MetaTrader 4 vs MetaTrader 5

metatrader 4 vs 5

Both MT4 and MT5 are built on a custom programming language called MQL. MT4’s programming language is named MQL 4, and MT5’s programming language is creatively called MQ5. Learning how to use these programming languages will make you a more effective trader as it will allow you to unlock the full potential of electronic trading platforms. MQL4 and MQL5 are very similar programs and an update of MQL4 in 2014 means that both languages are logically consistent and relatively easy to use.

The most important thing to do when deciding between them is to compare what they can do. At first impression, we may believe that MetaTrader 5 is preferable to MetaTrader 4 because it is the latter’s evolution, but the truth is that it all depends on our needs. MetaTrader 5 came out in 2010, but it was made with more options and functions than MetaTrader 4 so that it could be used for trading in more markets than just forex.

MetaTrader 5 is a multi-asset trading platform that was released in 2010. MT5 is faster and more efficient than MT4, but it doesn’t replace the previous platform as it is different and simply offers more than MT4 does. MT5 provides the ability to trade more instruments in almost all financial markets, including Forex, stocks, indices, commodities, and even cryptocurrencies. Due to being an earlier and less specialised trading platform, MT4 is much easier to use than MT5. This is the case even more so for those who will only be forex trading. However, MetaQuotes made the user interface of MT5 much better, the reason for MT4 being easier to use is the lower volume of charts, timeframes, and assets that can be traded.

The platform gives traders across the world the opportunity to trade in the global forex market. Intuitive and straightforward, MT4 quickly became popular among traders across the globe. If efficiency is the name of your trade game, then MT4 might be just the platform for you.

Trading orders

The upgrades offered in MT5 were not sufficient to encourage traders to translate indicators and Experts written in MQL4 into MQL5. The advantages of MT5 are not enough to convince traders to change their usual terminal. The MQL4 is the MT4 programming language; the MQL5 is the MT5 programming language. Scripts, indicators to Experts designed for MQL4 can’t be integrated into the MT5 platform. To translate the script from MQL4 into MQL5, you can refer to a professional programmer.

You can also trade commodities and index instruments
through a Contract for Difference (CFD). With MT4, you view real-time currency prices, perform technical or fundamental analysis,
automate trades through custom algorithms, and open or adjust orders. You can also customize charts, orders, and more through MT4 as per your own trading preferences. Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch. 70.62% of retail investor accounts lose money when trading CFDs with this provider.

  • Each platform can be useful for different types of traders depending on the securities they’re interested in.
  • Our team have listed brokers that match your criteria for you below.
  • At least you can get trading knowledge from experts on this platform.
  • Both trading platforms have a host of features to develop your skills and trading experience.

In such a case, you may not get the best results trying Forex trading with MT5. There may be cheaper trading platforms out there but MetaTrader 4 and 5 are industry-proven. New markets and trading platform features should be your priority once you start trading with a Broker, or even as someone interested in understanding this trading platform type for the future. If you are a newbie and it is difficult to understand the MT4 and MT5 functions, you can try yourself in a more straightforward LiteFinance terminal, it has a simple, intuitive interface. MQL4 (MetaQuotes Language 4) is a programming language built into the trading platform.

Demo trading

Nevertheless, MT5 is not necessarily better than MT4, rather just different. This should allow you to make a measured decision on which platform suits you best. Effective customer service is an essential factor to consider when dealing with Metatrader 4 Vs Metatrader 5. Our team have listed brokers that match your criteria for you below. If you are new to trading, or are just interested in trading currency, MT4 is the clear option. If you are more advanced and find use in the further tools given in MT5, then the more mature and advanced MT5 is worth considering.

metatrader 4 vs 5

Some consider MT4 as the superior platform because of its ease of use and functionality. Many beginning traders prefer the simplicity and stripped-down features of MT4, whereas MT5 tends to attract more experienced traders who are seeking expanded resources and platform versatility. You place your orders on MT4 and MT5 through a third-party platform, and the trades are executed in real-time. You can test programmed trading strategies execute at a much faster speed, which is a feature that can save you a lot of time if you are the kind of trader who needs to run a large number of back tests.

