MetaQuotes Software Corp. developed the most widely used trading platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Every day, millions of traders around the world rely on them for excellent services. But, what is the difference between MT4 and MT5, and which platform is best for you?
In this post, we will share with you a comprehensive guide and a detailed comparison of MT4 and MT5.
What is MetaTrader 4?
MetaTrader 4 is the most widely used online trading platform among Forex traders. It was introduced in 2005 and provided millions of users with quick access to financial markets. Even though MT4 was designed specifically for Forex trading, it can also be used to trade stocks, indices, and commodities via CFDs.
MT4 is popular among both new and seasoned traders since it is multi-functional, user-friendly, and enables users to customise the interface to their particular needs. It also offers extensive trading tools that allow traders to implement their preferred trading strategies.
What is Metatrader 5?
MetaTrader 5 is a trading platform for multiple assets that was launched in 2010. MT5 is quicker and more effective than MT4, although it does not consider replacing the previous platform because it is distinct and delivers more than MT4. MT5 enables you to trade more methods in nearly all financial markets, including stocks, commodities, Forex, indices, commodities, and even cryptocurrencies.
MT5 includes all of the tools required for successful trading, including advanced technical and basic analysis, trading signals, algorithmic and copy trading, and trading robots.
The Main Differences Between MT4 From MT5
MT5 outperforms MT4 when it comes to speed. And it won’t slow down your platform. It is a complete 64-bit, multi-threaded platform, whereas MT4 is a 32-bit, mono-threaded platform with a 2GB memory limit (or a 4GB memory limit if you utilize it on a 64-bit operating system). The latest version of the programme, MT5, operates admirably on 64-bit operating systems, whereas MT4 is best suited to 32-bit operating systems.
You will require the set-up execution file to download the software. It should be remembered that MT5 can also run on 32-bit operating systems. However, when running MT4 on 64-bit systems, you will observe that it is slower than on 32-bit platforms.
This is not always the scenario, but MT4 will not run efficiently on a VPS host with several CPU cores.
MT4 and MT5 have various server configurations. MT4 alone has one dedicated server, which has limited connectivity with other servers. MT5, on the contrary hand, distributes jobs to other servers, and they collaborate, create synergy, and can accomplish hardware utility while also enhancing outcomes due to the different servers interacting and cooperating, resulting in resource optimization.
MT5 makes use of four primary servers: the backup server, the access server, the history server, and the trade server. In contrast, MT4 only uses one server engine. Reports produced by the software are only available in HTML format on the MT4 platform. Reports in MT5 are given in both HTML and Open XML table formats.
MT4 continues to remain straightforward and easy. It features approximately 30 built-in indicators and 33 analytical elements. It supports two market order types, four pending order kinds, two alternative execution modes, two stop orders, and a trailing stop feature. It is still simple to go through, and many traders enjoy using it.
MT5 includes 38 built-in indicators. It has a dedicated economic calendar tab with options such as ‘schedule,’ ‘news event,’ ‘impact,’ ‘prediction,’ ‘previous,’ and more. It provides 6 types of pending orders, DOM access (Depth of Market), data on time, and exchange sales. With MT4, the number of statistical items that can be used to analyze financial instrument price patterns is limited to 31, while it is 44 on MT5.
These objects can recognize loops and support/resistance ratios, as well as establish channels and etc. There is also a change in the log files. Log files on MT5 are constantly compressed, but this is not the case on MT4. As compressed zipped folders are available on the MT5 platform, you can get codes from the code base and save them on your local drive.
MT5 supports incomplete orders; for example, if the maximum volume of trade is reached but the trade is not filled, traders can pick ‘partial edit’ to cancel the remaining volume. The industry is progressing, improving, and heading towards MT5. MetaQuotes reports that the attention is turning to MT5.
MT4 vs MT5: Pros and Cons
- MT4 is perfect for starting Forex traders.
- MT4 is supported by the vast majority of online brokers.
