MT4 and MT5: Metatrader differences traders need to know

Two of the most popular trading platforms in the world not only for forex but other types of trading as well, start with the name MetaTrader. The two versions to note are MT4, and the other is MT5. They both come with dozens of automated trading capabilities, but it’s essential to remember that they are not at all the same. In fact, many people mistakenly think that MT5 is just a more advanced version of MT4. That is actually not the case.

What is the most important difference of all?

One is designed specifically for those who trade forex, while the other is geared for futures, forex, corporate stock, and CFDs (contract for difference) trading. But there are many other fine points to the contrast between the two.

What should everyone know?

First, you must learn how to download the platforms to your computer. Next, you can review a list of their unique capabilities. After that, it’s good to familiarize yourself with the latest features of each one. Finally, explore their pros and cons so that you can decide which one makes the most sense for your style of trading.

Downloading the Platforms

Here are the simple processes for downloading the two platforms. For MetaTrader 4, note that the owner of MT4, MetaQuotes, does not offer their own installer. You need to get one from your preferred broker to download the platform from them as well. The installer does the heavy lifting by prompting you to install the product on your personal computer. The situation is the same for both MT products.

Traders who want the MT5 download process explained can visit their broker’s website. You can download both to your computer, but you must be connected to a licensed broker to place any orders. Both versions offer users a demo forex pair to try out all the features before making real trades. But, the ideal way to do the download is to sign up with a broker who offers one or both of the platforms and follow their specific instructions for putting the software directly onto your device.

The Basic Differences

Here are the essential ways the two products differ

Keep in mind that MT5 is not necessarily better or more advanced than MT4. Instead, it allows users to trade several other types of assets, like CFDs and stocks. The look and feel of both are very similar visually and operationally. However, there are items you need to know.

MT5 includes the following features:

• Ability to trade forex, options, futures, bonds, stocks
• Exchange trading
• Supports unlimited symbols
• Allows netting as well as hedging
• Real ticks
• Multiple threads
• Multiple currencies
• Funds transfer between brokerage accounts
• Chat function is embedded
• Sends emails with or without attachments
• 21 timeframes
• Can handle 44 (total) graphical objects
• Eight pending order variations
• Uses a more complex language, MQL5
• Comes with 38 built-in technical indicators
• Offers an economic calendar and market depth
• Has 4 types of order execution
• Fills partial orders
• Comes with tables and charts

MT4 includes these features:

• Can trade forex only
• No exchange trading
• Supports 1,024 symbols
• No netting but does offer hedging
• No email attachments
• 9 time-frames
• Can handle 31 (total) graphical objects
• Four pending order variations
• Uses the popular and simple MQL4 language
• Comes with 30 built-in technical indicators
• Has 3 types of order execution
• No partial orders
• Charts but no tables

New Features

What’s new for MT4?

Now it comes with the ability to do exchange trading, is about 20 times quicker than previous versions, and there’s a new strategy function that allows testing with multiple threads. For MT5, there are enhanced features all around for traders who use the platform on smartphones, including better charting, more efficient memory, smoother platform operation, and includes real-time total volume when you open fresh charts.

Pros & Cons

With MT5, the pros include easy navigation, excellent analytical tools, plenty of asset types, a useful economic calendar, a full 21 timeframe, and eight pending order types. The cons include no exchange market hedging allowed, and the fact that users who come over from MT4 might need time to adjust to the more complex setup and features. MetaTrader 4 is user friendly and works with most operating systems. It’s ideal for beginning enthusiasts, as well as more experienced investors who thrive on having plenty of data available at any time. The cons include back testing and execution speed are not as good as they could be. It does not support auto trading, and you cannot customize your preferred timeframes.

From the above, it’s clear to see why MT4 and MT5 are ranked among the best trading platforms with dozens of automated trading capabilities.