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MetaQuotes Software Corp. was established back in 2000 as a developer of the trading software for broker companies. It has a big history as well as experience in the industry and has already gained great success in the market. This company has created crucially important products. The most significant among them are the trading platforms including MetaTrader 4 and MetaTrader 5, same as MT4 and MT5.
Those platforms are very popular among traders and brokers. Millions of people use these platforms daily in different parts of the world. Both platforms have a lot to offer to their users, including a very fast execution time, analysis tools, indicators, etc.
While talking about MT4 vs MT5 trading, sometimes it becomes hard to define which one is better and which one has more advantages and beneficial characteristics. The thing is that they both have very important different functions that need to be taken into account by each investor before choosing one.
There also are other differences as well as similarities between the two trading platforms. In this guide, we will further discuss each of them in a detailed way, highlight the important features of each of them and talk about the other essential factors that will help traders decide which one is better for them to choose.
MetaTrader 4 and MetaTrader 5 compared
Before we start talking about the MT4 vs MT5 difference, let’s discuss each of them separately. As we have already mentioned, MetaTrader 4 was established by MetaQuotes in 2005. This is one of the most popular platforms in the Forex market which is used by millions of traders each day.
There are various beneficial features people can find in this software including the comfortable software to navigate, analytical tools, and so on. Besides, the platform design is another important feature of MetaTrader 4, people can use the following platform through any type of the desired device including desktop, web, or mobile phones.
On the other hand, MetaTrader 5 was established back in 2010. It is important to know that this platform is not an advanced version of the MT4. This is a separate software that was developed in order for the traders to have easy access to the CFDs, futures, and stocks.
These two offers different types of features to its users and each of them has their own audiences. MT5 is also very well-known among traders, this is mainly because it offers good technical and analysis tools and easy access to any kind of device.
As we can clearly see, the major difference between MT4 vs MT5 is the goal for which they were initially created for. MT4 – for the Forex market and MT5 for the CFDs, futures, and stocks. Because of the fact that the two platforms were created by the same Russian company called MetaQuotes, it is not surprising that they have many similarities in terms of the trading features.
In the following chapters, we will further discuss several important factors as well as features that MetaTrader 4 and MetaTrader 5 offers to its users such as Chart time frame offerings, order types, programming languages, trading instruments, trading automation, the platform performance, and so on.
Chart and Time Frame Offerings
It’s hard to say which one is better MT4 or MT5 for Forex as they both have 4 charts to offer to their traders. People can see line, bar, as well as candlestick charts on the following platforms. They can easily change the charts on both software, without any trouble and wasting much time.
On top of that, it should also be noted that MT4 has very comfortable time frame options, even beginner traders can easily have an access to this data.
There are 9 types of time frames offered by the MetaTrader 4 platform that can be used in analyzing the chart. On the other hand, MT5 has, even more, 21 types of time frames. This diverse offer might be very beneficial for the more experienced traders in their future tradings.
Number of Order Types
While talking about trading MT4 vs MT5 it is important to mention that they both have several order types. MetaTrader 4 mainly has 4 types including the buy stop, buy limit, sell stop, as well as sell limit. These order types are very important for the Forex market traders to better control Forex trading risks.
On the other hand, MT5 has overall 6 order types to offer including the above-mentioned one and two extra types such as buy stop-limit and sell stop-limit. These orders can be very helpful for both newcomers and experienced traders. The major reason for using them is to see how price changes in the market affect buying and selling tendencies.
Programming Languages
While working on this MT4 vs MT5 review we have decided to also talk about the programming languages of each platform. It can be very important information for those who want to create their own indicators.
It’s important to know that even though the two platforms were created by the same company, they use different programming languages: MT4 uses the MQL4 language, and MT5 uses the MQL5.
The major difference between the two languages is that MQL4 is easier and faster to install and it does not require much knowledge to get used to its functionality. This is why it is an exceptionally great opportunity for beginner traders who just start trading in the Forex market.
On the other hand, it can be said that MTQ5 is a more advanced version of the programming language and is more effective at the same time. However, the language offered by the MT5 platform is more complex and a little harder to understand, people can write or alter their own scripts on the platform. This means that it is more likely that professional traders will use the latter more frequently than the MQL4.
