Mt4 Vs Mt5​: What Is the Difference Between Mt4 and Mt5 ?

Key Highlights

Both MT4 and MT5 are highly capable platforms that share many similarities, such as their cross-platform device support. However, they also have their differences. In a nutshell, these include:

• MT4 is best for FX traders, while MT5 is more versatile. 
• In MT4, pending order types are limited to 4, while MT5 offers 6. 
• MT5 offers more technical analysis tools, including several Gann tools. 

Mt4 Vs Mt5​: What Is the Difference Between Mt4 and Mt5 ?

Are you curious about the differences that exist between MT4 and MT5? Many traders have found themselves wondering which of the two is the best platform for their trading journey. And what’s even more surprising is that this debate has pulled in both beginner and experienced traders.

The one thing that’s without a doubt is that both MT4 and MT5 platforms are synonymous with online trading. However, this doesn’t mean they’re one and the same. Before we look into the differences between the two, make sure to read our guide on What Is MT5

Why Is the MetaTrader Platform So Popular with Traders and Brokers?

MetaTrader has more than 10 million estimated global users, making it among the most powerful and renowned trading platforms. Traders love it because it supports multiple markets, including but not limited to stocks and cryptos. 

It also helps connect traders to brokerage accounts, thus supporting seamless trading. It’s what makes it a must-have tool for every serious trader looking to remain profitable in the long term. 

Over the years, the platform has evolved into two variations: MT4 and MT5, with each providing different features. Due to this evolution, it has only become normal for questions about the differences between the two to emerge. 

Understanding the Differences Between MT4 and MT5

Both MT4 and MT5 are highly capable platforms that share many similarities, e.g., supporting both desktop and mobile devices. But this doesn’t mean that they don’t have their differences, as shown below.

Market Coverage

Traders who ask, “Should I use MT4 or MT5?” need to start by considering the markets they want to trade. The MT4 platform is best suited for forex trading and is, in fact, the standard here. And while it does provide support for additional asset classes, its design revolves around FX trading.

The MT5, on the other hand, is ideal for that trader who wishes to explore their boundaries by trading multiple asset classes. Supported classes include Futures, Commodities, and Stocks. MT5 boasts a netting system for trading stocks and a multithreaded engine for fast executions. 

Therefore, while MT4 is best for FX traders, MT5 provides more flexibility. 

Read More About How to Trade Synthetic Indices on MT5

Order Types and Execution

MT4 only includes four types of pending orders. These are Buy Stop, Sell Stop, Buy Limit, and Sell Limit. Its execution modes are as basic as they come and are only three in total. These three modes (Instant, Market, and Request) may be well-suited for FX trading, but they lack the depth needed to execute much more complex strategies.

Enter MT5, which has expanded its pending order types to six, thereby including Buy Stop Limit and Sell Stop Limit. The execution modes included here are also advanced and have been designed to include a depth of Market functionality, fill policies, and partial order filling. 

Technical Analysis 

Both platforms provide basic analysis and charting tools. Examples here include Fibonacci retracements, shapes, and trendlines. MT5 has gone a step further and included more precise and customizable options. Some of the technical analysis tools you’ll find in MT5 but not in MT4 include Gann tools for advanced technical analysis and superior control over drawing styles/colors.

Charting and Timeframes

The charting in MT4 includes nine timeframes. These are from one-minute to monthly charts, combined with around 30 built-in indicators. It’s what makes it a functional and user-friendly platform for beginner traders and those involved in forex technical analysis. 

MT5 has gone a step further and now offers 21 timeframes and 38 built-in indicators. With such capabilities, you’re now better placed to follow crypto and Futures movements without having to worry about falling short. And this is not forgetting its support for more analytical tools and chart types. 

The additional offerings on MT5 make it best suited for performing detailed market analysis. 

Broker, Community, and Marketplace Support

MT4 has been in operation since 2005, which helps explain its large user base. Over the years, its community has developed thousands of indicators, tutorials, and EAs, ensuring traders never feel stranded. Its popularity and longevity are the two reasons many FX brokers support it!

While MT5 has only been around for a relatively short period, the truth is that it has gained a lot of momentum. This is particularly the case among brokers, such as Audacity Capital, who provide a multi-asset trading platform. And as it continues growing, it’s expected that it will integrate the same marketplace as MT4. 

Read More About MetaTrader 5 (MT5) for forex trading

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Explore MT5 Platform

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Side-by-Side Table Comparison of the Differences Between MT4 and MT5

When Should You Choose MT4 Over MT5?

Looking at our comparison table above, MT5 easily comes out as the most obvious choice for anyone interested in becoming a trader. However, you should note that there are several compelling reasons as to why some traders still choose the MT4 over the newer MT5. These are:

• Focus and Simplicity: MT4 was specifically designed for FX trading, which explains its simple and less cluttered design. Its intuitive interface also happens to be beginner-friendly. 
• Established Community and Resources: The MT4 community boasts thousands of resources and active members, making it easier to locate solutions to technical issues.
• System Requirements and Performance: The platform was designed to run on old computers with less powerful hardware. It therefore consumes fewer system resources while providing greater stability. 

When to Use MT5 

Whenever I come across this question, my answer is always the same: because MT5 is a much more advanced platform, and is one that has been designed with the needs of the modern trader in mind. 

Beyond that, I love it because it offers me access to a broader market segment. Picture this, with MT4, I am only able to trade forex. But with MT5, I am better placed to look into other markets such as Futures, Commodities, and Stocks. All without having to leave the platform.

There's also the issue of technical analysis. I have always pictured myself to be more of a technical trader, which means that I need a platform that supports such capabilities. The MT5 has me sorted out here because it has sophisticated analytical capabilities that include built-in indicators and timeframes. 

And to round off on why I recommend MT5 over MT4, allow me to touch on its programming architecture. MT5 has been designed and built on object-oriented principles which translates to faster testing speeds, better optimization, and more efficient code execution!

Read More About How To Add A Server In MT5

Conclusion

The choice between MT4 and MT5 ultimately comes to your trading preferences. While both are capable in their own rights, please understand that one has been built for simplicity (MT4), while the other has been built for flexibility, faster back testing, and enhanced charting. At Audacity Capital, you can expect to trade with the MT5, which will allow you access to multiple asset classes. 

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