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METATRADER 5 (MT5) VS METATRADER 4 (MT4): FULL EXPLANATION

Understand what separates MetaTrader 5 from MT4, including tools, features and usage for modern traders.

What Are MT4 and MT5?

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are leading electronic trading platforms widely used in the financial markets. Developed by MetaQuotes Software, they cater to traders and brokers in the forex, CFD, and broader financial trading space. While MT4 was released in 2005 with a primary focus on forex trading, MT5 was launched in 2010 aiming to offer broader financial market access and improved technical architecture.

Despite being successors in name, MT4 and MT5 are not compatible with each other, and each serves different use cases depending on a trader’s goals and trading instruments. MT4 has long been favoured by forex traders for its simplicity, reliability, and massive third-party support. MT5, by contrast, is designed to offer a multi-asset trading approach with upgraded features, making it suitable for more diverse and advanced strategies.

Both platforms offer:

  • User-friendly interfaces
  • Support for automated trading using expert advisors (EAs)
  • Advanced charting and technical analysis tools
  • Mobile and web application versions

This article provides a comprehensive breakdown of MT4 and MT5 by comparing their architecture, tools, key differences, and best use cases so you can make a more informed decision as a trader or investor.

MT4 vs. MT5: Core Platform Features

Both MetaTrader platforms share a foundational design for retail trading but diverge significantly in capabilities and technological structure. Here’s a closer look at the principal components and tools of MT4 & MT5:

1. Asset Coverage

  • MT4: Primarily built for forex trading, with limited support for CFDs and no native support for stocks, commodities or futures markets.
  • MT5: Provides access to a broader range of markets including forex, stocks, bonds, commodities and futures in a single interface.

2. Market Depth and Trading Options

  • MT4: Lacks full market depth tools; only supports basic order types.
  • MT5: Includes integrated Depth of Market (DOM) functionality, showing bid/ask volumes and supporting multiple order types like stop limit orders, making it more suited for advanced order execution.

3. Technical Analysis Tools

  • MT4: Offers 30 built-in technical indicators and 9 timeframes.
  • MT5: Offers 38 technical indicators, 44 graphical objects, and 21 timeframes for more granular analysis.

4. Economic Calendar

  • MT4: Does not include an integrated economic calendar.
  • MT5: Features a built-in economic calendar detailing global financial events and impact forecasts, assisting traders in fundamental analysis.

5. Programming Languages and Automation

  • MT4 uses MQL4: Best suited for simple EAs and scripts. Easier to learn for beginners but less versatile in handling complex strategies.
  • MT5 uses MQL5: A more powerful and flexible language allowing for object-oriented programming, improved backtesting and advanced auto-trading capabilities.

6. Strategy Tester

  • MT4: Single-threaded strategy tester; supports only single currency pairs.
  • MT5: Multi-threaded and multi-currency strategy tester with real tick data and faster backtesting, enabling more accurate simulations.

7. Order Types

  • MT4: Offers four pending order types: Buy Limit, Sell Limit, Buy Stop, and Sell Stop.
  • MT5: Adds two additional pending orders: Buy Stop Limit and Sell Stop Limit, offering more trading flexibility.

8. Hedging & Netting

  • MT4: Supports hedging where users can hold opposing positions simultaneously.
  • MT5: Supports both hedging and netting systems, commonly required in regulatory entities and futures markets.

Overall, MT5 is better suited to traders who demand high-performance tools, faster execution, regulatory compliance and asset class diversity, while MT4 remains a robust, lighter-weight choice for forex specialists who prefer minimal complexity.

Forex offers opportunities to profit from fluctuations between global currencies in a highly liquid market that trades 24 hours a day, but it is also a high-risk arena due to leverage, sharp volatility and the impact of macroeconomic news; the key is to trade with a clear strategy, strict risk management and only with capital you can afford to lose without affecting your financial stability.

Forex offers opportunities to profit from fluctuations between global currencies in a highly liquid market that trades 24 hours a day, but it is also a high-risk arena due to leverage, sharp volatility and the impact of macroeconomic news; the key is to trade with a clear strategy, strict risk management and only with capital you can afford to lose without affecting your financial stability.

What Differentiates MT5 from MT4?

Although MT5 is often considered a "replacement" to MT4, its design reflects an evolution in how traders engage across global markets. Below are the pivotal contrasts between MetaTrader 4 and MetaTrader 5 across usability, performance, and adoption scenarios:

User Interface and Experience

Though visually similar, MT5 provides more customisation options and cleaner navigation structure. Both platforms offer intuitive layouts, but MT5 introduces tab-based chart grouping, multi-window management, and colour themes, improving workflow efficiency.

Speed and Performance

MT5 offers superior execution speed due to its 64-bit multi-threaded architecture versus MT4’s 32-bit single-threaded model. This results in enhanced platform stability and less lag during high-volume trading sessions.

Trading Automation and Algorithmic Support

While MT4 is renowned for its large ecosystem of Free Expert Advisors (EAs) and scripts written in MQL4, MT5 is advancing as a dominant platform for algorithmic trading via MQL5, enabling faster execution and more sophisticated algorithm deployment.

Backtesting Capabilities

MT4 restricts strategy testing to one currency pair and one thread at a time. In contrast, MT5 supports multi-threaded and multi-currency testing with tick-by-tick data. This significantly improves research speed and predictive accuracy.

Broker and Exchange Integration

Whereas MT4 is typically broker-specific and heavily oriented toward decentralised OTC forex, MT5 supports direct server connections to regulated financial exchanges, such as equities or futures, making it more compliant with global financial regulation frameworks.

Best Use Cases

  • MT4: Ideal for forex-centric retail traders who want access to a vast repository of community-built indicators, scripts and EAs, with a low learning curve.
  • MT5: Recommended for professionals or those expanding into multiple markets who require faster processing, better order management, and institutional-level tools.

Mobile and Web Availability

MT4 and MT5 are both accessible via mobile apps (iOS and Android) and web-based terminals. However, MT5 apps receive more frequent updates and extended features like integrated financial news streams and deeper charting tools on mobile.

Community and Marketplaces

MT4 benefits from a longer history and thus a larger user base, making it rich in community-created tools. However, the MetaTrader Market increasingly offers more offerings under MT5, driven by its longer-term viability and wider integration capabilities.

Regulatory Compliance

MT5 reflects regulatory expectations more closely by offering transparency-enhancing tools, history reports, and flexible position accounting. This makes it more suitable for brokers and traders wishing to operate in highly regulated environments.

In conclusion, MT4 and MT5 serve distinct purposes. Traders should choose based on trading goals, asset classes, and technical needs. MT4 remains optimal for streamlined FX trading, while MT5’s robust infrastructure supports a broader spectrum of multi-asset strategies and algorithmic operations.

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