What do you know about MT4 vs MT5? When it comes to forex trading, choosing the right platform often matters as much as your trading skills, so the differences between MT4 vs MT5 should never be underestimated. MetaTrader 4 was quick to become the go-to trading platform when it was first launched in 2005, but doubts started to rise when MetaTrader 5 was released in 2010.
The truth is, there’s no single “best” platform. Instead, each one is designed to meet different trading styles and goals. Your choice mostly depends on what you value most. In this blog, we’ll break down the key differences between MT4 vs MT5 so you can choose the platform that fits your strategy.
So, grab a cup of coffee and let us dive you in.
MT4 vs MT5: A Quick Comprehensive Look
It is time to walk you through a quick look at what MetaTrader 4 and MetaTrader 5 are:
- MetaTrader 4 (MT4): Known and recognized as a forex specialist, MetaTrader 4 started in 2005 and quickly gained a strong reputation. It was designed primarily for forex and CFD trading, and it runs smoothly on almost any device. MetaTrader 4 provides traders with a clean interface and access to a large community with multiple forex indicators. That is why traders appreciate this platform so much.
- MetaTrader 5 (MT5): Five years after the MetaTrader 4 platform was launched, a new competitor arrived. MetaTrader 5 came into play in 2010 with many new tools and features compared to MT4. As a true multi-asset platform, MT5 goes beyond forex and CFDs. You can also trade stocks, futures, and more from one place. It includes extra built-in timeframes, an economic calendar, and depth-of-market data. In other words, MT5 offers more advanced features than MT4, especially if you trade instruments beyond forex.
Key Differences of MT4 vs MT5 at a Glance
The differences between MT4 vs MT5 are vast, so let us give a quick glance before diving deeper into each of them.
- Markets: MetaTrader 4 is specially designed for forex and CFDs. MetaTrader 5, on the other hand, is compatible with a wider variety of markets, including stocks and futures.
- Programming: MT4 uses MQL4; MT5 uses MQL5 which are two different languages. MQL5 is more powerful (object-oriented and faster) but not backward-compatible with MQL4.
- Hedging and Orders: MT4 supports traditional protection, which means it allows multiple opposite positions and has more basic order types. MT5, alternatively, adds additional order types and execution modes, including an ‘Exchange’ mode. By default, MT5 uses a netting system with one position per symbol, but it also now offers hedging.
- Backtesting: When it comes to backtesting, MT5 has more to offer because it is much faster and also supports multi-threading. MT5 allows traders to backtest and optimize strategies efficiently, even for multiple currencies. MT4’s tester, in contrast, is single-threaded and slower.
- Ease of Use: Since MT4 was the first to be launched, it is much simpler to use, and features a minimal interface and lower system requirements. MT5, however, includes more windows, tools, charts, and indicators, which can feel busier to some, but provides more opportunities for others. It also requires more CPU and memory capacity generally.
Detailed Comparison: Breaking Down the Differences of MT5 vs MT4
Now, let’s walk you through a more detailed comparison of MT4 vs MT5 so you can make a better decision and see which platform fits your goals.
1. Markets and Instruments
MT4 was originally designed for forex trading. While you can trade CFDs ,indices, commodities, etc., on MT4, it doesn’t natively support trading stocks or exchange-traded futures (ETFs).
By contrast, MetaTrader 5 is built and designed for multi-asset trading. It lets you trade the same FX symbols as MT4, plus additional assets including stocks, futures, cryptocurrencies, and more. If you only trade forex, this difference may not matter much. But if you want a single platform to cover multiple markets, MT5 provides that capability.
2. Programming Language: MQL4 vs MQL5
One of the most important technical differences between MT5 vs MT4 is their scripting language. MT4 uses MQL4, while MT5 uses MQL5. MQL5 is a newer, more powerful language that supports object-oriented programming and extra built-in functions. In fact, MetaQuotes claims MQL5 can run programs up to 20 times faster than MQL4.
