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MetaTrader 4 vs MetaTrader 5: Key Differences and Advantages
MT4 and MT5 are, without a doubt, arguably the most popular forex trading platforms, ranking almost on every list. These both have power-packed features; however, they are aimed at different kinds of traders and trading styles. We will compare MT4 vs. MT5 so you will know which platform to use for your type of trading. We will look into the main differences, features, and advantages of each of the platforms.
Installation and Loading of Platforms
MT4 Download
MT4 for PC (Windows and Mac)
Downloading and installing MetaTrader 4 is not a problem for both Windows and Mac users. This trading platform is known for its user-friendly interface; at the same time, it is powerful in performance and very helpful in strategy building and testing.
- Windows Installation: Download MT4‘s installation file from your broker’s website or the official website of MetaTrader, then run it and install with on-screen instructions.
- Mac Installation: Mac users may install MT 4 using third-party applications such as Wine or PlayOnMac, which provide an emulated environment for running the application.
MT4 for Mobile Devices (iOS and Android)
MT4 has developed mobile applications for both iOS and Android, which enable traders to manage their accounts and trade anywhere.
- MT4 on iOS: Download from the App Store. This MT4 application for iPhone and iPad includes a whole pack of trading orders, interactive charts, and a rich arsenal of analytical tools.
- MT4 for Android: The MT4 for Android application is available at Google Play and resurfaces features, which are at hand for convenience in trading with a smartphone or tablet.
MT4 Web and Online Trading
MT4 also offers a web-based platform that requires no download. The MT4 WebTrader allows you to trade directly from your browser with the same functionality as the desktop version, providing flexibility and convenience.
MT5 Download
MT5 for PC (Windows and Mac)
The successor to MT4 includes a variant of download MetaTrader 5 for both Windows and Mac.
- Installation on Windows: Download MT5 installation file from one of the brokerages’ websites or from the official MetaTrader website; run this installer and follow through with the instructions.
- Installation on Mac: As with MT4, MT5 may be used on a Mac by utilizing third-party software such as Wine or PlayOnMac to install it.
MT5 for Mobile (iOS and Android)
MT5 Forex provides mobile applications for both iOS and Android devices, featuring advanced trading functions and analytical tools.
- MT5 for iOS: Available on the App Store, the MT5 app for iPhone and iPad offers an enhanced trading experience with more features than MT4 fort Mac.
- MT5 for Android: Available on Google Play, the MT5 Android app provides robust trading functionalities, allowing traders to manage their accounts effectively.
MT5 Web Trading
The MT5 WebTrader allows you to trade from any browser and operating system without additional software. It offers advanced charting tools, trading orders, and one-click trading options in MT5 for Mac or Windows and MT4 for Mac of Windows.
Trading Features and Tools
MT4 Trading
MT4 Indicators (Indicator MT4)
MT4 provides many built-in indicators, plus user-defined ones can be created. Moving Averages, Bollinger Bands, and MACD are the most famous and highly used indicators.
MT4 Plugins (MT4 Plugins)
MT4 app supports many plug-ins that shall help increase your potential for trading, including EAs, indicators of automated trading, and supplementary analytical tools.
MT4 Forex Trading (MT4 Forex)
MT4 Forex Trading (MT4 Forex) MT4 performs very well in trading forex, execution is fast and reliable, with rich tools designed for Forex traders.
MT5 Trading
MT5 Indicators (Indicator MT5)
MT5 app has many indicators already built in and supports custom ones. In addition, compared with MT4, it has more advanced options: a price glass (DOM), and more time frames.
Advanced Features (e.g., Position Size Calculator MT5)
App MT5 has many more advanced features in it, one of which is a position size calculator. It helps the traders maintain risk control by keeping the position size according to the set risk tolerance and account balance.
Copy Trade App MT5 (Copy Trade MT5)
Copy MT5 Trade (Copy MT5 Trade) MT5 supports the copying of trades, enabling traders to track and copy the trades of successful traders automatically. It is especially useful for beginners or those looking for a more automated approach.