MT4 vs MT5 trading instruments
While we compare MT4 vs MT5, we should also take into account the trading instruments which are an irreplaceable part of each trading platform. At this point, there are several differences between the two software. First of all, it should be noted that usually, MT4 is used in Forex Trading, however, it also has other types of options.
On the other hand, a lot of people think that MT5 has better trading instruments compared to MT4 because it offers stocks, futures, as well as commodities. Besides, this platform has more analysis tools and execution options than MT4.
People always wonder which one is more beneficial MT4 or MT5 for beginner traders. Even though it is very hard to have a precise answer to this question, in many cases, people say that MT4 is the best option for them because it has simpler functions and also is way easier to understand how to navigate in it.
On the contrary, MT5 generally has way more puzzling and complex features so it requires the traders to have several experiences gained in the market before they choose it as their trading platform.
MT4 vs MT5 performance
First of all, it is important to note that, MT5 has a higher level of speed compared to the MT4 software. Even numbers can prove this meaning MT5 has a 64-bit capacity while the other one has only 32 bit. This capacity affects a great deal on the computing speed as well. So when we think about mt4 vs mt5 which is better we can freely say that in terms of the execution speed, MT5 is at the more advanced level and has some improved characteristics.
MetaTrader 4 Advantages
MetaTrader 4 is one of the leading trading platforms available today. It has been operating in the industry for more than 15 years and has gained big popularity among the millions of traders around the world. As we have already mentioned earlier, it was created exclusively for Forex trading, however still has several other options to offer for the investors.
With this huge history, it is not surprising that MetaTrader offers a lot of important trading features including the trading indicator as well as tools. If you are motivated to start trading in the Forex market, then this platform is probably the best possible option. The number of their active users proves that the software indeed offers a high level of quality in every step the trading.
While talking about the trading mt4 vs mt5, another thing that should be considered that MetaTrader 4 also gives people an opportunity to have control over the market performance each day, find out how the prices move and how does the liquidity change over time. On top of that, traders can also find out information about important factors such as spreads, contract size, margin currencies, and so on.
Besides, another noticeable feature is that the latter software ensures its customers’ safety and security which is a very big advantage of the MetaTrader 4. This means that this is a very reliable platform and crashes and collapses should not be awaited by the potential traders.
MetaTrader 5 Advantages
As we can clearly see from the above-mentioning facts, MetaTrader 5 has lots of benefits that need to be considered by those who want to choose the latter at their future trading platforms. While we compare mt4 vs mt5, it should be noted that MT5 offers 38 types of built-in technical indicators while MT4 offers only 30 of them.
MT5 offers an economic calendar which is a very essential tool in order to keep track of the latest developments and news releases in the financial market around the world.
Besides, this platform also gives people access to not only desktop but also a mobile version of the software, which means that everyone can have easy access to the MT5 with any type of device possible. On the other hand, as we have already mentioned earlier, it offers the Stop Loss and Takes profit options which means that people can minimize their potential losses and maximize the amount of money they can gain from their investments.
Which one to choose?
After what we have already discussed in this article, selecting between the MT4 vs MT5 platform is up to each trader’s preferences and their trading needs. People need to take a closer look at their trading habits and find out which trading feature they need in order to reach success. Then analyze it carefully and finally decide whether to choose MT4 or MT5 according to their desires.
However, there are several considerations that traders need to take into account. We have already mentioned that MT4 is dedicated to more beginner traders rather than professional ones because it has simple functions and is a very easy platform to navigate. On the other hand, MT5 has more advanced features that require more experience as well as the knowledge to use them. So if you are a professional trader and are looking for the best platform to trade with, MT5 might be the right choice for you.
Final Thoughts on MT4 vs MT5 trading
As we have already analyzed above in this MT4 vs MT5 review, the two platforms are one of the best software in the industry that offers a variety of essential features including analytical tools, indicators, trading orders, charts and timeframes, good programming languages, and so on. Each of these platforms has its own advantages and it is up to each investor to decide whether they like MT4 or MT5.
The major difference between these two is that MT4 was created exclusively for Forex trading while MT5 can be a great fit for CFDs, futures, and stocks trading.
Overall, it can be said that they are both very popular platforms used by millions of traders over the globe, they both offer a high level of quality as well as various essential trading features.
Frequently Asked Questions on MT4 or MT5 for Forex
Can I use the MT4 account in MT5?
What is the difference between MT4 and MT5?
Which MetaTrader is the best?
