What Exactly is the Difference Between MetaTrader 4 vs 5

As a Forex trader, you have the freedom of choice when choosing a trading platform. Nevertheless, the Forex broker you sign up with can determine the type of trading platform you end up using since the available trading platforms on one Forex broker may differ from that of another broker. Before you sign up for a trading account on any of the Forex brokers around, you should first find out about the trading platform offered by that Forex broker.

There are many types of Forex trading platforms today, but the most popular ones are the MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

These two are very popular, each having specific features that make it stand out. In the remaining part of this write-up, we will show you some of each trading platform’s unique factors and enlighten you about MetaTrader 4 vs 5.

Best Brokers Offering Both MT4 and MT5

Broker
Rating
Regulated
Min. Deposit
Bonus
Max. Leverage
1.
easyMarkets

CySec, ASIC, BVI

Min $100 Deposit

Up to 50% With Sign-up

1:30

Review » Open Account » Open Account
Terms & conditions apply
Your capital is at risk.
2.
FXCC

CySEC, FCA

Min $100 Deposit

100% First Deposit

1:500

Review » Open Account » Open Account
Terms & conditions apply
Your capital is at risk.
3.
HYCM

CySEC, FCA, CIMA, FSC, DFSA

Min $100 Deposit

10% Credit Bonus

500:1

4.
Fusion Markets

ASIC, VFSC

Min $100 Deposit

-

500:1

Review » Open Account » Open Account
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
5.
Plus500

ASIC, FMA, FCSA, FCA, CySEC, MAS, FSA

$100

€25 No Deposit Bonus

1:30

6.
Blackbull Markets

ASIC, VFSC

Min $100 Deposit

-

500:1

Review » Open Account » Open Account
Terms & conditions apply
Risk Warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money you cannot afford to lose. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.
7.
LegacyFX

CySEC, VFSC, NBRB, FCA

Min $250 Deposit

-

1:200

Review » Open Account » Open Account
Terms & conditions apply
Your capital is at risk.
8.
Vantage FX

FCA, ASIC, CIMA, SIBL

Min $200 Deposit

Up to 50% Bonus

500:1

Review » Open Account » Open Account
Terms & conditions apply
Trading Forex and CFDs involves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Trading leveraged products may not be suitable for all investors. Before trading, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
9.
Eightcap

ASIC, VFSC

Min $100 Deposit

$30 No Deposit Bonus

500:1

Review » Open Account » Open Account
Terms & conditions apply
Margin trading involves a high level of risk, and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary. Forex and CFDs are highly leveraged products which mean both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford losses without adversely affecting your lifestyle (including the risk of losing substantially more than your initial investment).
10.
Forex.com

FCA, IIROC, JFSA, NFA, CIMA, FSA, ASIC, CFTC

$100

Up to $5000 Welcome Bonus

50:1

Review » Open Account » Open Account
Terms & conditions apply
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Which is better?

Both MT4 and MT5 trading platforms have specific features that stand out for Forex trading. They both have their pros and cons, which you must consider before downloading any of them for trading Forex.

compare MetaTrader 4 vs 5

If you are a Forex trader in the United States seeking to comply with Forex trading regulations in the USA, then MT5 is better. Do you want to do backtesting to enable you to properly test a strategy before you start using it? Then you must consider using the MT5 platform.

MT4 offers many assets, but the number of assets you can find on it can never be up to what an MT5 trading platform offers. Check below for more helpful hints about these two trading platforms.

MetaTrader 4 vs 5 assessment

MT4

MT4 started operation as far back as 2005. Virtually all the Forex brokers around today give access to the MT4 platform. You can go for this trading platform if you want to trade CFD on many assets. Its popularity is incomparable in the world of Forex trading platforms.

MT4 is licensed by MetaQuotes Software Corp and works on windows, iOS and android operating systems. The trading platform is 100% free to use; you will not pay before accessing it. It enables the traders to access technical analysis, charts and trade operations in real-time. The trader can also access 50 basic indicators in MT4 and many customized indicators. You also have the freedom to add custom indicators.

MT5

It was made open to end-users in 2010, 5 years after the launching of MT4. Not all Forex brokers offer the MT5 trading platform. It is, therefore, not as popular as the MT4 trading platform. If you trade Forex in the United States and want to be on the right side of the law, you should trade on the MetaTrader 5 platform. Some may think the two are similar, but findings show that an MT5 trading platform is an advanced form of the MT4 platform. MT5 makes it possible for the Forex trade to assess new markets beyond what the MT4 trading platform can offer. Some of the markets you can trade on the MT5 platform include:

  • Stocks
  • Commodities
  • Futures
  • Options

MT5’s programming language is MQL5, against the MQL4 programming language in MT4. MT5 was initially a lot easier to program than the MT4 trading platform. As a result, it served as a better framework for developers and end-users involved in building and using trading robots, including other expert advisers. However, the discrepancy is no more since MetaQuotes expanded this same capability into the MQL4 in 2014, enabling users of both platforms to build and use trading robots with the same speed and responsiveness. While MT4 may have some exciting features, it is obvious that MT5 will always take the lead in a MetaTrader 4 vs 5 comparison. If you are only interested in trading Forex pairs, you can make do with MT4 without worrying about MT5.

You cannot use any program built for MT5 on the MT4 trading platform. If you need programs working on MT5, you will have to switch to MT5 and not attempt to upgrade MT4.

MT5 offers a fast backtesting functionality, which is absent in MT4. Consequently, you will not have to spend a lot of time on programming activities when you use the platform. If you need to run several backtests, MT5 is the better-suited trading platform. You can even use MT5 to carry out multiple backtests simultaneously.

Tradable instruments

MT4 or MT5 does not have any say regarding the particular tradable instruments accessible to the trader. The sole determinant of this is the Forex broker with which you register. Traders can access Forex CFDs on the MT4 platform but can access both Forex CFDs and non-Forex CFDs on the MT5 trading platform. You can, therefore, trade indices, stocks, cryptocurrencies, energies and precious metals on your MT5, unlike the MT4 platform.

Charting tools

Both MT4 and MT5 offer interesting charting tools. You can access up to 24 charting tools on MT4, covering everything from lines to arrows, shapes and the Gann. On its part, MT5 gives access to up to 44 charting tools, giving the trader access to more charting possibilities. The number of time frames in MT5 is also more than what you can get in the MT4 trading platform.

MetaTrader 4 vs 5 key differences

MetaTrader  4 MetaTrader 5
It is built with the MQL4 language It is built with the MQL5 language
It permits slow single backtesting Backtesting is multiple and fast
Traders cannot access technical support but can interact via a huge community. Traders can access technical support
Only traditional timeframes are accessible Traders can access more than the traditional timeframes
Four pending order types Six pending order types are accessible
The programming language does not comply with MetaTrader 5 The programming language complies with MetaTrader 4
Traders cannot access the depth of market Traders can access the depth of market
No economic calendar Included with the economic calendar

 

Conclusion

We have opened your eyes to some of the important similarities and differences between MT4 and MT5 in the MetaTrader 4 vs. 5 analyses above. Both platforms are good, but you may want to go for MT5 if you want to have more features than what the MT4 platform can offer.