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The MetaTrader trading platforms – MetaTrader 4 and MetaTrader 5 (or MT4 vs MT5, as they are most commonly known) have become the world’s most popular platforms for forex and CFD traders.
What is MT4? And how does MT5 differ? Although the two platforms are similar, there are key differences between MT4 and MT5. Knowing as much as you can about each trading platform will help you make a better choice for your personal trading needs, especially when you are weighing the differences between MetaTrader 4 and 5.
Let’s take a closer look at both trading platforms to give you better insight into their features and determine which is most suitable for you.
Key Points
- MT4, launched in 2005, is preferred for its simplicity in forex and CFD trading, while MT5, released in 2010, offers broader market access and advanced features.
- MT5 builds on MT4’s capabilities by adding more technical indicators and timeframes and supporting a wider range of markets, including stocks and cryptocurrencies.
- The choice between MT4 and MT5 depends on a trader’s market focus and need for advanced features: MT4 is simpler for beginners, while MT5 caters to more experienced traders seeking versatility.
What is MetaTrader4?
MT4 was initially released back in 2005. It quickly became one of the most popular trading platforms due to its versatility and cross-device accessibility.
While MT4 was originally built for forex traders, with an architecture designed to handle positions and orders in a specific way, it also supports trading commodities and index instruments via Contracts for Difference (CFDs).
If you are pretty sure you will primarily trade forex and CFDs and want to keep things very basic, MT4 is an easier platform to get to grips with.
What is MetaTrader5?
Released five years after its predecessor, MT5’s popularity has steadily increased since 2010, with many traders drawn to its improved functionality and greater adaptability.
MT5 has similar mobility to MT4, including access from most devices, with a key differentiation being that you have a complete set of trading orders for flexibility across forex, commodities, and indices, all at your fingertips.
Both platforms allow you to trade from anywhere in the world with an internet connection and use custom indicators and trading programs (called Expert Advisors, or EA for short) for trading automation. The difference between MetaTrader 4 and 5 is outlined in the section below.
The Difference Between MT4 and MT5?
When comparing MT4 and MT5, understanding these distinctions is crucial to making an informed decision. This allows you to prioritise each factor by importance before deciding which platforms suit you.
| Features | MT4 | MT5 |
| Markets | Forex and CFDs | Forex, futures, stocks, bonds, energies, crypto and options |
| Timeframes | 9 | 21 |
| Technical indicators | 30 | 38 |
| Graphical objects | 31 | 44 |
| Pending order types | 4 | 6 |
| Order fill policy | Fill or Kill | Fill or Kill, Immediate or Cancel, Return |
| Backtesting | Slow single | Fast multiple |
| Hedging | Yes | Yes |
| Email system | Yes (no attachments) | Yes (with attachments) |
| Partial order fill policy | No | Yes |
| Economic Calendar | No | Yes |
| Fund transfer between accounts | No | Yes |
| Depth of market | No | Yes |
| Netting | No | Yes |
| Exchange trading | No | Yes |
| Reports | Tables | Tables & Charts |
| Programming language | MQL4 | MQL5 |
Please note that brokers may not offer the features listed above.
While this shows that MT5 offers more timeframes, indicators, and trading features overall, it does not necessarily mean MT5 is better than MT4; it is simply different. When traders ask “MT4 vs MT5, which is better?”, the answer depends on individual trading needs and preferences.
For example, reporting may not be important to you if you only need the basic information in a table form. At the same time, another trader may prefer detailed charts and tables to assess financial data.
Others may place a high priority on an in-built economic calendar to track information from events, news, and even specific monetary and fiscal policy announcements that affect forex trading.
If you are asking yourself, ‘Is MetaTrader4 or 5 better?’, then making a list of your trading priorities is a solid foundation for choosing between the two platforms.
What can you trade on MT4 and MT5?
You can trade forex and CFDs on MT4, and it is a good choice for traders who want to keep things simple and may be new to trading.
How does MT4 work? This platform allows you to place orders to trade the live markets. These orders are then automatically sent to the broker for execution. (MT4 on its own cannot execute trading orders.)
The MT4 platform provides real-time trading, charts, and technical analysis. Some of the key benefits are:
- It is highly customisable to your individual trading needs and preferences.
- Your trading can be automated by implementing algorithms that open and close positions according to preset parameters.
- You can choose from more than 1000 tradable products.
Learning to add indicators in MT4 is made easy with Vantage Education’s MT4 online resources. If you wish to trade all financial markets, including forex, stocks, indices, commodities, metals, and even cryptocurrencies via CFDs, then learning to trade on MT5 is a better fit for your needs. When comparing MT4 and MT5, MT5 offers a broader range of markets and instruments.
