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The MetaTrader trading platforms – MetaTrader4 and MetaTrader5 (or MT4 and MT5 as they are most commonly known) have grown to become the world’s most popular trading platforms for forex and CFD traders.
What is MT4? And how does MT5 differ? Even though the two platforms are very similar, there are key differences between MT4 and MT5.
Knowing as much as you can about each trading platform will help you make a better choice for your personal trading needs, especially when you are weighing the differences between MT4 and MT5.
Let’s take a closer look at both trading platforms to give you a better insight into the features and to figure out which is most suitable for you.
What is MetaTrader4?
MT4 was originally released back in 2005. It instantly became one of the most popular trading platforms because of its versatility and accessibility from a variety of devices.
While MT4 was originally built for forex traders with an architecture designed to handle positions and orders in a specific way, it also offers the ability to trade commodities and index instruments via a Contract For Difference (CFD).
If you are fairly sure you will primarily be trading forex and CFDs, and you want to keep things very basic, then MT4 is an easier platform to get to grips with.
What is MetaTrader5?
Released five years after its predecessor, MT5’s popularity has steadily increased since 2010, with many traders being enticed by the improved functionality and increased adaptability.
MT5 has similar levels of mobility to MT4 including access from most devices, with a key differentiation being that you have a full set of trading orders for flexibility on forex, commodities and indices all at your fingertips.
Both platforms allow you to trade from anywhere in the world with an internet connection and use custom indicators and trading programs (called Expert Advisors, or EA for short) for trading automation.
The differences between the two platforms are outlined in the section below.
The Difference Between MetaTrader 4 and MetaTrader 5?
Knowing the differences in each of these platforms gives you greater insight into what works best for you and your trading strategy. This allows you to prioritise each factor according to its importance before deciding which is for you.
| Features | MT4 | MT5 |
| Markets | Forex and CFDs | Forex, futures, stocks, bonds, energies, crypto and options |
| Timeframes | 9 | 21 |
| Technical indicators | 30 | 38 |
| Graphical objects | 31 | 44 |
| Pending order types | 4 | 6 |
| Order fill policy | Fill or Kill | Fill or Kill, Immediate or Cancel, Return |
| Backtesting | Slow single | Fast multiple |
| Hedging | Yes | Yes |
| Email system | Yes (no attachments) | Yes (with attachments) |
| Partial order fill policy | No | Yes |
| Economic Calendar | No | Yes |
| Fund transfer between accounts | No | Yes |
| Depth of market | No | Yes |
| Netting | No | Yes |
| Exchange trading | No | Yes |
| Reports | Tables | Tables & Charts |
| Programming language | MQL4 | MQL5 |
Table 1: Difference Between MT 4 and MT 5
Please note that certain features listed above may or may not be offered by brokers
While this illustrates that MT5 has more timeframes, indicators, and trading functionalities in general, it does not necessarily mean that MT5 is better than MT4, it is simply different.
For example, reporting may not be important to you if you only need the basic information in a table form, while another trader may prefer detailed charts as well as tables to assess the financial data.
Others may place a high priority on an in-built economic calendar to keep track of the information from events, news or even specific monetary and fiscal policy announcements that will affect forex trading.
If you are asking yourself ‘Is MT4 or MT5 better?’, then making a list of your priorities in trading is a solid foundation for choosing between the two platforms as your preferred option.
What can you trade on MT4 and MT5?
You are able to trade on forex and CFDs on MT4 and it is considered a more appropriate choice for those traders who want to keep things simple and may be new to trading.
How does MT4 work? This platform allows you to place orders to trade the live markets. These orders are then automatically sent to the broker so that they can be executed. (MT4 on its own cannot execute trading orders.)
The MT4 platform provides trade operations, charts and technical analysis in real-time. Some of the key benefits are;
- It is highly customisable to your individual trading needs and preferences.
- Your trading can be automated by implementing algorithms that open and close positions according to pre-set parameters.
- You can choose from more than 1000 tradable products.
Learning how to add indicators to MT4 is made easy through the Vantage Education MT4 online resources.
If you wish to trade all financial markets, including forex, stocks, indices, commodities, metals, and even cryptocurrencies via CFDs, then knowing how to trade on MT5 is a better fit for your purposes.
MT5 also lets you see where the big orders are sitting on the price ladder and allows you to plan your trading accordingly while giving you access to more than 3,200 trading signals. You can learn how to add indicators to MT5 through the special MT5 education section of the Vantage website.
When choosing a MetaTrader broker, traders should consider the trustworthiness of the broker (where and how it is regulated), trading fees, the number of tradable securities offered, the quality of the customer service, and any available add-ons offered beyond the default MetaTrader experience.
Remember, the only way to use these platforms is through a trusted broker.
Why Trade with Vantage Markets?
Vantage provides a trusted trading ecosystem and a faster and simpler trading platform that enables clients to take advantage of trading opportunities through both the MT4 and MT5 trading platforms.
There is no ‘one size fits all’ approach to trading. It’s always important to make informed choices and to choose the best trading option based on your specific trading needs. That’s where Vantage, as the award-winning online broker, offers valuable information and resources for your trading future.
When it comes to cutting-edge platforms that empower you to trade seamlessly with instant execution, Vantage is committed to delivering.
All the features that made MT4 the outstanding forex trading platform that it is have been improved on. When you choose to trade forex on MT5 with Vantage, you get the benefits from the latest version of MT5 which is compatible with EAs and signals trading and most importantly, includes the capability to hedge positions.
Both MT4 and MT5 support Demo trading and Vantage gives you the opportunity to try either platform and be trading in real-life market conditions without the risk of losing capital. It works exactly like a real account, except that you trade with virtual, not real money.
A Demo account is the best way for any beginner to check out the MT4 or MT5 platform and test the various trading tools.
Vantage makes it simple to open a Demo account and you can click on this MT4 download link or the all-in-one trading app and begin your trading journey.
Disclaimer: The material provided here has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Whilst it is not subject to any prohibition on dealing ahead of the dissemination of investment research we will not seek to take any advantage before providing it to our client. No representation or warranty is given as to the accuracy or completeness of this information and therefore it shouldn’t be relied upon as such. Any research provided does not have regard to specific financial situations, needs or investment objectives. Vantage accepts no responsibility for any use that may be made of these comments and for any consequences that result. Consequently, any person acting on it does so entirely at their own risk. We advise any readers of this material to seek professional advice where necessary. Without the approval of Vantage, reproduction or redistribution of this information isn’t permitted.
