Difference Between MetaTrader 4 and MetaTrader 5

What is MetaTrader?

MetaTrader is a forex trading platform that is used by forex brokers in worldwide. Reputed brokers use this platform because of its user-friendly interface. MT4 and MT5 are currently available versions used for trading activities.

• MetaTrader 4: Accessible on desktop, mobile, and web.
• MetaTrader 5: Accessible on desktop, mobile, and web.

Irrespective of the MetaTrader platform you choose, a high-speed software hosted on the Forex VPS hosting is essential to avoid system overload. Higher bandwidth with maximum server uptime is crucial for fast trading. As high capital risk and market volatility are involved in it, there should be no scope for leniency in choosing the right trading infrastructure.

Benefits of MetaTrader Platform Trading

Setting up a MetaTrader account is easy because of its multiple trading facilities. Other generic trading platforms lack robust features and security. There are complex trading strategies involved like plotting the market trend, examining trading charts, and tracking price fluctuations. Like the stock market, traders have to book profits/losses here as well. This is the pro tip for every trader to generate capital.

With the help of graphics and charts in MetaTrader, they can evaluate trading activity. Also, they have past trading reports to analyze data and implement relevant measures to gain profits in the future.

In MetaTrader, there are features like setting up predefined stop losses and taking profit orders. Apart from this, there are automated Expert Advisors (EAs) to mechanize trading activities. EAs are based on coding scripts uploaded on a platform that eases the trader’s task. With this automation, traders do not have to wait for a prolonged time to book profits or exit the trade. EAs will trade automatically with higher profit chances.

• For better trade evaluation, here are some measures to consider:
• Download the trading history for every currency pair.
• Generate a detailed report on trading positions you took in the past.
• Keep a trade summary with charts, graphs, and trends.

Both MT4 and MT5 have unique features to deliver compelling trading results. Both platforms are popular having advanced strategies and below we will explain detailed information of MT4 and MT5 along with their differences.

What is MT4?

MetaTrader 4 is the fourth version of MetaTrader platform that was released in 2005. Over the years, it hasn’t degraded its quality and still, it is a popular Forex trading platform. If you want to expand its ability, then there are different financial assets like stocks, indices, and others to trade using this platform. Through CFDs which are available on this platform (Contract for Differences), traders can trade into different financial commodities.

With MT4, both beginners and experienced traders can implement their favorite strategies to book maximum profits in forex trading. Even the best Forex VPS servers are compliant with the MT4 platform. As far as its popularity is concerned, till Dec 2023, the MT4 installation count crossed 10 million on Google Play Store and 4.5 stars on iOS.

What is MT5?

MT5 is an upgraded version of MT4 that gives advanced and flexible features. Most of the Forex traders are now switching to MT5. It was released five years after the launch of MT4. In terms of trading speed, MT5 wins the race against MT4 but it cannot be replaced.

There are different features like exclusive indicators, cryptocurrency trade, and others. Traders get access to 500+ markets including forex, indices, commodities, cryptocurrencies, and stocks — all through one platform.

Advantages of MT4

Let us explore the key merits of the MT4 MetaTrader platform used in forex trading.

Real-Time Access to Market Liquidity & Prices

MT4 has a big advantage in giving insights into real-time forex trading actions. Having these insights gives a value of the real-time market to traders. At present, which forex currency or financial assets are profitable for trading, in MT4 traders will get to know. A security symbol called “Market Watch” is available in it to see real-time bid/ask quotes.

Details like contract size, margin percentage, and currencies are visible in MT4. With the help of “Depth of Market”, traders get information about market sentiments in real-time. As a result, they have relevant data to strategize their trading measures and earn profits.

Numerous Trading Orders for High Flexibility

MT4 provides the freedom to implement different strategies. There are different types of execution modes and trading orders in this platform to give flexibility in implementing the best forex trading measures.

High Stability and Strong Security

MT4 builds higher trust because of its stability and security because it has a 129-bit key that encrypts Data exchange between servers and client terminals. This trading platform also supports RSA digital signatures with an IP address hiding feature. Because of high-end security promises, traders are assured of zero security loopholes in monetary transactions. Also, cybercriminals will stay away by leveraging MT4 in trading accounts.

Automated Trading Option for Experts

As we have mentioned above,  MT4 Expert Advisors (EA) help in automating the trading strategies on the MT4 platform. So, having no human intervention while trading keeps no room for human errors. It has been found that automation technologies deliver more accurate results. Besides, there is an MQL4 IDE (MetaQuotes Language 4 Integrated Development Environment). This feature allows traders to create custom technical indicators and EAs.

