MT4 vs MT5: Know the Difference!

Overview

Many traders want to understand the difference when it comes to comparing MT4 vs MT5. Every trader needs a trading platform to execute his trades. Trading software solutions MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are widely regarded by traders and forex experts. Trading resources and tools provided on these platforms are a major factor in this.

The Source

Metaquotes Software Corporation is the only owner of MT4 and MT5. For forex traders, these are platforms that allow them to participate in the forex market from any location around the globe. This platform, like its predecessor, exclusively supported trading in the foreign exchange market (forex). The latest edition of the MT5 platform will allow traders to participate in other financial markets.

The MT4 platform, like its predecessor, was limited to forex trading. You can now trade on various financial markets thanks to this new MT5 platform, which is the latest version.

While the MT5 is an improvement over the MT4, the functionality and features on these two platforms are distinct and hence may appeal to traders of various skill levels. Before making a decision between the two trading platforms, you should think about your trading past and aspirations.

If you're still unsure which platform to use, here's an in-depth comparison of MetaTrader 4 and 5.

MT4 vs MT5: What's the Difference?

Indicators

The MT4 platform has up to 30 built-in trading indicators, plus a bunch of free and premium indicators, including up to 2,000. In comparison to the MT4, the MT5 has 38 built-in indicators and the same number of paid and free add-on indicators.

Timeframes

MT4 provides users with up to nine distinct timeframes, ranging from a minute to a month. The MT5 on the other hand offers a greater number of timeframes, with at least 21 available, spanning from one minute to one year, allowing for a more comprehensive market study.

The user interface

The MT4 platform comes in a simplistic interface that is effortless to use, making it the favourite choice for new traders. The interface is fully customisable, allowing you to build it up to fit your trading needs. Because it is an upgraded version of the MT4 platform, the MT5 platform includes new and better features. It is a favoured alternative to the MT4 platform and most appropriate for experienced forex traders as it may seem a little confusing for newbies.

Pending orders

One of the distinctions you will instantly see when comparing the MT4 and MT5 is the types of pending orders available on the two platforms.

Some of the main aspects of the MT5 platform are the types of pending orders that are available. They contain the buy limit, sell limit, buy stop, sell stop, buy stop limit and sell stop limit, two more than what is available on the MT4 platform. These pending orders are suitable for traders who cannot sit and study chart movements at all times. The pending orders can be set up to execute transactions on behalf of the trader at the desired position while minimising the amount of trades you miss while away.

Buy limit, sell limit, stop, and sell stop are the only four types of pending orders available in MT4. While these are good for beginner traders, they might be restricting for experienced traders searching for more trading choices.

Internal funds transfer and accounts

The MT5 platform comes with a functionality that allows internal funds transfer. With this tool, traders can move funds across various trading accounts on the MetaTrader platform without exiting their deals. This welcome feature is not accessible on the MT4 platform.

The hedging system is used by both the MT4 and MT5 platforms, whereas the MT5 platform also supports the netting system. On the MT4 platform, you can only trade in the forex market, whereas the MT5 platform allows you to take part in forex, stock, and CFDs, among other financial instruments.

The language of programming, the depth of marketing, and the speed

The MT4 is programmed using MLQ4, extensively used for constructing online trading platforms using the order system. A positioning system was employed to programme the MT5, in contrast. In comparison, the MLQ4 is simpler and better than MLQ5, even though the latter allows traders to develop and alter scripts, making it more efficient than MLQ4.

The MT4 is noticeably slower than the MT5, which is to be anticipated given that the MT5 is a refined version of the MT4. MT4 is built with a 32-bit mono threaded platform, while MT5 comes with a 64-bit mono threaded platform.

MT4 does not have a built-in market depth support feature; MT5 does. This makes it possible for MT5 to conduct bids and offers for different financial products at varying prices. This feature in MT5 also displays current open and sell orders for different securities at different prices.

MT4 or MT5: Which one should you go with?

When it comes to forex trading platforms, the best one for you is determined by your unique requirements. However, because of the platform's intricacies, starting with the MT5 platform may be intimidating for new traders. MT5 is suited for advanced traders who need to grasp more tools than those offered on MT4.