MetaTrader 5 vs MetaTrader 4: Key Differences

MetaTrader 4 and MetaTrader 5 are two of the best trading platforms in the world, which allow millions of forex and CFD traders real-time charts, complex analysis, and advanced automation features. Either as a new trader making your first trade or an experienced trader trading several assets, choosing the best platform will significantly affect your trading experience.

In this article, we will uncover what differentiates MT4 and MT5, describing how they work, their key features, and who they are best suited for. If you find yourself torn between MetaTrader 4 vs 5, this article will help you make a clear, well-informed choice.

What is MetaTrader 4?

MetaTrader 4 (MT4) is the symbol of a trading platform developed by MetaQuotes in 2005. It was first developed with forex trading in mind and gained popularity due to its user-friendliness, reliability, and support of automated strategies through Expert Advisors (EAs).

MT4 enjoys access to live charts, a library of technical indicators, custom scripts, and one-click ordering. It remains the platform of choice for the majority of forex traders who focus exclusively on forex and appreciate its minimal system resource usage, broker compatibility, and massive online community.

Even though older than MT5, MetaTrader 4 continues to dominate the retail forex market due to its simplicity, stability, and minimal system requirements. Its well-established history also means that there are free indicators, scripts, and EAs in their thousands to download from somewhere on the internet.

What is MetaTrader 5?

MetaTrader 5 (MT5), which was launched in 2010, is the successor to MT4 and has been designed to accommodate multi-asset trading in stocks, futures, CFDs, and forex. Even though it maintains the fundamental structure of MT4, MT5 has more advanced tools and features that are better suited for modern-day traders and investors.

MT5 boasts 21 timeframes (compared to MT4’s 9), additional order types, an integrated economic calendar, Depth of Market (DOM), and a faster strategy tester for backtesting. The platform was also made with the support of the netting system (used in exchange-traded markets) and incorporates a new scripting language (MQL5) that supports more advanced algorithmic trading capabilities.

Though there have been complaints by some traders with the transition from MT4 to MT5, specifically because of a lack of backwards compatibility with MT4 EAs, MT5 is better suited for those looking to diversify among multiple instruments and automate complex trading strategies.

MetaTrader 5 vs MetaTrader 4: Key Differences

Below is a side-by-side comparison of MT5 vs MT4 with their key features:

As mentioned earlier, the distinction between MetaTrader 4 and 5 lies not in interface or design, but function and flexibility. MetaTrader 4 is speed-optimized, easy, and forex-oriented, while MetaTrader 5 is an end-to-end multi-asset platform with advanced-level tools tailored to modern-day trading needs.

If you require increased market exposure, additional analytical tools, and faster backtesting, then MT5 is the clear winner. If, on the other hand, stability, low resource usage, and an enormous collection of available tools matter to you the most, then MT4 can still be your best option.

Pros and Cons of MetaTrader 4

Advantages of MetaTrader 4:

• User-Friendly Interface: MT4 is designed with simplicity. The easy-to-use interface makes it simple for beginners to navigate and trade without needing complicated learning curves.
• Extremely Stable and Lightweight: MT4 consumes minimal system resources, making it a favorite among users with old computers or mobile phones.
• Extensive Broker Support: Nearly all forex brokers support MT4, offering access to competitive spreads, several account types, and bundled services.
• Mass Community and Resources: Over a decade of use has afforded MT4 a huge global web-based following of tutorials, trading forums, and thousands of user-created custom indicators, EAs, and scripts.
• Hedging Support: MT4 permits the opening of multiple positions in the same market, allowing for hedging strategies without any restriction by the platform.
• Low Latency Execution: Designed to handle high-speed forex trading, MT4 has high-speed, reliable execution, which is essential for scalpers and intraday traders.

Disadvantages of MetaTrader 4:

• Fewer Asset Types: MT4 is primarily for forex and CFDs. It does not have native support for trading stocks, futures, and other exchange-traded instruments.
• Fewer Order Types and Timeframes: 9 chart timeframes and 4 basic order types only restrict further market analysis or complex order entry.
• No DOM or Economic Calendar: No in-platform DOM or Economic Calendar implies that traders will have to rely on third-party software for news events and Depth of Market analysis, limiting in-platform fundamental analysis.
• Slow Technology: MT4’s single-threaded strategy tester and antiquated scripting language (MQL4) versus MT5 limits its capability to conduct sophisticated algorithmic testing.
• No Netting System Support: MT4 does not support netting, which may be required for trading in exchange-based markets or with specific institutional methods.

