MT5 vs. MT4 – The Traders’ Verdict

MT5-vs-MT4-The-Traders-Verdict

MetaTrader 4 and MetaTrader 5, launched by MetaQuotes Software Corporation, are the leading Forex trading software tools. Following its launch in 2010, the MT5 terminal has been upgraded so many times with advanced features.

MT4 was launched in 2005 and was adopted by several well-known broker platforms as a reliable trading terminal. However, in terms of functionality, tools, and features, both platforms are different.

Below, we will discuss the main characteristics of MT4 vs. MT5 trading platforms and those aspects that differentiate them from one another. Please continue reading below to find out more.

Introduction about MT4 trading platform

MetaQuotes introduced the MetaTrader 4 (MT4) trading platform in 2005. A trader on this platform can trade on a variety of instruments associated with Forex trading. FCDs are used for trading indices, forex, commodities, and cryptocurrencies.

Due to its customisable nature, MT4 is extremely popular due to its ability to stand according to your individual trading preferences.

In addition, MT4 trading is also helpful to automate your trading. It uses certain algorithms based on which you can close and open trades through already established parameters.

Important features of MT4 trading platform

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Now let’s discuss a few of the important features of the MT4 trading platform:

Single-Click Trading

A trader always looks for the platforms offering the fastest execution process during the day trade. And you can find this amazing feature in the MT4 platform through single-click trading.

MT4 allows the traders to place their trading orders promptly. It even enables zero-latency during the trade and performs easy execution with high liquidity and great speeds.

Availability of technical indicators

A variety of technical indicators are available on the MT4 platform with which a trader can experience a smooth trading journey.

More than 50 technical indicators are found on MT4, which a trader can apply on any Forex instrument for easy trading. In addition, MT4 is also used to track the trading positions concerning the latest market prices and market timing.

Charting

With the help of numerous charts available on the MT4 platform, a trader can start trading promptly. Through a multi-chart screen, MT4 helps you to monitor your portfolio’s position within a real-time environment.

Expert Advisors

Through expert advisors, traders can benefit from automated trading strategies. MT4 also offers MQL4 IDE (programming language).

Traders can create their indicators and expert advisors. For example, automated strategies can easily be monetised by directly advertising on MetaTrader’s Marketplace.

Alerts

Furthermore, MT4 supports alert functionality in which a trader is informed about significant price movements in financial markets. To activate this alert feature, click “CTRL + T” and click on the “Alert” tab option.

How to trade on MetaTrader 4 (MT4)?

To start trading on the MT4 platform, you have to:

  1. Use the “order” window and place the instant order on-trade market.
  2. Choose the currency pair on which you want to trade. Click the “window” tab and select “new window.”
  3. Click the option “new order” on the MT4 toolbar. A screenshot will display an example of a EUR/USD currency pair to let you know how to place an order.
  4. If you want to trade on the market offer/bid, you have to enter the desired trade size in the “volume” box and click the option “sell or buy.”
  5. Select “Market execution” as your order type. With market execution settings, a trader can instantly place an order within MT4.
  6. In the “type” dropdown, you can also choose the sell and buy option through limit or stop order.

Introduction about MT5 trading platform

The MT5 platform is also known as MetaTrader 5, an advanced version of MT4 trading shortly. It has backtesting functions that are extremely powerful and fast in comparison to MT4. Plus, it even enables simultaneous multi-pair testing.

MT5 is a bit complex in its structure and functionality, making it daunting for beginners to trade on. However, it enables the traders to start trading on forex, indices, and commodities.

Important features of MT5 trading platform

Moving ahead, let’s discuss a few of the important features of the MT5 trading platform:

Native built-in economic calendar

MT5 is available with a built-in economic calendar to react and view the latest marketing movements. It even displays news indicators in front of you. Both mobile and desktop support it.

One-click trading

In addition, the MT5 platform also has a one-click trading function along with market depth. With just a single click, a trader can sell and buy currency pairs.

