Before I move ahead and start comparing MT4 and mT5 let me give you all a brief intro of these platforms.
MT4 and MT5 platforms were developed by Metaquotes Software Corporation.
These platforms allow you to trade financial markets from anywhere around the world.
At first, MT4 was developed in which traders could only trade in the forex market but then MT5 was launched which is an advanced version of MT4 and also allows you to trade various other financial markets.
Metatrader 4 (MT4)
Metatrader 5 (MT5)
Difference between MT4 and MT5
1. User interface
MT4 is very simple and has a very easy-to-use interface which is why it is the first choice of all beginner forex traders.
Furthermore, it also allows you to customize the interface according to your trading needs.
On the other hand, MT5 is the successor of mt4 and is a little complex for beginner traders. It comes with additional services and has various advantages over MT4.
MT4 provides you with only 9 types of timeframes, with a minimum timeframe of 1 minute and the highest timeframe of 1 month.
Whereas MT5 has more timeframes, it has around 21 timeframes ranging from 1 minute to yearly chart and allows room for more analysis of the market.
MT4 comes with 30 built-in indicators and 2000 free custom indicators and 700 paid indicators.
MT5 offers 38 built-in indicators.
4. Drawing tools
MT4 comes with 31 drawing objects like different Fibonacci tools and other Elliot wave drawing tools.
MT5 also has around 44 drawing tools.
5. Pending orders
One of the best features that MT5 provides is the types of pending orders,
Many traders are unable to sit and observe charts all the time, hence this feature will really help them n their trading.
One can use pending orders to execute trades at the positions they desire and this allows them to miss fewer trades.
MT4 provides you with 4 types of pending orders namely buy limit, sell limit, buy stop, and sell stop.
Whereas MT5 provides 6 types of pending orders buy limit, sell limit, buy stop, sell stop, buy stop limit, and sell stop limit.
6. Internal funds transfer
There is one more interesting feature which you can find in the MT5 platform, it allows internal fund transfer, which means that you can transfer funds from one trading account to other from the MT5 platform itself.
Unfortunately, MT4 does not have this cool option.
7. Types of accounts
MT4 only supports the hedging system.
MT5 supports both the hedging and netting system.
8. Types of financial assets that can be traded
MT4 allows you to trade only the forex market.
Whereas, MT5 allows you to trade Forex, CFDs, stock, and other financial instruments.
9. Programming language
MT4 comes with MLQ4 which is used for developing trading platforms based on the order system.
MT5 comes with MLQ5 which is used to implement a positional system.
MLQ4 is much simple and better than MLQ5. With this traders can write and alter scripts and is more efficient than MLQ4.
10. Market depth
MT4 does not support market depth function.
MT5 has an inbuilt market depth function that bids and offers financial securities at varying prices. It shows the number of open buy and sell orders for a security or currency at different prices
11. Economic calendar
MT4 does not offer inbuilt economic calendar section.
MT5 comes with an economic calendar section that helps you be up to date with the financial news.
MT4 is slow as compared to MT5, MT4 comes with a 32-bit mono threaded platform.
MT5 is faster than MT4 and comes with a 64-bit mono threaded platform.
Which one is better MetaTrader4 or MetaTrader5?
Finally when it comes to which one is the best trading platform, we would say, it actually depends on the needs of traders.
Like, if you are a beginner trader and are simply interested in forex trading then MT4 is an obvious choice for you.
But if you are a more advanced trader and need different tools and services for technical analysis or if you like to trade other financial markets then MT5 is the right choice for you.