In other words, the languages are not compatible. An EA (Expert Advisor) or indicator written for MT4 will not run on MT5 without having to be rewritten. This means if you have a library of MT4 scripts, you can’t plug them straight into MT5. So, if you depend on specific MT4 scripts, sticking with MT4 may save you the conversion hassle. If you want to develop the most advanced algorithms from scratch, though, MT5’s MQL5 offers the edge in power and speed.
3. Order Execution and Hedging
MT4 and MT5 handle orders and positions slightly differently. MT4 offers three execution modes (Instant, Request, Market) and the standard four pending order types (Buy/Sell Limit, Buy/Sell Stop). MT5 adds two hybrid pending orders (Stop-Limit orders) and a special “Exchange Execution” mode useful for stocks/futures. MT5 gives more order flexibility but also a bit more complexity to work with.
Hedging is another point to keep in mind. MT4 allows true hedging by default, which means you have the ability to open as many opposite positions on the same symbol as you like. MT5 was originally built for netting, where there is only one aggregated position per symbol. This approach works well for many traders, especially since most exchange-traded markets use netting. However, brokers have responded to trader demand. MT5 now also supports a hedging mode, letting you hold multiple buys/sells on the same asset.
4. Backtesting and Strategy Tester
For those who tend to trade using more algorithmic strategies and automated trading, MT5 has more to offer than MT4. MT5’s built-in Strategy Tester is multi-threaded and can run backtests across multiple currency pairs simultaneously.
This allows much faster optimization and more thorough testing of trading strategies. By contrast, MT4’s tester is single-threaded (one currency pair at a time), so large-scale optimizations take much longer. If you frequently tweak and optimize Expert Advisors, MT5’s faster, more advanced backtester is a big benefit.
5. User Interface and Ease of Use
The reason why many traders still stick to MT4 is because of how simple yet effective it is. This is a unique advantage, as it helps rookies focus on their charts and learn how to forex trade as beginners rather than getting overwhelmed by too many features.
MT4 also uses less computer memory, so it runs smoothly even on older hardware. In contrast, MT5’s interface is more feature-rich (extra timeframes, an economic calendar tab, more built-in indicators, etc.), which can make it look busier. Advanced traders will appreciate these extra tools, but newcomers may find MT5’s layout a bit overwhelming at first).
So, Which One Should You Choose?
Your decision should match your trading needs. Between MT4 vs MT5 here how you can choose:
- Choose MetaTrader 4 (MT4) if you trade mainly forex/CFDs and care about simplicity. MT4’s long track record means there’s a huge library of existing indicators/EAs. Its interface is straightforward and its hedging model is easy to use. If you already rely on MT4 tools or prefer the classic forex setup, MT4 is a solid choice.
- Choose MetaTrader 5 (MT5) if you need multi-asset support or advanced features. MT5 lets you trade stocks, futures or crypto as well as forex from one platform. Its programming language (MQL5) and multi-threaded tester provide more power for complex automated strategies. MT5 also has additional built-in tools (more timeframes, more order types, a calendar, depth-of-market, etc.) that can benefit experienced traders.
Final Thoughts
There is no single ‘better fit’ for any trader. Between MT4 vs MT5, a trader must choose based on their trading style, strategy, and workflow. However, sometimes the platform you choose may also depend on your broker. So, make sure to check your broker’s trading platform before you deposit any funds into your account.
For example, as a modern broker with a far-reaching market, ITBFX lets clients open demo accounts on MT5, which is the more comprehensive of the two. Ultimately, though, you should pick the platform that your trading style and broker lineup support best, rather than assuming one is categorically superior.
Yes. You can run both platforms side by side, but you’ll need separate trading accounts for each. MT4 and MT5 accounts aren’t interchangeable due to technical differences. Many traders open one MT4 account and one MT5 account if they want to use features from both platforms concurrently.
Generally no. MT4 uses MQL4 and MT5 uses MQL5 which are two different programming languages. An EA or indicator written for MT4 won’t run on MT5 without being rewritten or converted. You would need a version of the tool specifically coded in MQL5 to use it on MT5.
For someone trading only forex or just starting out, MT4 is often sufficient. MT4’s simplicity, large user community, and abundant free tools make it very beginner-friendly. MT5’s extra markets and features are more useful once you expand into stocks/futures or need advanced backtesting.
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