Choosing between MT4 and MT5 depends on your trading goals. Here's a quick breakdown:
- MT4: Best for forex traders, beginners, and those with simpler needs. It offers 30 indicators, 9 timeframes, and a straightforward interface.
- MT5: Ideal for advanced traders or those diversifying into stocks, futures, and bonds. It includes 38 indicators, 21 timeframes, multi-threaded architecture, and advanced tools like an economic calendar and multi-currency backtesting.
Quick Comparison
| Feature | MT4 | MT5 |
|---|---|---|
| Primary Focus | Forex Trading | Multi-Asset Trading |
| Timeframes Available | 9 | 21 |
| System Architecture | Mono-threaded | Multi-threaded |
| Market Access | Forex, CFDs | Forex, CFDs, Stocks, Futures, Bonds |
| Technical Indicators | 30 | 38 |
| Pending Orders | 4 types | 6 types |
| Strategy Testing | Single-pair only | Multi-pair, multi-threaded |
Key takeaway: Use MT4 for simplicity and forex-focused trading. Choose MT5 for advanced tools, multi-asset trading, and automated strategies.
MT4 and MT5 Basics
Platform History
MetaTrader 4 (MT4), introduced in 2005 by MetaQuotes Software, quickly became a top choice for forex trading. Five years later, MetaTrader 5 (MT5) was released in 2010, designed to handle multiple asset classes beyond forex. MT5 was built to work efficiently on modern hardware, utilizing multi-threaded processing. This upgrade allowed traders to access a broader range of markets.
Trading Markets Available
MT4 and MT5 differ in the types of markets they support:
| Feature | MT4 | MT5 |
|---|---|---|
| Forex Trading | Fully supported | Fully supported |
| CFDs | Limited range | Extended selection |
| Stocks | Not supported | Fully supported |
| Futures | Not supported | Fully supported |
| Options | Not supported | Fully supported |
| Bonds | Not supported | Fully supported |
| Symbol Capacity | Up to 1,024 | Unlimited |
MT4 is capped at 1,024 symbols, which limits the number of instruments traders can access. On the other hand, MT5 eliminates this restriction, offering unlimited symbols and access to a variety of financial instruments, including stocks, commodities, futures, options, and bonds.
These differences highlight the platforms' distinct purposes. MT4 is tailored for forex traders, while MT5 caters to those seeking exposure to multiple asset classes. Traders focused solely on forex might prefer MT4, but MT5 is ideal for those looking to diversify, especially in non-forex and U.S. markets.
Main Features Comparison
Interface Design
Both MT4 and MT5 share a similar layout, making it easier for users to switch between the platforms. However, MT5 updates the interface with larger toolbar icons and more menu options for additional functionality. Here's how the two compare:
| Feature | MT4 | MT5 |
|---|---|---|
| Toolbar Size | Standard icons | Larger, more visible icons |
| Terminal Window | Basic tabs | Additional tabs with more features |
| File Menu | Basic functions | Includes direct money transfer options |
| View Menu | Standard views | Adds Depth of Market feature |
| Insert Menu | Basic options | Adds "Experts" and "Scripts" options |
MT4 focuses on simplicity, reducing unnecessary information while keeping essential tools accessible. This design ensures users can easily navigate using both the toolbar and right-click menus for quick access. Now, let’s dive into how their analytical tools impact trading.
Charts and Analysis Tools
For technical analysis, charting tools play a key role. MT5 offers a more extensive range of features compared to MT4:
| Analysis Feature | MT4 | MT5 |
|---|---|---|
| Technical Indicators | 30 | 38 |
| Graphical Objects | 31 | 44 |
| Timeframes | 9 | 21 |
| Economic Calendar | Not included | Built-in |
With MT5, the additional timeframes allow for more detailed market analysis. The built-in Economic Calendar also lets traders keep track of market-moving events without needing third-party tools.
Order Types
MT4 supports standard order types like Buy/Sell Stop and Limit orders, as well as market and instant execution. MT5 expands on this by adding Buy/Sell Stop Limit orders and an exchange execution mode. These extra options give traders greater flexibility, aligning well with the platform's other advanced features.
Testing Tools
MT5 significantly enhances strategy testing capabilities. It supports multi-currency testing, advanced optimization, and more detailed performance reporting. The platform’s multi-threaded processing is designed to take full advantage of modern hardware, making it ideal for traders who rely on systematic strategies.
Key features of MT5's testing tools include:
- Multi-currency testing
- Advanced strategy optimization
- Detailed performance reports
- Improved backtesting accuracy
These upgrades make MT5 a strong choice for traders who need thorough strategy validation.
Automated Trading Tools
MQL4 vs MQL5 Coding
MT4's MQL4 relies on a procedural programming approach, making it a straightforward option for simpler trading strategies. On the other hand, MT5's MQL5 adopts object-oriented programming, which is better suited for creating more advanced and scalable solutions.
| Feature | MQL4 | MQL5 |
|---|---|---|
| Programming Paradigm | Procedural | Object-Oriented |
| Multi-threading Support | No | Yes |
| Standard Library | Basic | Extensive |
| Code Compatibility | MT4 only | MT5 only |
| Learning Curve | Easier for beginners | More challenging for beginners |
"MQL4 is simpler and suitable for basic strategies, while MQL5 offers more advanced features, better performance, and scalability for complex projects." - Faizur Rahman
These differences in coding structure highlight the expanded capabilities of MT5, particularly for traders seeking advanced automated trading solutions.
