MT4 vs. MT5: Which MetaTrader Platform is Better?

MT4 vs. MT5 is not as simple as choosing the newer platform over the older one. Each MetaTrader platform was built for different trading needs, and picking the right one can affect how you trade, what markets you access, and which tools you rely on.

In this article, I’ll compare MetaTrader 4 (MT4) and MetaTrader 5 (MT5), explain their key differences, and show how each platform serves different types of traders. You’ll also see how factors like FOREX, contracts for difference (CFDs), broker support, and platform features can help you decide which one best fits your trading goals.

What is the difference between MT4 and MT5?

The main difference between MT4 and MT5 is that MT4 was designed mainly for FOREX traders, while MT5 was built to support a wider range of markets such as stocks and futures. As retail trading expanded beyond forex, MT5 emerged with more diverse tools to match that broader demand. This makes MT4 more specialised, while MT5 is aimed at traders who want access to more than one market.

So, MT5 was never a direct upgrade to MT4, but a response to demand for a more comprehensive platform for a wider range of trading instruments. Today, while MT4 is a specialist FOREX platform, MT5 caters to FOREX, futures, options, stocks and bonds.

MT5 was launched in 2010, five years after the already-successful MT4 had entrenched itself in the FOREX trading landscape. The sequential resemblance of the platform names made people assume that one was a successor to the other. This was not the case. Yes, they shared near-identical branding and the same overall graphical interface, but this could hardly be avoided as they were part of the same product family.

MT5’s job was to take up parts of the market that MT4 was not built to handle. As FOREX is the world’s largest and most liquid market, with trillions of US dollars traded daily, it was best not to meddle with a successful product like MT4. Thus, MT5 was designed to facilitate better access into the centralized exchanges that handle large products like stocks and commodities. Some trading instruments, like stocks and futures, are run by a small number of influential role players, like stock exchanges and dominant commodity trading houses.

FOREX, on the other hand, is a decentralized marketplace with several different players offering distinct and complementary services. These could be commercial banks, sovereign wealth funds, liquidity providers of all descriptions, and hedge funds, to name but a few. As such, it can be seen from the design intent behind each platform that they are not as fundamentally related as many people believe.

Which is better for your needs, MT4 or MT5?

MT4 is better for your needs if you trade only FOREX, while MT5 is the better fit if you want a more diversified range of markets. The choice is not really about being a beginner or an advanced trader, but about which platform matches what you plan to trade. In practice, the better option is the one whose strengths align most closely with your trading needs.

In less-informed circles, there is an idea that MT4 is an old system on its way out. That is only partly true: MetaQuotes stopped selling new MT4 licences in January 2018 and now concentrates development on MT5, but brokers that already hold MT4 licences still offer it, and it remains a well-trusted platform in the industry for good reason. As the more established system, MT4 is less prone to performance issues, as these bugs have been fixed over its many iterations.

As a novice FOREX trader, you will hardly notice the difference between the two platforms if you use them solely for FOREX trading. After all, is there a telling difference between the 30 indicators offered by MT4 and the 38 indicators offered by MT5? However, in time, as your experience improves you will come to appreciate that each platform more than covers its bases. It just comes down to what you want to trade.

There is one pertinent question to be answered on this matter, though. What if you intend to start by trading FOREX only, but you plan to expand your basket? In this case, it would be appropriate to begin with MT5, as it will support your growing needs and spare you from learning MT4 before transitioning to MT5.

However, if you plan to focus on FOREX trading, MT4 can meet all your needs from the outset.

Which assets can you trade on MT4 and MT5?

MT4 is built mainly for FOREX, although many brokers also offer CFDs on indices, commodities and shares through it. MT5 was designed as a multi-asset platform: MetaQuotes describes it as supporting FOREX, stocks and futures, as well as exchange-traded bonds and options where the broker offers them. MT5 also includes more features because it is designed to serve a wider range of markets.

A side-by-side comparison is almost moot, as the platforms have different design intents and features, much like a sedan and a four-wheel-drive car. A better direct comparison for MT4 would be the category equivalent offered by a trading platform rival like TigerTrade or thinkorswim. The same goes for MT5.

What are the key highlights of MT4 vs. MT5?

MT5 adds more order types, indicators and timeframes plus a built-in economic calendar, while MT4 focuses more narrowly on the needs of forex traders. The figures below are the ones MetaQuotes publishes for each platform.

MT4 top features

• Number of order execution types – 3

• Number of pending order types – 4

• Technical indicators – 30

• Timeframes – 9

• Economic calendar – not available

• Reporting – tables only

MT5 top features

• Number of order execution types – 4

• Number of pending order types – 6

• Technical indicators – 38

• Timeframes – 21

• Economic calendar – available

• Reporting – tables and charts, exportable to Excel

Which platform is better for mobile trading, MT4 or MT5?

