MetaTrader 4 vs MetaTrader 5: Which One to Choose?

MetaTrader is one of the most complete trading programs that brokers offer for trading on the financial markets. Created by MetaQuotes Software Corp, it comes in two main versions: MetaTrader 4 and MetaTrader 5. Both have important features and give a broad view of the different movements on the financial markets. But in the MetaTrader 4 vs MetaTrader 5 debate, which one should you choose? What are the key similarities and differences to know to make the right decision? Here is a summary of the essential points about these trading tools.

MetaTrader 4 vs MetaTrader 5 – Top 3 Brokers to Choose

Choosing a broker and a trading platform depends on several factors.

Brokers	MT4 / MT5	Markets	Trading Style	Automated / Manual Trading
	MT4 MT5	All Markets	Scalping Day Trading Swing	Automated Manual
	MT4 MT5	Forex Indices Commodities CFDs	Scalping Day Trading Swing	Automated Manual
	MT4 MT5	All Markets	Scalping Day Trading Swing	Automated Manual

MetaTrader 4 vs MetaTrader 5 – Key Differences Between the Platforms

MetaTrader 4 vs MetaTrader 5 – Similarities

MetaTrader 4 vs MetaTrader 5 Platform – Which One Should You Choose?

The first thing to remember about MT4 and MT5 is that MetaTrader 5 is an upgrade of MetaTrader 4. For one thing, MT4’s programming language, MQL4, becomes MQL5 in the new MetaTrader 5. With this change of programming language, the software performs calculations and executes the instructions given to trading robots faster.

MetaTrader 4 and MetaTrader 5 are both easy to access. They are simple to download, and you can use their settings and features in French. Both programs are also available in 39 languages, which makes them flexible to use. With either one, you can:

• Place orders on a market;
• Manage your positions on a trend;
• Carry out effective chart analysis;
• Develop custom indicators efficiently;
• Test the effectiveness of your strategies and indicators;
• Create your own Expert Advisor;
• Join a large trading community.

All these features are very attractive; however, you need to know that each version is designed for specific users. You also need to find a reliable broker to access them.

MT4 or MT5 – Who Can Use MetaTrader?

In principle, MetaTrader is designed for all categories of traders. More specifically, however, MT4 is designed for traders who already have some investing experience. It is worth noting that MT4 is particularly popular with online brokers and currency traders.

Another thing to know about who MetaTrader suits is that it is hard for a beginner to master the settings of version 4 in a short time. In some exceptional cases, MT4 users turn to MetaTrader 5 to learn how the system works and how to use certain features. The main reason for this is that MT4 was built for experienced traders.

MT5, on the other hand, can be used effectively by both experienced traders and beginners. Although the software’s design has remained almost unchanged, the buttons are larger and the icons much more intuitive. In short, MT5 is suited to novice users, while MT4 is a better fit for those who have mastered trading terminology.

MetaTrader 4 vs MetaTrader 5 – Forex Platform

MetaTrader 4 or 5? Traders and brokers alike often ask this question. To give a fair and accurate answer, let’s compare the features of the two versions.

MT4 is the first version, launched in 2005 by MetaQuotes Software Corp. Well received by the trading and brokerage community, it underwent major updates in 2013-2014 that added interesting new features, such as its programming language. It thus became a tool that every broker could use and customize.

MT5 followed MT4 in 2010. This version brings some improvements to MetaTrader 4, especially in order execution speed and in the possibilities offered by its programming language.

Portfolio Management with MT4 / MT5

The MT4 trading station makes it easy for traders to carry out their trading operations. It brings together several financial instruments in a single program and is the ideal choice for trading CFDs. Traders can trade forex, stocks, commodities and indices using CFDs. MT5 is a somewhat improved version of MT4, with many more instruments added to the platform. In addition to CFDs, you can trade futures, stocks, options and more. MT5 is therefore the ideal choice for trading online across different financial instruments without having to switch platforms. It offers traders greater ease of use and saves time on their market transactions.

Indicators

Indicators are one of the recognized strengths of the MetaTrader platforms. The first version, MetaTrader 4, offers many indicators that traders can use to analyze the markets and their charts in depth. MetaTrader 5, however, adds some indicators specific to this version.

For example, you have:

• Double and triple exponential moving averages;
• Exponential moving average;
• Variable Index Dynamic Average, etc.

In addition to the indicators available on MT5, traders can add many other custom indicators. This is also the case with MT4, but with a few more options and specific features. This flexibility lets traders easily apply different techniques and gives them every chance to improve their returns.

In terms of indicators, MT5 offers more options than MT4. For a beginner, however, it may be worth starting with MT4, as it is easy to get to grips with. If you already have a good grasp of MetaTrader, version 5 will be an asset for you.

Chart Analysis

Chart analysis on MetaTrader 4 or 5 is easy. Both trading stations let traders analyze charts using Japanese candlesticks, lines or bars. Traders can also add plugins to get Renko charts. To analyze prices, MT4 offers a total of 9 timeframes, which is useful for viewing movements across several timeframes. Unlike its predecessor, MT5 offers a total of 21 timeframes for your analysis.