Demo Accounts and Brokers
MT4 Demo Account
How to Open a Demo Account on MT4
Opening a demo account MT4 is very easy. You only need to download the platform, choose “Open a Demo Account” while setting the platform up, fill in your details, and you’re ready to trade with virtual money.
Benefits of having a demo account:
- Risk-free trading: practice without risking real money.
- Familiarize yourself with the platform: get used to the MT4 interface and tools.
- Backtesting of trading strategies: Test and optimize your trading strategy against the real-time market environment.
MT5 Demo Account
How to Open a Demo Account on MT5
To open a demo account on MT5, download the platform, choose “Open a Demo Account” during setup, provide the necessary details, and begin trading with virtual money.
Benefits of Using a Demo Account
- Advanced Features Testing: Explore the advanced functionalities of MT5 app.
- Real-Time Experience: Experience live market conditions without financial risk.
- Skill Development: Improve trading skills and strategies.
Comparing MT4 vs MT5
MT4 vs MT5: Key Differences
- Order Types: MT5 has more order types, such as Buy Stop-Limit and Sell Stop-Limit, than MT4.
- Time frames: MT5 provides a more detailed analysis, with 21 time frames to MT4’s 9.
- Technical Indicators: MT5 comes with 38 technical indicators, while MT4 has only 30 of the same.
- Economic Calendar: MT5 has an inbuilt economic calendar, while MT4 app does not.
- Market Maker: MT5 has a price maker, DOM — a tool not found in MT4 tool.
- Programming Language: MT4 uses MQL4, while MT5 operates using MQL5. The latter has more powerful features as far as programming is concerned.
Advantages and Disadvantages of Each Platform
MT4 Advantages:
- Simplicity and ease of use.
- Large user base with extensive community support.
- Reliable and efficient for Forex trading.
MT4 Disadvantages:
- Limited advanced features.
- Fewer timeframes and order types.
MT5 Advantages:
- Advanced features and tools.
- More order types and timeframes.
- Built-in economic calendar and market depth.
MT5 Disadvantages:
- Steeper learning curve.
- Some brokers do not support MT5 yet.
Which Traders Are Better Suited for Each Platform
MT4:
- Beginner traders due to its simplicity.
- Forex traders focusing on standard trading.
- Traders who prefer a well-established platform with extensive community resources.
MT5:
- Advanced traders who require more tools and features.
- Traders interested in other markets besides Forex, such as stocks and commodities.
- Those who want to utilize advanced order types and timeframes.
Summary Tables
Table 1: MT4 vs MT5 Key Features Comparison
This table summarizes the key data for MT4 and MT5 trading platforms to understand how well the platforms can meet your trading needs. Analyze the data from this table, compare it to your trading goals and choose the trading platform that suits you best:
Feature | MT4 | MT5 |
Order Types | 4 | 6 |
Time frames | 9 | 21 |
Technical Indicators | 30 | 38 |
Economic Calendar | No | Yes |
Depth of Market (DOM) | No | Yes |
Programming Language | MQL4 | MQL5 |
After analyzing the data from this platform, make sure that you have analyzed in depth the potential MT4 or MT5 features that will be useful in your trading. In doing so, you should also test these platforms by creating a demo account to see how well the platform meets your visual needs.
Table 2: Platform Suitability
This table summarizes the data regarding MT4 and MT5 platforms, as well as different categories of traders with different levels of experience. Study this table to understand for which category of traders MT4 is suitable and for which traders MT5 is suitable:
Trader Type | MT4 | MT5 |
Beginners | Excellent | Good |
Forex Traders | Excellent | Excellent |
Multi-Asset Traders | Limited | Excellent |
Advanced Strategy Developers | Limited | Excellent |
Use the data obtained from studying this table to understand which trading platform is best to use. Also take this information into account when forming your trading strategies while trading on MT4 and MT5.
