MT4 vs MT5: What is the difference?

Available assets on MT4 and MT5

The first element traders must note when comparing MT4 vs. MT5 is their launch year. While MT4 was launched in 2005, MT5 came along in 2010, and both are different versions of the MetaTrader trading platform. And the services they provide are what make them different from each other. Let's start the MT4 vs. MT5 comparison journey by learning about the available assets on MT5 and MT4 brokers.

Understanding the difference between MT4 and MT5

The most significant difference when comparing MT4 vs. MT5 is the type of traders the platforms tend to attract. When you consider what asset classes these Metatrader platforms offer, as a trader, you should know which is suitable for your trading method.

Interestingly, MT4 was designed specifically for Forex traders, and its features and functionality reflect this. But that does not mean traders cannot use it to trade assets like indices and commodities via CFDs. Because of its user interface and the fundamental features it offers, MT4 may be the best trading platform for novice traders.

However, those with prior trading experience can use MT5 since it offers more trading features. Almost all financial markets, including those for Forex, stocks, indices, commodities, and even cryptocurrencies, are available on MT5. It is more common to trade stocks, futures, and contracts for difference (CFD) using MT5.

Additionally, DOM (depth of market functionality) and quicker backtesting are both possible with MT5. It has more sophisticated tools for trading robots, technical and fundamental analysis, algorithmic trading, and copy trading.

Another difference between MT4 and MT5 is that both were not developed with similar programming languages. Overall, MT4 is appreciated by novice and professional traders as it is multi-functional. And with the available advanced trading tools, traders can implement their favorite trading strategies.

As opposed to being a replacement for MT4 or necessarily being better than MT4, it may be more accurate to consider MT5 as a different trading platform. Let’s look at how MT4 and MT5 compare by looking at some of the features in detail.

Access to the FIX API options

Financial Information Exchange (FIX) and the Application Programming Interface (API) are non-proprietary and open protocols. Stock, metals, futures, and options exchanges use this electronic trading messaging protocol. Read also information about best brokers with API trading.

Market regulators and traders can integrate the FIX API to share crucial data before and after trades. Additionally, traders can use it to get real-time financial security information. The FIX API enables users to create unique algorithms and strategies to evaluate Forex trades on MT4. But this is not available for MT5 users.

Available Timeframes

When comparing MT4 vs. MT5, consider the available timeframes on both trading platforms. While MT5 incorporates 21 different timeframes, MT4 has 9 timeframes.

MT5 timeframes

MT4 timeframes

Trading orders

Trader order is another top factor to consider when comparing MT4 vs. MT5. The execution methods on both trading platforms are almost the same. Traders place orders executed in real-time on MT4 and MT5 through a third-party platform.

Both offer the execution on request mode, instant execution, and execution buy market, but MT5 also offers an additional mode referred to as exchange execution. The extra mode allows traders to send orders to an external trading exchange.

MT4 and MT5 offer different numbers of trading orders. On MT4 and MT5, buy-stop orders, buy-limit orders, sell-stop orders, and sell-limit orders are available. The “buy-stop limit order” and the “sell-stop limit order” are additional trading orders to the four that both already support.

Programming Language

The development languages are yet another factor to consider when comparing MT5 vs. MT4. While MT4 uses MetaQuotes Language 4 (MQL4), MT5 uses MetaQuotes Language 5 (MQL5). Both are object-oriented, high-level programming languages that can be used to develop automated trading platforms. The principles of the well-known C++ programming language are the foundation of this high-level object-oriented programming language.

The MQL5 programming language is intended for creating trading robots, technical market indicators, scripts, unique trading plugins, and widgets. MT4 is appropriate for beginning traders because MQL4 is a friendlier language. The programming language used to create MT5 is much more complex, but users can create their trading strategies, edit existing scripts, and perform sophisticated trading analyses.

Other Used Features

The number of technical indicators on MT5 by default is 38, compared to 30 on MT4. When comparing MT4 vs. MT5, this is not a significant factor. This is because traders can download any indicator they need on both platforms. There are over 2000 downloadable custom indicators on the free code base.

Furthermore, MT5 integrates new analytical objects to identify cycles and trends. Again, the Metatrader copy trading service is available on both trading platforms.

MT5 brokers allow traders to trade multiple asset classes across numerous accounts and currencies. The option of opening multiple trading accounts and moving money from one account to another is not available on MT4. Other used features include:

Usability and Mobility

In terms of usability and mobility, the MT4 and MT5 are remarkably similar. Although the main menus differ slightly, the MT4 and MT5 platforms are accessible on desktop, mobile, and browsers. Read also: Has MT4 and MT5 been banned? in the TU article.

