MetaTrader 4 vs. MetaTrader 5

MetaTrader platforms are a staple in the world of online trading. Both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) offer a good mix of features for traders, but each has advantages and limitations.

Whether you are just starting with stocks or are a savvy futures trader, understanding the differences between MetaTrader 4 vs. MetaTrader 5 will help you identify the right platform for your investing goals. 

Our MetaTrader 4 vs. MetaTrader 5 head-to-head comparison contains everything you need to know about these two platforms. 

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What Is MetaTrader 4?

MetaTrader 4 was developed by MetaQuotes Software. MT4 is one of the most popular trading platforms in the world. Since it launched in 2005, MT4 has become the go-to option for forex traders due to its user-friendly interface and extensive charting tools. You can also use its automated trading capabilities through Expert Advisors (EAs). 

Developers have continuously worked to improve MT4. With nearly two decades of longevity, MetaTrader 4 has become a staple of the online trading sector. 

MetaTrader 4 Pros and Cons

MetaTrader 4 is known for its simplicity and effectiveness, but it has strengths and weaknesses compared to its successor, MetaTrader 5.

Pros

• User-friendly interface
• Expert Advisors (EAs) support automated trading
• Wide broker support
• Custom indicators
• Community support

Cons

• Limited time frames
• No partial order filling
• Single-thread strategy testing

What Is MetaTrader 5?

MetaTrader 5 was also developed by MetaQuotes Software and released in 2010 as the successor to MT4. It is built on the most popular features offered in MT4 and offers several enhancements aimed at improving the trading experience. 

Most notably, MT5 supports additional liquid asset trading. You can trade stocks, commodities, and futures, making it more versatile for diversifying your portfolio. 

MetaTrader 5 Pros and Cons

Here’s a look at what MT5 does well and the trade-offs you’ll experience by switching to the newer platform. 

Pros

• Can trade value stocks and other stock offerings
• Offers 21 time frames compared to MT4’s 9
• Includes more order types, such as buy-stop limit
• Has an improved back-testing strategy
• Built-in economic calendar
• Supports partial order fills
• Includes more built-in technical indicators and graphical objects 

Cons

• MT5’s advanced features can be overwhelming 
• Not all brokers support MT5
• EAs and indicators designed for MT4 are not compatible with MT5

Comparing MT4 vs. MT5

Here’s a closer look at the key differences between MetaTrader 4 vs. MetaTrader 5:

Third-Party Add-Ons and Integrations

Various third-party developers offer add-ons and integrations for MT4 and MT5. However, most of these add-ons aren’t cross-compatible. If you find an integration you like for MT4, it might not work for MT5 and vice versa.

Some of the most popular add-ons for MetaTrader 4 include the order history indicator, high-low indicator and stealth orders, which keep your trades anonymous. Third-party MetaTrader 5 developers offer add-ons like the volume profile indicator and lot-by-risk indicator.

Add-ons and integrations allow you to customize your MT4 or MT5 interface to align with your unique trading style. 

Charting Tools and Timeframes

MetaTrader 5 stands out when it comes to charting tools and time frames. A time frame is a defined period during which the price of an asset changes. MT5 tracks more time frames (21) than MT4 (9), which helps you look at the big picture. 

Renko bars are also available as an add-on for MetaTrader 5. They filter out minor price movements so you can focus on more important trends. Using a combination of time frames and Renko bars provides a cleaner interface and helps you look past inconsequential price moves. 

Advanced Trading Tools and Analytics

MetaTrader 5 also excels in terms of analytics capabilities. MT5 includes 44 analytical objects and 38 technical indicators, allowing you to run custom reports and better understand price trends. MetaTrader 4 has 30 technical indicators and 23 analytical objects. 

Analytical objects are also known as drawing tools. You can mark channels, shapes, symbols or chart lines to include in your analysis. MT5 includes 21 more analytical objects than MT4, allowing you to perform more detailed and specific reports. 

Compatibility

You’ll be able to run MetaTrader 4 or MetaTrader 5 on your favorite internet browser, desktop applications, or mobile device. Both solutions are compatible with all of the most popular browsers and operating systems, ensuring a seamless user experience.

However, MT5 does edge out MT4 in this category by supporting a broader range of asset classes. You can use it to trade stocks and commodities, making it a more versatile choice if you want to invest in something other than forex. 

Back-Testing and Optimization

The revamped Strategy Tester represents one of MT5’s unique features. You can run robust backrests in Strategy Tester, which uses historical data to evaluate the performance of your investment model. You can predict the outcome of certain trading strategies without risking your capital. 

Use Strategy Tester to optimize your investment plans. It will help you better understand which moves will likely support your long-term goals and which trades may exceed your risk thresholds. 

MetaTrader 4 also supports backtesting. However, MT4’s Strategy Tester is not as powerful, limiting you to running simpler scenarios. 

Customization

MetaTrader 4 offers a ton of customization options. You can create personalized templates, custom indicators and tailored scripts. You’ll also be able to arrange chart windows and toolbars according to your preferences.

MetaTrader 5 offers a similar level of customization options. Where it stands out is its proprietary programming language, MQL5. If you’ve got some coding skills, you can use MQL5 to create more complex custom indicators and scripts. You can even build your own automated trading workflows within MT5. 

Compare MT4 Brokers

FOREX.com and tastyfx are the top MT4 brokers for U.S. traders, while Pepperstone is a top MT4 broker for international traders.

Compare MT5 Brokers

If you're in the U.S. and looking to use MT5 check out FOREX.com or Trading.com, as they are currently the only brokers who offer MT5 to U.S. forex traders. International traders should check out AvaTrade for their MT5 needs.

Final Decision: Is MetaTrader 4 vs. MetaTrader 5 Right for You? 

Before you start trading online, it’s critical to choose a reputable platform. The Federal Trade Commission (FTC) has taken action against several unscrupulous solutions, including Online Trading Academy, which has been the subject of a multimillion-dollar lawsuit. 

While no investment application is risk-free, MetaTrader 4 and MetaTrader 5 are reputable options and rank among the best platforms. MT4 offers a simpler interface, meaning you may be able to familiarize yourself with it quicker and jump-start your trading journey. MT5 has more features and can support advanced trading activities.

Your decision ultimately depends on your specific trading preferences and needs. The information above may help you make an informed decision that supports your investment goals. 

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