MT4 vs MT5: MetaTrader Platform Versions Compared Which One Is Better?

In addition, these charts can be highly customized to meet the specific needs of each difference between metatrader 4 and metatrader 5 trader. For each currency pair, a chart can be displayed in one of nine different timeframes, ranging from one minute to monthly. Additional charts and indicators can be found in the MQL4 community, and many traders also create their own. It is expensive, there are many bots, the rating is formed according to unclear principles, the signal providers are not responsible to the investor. So, a better option to employ the social trading platform provided by your broker; this way, the platform you trade on, does not matter.

What Is MetaTrader? Learn How to Use This Online Platform in Trading

Hedging allows traders to protect their investments by opening opposite positions in the market. MT4, as well as MT5 trading platform, provide the flexibility to hedge trades, offering traders a means to mitigate potential losses during volatile market conditions. This feature allows traders to practise their strategies and familiarise themselves with the platform without risking real money. Users can access a virtual trading environment that mirrors real market conditions, enabling them to test their skills and strategies. MetaTrader 4, released in 2005 by MetaQuotes Software https://www.xcritical.com/ Corp, quickly established itself as the gold standard for Forex trading.

Algorithmic Trading and Automated Strategies: MT4 vs. MT5

Comparing MetaTrader 4 vs 5, we should further mention that only the first one could be integrated with the FIX API. And all the market players utilize the latter to share important data during trading, as well as confirmations of transactions. One of the differences between MetaTrader 4 and MetaTrader 5 is that they appeared at different times. Therefore, it is better to compare MT5 vs MT4 to delve into all the nuances of their work. Just because MT5 is a secure platform doesn’t mean that your MT5 broker is reputable or regulated.

MetaTrader 4: the most popular Forex trading platform

It also supports traditional account management via MAM/PAMM accounts and forms the cornerstone of thousands of financial firms with trillions in monthly trading volumes. Expert Advisors, also known as EAs or trading bots, play a critical role in any automated trading strategy and custom indicators. MetaQuotes offers an extensive marketplace of vetted EAs for purchase, but users can also purchase or code their own to meet the specific needs of a given trading strategy. Traders use different order types to maximise flexibility in their trading strategies while managing risk. Pending orders, in particular, can provide effective mitigation while empowering traders to reap the benefits of market volatility. Therefore, understanding which orders a platform supports matters greatly to ensure compatibility with your trading strategy.

MT4 vs MT5: What Are the Differences?

One of the main reasons for MetaTrader 4’s popularity is its algorithmic trading feature. This refers to giving users the ability to trade using automated strategies. MT4 has Expert Advisors (EAs), which essentially are Forex trading bots that help you automate trade parameters as well as set alerts according to market conditions. The combination of technical indicators and EAs makes a killer combination for traders to succeed. CTrader offers a more modern user interface and sleeker design, as well as a larger number of time frames (26) than MT4 (9) or MT5 (21). I’m a huge fan of cTrader’s charts and it’s great to see the platform enjoy adoption by a decent number of trusted forex brokers.

MT4 vs MT5 Summary: which platform to choose?

In ECN markets with high liquidity, the price changes in a few milliseconds, and there is always sufficient volume in the market at the current price. It is difficult to define the difference between MetaTrader4 vs MetaTrader5 visually. In the new platform version, the developers focused on the upgrading of the platform functions, hardly changing the interface. We have free educational materials, including video lessons about MetaTrader (“How to open your first trade in MT5”, ”Technical indicators in MT5”, and more).

Algorithmic trading in MT4 to MT5

Hedging in forex trading is accomplished through the order accounting approach. Both MT4 and MT5 are designed to be compatible with most internet browsers, including Google Chrome, Mozilla Firefox, and Microsoft Edge. Additionally, they are available as desktop applications for Windows and macOS, allowing traders to access their accounts and trade from their computers. Furthermore, both platforms offer mobile apps for iOS and Android devices, enabling traders to monitor the markets and execute trades.

The MT5 platform’s robot or algorithmic trading capability is the best and most intriguing. Your trades would be carried out by the robot, which would follow your directions. By far the most popular trading platform to date is the MetaTrader suite from MetaQuotes, which consists of MetaTrader 4 (MT4) and its most recent updated version, MetaTrader 5 (MT5). There are even indicators written in MQL4 and run in MT5 without changing the code.

