MT4, launched in 2005, is a staple among Forex traders due to its simplicity, reliability, and precision. Though the platform’s design appears outdated, its functionality remains robust and trusted. Despite the availability of more modern-looking platforms, many traders continue to use MT4 for its dependable performance.
MetaTrader 4
Virtually all Forex brokers offer MT4 to their clients, making it more popular than MT5. While some brokers use a bridge to provide access, most offer full compatibility. MT4 uses the MQL4 programming language for creating trading algorithms known as Expert Advisors (EAs). This feature supports automated trading, and the platform includes a strategy tester for evaluating trading strategies. However, it’s crucial to research EAs thoroughly to avoid scams.
MT4 supports trading currency pairs, analyzing markets, algorithmic trading, and signal providing, with mobile and web versions available. Key features include:
- Three execution models
- Two types of market orders
- Four variations of pending orders
- Stop and trailing stop orders
- Various interactive charts
- Nine-time frames
- 30 technical indicators and 23 analytical objects
MetaTrader 5 (MT5)
Released in 2010, MT5 is a multi-asset platform that supports trading CFDs, commodities, indices, stocks, futures, and cryptocurrencies in addition to currency pairs. MT5 is more complex than MT4, making it less popular among novice traders but ideal for those looking to trade diverse asset types. Like MT4, MT5 offers mobile and web versions.
MT5 uses the MQL5 programming language, which is not compatible with MT4 programs. The platform is available in 31 languages, enhancing its global usability.
Comparison of MT4 and MT5
MT4, being older, is primarily for currency pairs, while MT5 is designed for a broader range of assets. Here is a comparison of key features:
| Feature | MT5 | MT4 |
|---|---|---|
| Partial Order Filling | Yes | No |
| Order Fill Policy | Fill or Kill, Immediate or Cancel, Return | Fill or Kill |
| Number of Pending Orders | 6 | 4 |
| Depth of Market | Yes | No |
| Time & Sales | Yes | No |
| Technical Indicators | 38 | 30 |
| Graphical Objects | 44 | 31 |
| Timeframes | 21 | 9 |
| Economic Calendar | Yes | No |
| Email System | Yes (with attachments) | Yes (no attachments) |
| Fund Transfers Between Accounts | Yes | No |
| Embedded MQL5 Community Chat | Yes | No |
| Strategy Tester | Multi-threaded, Multi-currency, Real ticks | Single thread |
| Multilingual Unicode | Yes | No |
| Netting | Yes | No |
| Hedging | Yes | Yes |
| Symbols | Unlimited | 1,024 |
| Supported Markets | Forex, Futures, Options, Stocks, Bonds | Forex |
| Exchange Trading | Yes | No |
Trading Assets and Indicators
MT4 is designed primarily for Forex trading, though some brokers offer limited CFDs on metals and oil. MT5 supports a wide range of asset classes. MT4 provides 30 built-in indicators, whereas MT5 offers 38. Both platforms allow downloading additional indicators from the MetaTrader marketplace, with around 2,000 free and 700 paid options available.
Charting Tools and Timeframes
MT4 includes 31 graphical objects, while MT5 offers 44. MT4 has nine timeframes (M1, M5, M15, M30, H1, H4, D1, W1, MN), sufficient for technical analysis. MT5 provides 21 timeframes, offering greater flexibility.
Pending Order Types
MT4 supports four types of orders: buy stop, buy limit, sell stop, and sell limit. MT5 adds buy stop limit and sell stop limit to these.
Choosing the Right Platform
For trading various asset classes, MT5 is the obvious choice. For currency pairs alone, MT4 is simpler and highly effective. Both platforms, despite their dated appearances, are reliable and widely used due to their stability and performance.
Main Takeaways
MT4, developed in 2005, and MT5, released in 2010, are both products of MetaQuotes Corp. MT4 is preferred by novice Forex traders for its simplicity, while MT5 offers advanced features for trading multiple asset classes. Both platforms are reliable and commonly offered by Forex brokers.
FAQs on MT4 and MT5
Should a beginner use MT4 or MT5?
MT4 is easier for beginners and tailored for Forex trading, while MT5 is suited for trading multiple asset types. Choosing between MT4 and MT5 depends on your trading needs, asset preferences, and desired features.
Is MetaTrader free?
Yes, both platforms are free to download, and most brokers offer free demo accounts.
Can I trade in MetaTrader without a broker?
No, trading on MetaTrader requires a broker to aggregate liquidity and offer competitive prices.
