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mt4 vs mt5 - Understanding the Differences to Choose the Best Trading Platform

MT4 vs MT5: Understanding the Differences to Choose the Best Trading Platform (2023)

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the two most currently popular trading platforms. Both have been developed by MetaQuotes and offer a variety of features and tools. Yet, there are some significant variations between these versions to cater to traders of different levels. This article compares MT4 vs MT5 to help you determine your best trading platform.

MT4 has been in operation since 2005. It is renowned for its user-friendly interface, advanced charting capabilities, and a wide range of custom indicators and expert advisors (EAs). Five years later, MT5 was released as an updated version. Initially, it was designed to replace MT4. But in fact, both these versions are still available and used widely by worldwide traders.

So, MT4 vs MT5, which platform is right for you? Why do people prefer MT4 over MT5? Is MT5 good for beginners? Read on to dig up all the answers to those questions. 

Features of MT4

It has no surprise that MT4 is one of the most popular trading platforms today. As it has all the features that either a novice or an expert needs to trade successfully.

MetaTrader 4 (MT4)

 Below are MT4’s most notable features: 

  • Advanced Charting Tools: The platform is packed with advanced charting tools. They are helpful for traders to study price action and identify trading opportunities.
  • Technical Indicators: On MT4, a broad range of technical indicators are accessible to help predict future price movements.
  • Expert Advisors: This feature is an automated trading program that can trade on your behalf. You can back-test and optimize this functionality on MT4 before deploying it in live trading.
  • Order Execution: Orders placed on the platform are executed reliably and promptly. Mind this factor when choosing the best trading platform. As we are in markets with high turnover where every second counts.
  • Security: MT4 is well-known for its security algorithms. Your trading data and personal account information are kept safe. So you can have peace of mind when trading.
  • Customizable Interface: You can customize MT4’s interface to suit your needs and preferences. In detail, you can add or remove different components, for example, charts and news feeds, to create your tailored-made workspace. 
  • Cross-platform Compatibility: MT4 is compatible with a wide range of operating systems. Hence, you will find it easy and convenient to trade in different devices like your desktop, laptop, or mobile device.
MT4 is compatible with a wide range of operating systems
  • Availability of Third-party Add-ons and Plugins: MT4 is not only compatible with various operating systems. But its functionalities can also be enhanced further by using third-party add-ons and plugins. 

Features of MT5

MT5 is the successor to the popular MT4 platform. Like its predecessor, it has many similar features such as intuitive UI, cross-platform compatibility, and expert advisors. Plus, some notable differences. For example, the addition of more timeframes, the improvement of order management, and the enhancement of backtesting functionality. 

MetaTrader 5 (MT5)

The bullet list below itemizes MT5’s significant features: 

  • Advanced Analytical Tools: The MT5 trading platform incorporates a range of advanced analytical tools to help traders make informed decisions. These include over 80 built-in technical indicators, flexible graphical objects, the ability to create custom indicators and scripts, as well as a handy economic calendar.
  • Multiple Time Frames: This useful feature allows traders to compare various time frames on the same chart. As a result, they can spot and capitalize on emerging trends more easily.
  • Expert Advisors: MT5 offers a great deal of powerful expert advisors (EAs). Making use of this feature can help traders analyze market data, generate trading signals, and place orders automatically. Hence, it is easier for them to manage their portfolios with minimal effort.
  • Automated Trading: Another great feature of MT5 is its automated trading capabilities. It enables traders to set up rules-based strategies that can be executed automatically with minimal manual intervention. As a result, it can help them save time and improve their overall trading performance.
  • Multi-Asset Trading: Traders who use MT5 can enjoy access to a wide range of financial markets including stocks, forex, commodities, indices, cryptocurrencies, and more – all from one single account!
  • Social Trading: With this feature, you can copy other successful traders’ strategies. And follow their trades in real time for improving insights into the market.
  • User-Friendly Interface: Similar to MT4, MT5 features a friendly UI. You can feel free to navigate and customize it according to your preferences.
MT5 allows traders to trade in different devices

MT4 vs MT5 - Which Platform is Right for You?

To make an informed decision, it’s important to understand the key differences between MT4 vs MT5.

