MetaTrader 4 vs. MetaTrader 5: Which Platform Should You Choose?

When it comes to trading platforms, a few names rise above the rest. Two stand out among them as fan favorites: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). 

Whether you’re new to trading or consider yourself seasoned, you’ve likely encountered these platforms and may be wondering which is the right fit for you. Each comes loaded with features and tools that shape your trading experience in different ways. 

Let’s break down the key elements so you can make an informed choice for your trading style and needs.

Architecture and Technology

The core foundation of both platforms is built to serve traders, but how they do so differs significantly. The metatrader 4 was created primarily with forex trading in mind. Its architecture is streamlined, lightweight, and focuses on simplicity, which contributes to its stability and speed. 

It’s specifically tailored to execute trades without too much strain on system resources, an advantage for those with slower or older devices. On the other hand, MT5 takes it a step further with a multi-asset structure. 

Beyond forex, MT5 supports trading in stocks, commodities, and futures, giving it broader functionality for those dealing with diverse trading portfolios. This enhanced architecture allows for more complex executions, but it also means it demands slightly more from your hardware.

Order Types and Execution Abilities

One of the defining aspects of these platforms lies in how they allow you to interact with the market. MT4 is straightforward with its four primary order types, which include buy, sell, stop loss, and take profit. 

This simplicity is a huge advantage for traders who prioritize clean, quick setups with fewer bells and whistles. MT5, in comparison, opens the doors to six order types. This means it offers more room for flexibility and strategic planning, accommodating traders who like to experiment with advanced trading strategies. 

If you like working with a broader selection of execution models, MT5 might feel more aligned with your needs.

MQL4 and MQL5 Programming Languages

For those who like to personalize their trading experience, the available programming languages play a vital role. MetaTrader 4 uses MQL4, a language known for its ease of use. Designing Expert Advisors (EAs), custom indicators, and scripts feels approachable, even for those new to coding in trading environments.

MetaTrader 5, however, introduces MQL5, which is more advanced but slightly more complex. This updated language offers increased functionality, particularly when backtesting and building algorithmic trading systems. 

Charting Tools and Indicators

Visual aids, like charts and indicators, are essential for interpreting market trends. MT4 shines with its straightforward set of charting tools and 30 built-in indicators. Simple and effective, these cater perfectly to forex traders who need quick, actionable insights.

MT5 builds on this with over 80 pre-installed indicators and analytical tools. Additionally, traders can enjoy more timeframes, more chart types, and the ability to open up to 100 charts simultaneously. If you’re someone who thrives on greater detail and variety, MT5’s charting capabilities are a clear winner.

Automated Trading Features

MT4 and MT5 both offer Expert Advisors (EAs) to handle automated trades for you. The difference lies in their level of sophistication. MT4 is beginner-friendly when it comes to setting up EAs. 

Its basic algorithmic framework is ideal for traders who want to dip their toes into automation without getting overwhelmed. MT5’s automated trading features are more advanced. It offers multi-threaded strategy testing, quicker backtesting, and a larger marketplace for buying or renting EAs. 

If you’re someone who relies more heavily on high-tech innovations for your trading strategy, MT5 stands out.