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MetaTrader 4 vs MetaTrader 5: What Traders Need to Know

Are you a forex, stock, cryptocurrency, or trader of other types of assets? If so, you should know the latest about two of the world’s most beloved trading platforms, namely MetaTrader 4 and MetaTrader 5. Known colloquially as MT4 and MT5, the pair are used by millions of active, professional, independent, casual, and infrequent investors and traders every day. Each one has its own unique set of functions and capabilities, but users need to be aware that they are quite different in many ways. One common myth is that MetaTrader 5 is just an enhanced, improved, more complex product based on the older MetaTrader 4.

It’s imperative for those who trade to understand that 5 is not a better version of 4, and that there are numerous relevant differences between the two products. No matter how involved you are in the markets, and whether you’re a beginner or an experienced trader, it’s worth spending time finding out how MT4 and MT5 differ. Among the key variables is what the platforms are created for. The older MT4 was designed mainly for foreign exchange transactions, while the newer product handles not only forex but also stocks, CFDs (contracts for difference), commodities, futures, and other instruments.

In fact, there are dozens of critical differences between the two popular securities platforms. When you’re ready to download the program that best meets your needs, be sure to examine a detailed list of their features first. Then, consider taking each product for a trial run in order to familiarize yourself with the strong and weak characteristics of each one. After that, it will be relatively simple to select the MT platform that is best suited to your everyday activities.

Downloading

Users can download either version and test it with a sample forex transaction. But whether you get the desktop, mobile, or web-based MT products, you can’t place any trades without going through a broker. Also of note is the fact that the top brokerage companies usually offer built-in MT platforms you can download from their sites and use for your trading. You can see all the metatrader5 options at Avatrade brokerage site to get a clear idea of all the features. If you want to save time and hassles, just visit your preferred broker and download whichever version you want directly from them. The direct from broker method makes installation easy. After that, you can start buying and selling securities immediately without having to do any additional tweaks.

Improvements

The latest version of 4 offers speedy trading, notably about 20 times quicker than its predecessor. Plus, creators added a function that lets users test several threads at once. In 5’s latest iteration, chart functions have been upgraded significantly, as has memory, easy use on smartphones, and overall platform performance. This can help you avoid money mistakes that are common with trading and personal finance, in general.

Differences

Before delving into all the differences between MT’s versions 4 and 5, remember that the company initially wanted to replace 4 with 5 and retire MT4 altogether. But after 5 came onto the market, so many people chose to keep using the original program (MT4), the decision was made to let them coexist as independent products.

The platforms have essentially the same appearance and user interface, but 4 only works with forex. However, users of MT5 can trade not only forex but most other asset classes. What about specific differences? Here’s a short checklist:

MT-5 Functions and Features Include:

  •   Certain indices and stocks and other assets can only be found on MT5
  •   Hedging and netting allowed
  •   Can handle many threads and currencies simultaneously
  •   Ticks and an unlimited number of symbols
  •   Supports exchange-trading
  •   Traders can buy and sell bonds, options, futures, forex, stocks, and more
  •   Depth-of-market and economic daily calendar included
  •   Ability to transmit emails with attachments and without
  •   Users can send money from one brokerage account to another
  •   Chat-enabled
  •   There are 21 different time frames available
  •   Graphic object handling of up to 44 items
  •   Variations of pending orders: 8
  •   Language is more sophisticated
  •   Has tables and charts
  •   Ability to fill partial orders
  •   Can execute 4 kinds of orders
  •   There are 38 technical indicators built-in

MT-4 Functions and Features Include:

  •   No tables, charts only
  •   Fills full orders, not partial ones
  •   Only trades forex, no exchange-trading or other assets
  •   Limit on symbols: 1-024
  •   Emails but without attachments
  •   Hedging but no netting
  •   Executes 3 kinds of orders and can use 9 time frames
  •   Graphical object limit: 31
  •   Pending order variations: 4
  •   Uses MQL4 as its language
  •   Technical indicators built-in: 30

Advantages and Drawbacks: MT-4

If you want an easy-to-use system that works on nearly every kind of computer, is beginner friendly, performs seamlessly for forex transactions, and offers tons of useful data, then 4 is probably a solid choice for you. Note that it can’t do auto-trading or allow users to create unique, customized time frames. Also, it has relatively slow execution and back-testing functions.

Advantages and Drawbacks: MT-5

MT5 comes with top-notch analytical functionality, is simple to navigate, includes dozens of asset classes, has a nice calendar of economic events, offers eight types of pending orders, and features 21 time frames. Its downsides include the inability to hedge within exchange markets and a more complex language. New users who only know MT4 might feel overwhelmed until they get more acquainted with 5’s unique features.

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