Choosing the most appropriate trading platform is one of the most important steps for novice and experienced forex traders alike. MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are the two most widely used platforms, developed by MetaQuotes. While MT4 is well known for its simplicity and reliability, MT5 boasts more functions and enhanced performance. Understanding the differences between them will enable you to choose the platform that best matches your trading personality and goals.
MT4 remains popular with forex-only traders, especially those utilizing Expert Advisors (EAs) for automated trading. MT5 is preferred by those traders taking positions in multiple markets like stocks, indices, and commodities. MT5 has more order types, larger market depth information, and faster backtesting. For beginners, MT4 is occasionally easier to learn, whereas professional traders may prefer MT5’s extra features. It all depends on your trading strategy, instruments, and need for speed or analysis tools.
Understanding the Main Differences Between MT4 and MT5
MT4 was built mainly for forex trading, while MT5 was designed for multi-asset trading — including stocks, futures, and crypto. MT5 also complies with modern regulations like FIFO (first in, first out), which affects order handling.
Technical Comparison
| Feature | MT4 | MT5 |
|---|---|---|
| Markets | Forex only | Forex, stocks, crypto, futures |
| Programming Language | MQL4 | MQL5 |
| Pending Orders | 4 types | 6 types |
| Timeframes | 9 | 21 |
| Depth of Market | No | Yes |
If you only trade currency pairs, MT4 is usually enough. But if you plan to expand into other markets, MT5 is a better long-term choice.
Charting and Analytical Tools
MT5 offers 38 indicators and 44 graphical objects compared to MT4’s 30 indicators and 31 objects. This gives traders more flexibility in technical analysis.
- MT4 suits traders who rely on classic indicators like RSI, MACD, and moving averages.
- MT5 benefits traders using multi-timeframe or volume-based analysis.
The larger number of timeframes in MT5 allows you to fine-tune entries, especially for swing or position trading.
Trading Speed and Execution
MT5 uses a 64-bit architecture and faster order routing. MT4, while still reliable, runs on 32-bit and can lag with multiple charts or indicators open. If you’re scalping during high volatility, MT5’s faster processing ensures lower slippage and better accuracy. For traders running many EAs or complex indicators, MT5 provides smoother performance.
Automated Trading (Expert Advisors)
MT4 for EA Simplicity
MT4’s MQL4 language is easy to learn and has thousands of free EAs available online.
MT5 for Advanced Testing
MT5’s MQL5 language allows multi-threaded backtesting — you can test several strategies simultaneously. If you’re new to coding or prefer downloading pre-made bots, MT4 is ideal. For developers or quantitative traders, MT5’s automation tools provide more depth and flexibility.
Order Types and Risk Management
MT4 supports four order types: Buy Stop, Sell Stop, Buy Limit, and Sell Limit. MT5 adds two more: Buy Stop Limit and Sell Stop Limit — giving traders finer entry control. A Buy Stop Limit helps you buy only after a breakout and confirms momentum — reducing false entries. This flexibility benefits traders who rely on breakout or pending order strategies.
Multi-Asset Access and Market Depth
MT5 supports multiple markets beyond forex — like shares, bonds, and crypto CFDs. It also includes a Depth of Market (DOM) window showing real-time liquidity levels. This feature helps you see how many buy/sell orders exist at each price point — valuable for professional or institutional-style trading. For forex-only traders, this feature isn’t critical, but for cross-market strategies, it’s a strong advantage.
Backtesting and Historical Data
MT5 offers faster and more accurate backtesting with access to tick-by-tick data. MT4’s single-threaded tester is slower, but still effective for basic strategies. Run a moving average crossover system on MT5 to analyze 5 years of EUR/USD data within minutes — faster than MT4’s processing time. Efficient testing means you can refine strategies before going live, reducing future losses.
Broker and Compatibility Considerations
Not all brokers support MT5 yet, but most major ones like IC Markets, Pepperstone, Exness, and XM offer both. If your broker supports MT4 only, you can still trade effectively, as liquidity and spreads are nearly identical between both platforms. Before switching, export your trade history and indicator templates — MT4 indicators won’t work directly on MT5 without conversion.
FAQs
Which is better, MT4 or MT5, for beginners?
MT4 is simpler and easier for beginners to understand. It focuses purely on forex, making it less overwhelming.