Advanced Trading Tools and Analytics

FOREX.com and tastyfx are the top MT4 brokers for U.S. traders, while Pepperstone is a top MT4 broker for international traders. Although MT4 is an old trading platform, it is still widely regarded as the best platform for Forex trading, but it is best used with modern add-ons. MetaQuotes Software, the developer of MT4 and MT5, stopped support for MT4, but the MT5 trading platform failed to replace MT4. MT5 launched in 2009, and despite minor improvements, it could not reach the status MT4 enjoys. At some point, it could replace MT4 if MetaQuotes Software forces the issue, which could cause it to lose upward of 80% of its business.

MT5 also offers 12 more timeframes, 2 more pending order types, netting, one extra order execution type, more graphical objects, and a multi-threaded strategy tester. Still, many traders prefer MT4 because they may not need these extra features. Some traders are dead set on one platform or the other, while others are happy with either. If you’re unsure, consider testing out a demo account on both MT4 and MT5 to see which platform is best suited for your needs.

If you want to become an advanced trader, you can develop your own indicators or add free custom tools. Everything added to MetaTrader 5 by the developers, you can add yourself to MetaTrader 4. The increased variety of analytical tools in MT5 is not a significant advantage in comparison with MT4. There are several times more custom indicators written for MT4, more than a hundred. Discover the fundamentals of market liquidity, major currency pairs’ liquidity levels, factors affecting liquidity, liquidity providers’ role, risks of low liquidity, and tailored trading strategies. Additionally, both platforms allow for extensive customisation of the user interface.

• Despite MT5’s 15-year presence, MT4 remains more popular, partly due to the backward incompatibility of custom indicators and EAs between MQL4 and MQL5.
• Pending orders, in particular, can provide effective mitigation while empowering traders to reap the benefits of market volatility.
• We also evaluate the overall design of the mobile experience, and look for a fluid user experience moving between mobile and desktop platforms.
• The most significant distinction between the MetaTrader platforms lies in the asset classes to trade and available markets.
• You can use both MT4 and MT5 to hedge your trades (learn more about hedging by checking out my full guide on forex hedging), but MT5 offers the added functionality of being able to net your trades.
• Ultimately, the choice between the two platforms will depend on the individual trader’s needs and preferences.

But in any case, you will need to open an account with a broker, like FBS. It is true that these two platforms are fairly similar, performing at the same type of standard and being produced by the same company. Nevertheless, MetaTrader 5 was designed to complete different goals – ones that MetaTrader 4 couldn’t – and is therefore meant to be used for different reasons. This additional function of MetaTrader 5 is to provide services to those trading in other markets, such as stocks and commodities, rather than solely Forex.

Our ratings, rankings, and opinions are entirely our own, and the result of our extensive research and decades of collective experience covering the forex industry. MT5 also offers an advanced Secure Sockets Layer (SSL) certificate feature, which digitally binds cryptographic keys to any data transferred between client terminals and platform servers. MT5’s DOM Toolbox displays market depth information; trade volumes are displayed alongside asset prices for new positions. MT4 has been downloaded over 10 million times from the Google Play store and holds a rating of 4.8 stars (with over 68,000 user ratings) in Apple’s App Store. Visit my full review of FP Markets to learn more about its pricing, range of markets, and available platforms.

After being released in 2010, MT5 gained quick traction from traders due to its diverse range of assets and spectrum of features. Steven Hatzakis is a well-known finance writer, with 25+ years of experience in the foreign exchange and financial markets. He is the Global Director of Online Broker Research for Reink Media Group, leading research efforts for ForexBrokers.com since 2016. Steven is an expert writer and researcher who has published over 1,000 articles covering the foreign exchange markets and cryptocurrency industries. He has served as a registered commodity futures representative for domestic and internationally-regulated brokerages.

Also referred to as MT4, this platform was released in 2005 and continues to be used by brokers and traders across the globe. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular trading platforms in the world, each offering unique features and capabilities. In recent years, the world of trading has experienced an unprecedented rise in popularity. With the advent of technology and easy access to financial markets, individuals from all backgrounds are now able to participate in trading activities. From traditional contracts for difference (CFDs) to newer forms of trading, such as cryptocurrencies, there is no shortage of options for traders looking to make a profit. Overall, while both platforms are user-friendly and offer a range of features, MT5 has a more advanced set of tools compared to MT4.

More seasoned traders find these data crucial and prefer to stay as informed as possible. Then you can go about creating automated trades in the forex market, and be willing to engage with a bigger community. While it’s good to applaud other traders when they succeed, you should always go by your own standards and not let their success deter you. MT4 uses MQL4, while MT5 uses MQL5, programming languages that are used for coding indicators and Expert Advisors (EAs). An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets.