Metatrader 4 or Metatrader 5: Best for Forex Trading in 2024?

MetaTrader is a globally recognized trading platform considered the industry standard. When it comes to Forex Trading, none can ignore MetaTrader’s two main versions MT4 and MT5. These MT versions are prevalent for their seamless trading. However, as a trader, it is not easy to pick one from these two versions. As MetaQuotes Software Corp. developed both of these versions, they both have some similarities. However, there are also some primary differences between them. 

In this blog, we will highlight all the differences between MetaTrader 4 vs MetaTrader 5 to determine the best one. Read, choose, and start trading!

MetaTrader 4 (MT4):

MetaTrader 4 is a widely popular multi-functional online trading platform developed by MetaQuotes Software. It is the 4th version of the MT platform released in 2005. Over 10 million times MT4 is downloaded from the Google Play Store and retains 4.8 stars on iOS. 

Due to its reliability, extensive features, and strong community support, it remains a dominant platform in the Forex trading world. Although this platform was specially created for Forex trading, now you can use this platform to trade other assets such as indices, stocks, and commodities via CFDs.

Pros:

• MT4 is straightforward
• It owns a wide range of community support
• It is easy to navigate
• Supports automated trading through Expert Advisors (EAs)
• High Stability and strong security
• Provides learning resources
• Supports multi-languagege
• Real-time market data and news feeds

Cons:

• It is not as fast as MT5
• It has comparably fewer trading options and tools
• Its user interface is outdated
• Limited customization options

MetaTrader 5 (MT5):

MetaTrader 5 is a multi-asset online trading platform that was released in 2010. As MetaQuotes Software also developed MT5, so this platform looks quite similar but it offers more than the previous version.

Even if we compare the overall trading speed, here MT5 is the clear winner. But it doesn’t mean it can completely replace MT4. When you take a closer look at these two platforms, you can understand these two platforms offer several different features. So they are meant to be used for entirely different purposes.

The most amazing thing about MT5 is that it allows users to trade in almost all financial markets rather than solely Forex. For example, you wish to get access to any other financial markets like stocks, indices, commodities, or even cryptocurrencies. Good news! Now you can do it through MT5.

Pros:

• It offers a more modern and customizable UI
• It has more charting tools, technical indicators, and timeframes 
• It allows trading 500+ financial markets including forex, indices, commodities, stocks, and cryptocurrencies 
• Improved execution speed

Cons:

• It has a smaller ecosystem of support and resources
• Most notice users find it more complex due to its additional features 
• It still gets less support from brokers compared to MT4
• Limited broker availability

Look at Comparison Glance: MT4 vs MT5:

Feature	MT4	MT5
Market	Forex and CFDs	Forex, futures, stocks, bonds, and options market
User Interface	Simple and intuitive	Modern and feature-rich
Time Frames & Charting	9 timeframes, basic charting	21 timeframes, advanced charting.
Technical Indicators	30	38
Graphical Objects	31	44
Indicator Count	Extensive	Larger library
Programming Language	MQL4	MQL5
Automated Trading	Supported by Expert Advisors (EAs)	More advanced capabilities
Asset Listing	Forex-focused	Multi-asset trading support
Order Execution & Depth	4 types, basic depth	6 types, full market depth
Economic Calendar	Not available	Available
Technical Analysis	Advanced but limited	Comprehensive
Demo Trading	Available	Available

Comparison Between the MT4 and MT5:

User Interface

At first glance, it’s difficult to find any difference as both MT versions have a similar layout. However, MT4’s interface is straightforward and convenient, especially for beginners, to navigate. On the other hand, MT5 has more tools and options that make this platform more modern and sophisticated.

Time Frames

MT4 has 9 timeframes: minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1), and monthly (MN). But MT5 has 21 timeframes: minute (M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30), hourly (H1, H2, H3, H4, H6, H8, H12), daily (D1), weekly (W1), and monthly (MN).

Charting Tools

MetaTrader 4 provides charting tools, including Bar, Line, and Candlestick by default. However, traders can open multiple chart windows and get various colors and display options for customization. It supports up to 99 charts at once. MetaTrader 5 enhances charting capabilities with additional chart types, such as tick charts. It also added more advanced customization and additional drawing tools for in-depth chart analysis.

Indicator Count

MT4 comes with 30 built-in technical indicators. But if you want more, you can also download more. In contrast, MT5 includes 38 built-in technical indicators, offering a broader range of analytical tools.

Programming Language

MT4 uses MQL4 (MetaQuotes Language 4) which is known for its simplicity and ease of use. MT5 employs MQL5 (MetaQuotes Language 5), which is a more advanced and powerful language compared to MQL4.

Automated Trading

Both platforms support automated trading through expert advisors, but MT5 offers improved backtesting and optimization capabilities.

Asset Listing

MT4 primarily supports forex trading and CFDs on various assets such as commodities, indices, and cryptocurrencies. MT5 offers a more diverse range of trading instruments, including stocks, futures, and options, in addition to forex and CFDs.

Technical Analysis Tools

MT4 has a comprehensive set of technical analysis tools, including 30 indicators and 24 graphical objects. MT5, on the other hand, enhances technical analysis capabilities with 38 indicators and 44 graphical objects. This latest MT version also includes an economic calendar and a depth of market (DOM) feature to provide additional insights.

Demo Trading

Both platforms offer demo trading accounts to allow traders to practice their strategies before entering the real trading world. However, MT5 offers more advanced features, such as multi-currency and multi-threaded strategy testing, which are beneficial for experienced traders.

Mobile Trading

Both MT platforms have their mobile versions available on Android and iOS devices. But in terms of advanced features, MT5 again beat MT4. It includes more timeframes, chart types, and advanced analytical tools. This helps users to communicate with others through the platform.

Strategy Testing and Optimization

Although the MT4 is a little bit slow in terms of strategy testing and optimization, MT5 has come with a vast improvement. Its faster speeds and testing assets enable traders to see how their strategies perform.

Economic Calendar

Metatrader 4 doesn’t provide any economical calendar. If you want to track relevant financial news, you can use any third-party calendar for it. However, MT’s latest version has an integrated economic calendar that helps to get real-time information and track financial news.

Broker Support

We all know how massively MT4 has gotten support from brokers globally since the beginning. So this platform earns a strong reputation in the trading community. But now if we move forward to MT5, here the situation is quite different. It is not yet as universally supported as MT4. However, it is increasingly gaining popularity for its advanced features and capabilities.

MT4 VS MT5: Which to Choose in 2024?

All seasoned traders look for a trading platform that’s trustworthy and convenient. In this case, MT4 is undoubtedly an amazing trading platform renowned for its longevity, Expert Advisors (EAs), and extensive support network. However, traders can’t get access to all the financial markets through MT4. That’s why MetaQuotes developed MT5 to provide access to markets unavailable on MT4.

Now as a trader, if you wish to explore different financial markets, then MT5 would be the better alternative.

Conclusion:

In wrapping up the comparison between MetaTrader’s two popular versions, now it’s clear that both of these are good with unique features and capabilities. 2024 is a great year for exploring the Forex market to open new opportunities. So it is up to you when you will start trading. Happy Trading!

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