  • Programming Language: MT4 uses a proprietary programming language called MQL4.  MT5 uses the more modern one – MQL5.
  • Trading Instruments: MT4 has a limited range of trading instruments. Meanwhile, you can use MT5 to trade a wide variety of assets including stocks, ETFs, futures, and options.
  • Order Types: Both platforms offer basic order types like stop-losses and take-profits. However, MT5 supports advanced ones such as trailing stops and hedging orders.
  • User Interface: The UI of both platforms is very similar. Yet, some argue that MT4’s UI is a bit more intuitive and easier to use than MT5’s.
  • Expert Advisors (EAs): Both support EAs (trading robots) though they must be programmed using different coding languages.
  • Community Support and Resources: MT4 has a larger community of users. It has more resources available than MT5. This means if you need help, it may be easier to find an answer in the MT4 forum or community than in MT5’s.
  • Number of Timeframes: MT4 offers nine timeframes while MT5 is equiped with twenty-one. In other words, you can analyze price action in MT5 more accurately than in MT4.
  • Price: MT4 is generally cheaper than MT5 though the exact prices vary depending on the broker you choose.
  • Charting Tools: MT4 has a limited range of charting tools compared to those available in MT5. In addition, MT5 also includes more advanced features, for instance, tick-by-tick data and the ability to draw objects directly onto charts.
  • Algorithmic Trading: MT5 supports algorithmic trading, which allows traders to create and use automated trading systems. MT4 does not support this feature.

Factors to Consider When Choosing MT4 vs MT5

When choosing either of the versions, you should mind the following factors:

  • Ease of Use: MT4 is user-friendly and easy to navigate. Meanwhile, MT5 has a more complicated interface. 
  • Cost: MT4 is free while MT5 requires a fee. When you first begin, it might not be a problem. Nonetheless, this factor is note-worthy if you plan on doing more advanced trading.
  • Features: MT4 offers a wide range of features including charting tools, automated trading, and backtesting capabilities. MT5 has added additional features such as market depth, advanced order types, and improved charting capabilities.  
  • Supported Brokers: Different brokers offer different platforms. So make sure that the one you choose supports the platform you want to use. Besides, take note of a broker with low spreads and fast execution speeds. It will help you get the best possible price for your trades.
  • Asset Class: The type of assets you plan on trading should also be taken into consideration. MT4 is better suited for forex and CFD trading. On the other hand, MT5 offers a wider range of asset classes, including stocks and futures.
  • Trading Style: Different platforms are better suited to different trading styles. MT4 is great for manual and automated trading. MT5, otherwise, offers more advanced features that can be useful for day traders.

MT4 vs MT5 - Which is Better for Forex Trading?

It is impossible to find one platform that fits all forex traders. Some prefer to use technical analysis with automated systems. The others love using fundamental analysis. Both methods can be effective for forex trading. The best trading platform will ultimately depend on your individual needs and preferences.

To assist you in selecting the best one, here’s a side-by-side comparison of MT4 vs MT5.

  • MT5 offers more features and tools than MT4.
  • MT5 supports more types of orders and strategies than MT4.
  • MT5 has better charting capabilities than MT4.
  • MT5 can be used to trade stocks, futures, options, as well as forex. MT4 can be used to trade forex only.
MetaTrader5 Market

Importance of Choosing the Right Platform for Forex Trading

Choosing the right platform for forex trading is essential for success. With a good platform, you can take advantage of multiple features such as:

  • preferred charting tools, order types, and indicators;
  • a variety of risk management tools; 
  • ease to use; 
  • better access to news and data sources;
  • tight spreads and low transaction costs;
  • advanced charting tools;
  • automated trading strategies and trading signals;
  • compliance with local regulations; 

Thanks to the above features, you can:

  • analyze the markets accurately;
  • set stop-loss and take-profit levels;
  • get an in-depth insight into margin requirements;
  • access more information and quickly make informed decisions;
  • save time and money; 

Meanwhile, choosing the wrong platform can lead to costly mistakes that could have been avoided with the right one.


In short, both versions are powerful and versatile trading platforms. While MT4 remains a popular choice among worldwide traders, MT5 offers more features and flexibility.

MT4 is definitely a great option for both newbies and experienced traders. However, this option is more suitable for a beginner looking for a simple platform with basic features.

Meanwhile, MT5 offers additional and enhanced functionalities. This updated version has a more advanced programming language, which makes it easier for traders to create custom indicators and trading robots. That’s why MT5 is a preferred choice for more experienced and institutional traders. 

Besides, if you want to trade more markets and instruments, including futures and options trading, you should give MT5 a try.

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