Metatrader platforms are developed by Metaquotes – a Cyprus based company. In this article we will show you the main differences between MT4 vs MT5.
Metatrader 4 – the retail trader’s favorite platform, is a multi asset platform with web, desktop and mobile versions. It became a favorite because it’s offered by most brokers and it has the core functionalities of a good platform including – multiple charts, order types including trailing stop loss and alerts. It also gives traders the opportunity to customize and enhance the platform by using EAs (Expert Advisors). Expert Advisors are scripts which traders can either purchase or code themselves. They also allow traders to automate their trading strategies.
Because MT4 was released more than 15 years ago, Metaquotes have now stopped issuing new licenses for the platform in order to get the Forex and CFD providers and traders to make the transition to MT5.
You can check a list of MT4 brokers
Metatrader 5 (MT5) was released in 2010 and in terms of interface and navigation it will feel familiar to MT4 users. It has enhanced functionality and makes it easier for brokers to offer more symbols and markets for traders to trade.
You can check a list of MT5 brokers
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What are the similarities between Metatrader 4 and Metatrader 5?
The interface of Metatrader 5 will feel very familiar to Metatrader 4 users. For traders who trade manually a potential transition should feel easy.
Here are some screenshots of the MT4 interface and MT5 interface:
MT5 offers all the functionality of MT4 but there are also some differences to note.
What are the differences?
MT5 offers more timeframes for the charts than MT4
The fact that MT5 offers more chart timeframes vs MT4 will be attractive for traders who focus more on technical analysis. This added functionality allows them to view market structures and patterns in more ways.
MT5 offers two additional order types than MT4
Yes, Metatrader 5 offers two additional order types when compared with Metatrader 4 – Buy Stop Limit, and Sell Stop Limit
These order types allow a trader to set a price, which if reached by the current market price, will place a buy or sell limit order above or bellow that set price, essentially betting on a retracement of the market which will allow the trader to get a potentially better entry price.
More markets and symbols
Metatrader 5 (MT5) allows brokers to support and add more symbols easily whereas MT4 has limitations when it comes to the amount of markets offered. This means that traders who are looking for a more diverse offering can benefit from a potential switch to MT5.
Partial order filling now possible
MT5 gives the opportunity for partial fills on orders, whereas with MT4 it’s only possible to accept the whole order or reject it. This means that traders that use Metatrader 5 can expect fairer execution and trading conditions.
Built-in Economic Calendar
Metatrader 5 (MT5) has a built in economic calendar. This means that you will no longer have to go on external websites to check potential market moving events.
Hedging and Netting Options
Metatrader 5 (MT5) offers the hedging and netting option for trading. MT4 offers only hedging. Hedging means that traders can open trades in opposing directions on the same market, whereas netting means that if you have a trade open on one market and try to open a trade on the same market in the opposing direction, it will essentially close or lower the size on the initial trade. It could even reverse the direction of the trade, if you use size bigger than what you used on the initial trade.
Multi-thread strategy tester
Metatrader 5 allows the testing of strategies on multiple markets simultaneously. It also allows traders to test on real time data.
Different programing languages for EAs
The programming language for MT5 is different vs the one used on MT4. This means that the applications (EAs) for MT4 aren’t compatible with MT5 and vice versa. Therefore traders who use EAs will have to rewrite them in order to be able to use them on both platforms.
Which platform is better? MT4 or MT5?
It depends on the preference of the individual trader. If you are looking for a platform which can offer more symbols and markets, more order types and partial fills, then Metatrader 5 can be a potentially better match. Traders who use EAs to trade on MT4 are going to find the transition more difficult, because they will need to adapt their code for MT5. Therefore sticking with MT4 could be the better option for them.