Conclusion
Choosing between MetaTrader 4 and MetaTrader 5 depends largely on your trading needs and experience level. MT4 remains a favorite for many Forex traders due to its simplicity and reliability, while MT5 offers advanced features and broader market access. Evaluate your trading style, preferred features, and the markets you wish to trade in to make the best choice. Whether you opt for MT4 or MT5, both platforms provide robust tools and resources to support your trading journey.
FAQ
Yes, some differences and limitations in trading tools between MT4 and MT5 are available:
- Order Types:
- MT4 offers four order types: market orders, limit orders, stop orders, and trailing stops.
- MT5 offers six order types, including Buy Stop Limit and Sell Stop Limit, for more sophisticated trading strategies.
- Technical Indicators:
- MT4: Actually, this comes with 30 in-built technical indicators.
- MT5: This has 38 inbuilt technical indicators, thereby providing more technical analysis.
- Timing:
- MT4: only 9 time frames are available.
- MT5: One more extension provides as many as 21 time frames, allowing one to perform the topmost detailed market analysis.
- Economic Calendar:
- MT4: There is no inbuilt economic calendar.
- MT5 has an inbuilt economic calendar to help traders not miss a beat on significant market events.
- Market Depth:
- MT4: does not have a price stack (DOM) feature.
MT5 has a DOM that allows a better understanding of the market’s liquidity and order flow.
Yes, both MT4 trading platform and MT5 trading platform have deep customization options:
- Interface customization:
- MT4 allows changing the look and feel of charts, setting up custom indicators, and saving all kinds of preferred settings as templates.
- MT5 offers much the same kind of individual customization but with improved flexibility when handling several charts and timeframes.
- Automated trading:
- MT4 provides MT4 Expert Advisors, written in the programming language MQL4, allowing automated trading to be further supported by strategy development tailored to individual customer preferences/futures.
- MT5—supports EAs written in MQL5 with much more advanced facilities in programming for sophisticated trading strategies.
- Plugins and add-ons:
- MT4: Many plugins and add-ons are available for functionality ranging from custom indicators to trading scripts.
- MT5: This platform also supports many plug-ins and add-ons; most brokers will offer specialized tools to help with trading.
- Mobile and Web Adaptation:
- MT4:In the mobile and web versions available, some basic customization is enabled for matching on desktops.
- MT5: In terms of development, sailed desktop and mobile/ web terminals provide advanced customization options; often, these have an upper hand over MT4.
There are many reasons why MT4 and MT5 attract so many traders. Some of the main features are as follows:
- User-Friendly Interface:
- MT4 is known for its intuitive and easy-to-use interface, making it accessible to beginners.
- MT5 provides a more modern and advanced face with complete, user-friendly ease.
- User-Friendly Interface:
- Robust analytical tools:
- MT4 offers a pretty great package with analytical instruments on board, including 30 technical indicators and charting options to be amended at one’s wish.
- MT5: It increases the base set of MT4 to 38 technical indicators, raises graphical objects to the number 44, and enriches timeframes for more detailed analysis.
- Automated Trading:
- MT4: Supports automated trading by Expert Advisors, which is used to trade hands-off with algorithms.
- MT5: More complex and efficient coding in MQL5 makes it perfect for sophisticated trading strategies.
- Market Accessibility:
- MT4: Mostly oriented to Forex trading, offers speed and reliability in order execution.
- MT5 offers access to more markets, handling equities, commodities, and futures, thus enabling multi-asset trading in one platform.
- Community and Support:
- MT4 is related to an enormous active community, hence providing many learning and support opportunities due to its broad resource extensibility and third-party support.
- MT5: It has the advantage of a strong foundation from MT4, including the growing community support and resources.
- Cross-Platform Compatibility:
- MT4 is available on PC and Mac with third-party software, iOS, Android, and the web, thus ensuring access to accounts from anywhere.
- MT5: This one is also available on multiple platforms. More advanced functionality on the mobile and web trading platforms makes it even more flexible and convenient.