Difference between MT4 and MT5
The MetaTrader 4 and the MetaTrader 5 (MT4/MT5) forex trading platforms have been around for a few years now, but there are still many traders who are unfamiliar with the differences between them. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most widely used trading platforms in the forex industry. While both of them are developed by the same company, MetaQuotes Software, they have their own unique features and benefits. In this article, we will explore the difference between MT4 and MT5 to help you make an informed decision on which platform to choose.
In this article, we will explore the key differences between the two platforms and discuss the advantages and disadvantages of each. We’ll also explain why some traders may want to switch from one platform to the other, and why some may choose to stay with one over the other.
MT4 vs MT5: The main differences between MT4 and MT5
When it comes to forex trading platforms, there are two that stand out above the rest: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). While both platforms are incredibly popular among traders, there are some key differences between the two that you should be aware of. Here’s a look at the main differences between MT4 and MT5.
1. Different Execution Models:
MT4 was designed with a market maker execution model in mind, while MT5 has been built around a more advanced ECN (electronic communication network) model. This means that MT5 can offer more competitive spreads and faster execution speeds, making it ideal for more active traders.
2. Different Charting Packages:
MT4 has a basic charting package, while MT5 comes with a much more comprehensive set of tools and features that allow you to customize your charts however you like.
3. Different Programming Languages:
MT4 uses MQL4, while MT5 uses its own programming language known as MQL5. This means that if you are looking for custom indicators or trading robots for either platform, you must use the correct language for each one.
4. Different Types Of Orders:
MT4 only supports market orders, while MT5 also supports pending and stop-loss orders as well as trailing stops – which are not available on the earlier version of MetaTrader platform.
5. User Interface:
In terms of user interface, there are significant differences between MT4 and MT5. MT4 is known for its simplicity and ease of use. The user interface is intuitive and straightforward, making it easy for beginners to grasp. On the other hand, MT5 has a more complex user interface, which can be overwhelming for new traders, but experienced traders may prefer its advanced features and customization options.
6. Market Depth:
The market depth feature of MT5 allows traders to see the available liquidity at different price levels, allowing them to make informed trading decisions. For most traders, however, MT4’s limited market depth is sufficient, and they do not need the market depth feature.
7. Hedging:
A hedging strategy involves opening multiple positions in the same or opposite direction to manage risk. MT5 allows traders to hedge, whereas MT4 does not, so traders who want to hedge must use MT5.
8. Timeframes:
There are additional timeframes available in MT5 than in MT4, such as 2-minute and 8-hour charts, but for most traders, the standard timeframes in MT4 are sufficient.
9 Programming Language:
MT4 and MT5 both use their own programming languages. MT4 uses MQL4, while MT5 uses MQL5. While both languages share some similarities, they also have some significant differences. The MQL5 language in MT5 is more sophisticated and allows for more sophisticated trading strategies and indicators. There is also a larger community of developers who have created custom indicators and trading robots for MT4. As a result, traders who want to use customized indicators and trading robots may prefer MT4.
10. Compatibility:
As MT4 is more widely used than MT5, it is more compatible with third-party software and trading tools, making it easier for traders to find and use custom indicators and trading robots. Since MT5 is a newer platform, it has not reached the same level of compatibility as MT4. As a result, traders who use third-party software and trading tools may prefer MT4.
11. Economic Calendar:
There is no built-in Economic Calendar in MT4. A third-party calendar can be used to keep up with the relevant financial news. For example: Economic Calendar. MT5 includes an integrated Economic Calendar that provides useful and real-time macroeconomic information. If you want to better plan your trade, the Economic Calendar is a must. It helps traders keep track of important financial announcements which may affect the price of the assets.
12. Demo trading:
With both MT4 and MT5, you can trade in real-life market conditions without losing your capital. Just open a free Demo account and try it. There are no real funds involved, only virtual ones. A Demo account is a great way for beginners to check out the MT4 or MT5 platform and test its trading tools. It works just like a Real account, except that you trade with virtual funds instead of real money.
Summarizing the differences between MT4 and MT5:
Overall, both platforms are powerful and reliable tools for forex trading – but depending on your specific needs, one may be better suited than the other. Take the time to
One of the biggest differences between MT4 and MT5 is the programming language that each platform uses. MT4 uses MQL4, while MT5 uses MQL5. For many traders, this won’t make a big difference. However, if you’re someone who likes to code your own indicators and strategies, then you’ll need to learn a new programming language if you want to use MT5.
One final difference to be aware of is that MT5 is not backwards compatible with MT4. This means that any indicators or scripts that you have for MT4 will not work on MT5. You’ll need to either find new versions of these tools or recreate them from scratch if you want to use them on the new platform.
Which one should you choose?
Make your choice by bullet points:
- MT4 has been around for longer than MT5 and is more widely used.
- MT5 has more advanced charting tools and allows for more timeframes.
- MT5 supports more asset classes and trading instruments than MT4.
- MT5 has a better backtesting and strategy testing capability.
- MT4 has more indicators and expert advisors available than MT5.
- MT4 is generally considered to be more user-friendly and easier to navigate.
- MT5 has better mobile trading capabilities than MT4.
- MT4 is ideal for novice traders due to its straightforwardness. It was created with Forex trading specifically in mind and has fewer trading options than MT5.
- MT5 allows one to trade stocks, indices, commodities, and even cryptocurrencies, it has more charting tools and technical indicators than MT4; however, this can make the platform appear complicated for beginners.
- MT4 is a bit slower than MT5 and fewer Robot or Expert Advisor developers use it.
FAQs:
Q. What is the main difference between MT4 and MT5?
A. MT5 has more advanced charting tools, more timeframes, and supports more asset classes and trading instruments than MT4.
Q. Which trading platform is more widely used, MT4 or MT5?
A. MT4 is more widely used, but MT5 is gaining popularity.
Q. Can I use the same indicators and expert advisors on both MT4 and MT5?
A. No, the two platforms have different programming languages and are not compatible with each other.
Q. Can I download MT4 and MT5 for free?
A. Yes, both MT4 and MT5 are completely free to download and use. There are no fees or charges for using the platform.
Q. How to convert MT4 EAs and Indicators to MT5 (MQL4 to MQL5)?
A. You can convert MQL4 to MQL5 by yourself, or pay a professional coder to do it for you, see the link below:
Conclusion
Conclusion: When it comes to choosing between MT4 and MT5, it really depends on your personal preference and trading style. MT4 is more user-friendly and easier to navigate, while MT5 has more advanced features and capabilities. The MT4 platform may be a better choice for a beginner or someone who prefers a simpler platform. On the other hand, MT5 may be the better choice for experienced traders who require advanced charting tools and backtesting capabilities.
Overall, both MT4 and MT5 have their own strengths and weaknesses. To choose the platform that best suits your needs and trading style, you must assess your own needs and trading style. If you want to maximize your potential profits and minimize your risk, make sure you do your research and practice safe trading habits.
Additionally, some brokers may offer one platform over another, or may provide both platforms to their clients. Before opening a trading account with a broker, verify which platform they support and ensure it aligns with your trading goals.
In terms of future developments, it’s important to keep an eye on the direction that MetaQuotes Software is heading. Even though MT4 remains popular, it is possible that MT5 may eventually become the industry standard. In preparation for future shifts in the industry, traders may want to familiarize themselves with MT5.
In conclusion, while MT4 and MT5 are both powerful trading platforms, they each have their own unique features and benefits. In the end, your choice of platform depends on your trading preferences and needs. Regardless of which platform you choose, it’s important to practice safe trading habits and continuously educate yourself in order to increase your chances of success in the forex market.