Automated trading strategies

For successfully automating your trading strategies, MT5 helps you to create your expert advisors. It even allows you to explore the third-party market within the MT5 client terminal fully. Apart from that, you can backtest your trading strategies or develop technical indicators.

Charting timeframes

Traders can access the 21 best chart timeframes with the MT5 trading platform. It ranges from M5, M1, M30, M15, H4, H1, MN, W1, M3, M2, M4, M6, M12, M10, M20, H2, H6, H3, H8, and H12.

Faster technical capacity

In comparison to MT4, MT5 works as a 64-bit and multi-threaded platform. This often makes it extra efficient and faster as compared to MT4.

How to trade on MetaTrader 5 (MT5)?

To start trading with the MT5 trading platform, you have to:

  1. To place pending or market orders, click the option “new order” on the toolbar. You can also double-click on the instrument symbol and select “new order.”
  2. A new window will appear in which you have to mention financial instruments and volume. Users can often set take profit and stop loss levels all at once.
  3. The red button will show you the “sell by market” option, and the blue button will ask you over the “buy by market” option. Choose the option according to your set preferences.
  4. For a pending order, you must select the corresponding value in the type” field and specify the order type. If required, mention the opening price and expiry date and click the “place order” option.
  5. This is how your trade pending order is fully created and gets activated once the price reaches the specified price.

What are the main differences between MT4 vs. MT5 trading platforms?

Moving on to a more in-depth discussion, below we have listed a few of the important factors with which you can differentiate between MT4 and MT5 trading platforms:

Difference no 1: User interface

As regards the user interface, MT4 has a friendly and simple interface that makes it easy for beginners to access it. You can also customise the entire interface according to your basic trading needs.

On the contrary, MT5 is a bit complex, due to which this platform is ideal for advanced traders. It is often available with some advanced features to make the trading experience a professional one.

Difference no 2: Timeframes

In the category of timeframes, MT4 is available with 9 different types of timeframes. Each timeframe is of minimum 1 minute, and the highest timeframe is of 1 month.

The MT5 trading platform has more timeframes in comparison to MT4, which are almost 21. Each timeframe starts from 1 minute and ends with the yearly chart. These timeframes allow the trader to analyse the future of the trading market.

Difference no 3: Indicators

MT4 is available with 30 built-on indicators with 2000 free custom indicators. It also offers 700 paid indicators.

In comparison, MT5 has 38 built-in indicators.

Difference no 4: Drawing tools

When it comes to drawing tools, MT4 has 31 drawing tools which include Elliot or various Fibonacci tools.

MT5 trading is available with 44 drawing tools.

Difference no 5: Pending orders

The best thing about the MT5 trading platform is the pending orders which are available in varied types. Sometimes a user is not able to settle down and analyse the charts all the time. But the feature of pending orders will enable the trade to execute various trading positions they wish to trade.

MT4 trader is available with just four pending orders are known as sell limit, buy limit, sell stop and buy stop.

In comparison, MT5 has six pending orders: sell limit, buy limit, sell stop, buy stop, sell stop limit, and buy stop limit.

Difference no 6: Internal funds transfer

Another best thing about the MT5 platform is the access to internal funds transfer. With this feature, a trader can easily transfer funds from one trading account to another within MT5.

But, this cool feature is not available with the MT4 platform.

Difference no 7: Types of accounts

Talking about the types of accounts, a hedging system is available on the MT4 platform. But with MT5 trading, both netting and hedging systems are supported.

Difference no 8: Financial assets to be traded

With the MT4 platform, you can only trade with the forex market. But with the MT5 platform, a trader can trade on stock, CFDs, forex, or various financial instruments.

Difference no 9: Programming language

The MT4 platform is available with MLQ4, which easily develops trading platforms based on the order systems.

MT5 offers MLQ5, which a trader can use for implementing the positional system.

In comparing both programming languages, MLQ4 is quite simple and easy to use compared to MLQ5. However, MLQ5 enables the trader to alter and write scripts more efficiently.