Trading Robots and Indicators
MT5 Expert Advisors leverage multi-threading to process market data more effectively, delivering faster and more accurate trading signals. Both MT4 and MT5 provide marketplaces for trading robots and indicators, but MT5's marketplace stands out with a wider selection of advanced tools.
Key distinctions in automated trading features include:
- Processing Power: MT5 robots can manage multiple currency pairs and assets at the same time.
- Data Analysis: MT5 indicators use extended historical data, allowing for more precise analysis.
- Development Tools: MT5 includes tools like the MQL5 Wizard, MetaEditor, and detailed documentation to support the creation of custom solutions.
These features make MT5 a robust platform for traders looking to elevate their automated trading strategies.
Strategy Testing Features
MT5's strategy testing capabilities are powered by multi-threading, offering:
- Real-time optimization across various assets
- Comprehensive performance metrics and detailed reporting
- Advanced backtesting tools
- Simultaneous testing on multiple instruments
These tools make MT5 a strong choice for traders who require efficient, data-driven testing to refine their strategies across different trading styles and markets.
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Trading Style Match
Time-Based Trading
MT4 offers 9 timeframes, making it ideal for short-term strategies like scalping. In contrast, MT5 provides 21 timeframes, allowing for detailed multi-horizon analysis. This added flexibility is helpful for traders who rely on combining insights from multiple timeframes or need precise entry and exit points for their trades.
Manual vs Robot Trading
MT4 is straightforward and user-friendly, making it a great choice for manual traders who prioritize quick execution and clear market views. The difference in timeframes also ties into trading preferences, whether you lean toward manual strategies or automated systems.
| Feature | MT4 | MT5 |
|---|---|---|
| Programming Language | MQL4 (Procedural) | MQL5 (Object-Oriented) |
| Strategy Testing | Single pair testing | Multi-pair simultaneous testing |
| User Community | Extensive library of EAs | Advanced development tools |
| Execution Speed | Optimized for Forex | Enhanced with multi-threading |
Single vs Multi-Market Trading
The platforms also differ in their market focus. MT4 is tailored for Forex and CFDs, offering fast execution and simplified analysis.
MT5, however, supports a wider range of instruments, including stocks, futures, options, commodities, and bonds. This makes it a better fit for traders looking to diversify their portfolios or execute strategies across multiple markets. With advanced analytical tools and multi-threading, MT5 also makes managing various asset classes more efficient.
MT4 vs MT5 What’s the Difference and Which is Best?
Prop Trading Features
These prop trading tools are designed to meet the needs of simulated evaluation challenges, offering features tailored to each platform.
For Traders Platform Support
MT4 and MT5 provide full support for For Traders' simulated challenges, offering key evaluation tools. MT5, with its additional features, is particularly useful for traders managing larger virtual capital accounts, such as the $50K and $100K plans.
| Feature | MT4 Support | MT5 Support |
|---|---|---|
| Virtual Capital Range | $6K - $100K | $6K - $100K |
| Built-in Indicators | 30 indicators | 38 indicators |
| Market Coverage | Forex, CFDs | Forex, CFDs, Stocks, Futures |
| Back-testing Speed | Single-threaded | Multi-threaded |
Demo Trading Tools
MT4 is ideal for forex-focused, beginner challenges with virtual capital ranging from $6K to $15K. On the other hand, MT5 elevates the demo trading experience with multi-threaded back-testing, advanced order types like stop-limit orders, and support for multiple asset classes.
Results Tracking
Both MT4 and MT5 integrate seamlessly with For Traders' bi-weekly payout schedules and evaluation metrics. MT5 stands out with support for up to 44 graphical objects, compared to MT4's 24, allowing for more detailed analysis. These features are crucial for monitoring performance against the 5% maximum drawdown and 9% profit target benchmarks.
Platform Selection Guide
Choosing the right trading platform depends on your trading style and goals. Here's a quick guide based on different trader profiles:
| Trading Profile | Recommended Platform | Key Features |
|---|---|---|
| Forex-focused Beginner | MT4 | Easy-to-use interface, 30 technical indicators, active community |
| Multi-asset Trader | MT5 | 38 technical indicators, support for stocks and futures, advanced tools |
| Algorithmic Trader | MT5 | MQL5 programming, multi-threaded backtesting |
| Prop Trading Candidate | MT5 | Broader broker support, advanced analytics |
For beginners focused on forex, MT4 offers simplicity and a proven track record. However, if you're exploring multiple markets or need advanced tools, MT5 is the better option. Its modern design supports a wider range of assets like stocks and futures, while its multi-threaded backtesting speeds up strategy testing.
Algorithmic traders will appreciate the object-oriented MQL5 language in MT5, which makes strategy development and testing more efficient. If you're transitioning from MT4, you can move to MT5 gradually without disrupting your existing strategies.
For those aiming to join prop trading firms, it's worth noting that many firms prefer MT5. Its advanced analytics and multi-asset capabilities are well-suited for the demands of prop trading.
MT5 also benefits from continuous updates and developer support, making it a forward-looking choice for traders with diverse needs. Meanwhile, MT4 remains a solid option for those solely focused on forex, thanks to its simplicity and established user base.
Use these insights to pick the platform that matches your trading approach.