On MT4, tick charts are displayed in a rather small window, which makes it hard to read and analyze the market properly. MT5 fixes this with a much larger window, allowing traders to base their decisions on concrete, solid information. In short, both trading stations offer many tools and indicators for accurate, in-depth market analysis. That said, MT5 offers a slightly more varied and complete range than MT4, with more advanced customization options.

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Programming and Algorithm Development

Programming and algorithm development are among the advantages MT4 users value most. This is made possible by the MetaQuotes Editor built into the system, which uses the MQL4 programming language. The software also lets you test your trading algorithm with a strategy tester before using it live. Every trader is therefore free to customize their analysis tools and use EAs (Expert Advisors) to improve their trading strategy. It should be acknowledged that before MT4 made automated trading possible, only investment banks and certain private investors could use this technology. MT4 made it accessible to everyone.
MT5 takes over this feature with a few improvements. To begin with, it moves from MQL4 to MQL5, a change reflected in faster order execution. Remember that the timing of market entries and exits is an important consideration in any trading strategy, and it matters even more to scalpers. MT5 also includes a debugger, a useful tool for developers that makes it easy to fix errors in lines of code. This makes it easier for beginners to learn coding and build their own trading tools more simply. These are significant advantages for refining your trading technique.

Money Management and Detailed Reports

One common piece of trading advice is to keep a record of all your trades. This is important for analyzing your performance in depth and managing your money properly. This feature is built directly into MT4: traders can view their history directly in their trading station. MT5 also offers it, but adds performance indicators and risk ratios. You can track your progress with precise analysis and figures in a single place, with a single click.

Switching from MT4 to MT5?

MT5 offers much more attractive features than its predecessor, MT4. Although both are designed to do the same job, MT5 offers more sophisticated charts and analysis tools. It also offers many more timeframes for trading than MT4.

Beyond these aspects, other features contribute to a better experience for both traders and online brokers. Ultimately, each investor is free to choose the solution that best meets their needs. While some will favor MT5 for its new settings, others will prefer MT4 for the exclusive features it offers experienced traders. Proof of this is that forex traders still choose MT4 to this day.

MetaTrader 4 or 5: Pros and Cons

Like any computer or trading program, MT4 and MT5 have many strengths. They also have a few shortcomings that can affect each user’s experience.

The Advantages of the MetaTrader 4 Trading Platform

The MT4 trading station was extremely well received from the outset. This is mainly due to the many advantages it offers users, even though it has a few shortcomings.

Easy Customization

In addition to offering a complete trading interface, MT4 lets users change the look of the interface. Some traders perform better with particular chart styles. For example, you can customize the colors and choose between a line chart and a Japanese candlestick chart. MT4’s customization options also extend to the technical side: you can choose to add technical indicators to your charts.

A High Level of Security

Security is also one of the strong points of MT4. All users’ personal information and trading history are stored securely and in full. The platform uses a 129-bit key that even masks users’ IP addresses. On the financial side, all transactions are classified as confidential, and only secure payment methods are allowed.

Demo Mode

Trading is not about following a formula to boost your returns; you need plenty of practice. The good news is that MT4 offers a MetaTrader 4 demo mode that lets users trade, analyze and earn virtual money. The trading platform offers several demo accounts that help you quickly become familiar with trading terminology and how trading works on the different markets. To earn real money, simply fund your account and carry out sound analysis.

The Shortcomings of the MetaTrader 4 Trading Platform

MetaTrader 4 has a few weaknesses that limit its performance. However, it remains an effective trading tool, especially for forex.

A Very Limited Number of Markets

The financial markets are full of opportunities, but when you trade with MT4, your market access is restricted. You can only trade CFDs, forex and futures.

Possible Difficulties for Users

Users, especially beginners, often find it very difficult to use the MetaTrader 4 trading platform properly. This is quite normal, since the software was designed first and foremost for experts. In addition, MT4 cannot handle several trades simultaneously when they all involve the same asset.

The Advantages of the MetaTrader 5 Trading Platform

The MetaTrader 5 trading platform offers users many advantages. It is not only technically effective; MT5 also offers many other practical features for building a complete trading strategy.

From a Technical Standpoint

To begin with, MT5 does not need any additional browser extension or software to run. It is also easy to access on any device running Windows, Linux or Mac. And data security is assured.

From a Profitability Standpoint

With MT5, you can trade on different markets, including forex, futures and stocks. The software also features hedging accounting systems as well as position netting systems. You can also place pending orders and stop orders with MetaTrader 5. Finally, users can take advantage of more than 30 indicators and 40 graphical objects for better chart analysis.

The Shortcomings of the MetaTrader 5 Trading Platform

As an upgrade of MT4 in every respect, the MetaTrader 5 trading station has an impressive number of strengths, as mentioned in our MetaTrader 5 demo guide. On the downside, the main shortcoming is that the strategy tester is difficult to run in visual mode. Visual mode is generally used when the user wants to see positions on the trading chart while the tester is running. It should be noted, however, that the development team is already working on a fix for this issue.