MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular trading platforms among forex and CFD traders. Both platforms, developed by MetaQuotes, offer advanced charting tools, automated trading capabilities, and a user-friendly interface. However, they cater to different trading needs, with MT4 being the go-to choice for forex traders and MT5 providing enhanced features for multi-asset trading.
This guide compares MT4 and MT5 across key factors like usability, execution speed, available assets, and trading tools. Whether you're a beginner looking for simplicity or an experienced trader seeking advanced features, this breakdown will help you decide if MT4 or MT5 better suits your trading needs.
Key Takeaways
- Asset coverage: MT4 primarily focuses on forex trading, whereas MT5 expands its reach to include additional asset classes like stocks, commodities and futures, offering traders more diversification opportunities.
- Time frames and order types: MT5 offers 21 time frames and additional order types, such as buy-stop limit, providing traders with more flexibility compared to MT4’s 9 time frames and more limited order options.
- Technical enhancements: MT5 includes an improved back-testing strategy, a built-in economic calendar, and supports partial order fills, features not available in MT4.
- User interface and learning curve: While MT4 is praised for its user-friendly interface, MT5’s advanced features may be overwhelming for some users, indicating a steeper learning curve.
- Broker support and community: MT4 has extensive broker support and a large community, offering a wealth of custom indicators and Expert Advisors (EAs). MT5, being newer, has a growing but comparatively smaller community and support base.
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.
>> Find the best MetaTrader 4 brokers
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 to improve 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.
>> Find the best MetaTrader 5 brokers
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 forex, futures, 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 Top 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.
- Best For:Earning Cashback on TradesVIEW PROS & CONS:securely through Forex.com's website
- Best For:$0 Commissions and Low FeesVIEW PROS & CONS:securely through Pepperstone's website
- Best For:Funding BonusVIEW PROS & CONS:securely through tastyfx's website
Compare Top MT5 Brokers
If you're in the U.S. and looking to use MT5 check out FOREX.com, as they are currently the only highly regulated broker who offer MT5 to U.S. forex traders. International traders should check out Vantage Markets or FxPro for their MT5 needs.
- Best For:Earning Cashback on TradesVIEW PROS & CONS:securely through Forex.com's website
- Best For:Dedicated CFD TradersVIEW PROS & CONS:securely through Vantage Markets's website
- Best For:Excellent Trading ConditionsVIEW PROS & CONS:securely through FxPro International's website
Final Decision: Is MetaTrader 4 vs. MetaTrader 5 Right for You?
Before you start trading online, it’s critical to choose a reputable platform. While no investment platform 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.
Frequently Asked Questions
Is MetaTrader 5 better than MetaTrader 4?
It depends on your needs. MT5 offers more features and tools, but MT4 has a user-friendly interface and simple functionality.
Should a beginner use MT4 or MT5?
MetaTrader 4 can be more appealing to beginners because of its simplicity and extensive broker support. However, if you want to add more robust tools to your trading strategy in the future, it might be best to start with MT5.
Why do people use MT4 over MT5?
MetaTrader 4’s biggest draw is its simplicity. It also offers custom EAs and indicators to help guide your trading activities.
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About Sarah Edwards
Sarah Edwards is a finance writer passionate about helping people learn more about what’s needed to achieve their financial goals. She has nearly a decade of writing experience focused on budgeting, investment strategies, retirement and industry trends. Her work has been published on NerdWallet and FinImpact.