MT5 also lets you see where the big orders are on the price ladder and plan your trading accordingly, while providing access to more than 3,200 trading signals. You can learn how to add indicators to MT5 through the special MT5 education section of the Vantage website.
When choosing a MetaTrader broker, traders should consider the broker’s trustworthiness (where and how it is regulated), trading fees, the number of tradable securities, the quality of customer service, and any add-ons beyond the default MetaTrader experience. Remember, the only way to use these platforms is through a trusted broker.
How to Set Up and Use MetaTrader
Getting started with MetaTrader is straightforward, whether you choose MT4 or MT5. Both platforms offer user-friendly interfaces that cater to traders of all experience levels.
Setting Up Your MetaTrader Platform
To begin using MetaTrader, download the platform from your broker’s website. Vantage makes this process simple by providing direct download links for both platforms. Once downloaded, installation is quick and straightforward, taking just a few minutes.
After installation, you’ll need to log in using the credentials provided by your broker. This includes your account number, password, and server information. Once logged in, you can begin customising your trading workspace to suit your preferences.
Navigating the Interface
Both MT4 and MT5 feature intuitive interfaces with similar layouts. The main components include:
- Market Watch: Displays real-time quotes for your selected trading instruments
- Navigator: Provides access to your accounts, indicators, Expert Advisors, and scripts
- Terminal: Shows your account history, open trades, and account balance
- Chart Window: Displays price charts with customizable timeframes and technical indicators
Placing Your First Trade
To place a trade on either platform, simply right-click on the instrument in the Market Watch window and select “New Order” or click on the “New Order” button in the toolbar. This opens the order window, where you can specify your trade parameters, including volume, stop-loss, and take-profit levels.
Customising Your Charts
One of the powerful features of both MetaTrader platforms is the ability to customise charts extensively. You can add technical indicators, drawing tools, and change timeframes to analyse market movements effectively. The platforms support multiple chart types, including candlesticks, bars, and line charts.
Using Expert Advisors and Automated Trading
Both platforms support automated trading through Expert Advisors (EAs). These are algorithmic trading programs that can execute trades based on predefined criteria. You can either develop your own EAs using MQL4 for MT4 or MQL5 for MT5, or choose from thousands of pre-built EAs available in the MetaTrader marketplace. For detailed step-by-step tutorials on maximising your MetaTrader experience, explore the comprehensive guides available on the Vantage platform pages for MT4 and MT5.
Why Trade with Vantage Markets?
Vantage provides a trusted trading ecosystem and a faster, simpler trading platform that enables clients to capitalize on trading opportunities across MT4 and MT5.
There is no ‘one size fits all’ approach to trading. It’s always important to make informed choices and select the best trading option for your specific trading needs. That’s where Vantage, as the award-winning online broker, offers valuable information and resources for your trading future.
When it comes to cutting-edge platforms that enable seamless, instant execution, Vantage is committed to delivering.
All the features that made MT4 the outstanding forex trading platform it is have been enhanced. When you choose to trade forex on MT5 with Vantage, you get the benefits from the latest version of MT5, which is compatible with EAs and signals trading and, most importantly, includes the capability to hedge positions.
Both MT4 and MT5 support Demo trading, allowing users to practice trading in simulated market conditions without risking real money. Vantage offers traders the opportunity to try both platforms using demo trading accounts, allowing them to experience real market conditions and test their trading strategies. It works exactly like a real account, except that you trade with virtual, not real money.
A Demo account is the best way for any beginner to explore the MT4 or MT5 platform and test various trading tools.
Vantage makes it simple to open a Demo account. You can click the MT4 download link or the all-in-one trading app to begin your trading journey.
FAQs
What is the main difference between MetaTrader 4 and 5?
The core difference between MetaTrader 4 and 5 lies in market access and features. MT4 focuses on forex and CFDs, while MT5 offers a broader range of instruments, more advanced tools, and faster processing. This makes MetaTrader 4 vs 5 a key consideration for traders choosing a platform.
MT4 vs MT5: Which is better for trading?
When comparing MT4 vs MT5 trading, the best choice depends on your goals. MT4 is simpler and ideal for beginners, while MT5 is more powerful and versatile. Ultimately, the answer varies based on your trading style.
What should I consider when comparing MT4 vs MT5?
A proper MT4 vs MT5 comparison should evaluate tools, timeframes, order types, and the markets offered. MT4 suits traditional forex traders, while MT5 supports stocks, commodities, and crypto, making MetaTrader 4 vs 5 more flexible for multi-asset trading.
Is MetaTrader 4 or 5 better for beginners?
MT4 is typically easier to learn with straightforward functionality, while MT5 offers advanced features for growth. The choice between MT4 vs MT5 depends on your learning curve and trading objectives.
