In this article you will learn who wins the MT4 VS MT5 battle. See the differences and what ultimately is my platform of choice.
The Differences between Metatrader MT4 VS MT5
MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most widely used trading platforms in the world.
Although both are developed by MetaQuotes Software and share similar interfaces, they cater to different needs and trading styles.
Understanding the differences between MT4 and MT5 is crucial when choosing the right platform for your trading strategy.
Quick Comparison Table
| Feature | MT4 | MT5 |
|---|---|---|
| Release Year | 2005 | 2010 |
| Market Coverage | Forex only | Forex, Stocks, CFDs, Futures, Commodities |
| Order Types | 4 | 6 |
| Timeframes | 9 | 21 |
| Technical Indicators | 30 | 38 |
| Graphical Objects | 31 | 44 |
| Depth of Market (DOM) | Not Supported | Supported |
| Economic Calendar | Not Integrated | Built-In |
| Hedging | Supported | Supported |
| Netting System | Not Supported | Supported |
| Backtesting | Single-Threaded | Multi-Threaded |
| Built-in Reports | Basic | Advanced |
| Community | Vast | Niche, improving |
| File Extensions | .mq4, .ex4 | .mq5, .ex5 |
| Programming language | MQL4 | MQL5 |
| Architecture | 32bit | 64bit |
MT4 vs MT5… A Short Story
MetaTrader 4, in short MT4, was released in 2005 and quickly became the gold standard for retail forex trading. Its simplicity, stability, and support for automated trading through Expert Advisors (EAs) made it incredibly popular among traders.
MetaTrader 5 was launched in 2010, not as a direct replacement for MT4 but as a more advanced platform designed to support additional markets and offer enhanced features. While it shares many similarities with MT4, MT5 was built to comply with different regulatory requirements and offer more robust tools for professional trading.
It took several years to MT5 to gain adoption among traders, the first releases were not as user friendly and MQL5 was more complex. I would say that now MT4 and MT5 are comparable in terms of adoption, although some brokers have not moved to MT5 yet.
Release Year
MetaTrader 4 was released in 2005 and has maintained its popularity due to its simplicity and stability.
MetaTrader 5, released in 2010, was designed to provide more advanced tools and features for modern traders.
Market Coverage
MT4 primarily focuses on forex trading, making it the preferred choice for currency traders.
On the other hand, MT5 supports a broader range of markets, including forex, stocks, CFDs, futures, and commodities.
This makes MT5 more suitable for traders who want access to multiple asset classes from a single platform.
Order Types
MT4 offers four basic order types: Buy, Sell, Buy Limit, and Sell Limit.
MT5 expands on this by including six order types, adding Buy Stop Limit and Sell Stop Limit.
These additional order types provide more flexibility in executing complex trading strategies.
Timeframes
MT4 supports nine different timeframes for charting and analysis.
MT5 takes this a step further with 21 timeframes, offering greater precision and allowing traders to analyze market movements in more detail.
Technical Indicators
MT4 comes with 30 built-in technical indicators, which are essential for market analysis.
MT5 improves on this with 38 technical indicators, giving traders a wider array of tools for identifying market trends and making informed decisions.
Graphical Objects
MT4 includes 31 graphical objects for chart annotation and analysis.
MT5 offers 44 graphical objects, enhancing the ability to visualize and interpret market data with greater flexibility.
Depth of Market (DOM)
Depth of Market is not supported in MT4.
MT5, however, provides this feature, allowing traders to see the supply and demand for a particular asset in real time.
This transparency helps in making better-informed trading decisions.
Economic Calendar
MT4 does not include an integrated economic calendar, requiring traders to rely on external sources for economic events.
MT5 comes with a built-in economic calendar, keeping traders updated on important financial news and events without leaving the platform.
Hedging
Both MT4 and MT5 support hedging, which allows traders to open multiple positions in the same asset in opposite directions.
This is a vital feature for risk management and strategy execution.
A note that while hedging is supported by both MT4 and MT5, your broker needs to allow it at the trading level, and not all brokers do.
Netting System
MT4 does not support the netting system.
MT5 offers this feature, which consolidates multiple positions in the same asset into a single position.
This is particularly useful for stock and futures trading.
Backtesting
Backtesting is one of the aspects that I find more different and impactful in this MT4 vs MT5 comparison.
MT4 backtesting capabilities are limited to single-threaded processing, which can be slow and less efficient.
MT5 introduces multi-threaded backtesting, enabling faster and more accurate testing of automated strategies over historical data. In addition, MT5 allows for multi-instrument / multi-currency backtesting a serious optimization. Last but not least, MT5 allows real tick backtesting and automated historical data download.
Built-in Reports
MT4 provides basic reports on trading performance.
MT5 offers more advanced and detailed reports, providing deeper insights into trading activity and performance.
Community
MT4 has been around for much longer than MT5, for this reason it has a larger community and extended resources. You can find much more content, documentation and tools for MT4 than you can for MT5.
However, in the last few years the adoption of MT5 has significantly increased and you can find more and more content for the platform. The current trend indicates that soon MT5 will have the same community support than its predecessor.
File Extensions
MT4 uses .mq4 and .ex4 file extensions for scripts, indicators, and Expert Advisors.
MT5 uses .mq5 and .ex5 file extensions, reflecting the evolution and added capabilities of the platform.
MQL Programming Language
MT4 uses the MQL4 programming language, that in its first version was extremely successful, becoming the go to for retail trading automation.
MT5 comes with the MTL5 programming language, that is more powerful and efficient.
Architecture
MT4 is a 32bit software only, meaning it is limited in the amount of memory it can leverage.
MT5 is a 64bit software that can use more memory, MT5 is a definitive winner when it comes to performance.
My Decision Between MT4 vs MT5
Having used both platforms for many many years, for both manual trading and automated trading, the decision was difficult between MT4 vs MT5.
While a few years ago I would have said MT4 is best, now my opinion has changed.
I decided to continue to develop tools for Metatrader MT5 because overall I find it better than MT4.
I find it also a better platform for trading.
While many features are similar and you may not notice the difference, some other elements are very important to me.
My decision to use only MT5 and develop only on MT5 come from the following:
- Instruments: there are simply much more trading instruments on MT5, including Forex, indices, stocks, commodities and crypto
- Backtesting: there is no battle here, MT5 is the clear winner with multi-thread capability and optimization options
- Programming language: while it takes a while to get used to MQL5 (even if familiar with MQL4), MQL5 is very powerful and efficient
In this website you will find some MT4 tools, however, these may be legacy or outdated.
All my further development of custom tools will be for Metatrader MT5 only using MQL5 language.
Conclusion
Choosing between MT4 and MT5 depends on your trading needs and strategy.
If you prefer a simple, well-supported platform focused on forex, MT4 could be an option.
For traders seeking advanced tools and access to a broader range of financial markets, MT5 is the superior option, and my preferred platform as well.
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