- The majority of Expert Advisor providers use MT4.
- MT4 has a range of charting tools and technical indicators.
- When compared to MT4, it features many more technical indicators, timeframes, visuals, chart-creating tools, and other functions.
- Non-forex CFDs are also supported.
- Execution modes and order kinds are quite advanced.
- It is suitable for experienced technical traders.
- Has fewer features.
- Only Forex assets are supported.
- Not ideal for newbie traders.
- The MT5 platform is supported by a low minority of brokers.
- In comparison to MT4, the MT5 platform is used by many fewer expert advisor developers.
Top MetaTrader 5 Brokers in 2023
While MetaTrader 4 is still the most popular version of the developer’s retail forex trading platform, MetaTrader 5 includes various enhancements and significant improvements to the MetaTrader platform. To help traders who want to make the switch to MT5, we’ve compiled a list of the best FX brokers for MT5:
- IC Markets – Generally best for MetaTrader.
- Admiral Markets– Provides the MetaTrader suite of trading tools.
- FP Markets – Complete MetaTrader package, competitive pricing.
- FxPro– Median pricing, MetaTrader suite.
- Pepperstone– MetaTrader suite with add-ons.
- CMC Markets– Offers a MetaTrader suite, add-ons, and affordable pricing.
- Vantage – MetaTrader suite, excellent price for larger deposits.
Top MetaTrader 4 Brokers in 2023
We looked into and tested each respective broker’s MetaTrader offering to select the best MetaTrader 4 brokers for 2023.
- IC Markets – Overall best for MetaTrader.
- FP Markets – Complete MetaTrader suite, competitive price.
- Pepperstone– MetaTrader suite that includes add-ons
- FXCM– MetaTrader suite, excellent research
- CMC Markets – MetaTrader suite with competitive rates
- Vantage – MetaTrader suite, with amazing value for larger deposits
- Tickmill- Best overall broker for cheap fees.
Is MetaTrader Safe?
Sure, MetaTrader is safe – however keep in mind that it is a system software (created by MetaQuotes Software), not a broker. This only means that when you’re trading forex on MT4 or MT5, your level of protection is totally dependent on the reliability of your broker and any controls they’ve put in place to protect their consumers.
For instance, a fraudulent broker recently utilised the MetaTrader platform to commit fraud, prompting Apple’s App Store to ban both the MetaTrader 4 and MetaTrader 5 applications while the problem is being addressed.
Even brokers who are not outright scammers might utilise questionable dealing practices within the MetaTrader platform to defraud customers, such as offering poor execution and producing asymmetrical slippage. Only go with MetaTrader brokers that are well-regulated and based in trustworthy jurisdictions.
Is the Current MT5 Version Better Than the Older MT4 Version?
The new MT5 edition is a strong piece of software with advanced functionality for stock trading and order management. The MT4 platform, on the other hand, includes more robust features and tools for FX trading. The slight difference between MT4 and MT5 makes MT5 a more powerful and efficient software in general. The slight difference between MT4 and MT5 makes MT5 a more powerful and efficient software in general.
The new MT5 version is unquestionably more powerful and efficient than MT4, but it cannot completely replace MT4 because the two platforms are employed for different purposes. Whereas MT4 is only for forex trading, MT5 makes it possible to trade several financial assets with a single account, including FX, equities, commodities, cryptocurrencies, and indices.
MT4 vs MT5: The Final Decision
Both MT4 and MT5 are intended for specific uses. These are both excellent for different types of traders because they are not interdependent and are not enhanced versions of one another. If you are a new trader who merely wants to gain exposure in the forex market, MT4 is the best option for you. But, MT5 is the best option if you are an experienced trader who wishes to trade other markets as well.
About the Author: Ivandrea Ollero is a writer for Metatrader Platform website and shares insightful tips and tricks about Trading and Forex-related content. She loves to explore the Forex Market in her free time and also writes content about business, lifestyle, health, and more.