If you’re struggling to choose between MT4 and MT5 trading platforms then you have come to the right place because this article will cover the main differences between them and should be able to aim your decision towards the target that suits you best.
Although the MT4 and MT5 are both trading platforms developed by the same company (MetaQuotes Software Corporation) and have multiple similarities, they have several differences as well. The MT4 is easier to use making it more convenient for beginners and aims to serve those who only want to trade with currencies in the forex market while the MT5 targets people who are more interested in buying and selling stocks, futures, and CFD’s. This is just the tip of the iceberg, let’s now dive into the main differences between these two popular trading platforms so you could know which one fits your criteria best.
You can notice right off the bat that their interface design look almost parallel. Despite their similar interface display each one carries different features. The MT4 has a simpler and customizable interface that suits the needs of its traders and it focuses solely on the Forex market. The MT5’s interface has additional services and trading features for individuals or organizations interested in commodities, CFD’s, and futures.
Each platform consists of different timeframes. The MT5 has 21 timeframes (default and customized) available for use but the MT4 has only 9 timeframes (only default) available. MT5 includes 11 types of minute charts, 7 types of hourly charts and daily, weekly and yearly time frames. Its broad range of time frames and unlimited number of charts facilitates market analysis.
Pending orders in Forex are paired currencies you have set to buy or sell at a specified point in the future. Both platforms have the equal types of pending order options but the MT5 has an extra 2 options giving you a total of 6 choices while the MT4 has only 4. Here are the available options for each platform:
MT4: Buy Limit, Sell Limit, Buy Stop, and Sell Stop
MT5: Buy Limit, Sell Limit, Buy Stop, Sell Stop, Buy Stop Limit, and Sell Stop Limit.
The Buy and Sell Stop Limit option is only available in the MT5 software which allows you to buy and sell stocks at the price you have appointed.
Programming Languages (MQL4 and MQL5)
Each software has a programmed language incorporated in it. The MT4 has the MQL4 however the MT5 has the MQL5. Take a look at the table below to learn about the differences between the MQL4 and MQL5.
|Each trading process
needs several functions
to be carried out.
|All trading operations are conducted by only one function.|
|Generates trading programs depending on the order system||Executes a positional system|
|MT4 programs can’t operate on the MT5 system||Scripts can be written and changed by traders|
|Less complex than the MQL5||Very productive and runs very fluidly|
|Community chat is not embedded in the MQL4||Community chat available in the MQL5|
MT4 enables only hedging whereas MT5 gives you access to both hedging and netting. MT4 has 30 built-in indicators though MT5 has 38 technical indicators. An economic calendar is embedded in the MT5 but not in MT4. MT5 also has the feature to transfer funds between accounts which is not available in MT4.
To review what has become the MT4 vs MT5 saga, we have learned that the MT4 is a simpler trading platform built suitable for traders who seek to trade with paired currencies in the Forex market whereas the MT5 is a little more complex and multifaceted targeting a different audience who are more interested in buying and selling futures, CFD’s, and stocks.
So which one suits you best? In my opinion, if you’re just getting started and have the desire to enter into the forex market globe you should begin with MT4 and subsequently switch to MT5, only if you want to trade with a wider range of options and are ready to do so.