Related Metatrader 4 Vs Metatrader 5 Alternatives

Though MT4 and MT5 were designed for basically the same purpose, there are still many differences between them. Let’s take a look at a few of the biggest differences you’ll notice, which may affect which platform you’ll want to download before you begin trading. This allows you to choose the trading platform that’s best fitted to your needs without worrying about switching over after a certain date. Function and investment availability may vary depending on which platform you use. Though the MetaTrader 5 platform is more in-depth and includes more options, its layout can be overwhelming for new traders.

Each platform can be useful for different types of traders depending on the securities they’re interested in. The documents that must be uploaded to verify an account with Exness are the same as those of other brokers. That’s all I know, if anyone has anything to add please feel free… Like many other brokers, Exness offers support for MT4 and MT5 applications, available on Android and iOS. It also offers its own internal application which allows you to manage your account, deposit and withdraw funds and trade in all Exness financial assets, but this is only available for MT5. MT5 offers a fast backtesting functionality, which is absent in MT4.

metatrader 4 vs 5

However, trading is not straightforward, in the sense that markets are mostly making fake moves rather than trending. The idea behind it is to have a good average that is the result of different entries at different levels. If the analysis is made with a longer time horizon, applying this strategy on the MetaTrader 5 is a difficult thing. It may be that until the end of the week, the trader bought five positions on EURUSD at different levels.

Number of Order Types

Choosing between MT4 and MT5 depends on your trading preferences, the financial instruments you want to trade, and the broker you choose. If you are primarily focused on Forex trading, MT4 may be the best choice, while MT5 is more versatile and suitable for traders looking to trade a broader range of financial instruments. Ultimately, the platform you choose should provide the trading features and capabilities that best suit your trading style and goals.

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. Traders didn’t pay much attention to the improvements introduced in MetaTrader. 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.

As mentioned before, both trading platforms have mobile, tablet, and computer functionality. However, recently MetaQuotes platforms have been removed from the Apple store, therefore, if you own an Apple ecosystem, you may be out of like. That being said, MT4 and MT5 are both compatible with most internet browsers. Algorithmic trading is used by most traders to automate the process of trading and is just another tool that makes the lives of traders a lot easier. Even though both platforms have algorithmic trading, they execute it slightly differently.

The FIX API is used by both market regulators and traders to share important information before and after trades, as well as information that confirms new orders and executed trades. Both platforms have a similar layout, with charts displayed in the main window and essential trading information such as open positions, account balances, and orders on the sides. MT5, however, has a more modern and user-friendly interface, making it easier for new traders to navigate the platform. Yes, you can open a demo account with the MT5 trading platform that does not require registering with any broker.

Yes, many Forex brokers offer Forex trading through the MT5 trading platform. No, but many brokers offering the MetaTrader 4 trading platform also offer the MetaTrader 5 trading platform and will allow you to switch. Yes, you can trade on both MT4 and MT5 if your chosen broker supports both platforms.

metatrader 4 vs 5

These funds are kept in segregated bank accounts and are used only if the member refuses to comply with the decisions of the Financial Commission. The Compensation Fund will only cover decisions made by the Financial Commission up to €20,000 per client. Founded in Russia in 2008, the Exness Group is a relatively new Forex and CFD broker.

Charting tools

FXTM is a trading and investing brokerage firm that offers you access to a wide range of international markets. Using FXTM, you can buy and sell cryptocurrencies, indexes, metals and stocks, as well major, minor and exotic currency pairs. Contrary to popular belief, MetaTrader 5 isn’t simply an upgrade of MetaTrader 4 — the platforms offer 2 different sets of tools.