For mobile trading, there is very little difference between MT4 and MT5 because both offer strong mobile capability. Each platform has developed to keep pace with the needs of modern traders who want to trade on the go.

Both platforms are fully mobile and available on the Google Play Store and the Apple App Store. You can also normally find the app download buttons on the website of whichever of the best brokers you use. Login is simple and can be done with a conventional password or a biometric option, such as a fingerprint.

It is only natural that the mobile versions of each platform are more feature-light than their desktop counterparts. However, MetaQuotes is constantly improving both platforms to take them as close to full functionality as is possible and necessary. Some of the most important mobile features supported are:

• Technical analysis tools.

• Real-time pricing.

• Trading insight from charts.

• Trading directly from charts.

• Access to a full range of technical indicators.

• Multiple asset classes can be traded.

• All trading order types supported.

• Market commentary and analysis tools.

Which platform has better analytics, MT4 or MT5?

Is one platform better than the other around analytics? Today’s trader can hardly advance without advanced analytics to make better decisions and invest more consistently and rationally. Does either platform lag in this area?

Neither of these tools can be criticized, as each continues to be developed to remain in touch with the market and to retain its lead. Each platform is equally comfortable, allowing users to customize the interface to suit trading needs while providing powerful, meaningful analysis via an array of indicators and tools.

MT4 has a narrower focus, but still packs a punch with timeframes, multiple chart types, and strong technical indicators. MT5 naturally carries more features and analytics options. For example, MT5 offers an important market depth feature that allows traders to view the bid and ask levels (Depth of Market) in markets of interest.

In keeping with the broader focus on MT5, this platform does outdo MT4 in terms of drawing tools: MetaQuotes lists 44 built-in analytical objects in MT5 against 23 in MT4, including Elliott Wave tools and several Fibonacci studies. However, it is important to note that, as advanced as these features are, they are financial-instrument specific and may not be of any use to a FOREX trader. Both platforms provide traders with access to financial news, though only MT5 offers an economic calendar.

Which platform is better for algorithmic trading, MetaTrader 5 or MetaTrader 4?

For algorithmic trading, the better choice depends on which automated trading system best fits your strategy and use of trading robots. This matters because automated trading has become a must-have feature for many traders. As algorithmic trading grows in popularity, the strengths of each platform in this area become more important.

Both MT4 and MT5 are written in a programming language that allows traders to implement their chosen strategy using an Expert Advisor (EA). These programming languages also allow traders to deploy copy trades and social trading.

Algorithmic trading is one of the best features in both platforms. There is not much to choose between them. Traders can develop and test EAs and technical indicators. Using a handy development environment, traders can use MetaEditor to design and pilot trading strategies. In the marketing speak of the MetaTrader product pages, “Your indicator analyzes the markets, while an Expert Advisor trades in them.”

What programming languages do MT4 and MT5 use?

MT4 and MT5 each use their own programming language, which creates different scripting and algorithmic capabilities for traders on each platform. These differences matter depending on what you want your platform to do. In its early days, MT4 was often seen as more suitable for beginners who were less focused on building custom trading tools.

MT5 was launched with a more advanced programming language, MQL5, an object-oriented language similar to C++. MQL5 is known to have a much better logical format for stakeholders like developers and traders to work with. Seeing the positive user response to MQL5, MetaQuotes has since upgraded MT4’s programming language, MQL4, bringing it much closer to MQL5, and it has also since gained a reputation for being highly logical and user-friendly.

That said, the two platforms and their respective languages are not as compatible as you might think, even though they come from the same stable. As such, MT4 programs cannot run on MT5. The downside is that traders moving from MT4 to MT5 must adapt to a new setup.

Many users agree that MT5 has an edge over MT4 in terms of programming usability:

• MT5 backtesting is much slicker and faster than that of MT4. With MT5, you can test your strategies in record time, getting you back into the markets sooner as you try to find the best iteration of the strategy that will work for you.

• MT5 also permits multi-thread and multi-currency back tests, while MT4 is only designed for single-thread testing. In a fast-moving marketplace like FOREX, these are crucial advantages. These advantages matter most for users who actively build, test, and refine strategies over short development cycles rather than for traders who only run a small number of established EAs.

Conclusion

MT4 vs. MT5 ultimately comes down to your trading style, market focus, and broker support. MT4 remains a strong choice for traders focused on FOREX, while MT5 offers a broader, more feature-rich experience for those who want access to additional markets and newer tools.

Before you choose, consider the instruments you want to trade, the technology you value most, and how your broker supports each platform. The best platform is the one that fits your goals, so compare your options carefully and select the MetaTrader setup that gives you the strongest foundation for your next move.