MetaTrader 4 and MetaTrader 5 are two popular trading platforms developed by MetaQuotes Software. They are widely used by traders and brokers for online forex, stocks, futures, and CFDs trading. However, they have some significant differences that may affect your trading experience and performance. In this blog post, we will compare and contrast the main features and functionalities of MetaTrader 4 and MetaTrader 5, and help you decide which one suits your needs better.
MetaTrader 4: The Classic Choice
MetaTrader 4 (MT4) was launched in 2005 and has become the industry standard for forex trading. It is known for its simplicity, reliability, and compatibility with thousands of custom indicators, expert advisors (EAs), and scripts. MT4 offers four types of orders: market, limit, stop, and stop loss/take profit. It supports nine timeframes, from one minute to one month, and allows you to trade up to 30 symbols at a time. MT4 also has a built-in programming language called MQL4, which enables you to create your own trading robots and technical analysis tools.
Some of the advantages of MT4 are:
- It has a large and active community of users and developers who share their knowledge, experience, and resources.
- It has a wide range of third-party plugins and services that enhance its functionality and usability.
- It has a low system requirements and runs smoothly on most devices and operating systems.
- It is easy to use and customize according to your preferences and trading style.
Some of the disadvantages of MT4 are:
- It does not support some of the advanced features and instruments that MT5 offers, such as hedging, depth of market, economic calendar, etc.
- It has a limited number of order types and execution modes, which may restrict your trading strategies and options.
- It has a 32-bit architecture and can only handle up to 2 GB of RAM, which may cause performance issues when running multiple EAs or indicators.
- It is not compatible with MQL5, the newer programming language used by MT5.
MetaTrader 5: The Next Generation
MetaTrader 5 (MT5) was released in 2010 as an upgraded version of MT4. It is designed to cater to the needs of modern traders who want to access more markets, instruments, and tools. It supports not only forex, but also stocks, futures, options, bonds, cryptocurrencies, and other assets. It offers six types of orders: market, limit, stop, stop limit, stop loss/take profit, and trailing stop. It supports 21 timeframes, from one second to one year, and allows you to trade an unlimited number of symbols simultaneously. MT5 also has a built-in programming language called MQL5, which is more powerful and flexible than MQL4.
Some of the advantages of MT5 are:
- It supports multiple trading modes, such as netting (one position per symbol) and hedging (multiple positions per symbol), which give you more control over your risk management.
- It provides more information and analysis tools, such as depth of market (DOM), economic calendar, news feed, etc., which help you make informed trading decisions.
- It has a 64-bit architecture and can handle up to 4 GB of RAM (or more with Windows x64), which improves its speed and stability when running complex EAs or indicators.
- It is compatible with MQL4, which means you can use most of the existing MT4 EAs or indicators on MT5 with minor modifications.
Some of the disadvantages of MT5 are:
- It has a smaller and less established community of users and developers than MT4, which means fewer resources and support available.
- It has fewer third-party plugins and services than MT4, which may limit your options for enhancing its functionality and usability.
- It has a higher system requirements than MT4 and may not run well on older or weaker devices or operating systems.
- It is not fully backward compatible with MT4, which means some of the MT4 EAs or indicators may not work properly on MT5 or require significant changes.
MetaTrader 4 and MetaTrader 5 are both excellent trading platforms that offer different features and benefits for different types of traders. There is no definitive answer to which one is better or worse; it depends on your personal preferences, goals, and strategies. You can try both platforms for free using demo accounts or real accounts with minimal deposits. You can also switch between them easily if you want to experiment with different settings or instruments. Ultimately, the best platform for you is the one that meets your needs and expectations. Happy trading!