Demo trading

Both MT4 and MT5 integrate the demo trading feature, but to do so, you must first create a demo trading account with a broker.

Economic Calendar

Although MT4 lacks a built-in Economic Calendar, traders can use a third-party calendar to stay updated on pertinent financial news. But MT5 offers an integrated Economic Calendar with real-time information about macroeconomic events.

MetaTrader broker comparison

MultiBank – Best MT4 Forex Broker

MultiBank Review

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Established in 2005, MultiBank Group has successfully stamped its authority in the world of trading. It has a valid impact in the foreign exchange industry with providing exemplary products, services, and trading platforms. With a paid-up capital of over $322 million, MultiBank Group is recognized as one of the largest only financial derivatives providers worldwide.

RoboForex – Best MT4 Forex Broker

RoboForex Review

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RoboForex is a brokerage company that was founded in 2009. It provides services to financial markets in 169 countries. More than 3.5 million users are RoboForex clients. RoboForex is a leading software developer in the Forex industry and one of the best Forex brokers based on client reviews.

RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize (license No. 000138/437).

IC Markets – Best MT4 Forex Broker

IC Markets Review

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Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

IC Markets is a brokerage company established in 2007 in Sydney, Australia. IC Markets group of companies provides access to financial markets across the world. The group has offices located in different regions enabling IC Markets to work with traders from practically any jurisdiction legally and in compliance with the local law. The companies of the group hold the following licenses: Raw Trading Ltd. is licensed by the SFSA, Seychelles, International Capital Markets Pty Ltd by the ASIC, Australia, and IC Markets (EU) Ltd by the CySEC, Cyprus. IC Markets is also a member of the Financial Commission, an independent organization that deals with disputes and has an insurance fund with up to EUR 20,000 coverage per each trader.

Exness – Best MT4 Forex Broker

Exness Review

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Exness Trading Company has been working in the Forex market since 2008. The broker operates legally in more than 130 countries, fully complying with local laws in all jurisdictions. The Exness group of companies holds licensed issued by the following regulatory authorities: FCA (UK), CySEC (Cyprus), FSA (Seychelles), FSC (British Virgin Islands), FSC (Mauritius), FSCA (South Africa), CMA (Kenya). The broker is also a member of the Financial Commission, providing up to EUR 20,000 insurance coverage per client in the event of a force majeure. The broker holds the leading position in Forex ratings. The company’s monthly trading turnover totals $325.8 billion USD. The broker currently has CFDs available for cryptocurrency, stocks, more than 120 currency pairs, energy and metals. Exness’s service provides favorable working conditions for traders: low commission, instant execution of orders and withdrawal of funds. There are several options for opening an account depending on the traders’ needs. A demo account is available - a training account that is useful for both beginner level traders and professional traders.

FxPro – Best MT4 Forex Broker

FxPro Review

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79.27% of retail investor accounts lose money when trading CFDs with this provider.

The FxPro broker was registered in July 2006 in Cyprus. The company’s activities are licensed by financial regulators: CySEC (Cyprus), Bahamas SCB, FCA (UK), and South African FSCA. FxPro is successfully operating in more than 170 countries for retail and institutional clients. The broker has received more than 85 awards, including “Best Forex Trading Platform” and “Best Trading Platform”. FxPro has become known for providing the best trading tools. With FxPro broker, traders can trade more than 70 currency pairs, futures and stocks (Twitter, Apple, Google). The company has stock indices, metals and energy resources at its disposal. FxPro sets high safety standards with the client's funds being kept in large international banks. They are insured and separated from the broker's equity.

Which is better for beginners, MT4 or MT5?

For beginners, MT4 is more appropriate. And this is attributed to the excellent, user-friendly, and intuitive platform that helps navigate the markets easily. Additionally, with the multiple chart types, technical indicators, and automated trading capabilities, beginners can get started with trading efficiently. So new traders should sign up with the best MT4 brokers for beginners.

Since the platform offers customizable charts with different timeframes, traders of all experience levels tend to find the MT4 design appealing. Other fundamental factors for choosing MT4 as the best platform for new traders include stability and accessibility, expert advisors, and security.

MT4 is the platform for new traders who want to trade Forex and CFDs, not stocks or multiple asset classes. However, MT5 is ideal for experienced technical traders because it has cutting-edge charting and analysis features, including over 80 technical indicators. Also, the indicators and settings can be modified to suit the trader's trading strategy.