  

How does MT4 work? This platform allows you to place orders to trade the live markets. These orders are then automatically sent to the broker so that they can be executed. (MT4 on its own cannot execute trading orders.) 

The MT4 platform provides trade operations, charts and technical analysis in real-time. Some of the key benefits are; 

1. It is highly customisable to your individual trading needs and preferences.  
2. Your trading can be automated by implementing algorithms that open and close positions according to pre-set parameters. 
3. You can choose from more than 1000 tradable products. 

Learning how to add indicators to MT4 is made easy through the Vantage Education MT4 online resources. 

If you wish to trade all financial markets, including forex, stocks, indices, commodities, metals, and even cryptocurrencies via CFDs, then knowing how to trade on MT5 is a better fit for your purposes.  

MT5 also lets you see where the big orders are sitting on the price ladder and allows you to plan your trading accordingly while giving you access to more than 3,200 trading signals. You can learn how to add indicators to MT5 through the special MT5 education section of the Vantage website. 

When choosing a MetaTrader broker, traders should consider the trustworthiness of the broker (where and how it is regulated), trading fees, the number of tradable securities offered, the quality of the customer service, and any available add-ons offered beyond the default MetaTrader experience. 

Remember, the only way to use these platforms is through a trusted broker. 

Why Trade with Vantage Markets? 

Vantage provides a trusted trading ecosystem and a faster and simpler trading platform that enables clients to take advantage of trading opportunities through both the MT4 and MT5 trading platforms. 

There is no ‘one size fits all’ approach to trading. It’s always important to make informed choices and to choose the best trading option based on your specific trading needs. That’s where Vantage, as the award-winning online broker, offers valuable information and resources for your trading future. 

When it comes to cutting-edge platforms that empower you to trade seamlessly with instant execution, Vantage is committed to delivering. 

All the features that made MT4 the outstanding forex trading platform that it is have been improved on. When you choose to trade forex on MT5 with Vantage, you get the benefits from the latest version of MT5 which is compatible with EAs and signals trading and most importantly, includes the capability to hedge positions. 

Both MT4 and MT5 support Demo trading, allowing users to practice trading in simulated market conditions without risking real money. Vantage provides the opportunity for traders to try either platform using demo trading accounts, enabling them to experience real-life market conditions and test their trading strategies. It works exactly like a real account, except that you trade with virtual, not real money.  

A Demo account is the best way for any beginner to check out the MT4 or MT5 platform and test the various trading tools. 

Vantage makes it simple to open a Demo account and you can click on this MT4 download link or the all-in-one trading app and begin your trading journey.