MT4 remains the darling of most forex-only traders who enjoy a simple, no-frills platform that only does what they need, and nothing else.

Pros and Cons of MetaTrader 5

Advantages of MetaTrader 5:

• Multi-Asset Support: MT5 natively supports trading forex, stocks, indices, commodities, futures, and cryptocurrencies an appropriate platform for diversified accounts.
• 21 Timeframes and 6 Order Types: More timeframes and order types allow for more precise entry/exit signals and personalized strategies.
• Built-In Economic Calendar: Live macroeconomic events and releases are integrated directly into the platform, allowing traders to remain connected without tool switching.
• Advanced Depth of Market (DOM): MT5 shows order book data (Level II market depth), allowing traders to estimate market liquidity and make more informed decisions.
• Powerful Strategy Tester: The multi-threaded, multi-currency backtester of MT5 provides faster and more comprehensive analysis of trading robots and strategies’ performance.
• Advanced Scripting Language (MQL5): Includes object-oriented programming and enhanced performance for building strong Expert Advisors and indicators.
• Netting and Hedging Support: Both systems are supported by MT5, providing traders with flexibility based on their broker and market.

Disadvantages of MetaTrader 5:

• Steep Learning Curve: With added features and complexity, MT5 might intimidate new users who are still learning the rudiments of trading platforms.
• Increased System Requirements: MT5 is more system-intensive compared to MT4 and thus demands a more powerful computer or mobile device for maximum performance.
• Limited Broker Support: Though adoption is growing, not all brokers support MT5 yet, and some brokers might offer fewer account types or instruments on the platform.
• No feedback compatibility: MT5 will not run MT4 EAs, indicators, or scripts. Traders will have to find or create entirely new tools in MQL5.
• Not Ideal for Pure Forex Traders: Pure forex traders may have too much to do with forex to require MT5’s multi-asset base and extra tools or find them distracting from the basics.

MetaTrader 5 is more suited to traders who want some extra analytical oomph and asset diversity, especially those who are interested in portfolio trading or developing sophisticated algorithms.

Which MetaTrader Should You Use?

The decision between MetaTrader 4 and MetaTrader 5 will be based on your trading strategy, preferred asset, and complexity of your strategy. MT4 is the better choice for the majority of forex-exclusive traders, particularly those who rely on proven tools and want a lean, rock-solid platform with advanced broker support. Its minimalistic layout, less system-demanding nature, and ease make it specifically suitable for beginners or for traders running EAs specifically designed for MT4.

By contrast, MetaTrader 5 is designed to meet the needs of modern, multi-asset traders. Whether your trading portfolio expands beyond forex, into stocks, commodities, or futures, MT5 has the infrastructure to manage those positions with added features. The inclusion of 21 timeframes, 6 pending order types, in-built Depth of Market (DOM), and an economic calendar translates into more robust features for technical and fundamental analysis users. Better MQL5 programming language and improved strategy tester also make it the darling of algorithmic and quantitative traders.

Traders and institutions can take particular advantage of MT5’s hedging and netting flexibility, multi-threaded backtesting, and greater access to assets. Existing MT4-based systems or EAs should, however, be weighed for compatibility prior to migration.

In the end, your choice of platform needs to match your trading aspirations. Which terminal is best suited to deliver your success in the markets will depend on whether more importance should be placed on functionality and flexibility (MT5) or simplicity and speed (MT4).

Which MetaTrader Platform Is Best Suited For Your Trading Strategy?

Choosing between MetaTrader 4 and MetaTrader 5 ultimately comes down to your trading needs, experience level, and preferred markets. If you’re a beginner focusing on forex and looking for a simple, proven platform with wide broker support, MT4 remains a solid and reliable choice. It’s fast, user-friendly, and backed by a massive community.

Alternatively, if you’re trading multiple asset classes, designing automated strategies, or require more advanced analysis features like the economic calendar and Depth of Market, MT5 offers a more modern and adaptive trading experience. Its testing feature, power and multi-asset functionality make it especially appealing to serious traders who plan to grow.

Finally, the top platform is one that accommodates your strategy, your technical needs, and your comfort level. Both MT5 and MT4 are great platforms. The key is knowing how to use each to best take advantage of their unique strengths. And remember: some brokers, like JustMarkets, permit you to trial both, so you don’t have to pick without seeing.