Advantages of MT5

Let’s explore what an upgraded MT5 has to offer to traders.

Exemplary Features

There are different powerful trading options that bring amazing features like supporting different trading activities.  MT5 supports multiple execution modes, Market Depth, and different order accounting techniques which is also called the hedging technique.

Because of these features, traders create multiple positions either in the same or opposite directions using one instrument. Moreover, it arrives with four order execution methods Instant, Market, Request, and Exchange.

Prediction and Charting

In the trading market, predicting the trend is a bit challenging. But what if we say MT5 has features to give the probability of trading success? It will create the interest of forex trading among different forex traders. In this, there are different analytic insights forecasting price and market analysis. Let’s have a look at the key aspects that add value to forex trading.

• At a time, 100 charts can be opened.
• Track trading in charting systems across 21 timeframes.
• Over 80 analytical objects with built-in indicators are available.
• 39 graphical objects and 38 technical indicators are available.
• 17 display styles of client indicators with 4 scaling modes.
• There are 17 display styles available for choice for client indicators.

All these technical resources will make the trading better with a higher ROI.

Availability of Useful Tools

For fundamental analysis and financial views, none other than MT5 is best. Several international agencies, economic dailies, and financial institutions prefer these trading platforms because of live news feeds.

Algorithmic Trading

The MT5 platform leverages robotic and algorithmic features where robots take on the trading activities. They will analyze the market and conduct trading activities. Traders only have to provide a set of instructions to execute the trading. Thanks to the MQL5 environment that allows testing, optimizing, and developing custom trading requirements. In comparison to MT4, MQL5 gives quicker order execution to meet trading requirements.

MT4 vs MT5: Key Differences

Below we will look over different things that are involved in MT4 vs MT5.

Trading

Both MT4 and MT5 trading platforms utilize the algorithm trading which is used by most forex traders. It is just not automating the trading process but also there is another tool making the trader’s life easier. Most of the features like order execution, request execution and others are included in both. However, MT5 scores an edge by having exchange execution and buy/sell stop limits additional features.

Analytics

MT4 and MT5 have customized analytics delivery features for traders. But the catch here is that MT5 has different timeframes with built-in indicators & graphical objects. All these elements are not available in MT4. Apart from this, other technical indicators like Fibonacci and Elliot tools are unavailable in MT4.

Discussing the improved functionalities, MT5 has financial news updates in it with an in-built economic calendar which MT4 does not have. A financial community feature is also available in MT5 where traders can implement suggestions from the trader’s community.  One similar feature in both is an internal mailing system where traders connect with brokers.

Risk Strategy

Hedging trades facility is available both in MT4 and MT5. It mitigates the capital risk of traders.  However, there is an additional functionality for managing trades. Therefore, forex trade settlement is easier than MT4.  

Usage

MT5 consists of complex trading tools. Hence, MT4 is a user-friendly forex trading platform. Many forex traders still use the MT4 platform. Still, in recent times MetaQuotes transformed the user interface much better of MT5. A few of the major reasons behind MT4’s popularity are the lower chart volumes, timeframes, and trade assets.

Most internet browsers support MT4 and MT5 but MetaQuotes has been depleted from the Apple ecosystem. However, they are accessible on Android OS and devices like mobile, tablet, and computer.

Programming

MQL (MetaQuotes Language) is a programming language on which MT4 and MT5 are built. It is a custom programming language to make forex trading efficient. Traders can unleash the potential of both MTR and MT5 to book profits. Both these platforms are built on MQL4 and MQL5 respectively having electronic trading platforms. These programming languages are easy to use.

MT5 has a back-testing feature due to which it gains a lead against MT4. This feature gives traders the freedom to strategize their trading activity. In contrast to MT4, MT5 has a multi-thread strategy tester that boosts the backtest strategies pace.

Servers

In MT5, there are four major trading servers. the trade server, access server, history server, and backup server. On the other hand, MT4 runs on a single server engine.

Look at Comparison Glance: MT4 vs MT5

MT4 VS MT5: Which to Choose in 2024?

Here are some factors to consider before choosing the right trading platform between MT4 and MT5 in 2024.

Your trading experience: If you’re a new trader, MT4’s simpler interface might be a better starting point. Experienced traders might prefer the additional features and flexibility of MT5.

The assets you want to trade: If you only trade Forex, MT4 might be sufficient. However, if you want to trade other asset classes, MT5 is the better option.

Your trading style: If you require advanced features like backtesting and market depth, MT5 is a better choice. However, if you prefer a simpler platform for basic trading, MT4 might be sufficient.