Difference no 10: Market depth

The market depth function is not available on the MT4 platform.

But with MT5, an inbuilt market depth feature is offered with which a trader can perform bidding. It even offers some financial security over varying prices.

Difference no 11: Economic calendar

MT4 is not available with the section of the inbuilt economic calendar. But MT5 has an economic calendar to keep you updated with the latest financial or market trade news.

Difference no 12: Speed

In comparison to MT5, MT4 is quite slow. It works as a 32-bit mono threaded platform. At the same time, MT5 acts as a 64-bit mono threaded platform!

Comparison table between MT4 vs. MT5 trading platform

Features MT4 MT5
Analytical objects 31 44
Built-in economic calendar No Yes
Built-in indicators 30 38
Economic Calendar No Yes
Account currency EUR, USD, GBP, JPY EUR, USD, GBP, JPY
Embedded MQL5.community chat No Yes
Exchange trading No Yes
Fund transfer between accounts No Yes
Hedging Yes Yes
Netting No Yes
Types of Order Execution 4 3
Types of Pending Orders 4 6
Speed of platform 32 bit, mono-threaded 64 bit, multi-threaded
Symbols 1024 Unlimited
Reports Tables only Charts and Tables
Strategy Tester Single thread Multi-threaded
Technical indicators 30 38
Timeframes 9 21
Trading Signals & Copy Trading No Yes

 Top famous brokers 2021 with MT4 vs. MT5 trading platform

Below we have a few of the top leading brokers offering both MT4 vs. MT5 trading platforms to start trading with. Let’s have a quick look below:

1.   Markets.com

Markets.com is a famous broker who is popular for providing both MT4 and MT5 trading platforms. This broker is a secure platform with which a trader can start their trading journey across the globe.

Markets.com is available with a long list of assets at a competitive spread. Customers can access more than 2200 instruments, including precious metals and currency pairs, blend assets, stocks, global securities, and so on.

Along with MT4 and MT5 trading platforms, Markets.com also offers a friendly trading app, Marketx, and Marketis.

In addition, Markets.com is exceptional in low spread starting from 0.7 pips with a leverage ratio of 1:300. Thus, it is an excellent choice for both beginner and advanced traders.

2.   Exness

How can we miss mentioning Exness, which is another top leading broker in the Forex market! Exness started operating in 2008 and has more than 60,000 active clients across the globe.

Exness is extremely popular due to flexible account types and access to numerous financial products for accommodating multiple trading strategies.

New traders will enjoy their trading experience in a secure and risk-free environment through MT4 and MT5 platforms. It even supports favourable trading conditions, multiple languages, low spreads, and various financial instruments.

This broker platform is a top recommendation for all those traders who are not in favour of depositing a high amount as a trade capital. The minimum deposit requirement on Exness is $10 with no withdrawal or deposit commissions.

3.   Tickmill

Third, we have a Tickmill broker, launched in 2014 for a worldwide trading profession. This broker is facilitating a user functionality environment along with educational resources for the new traders.

Tickmill has grown to high popularity due to the availability of MT4 and MT5 trading platforms under competitive prices. It even offers highly competitive spreads starting at 0.0 pips with no requites and accepting various trading strategies.

4.   FBS

FBS is a famous online forex broker launched in 2009 as a major trading platform for new or advanced traders. This forex broker has more than 13 million active clients with various instruments to start trading on.

Moreover, the leverage ratio is 1:3000 with no commissions charged on withdrawal or deposit procedures. FBS allows trading with more than 160 countries with which a trader can connect itself with the forex market across the globe.

For the new traders, educational videos and resource materials are also available.

5.   XM

XM is becoming a favourite forex broker for traders due to its offering no deposit bonus. In addition, they even grant 100% over USD 5 minimum deposit.

XM‘s leverage ratio starts from 1:200 and ends with 1:400. In addition, services of XM are widespread to more than 190 countries globally. And therefore, this online broker is the biggest to count on our list in terms of functionality.

