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- MetaTrader 4 was created in 2005, while MetaTrader 5 was released in 2010
- MetaTrader 5 offers traders some new features compared to MetaTrader 4
- Among many other things, MT5 offers traders more built-in indicators than MT4
- MT4 was created specifically for currency trading, while MT5 was created with many assets in mind
MT4 vs MT5 Difference - Is There Any?
MT4 vs MT5: Created by the same software developer, there are some key differences between MT4 and MT5 While both MetaTrader 4 and MetaTrader 5 are very popular trading platforms around the world, there are some distinct differences between themes. In addition to differences, MT4 and MT5 also have a lot in common, which makes it very hard to tell which one is better. MetaTrader 4 was created many years ago, in 2005, and has forever changed the way people trade Forex around the world. MT4 revolutionized the Forex trading market and even after so many years of its initial release, the success of the trading platform keeps growing. There are numerous advantages that MT4 has over other trading platforms available in the market. The most notable thing about this trading platform is how user-friendly and easy to use it really is. But, the thing that makes it such a popular Forex platform is that it was actually created with Forex trading in mind. While MT4 was designed to meet the demands and needs of currency traders, MetaTrader 5 was created with other trading assets in mind as well. Created in 2010, MetaTrader 5 was established by the same company that created MT4, MetaQuotes. MT4 was specifically crafted for Forex trading, while MT5 was designed to offer traders access to the markets like CFDs, Futures, and Stocks. You can take a look at the MetaTrader 4 USD/JPY chart with MACD indicator below.
There are some people who believe that MT5 is an upgrade of MT4, however, this is not true at all. MT5 simply offers some additional features to traders and is not an update of the MT4 platform. Because these two trading platforms are so similar to each other, it is very hard to say which one is better while talking about MT4 vs MT5.
In this guide, we are going to discover the biggest differences as well as similarities between MetaTrader 4 and MetaTrader 5 and see which trading platform is better and why.
MT4 vs MT5 Review - Key Features
While discussing the similarities and differences between MT4 and MT5, there are some key features that should be discussed. This includes things like order types, indicators, timeframes, strategies, available assets, and many others. By understanding the key differences between these two trading platforms, you should be able to easily make a decision regarding which trading platform suits your needs best. Both of the trading platforms allow traders to customize the trading interface according to their needs. While discussing the key features of the trading platforms, it should also be noted that MetaTrader 4 offers traders around 30 built-in indicators, while MT5 offers 38 indicators. However, additional indicators can be downloaded online from numerous websites. As for the coding languages, MetaTrader 4 uses MQL4 language, while MT5 uses MQL5 language. While MQL5 is easier and more efficient, systems that were coded with MQL4 are not compatible with MQL5 programs. So, let’s discover the biggest MetaTrader 4 and MetaTrader 5 difference below.Order Types
When comparing the MT4 vs MT5 difference, it should be noted that these two trading platforms have similar execution modes. Both MT4 and MT5 offer traders three execution modes, they are instant execution, execution on request, and execution by market. However, MT5 also offers an additional execution mode, called exchange execution. With this mode, orders are being sent to the external trading systems. In general, there are two main types of orders offered by MetaTrader 4. They are market orders and pending orders. So, let's say that you want to buy a certain asset but you want to do so at a current price, in this case, you will be using Market Order. Here is how you open a new order on MT5.
However, if you want to buy or sell an asset at a predetermined price in the future, you will be using a pending order. The same is true for MetaTrader 5 as well.
That said, there are some differences between the order types of MetaTrader 4 and MetaTrader 5. The difference is between the pending orders. While MT4 offers 4 pending orders, there are 6 of them available on MetaTrader 5.
The available pending order types on MetaTrader 4 are the following: buy stop, buy limit, sell limit, and sell stop. As for the MetaTrader 5, it offers six order types. In addition to the ones offered by MT4, MT5 offers traders additional two order types, that are called buy and sell stop limit.
Indicators
When it comes to choosing a trading platform, it is very important to focus on the available indicators. There are numerous indicators available in the Forex trading market and they are designed to help traders better predict the future price movements in the market. When it comes to MT4 to MT5 comparison, it should be noted that MT4 has about 30 built-in indicators and 33 analytical tools, while MetaTrader 5 offers traders 39 built-in indicators and 44 analytical objects. In addition, MT5 also offers traders DailyForex signals, which can be very helpful for traders. Here are some of the MT4 indicators.
However, it does not mean that MT5 is better than MT4 in terms of indicators. The thing about these two trading platforms is that there are numerous custom trading indicators available in both of them and you can find almost any type of indicator for both of them online.
The programming language of the MetaTrader 4 is called MQL4, and the MT5 uses the MQL5 language. While MQL5 tends to be easier and more sufficient, MetaTrader 5 is not able to run the indicators that were created with the MQL4 language.
This is a disadvantage for many. MetaTrader 4 was created many years ago and over the years there have been hundreds of indicators created for this trading platform. However, this does not mean that MT4 better than MT5.