In addition, XM also offers a variety of currency options such as ZAR. This brokerage is equally created for all the crypto fans out there because they can also open their account in Bitcoin. The 24/5 customer support team is available for you.

6.   BDSwiss

BDSwiss was launched in 2012 to be the best and most reliable CFD and forex broker in the market world. This broker platform provides its clients with the finest trading opportunities in which we will mention an unparalleled liquidity strategy.

In addition, traders can benefit from a fast execution system, low spreads, and various trading assets. For the new traders, the availability of a demo account is also provided by BDSwiss to learn more about the trading world.

BDSwiss has more than 250 financial products such as commodities, forex, indices, stocks, and much more. BDSwiss supports both MT4 and MT5 trading platforms. Start trading with five different account types right now!

7.   IC Markets

IC Markets has made itself the major and leading FX CFD broker with a trading volume of $15 billion foreign exchange activity. They are currently working in 140 countries with 100,000 active clients.

In addition, IC Markets is also offering its clients tight variable spreads starting from 0.0 pips on a few major currency pairs.

IC Markets broker has made a popular name due to its fast execution ordering system, ideal among institutional investors.

8.   JustForex

Last on our list, we have JustForex, another leading broker for offering incredible trading experience. Since 2012, JustForex allows you to start trading with various types of trading accounts, all commission-free.

In addition, this broker also offers Islamic swap-free as well as ECN trading accounts. More than 150 asset classes are available for trading, including stocks, Forex ECN, bonds, commodities, indices, and so on.

JustForex supports both MT4 and MT5 trading platforms for PCs. In addition, for android users, MetaTrader mobile trading app is available.

For the new traders on JustForex, various educational tools and resource materials are kept for better guidance.

MT4 vs. MT5 pros & cons

If you are still confused between which one to choose out of MT4 and MT5 trading, here we have a quick rundown on the major pros and cons of each one of them. Let’s see if it can help you more:

MT4 Pros & Cons

Pros

  • Supported by more than 1,200 online brokers
  • Excellent for forex traders
  • Available with chart drawing tools and technical indicators
  • EA and robot providers
  • Compatible with both desktop and online software
  • It has a mobile app for both Android and iOS

Cons

  • Technical indicators are fewer than MT5
  • Limited with asset classes
  • Not suitable for beginner traders

MT5 Pros & Cons

Pros

  • Have more chart drawing tools and technical indicators than MT4
  • Offer a variety of execution models and order types
  • Supportive towards non-forex CFDs
  • Compatible with both Windows and MAC desktop devices
  • Available through a mobile app
  • Suited for seasoned technical traders

Cons

  • Supported brokers are less as compared to MT4
  • Few EA developers
  • Not suited for beginners

MT5 vs. MT4 – FAQs

1.   Is it possible to use the MT4 account in MT5?

It is not possible, but some brokers offer access to switch your MetaTrader 4 trading platform with MetaTrader 5 trading platform. In this way, a trader can use their MT4 account in MT5 as well.

2.   What is the main difference between MT4 and MT5?

With MT4, you can trade forex, but with MT5, you can easily start trading on non-Forex CFDs. Both platforms use different programming languages. In addition, MT5 has quick backtesting as compared to MT4. MT5 is also available with a depth of market functionality, unlike MT4.

3.   Which MT4 broker is best for new traders?

FXTM is the best MT4 broker for beginners and advanced traders to experience a smooth and hassle-free trading experience.

4.   Why should you choose the MT4 platform for trading?

MT4 is an old platform of trading that is available with some extra modern add-ons. These add-ons have made this platform to be the first choice for the new traders to start trading.

Bottom line

When selecting between MT4 and MT5 trading platforms, you need to pick the one in line with your individual trading needs.

For beginners, choosing the MT5 platform is not a great option due to its complex structure. However, advanced traders can go for the MT5 platform due to advanced tools you might not be getting on the MT4.

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