MetaTrader 5 vs MetaTrader 4: Which One is Better in 2024?

MetaTrader 5 (MT5) and MetaTrader 4 (MT4) are the world’s most popular trading platforms, developed by MetaQuotes Software Corp. Millions of traders all over the world use them every day and enjoy superior service. But what is the difference between MT5 and MT4, and which platform is better for you?

Here’s a guide with a complete MT5 vs MT4 comparison. Read, choose, and start trading with a reliable broker by your side!

What is a MetaTrader 5

MetaTrader 5, launched in 2010, is the preferred trading platform for the modern trader seeking a competitive edge. MT5 outshines its predecessor, MetaTrader 4, in both speed and efficiency, making it the superior choice for accessing a broader spectrum of financial markets, including Forex, stocks, indices, commodities, and cryptocurrencies. With its advanced capabilities in technical and fundamental analysis, along with trading signals, algorithmic trading, copy trading, and trading robots, MT5 is designed to cater to the needs of ambitious traders aiming to maximize their trading potential across multiple asset classes.

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What is a MetaTrader 4

MetaTrader 4, released in 2005, has historically been a popular platform among Forex traders. While MT4 offers a user-friendly interface and some customization options, it is primarily tailored for Forex and lacks the versatility required for the broader array of assets now available. Compared to MT5, it falls short in terms of technological advancements and the ability to handle diverse market demands efficiently.

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MT5 vs MT4: The main differences

When comparing MetaTrader 5 (MT5) and MetaTrader 4 (MT4) based on essential trading parameters, it becomes evident why MT5 is often the preferred choice for today’s diverse trading demands.

While MT4 has been sufficient for Forex-focused trading, MT5 clearly stands out as the superior platform with its advanced functionalities, making it an indispensable tool for traders aiming to engage comprehensively across global financial markets.

Tradable instruments

Neither MT5 nor MT4 defines the list of assets you can trade; this depends on the broker you select. At FBS, you have the opportunity to trade a variety of asset classes including Forex, metals, energies, exotic Forex pairs, stocks, and indices.

Technical indicators

MT5 sets a higher standard with 38 built-in technical indicators, providing deeper insights into market trends and directions. Traders using MT5 also benefit from a vast selection of both free and paid custom indicators accessible through its Code Base and Market, tailored to sophisticated trading strategies and advanced analysis.

In contrast, MT4 offers 30 built-in technical indicators, supplemented by access to around 2,000 free custom indicators from the Code Base and over 700 paid indicators from the Market. While this may be sufficient for basic analysis, MT4 lacks the enhanced capabilities and comprehensive features that MT5 provides, making it seem somewhat limited and outdated for current trading needs.

Charting tools

MT5 offers an impressive suite of 44 graphical objects, including advanced drawing tools like geometric shapes, channels, and specialized tools such as Gann, Fibonacci, and Elliott wave analysis. This extensive range enhances traders’ ability to predict future price movements with greater precision.

Conversely, MT4 provides 31 graphical objects, such as lines, channels, Gann and Fibonacci tools, shapes, and arrows. While these tools support basic technical analysis, they fall short of the broader and more nuanced capabilities available in MT5, making MT5 the preferred platform for traders seeking comprehensive analytical tools.

Timeframes

MT5 provides 21 timeframes: minute (M1, M2, M3, M4, M5, M6, M10, M12, M15, M20, M30), hourly (H1, H2, H3, H4, H6, H8, H12), daily (D1), weekly (W1), and monthly (MN). Such a wide selection gives traders an advantage for deeper analysis of their favorite assets.

MT4 only offers 9 timeframes: minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1), and monthly (MN).

Trading orders

MT5 provides a more sophisticated order management system with six types of pending orders, enhancing traders’ strategic options. In addition to the four types offered by MT4 — buy stop, buy limit, sell stop, and sell limit — MT5 introduces two additional types: buy stop limit and sell stop limit. These extra options allow for more precise entry and exit strategies, reflecting MT5’s advanced functionality.

On the other hand, MT4 is limited to the basic four types of orders we mentioned earlier: buy stop, buy limit, sell stop, and sell limit. This more rudimentary setup restricts traders to simpler trading strategies and underlines MT5’s superiority as a more versatile and capable trading platform.

Economic Calendar

MT5 offers a fully integrated Economic Calendar that provides traders with useful and real-time information about macroeconomic events. This built-in feature helps traders track key financial announcements that can significantly impact asset prices, making it an essential tool for informed trading decisions and strategic planning.

In contrast, MT4 does not include a built-in Economic Calendar, requiring traders to rely on third-party calendars to stay updated with financial news. For example, you may use FBS’s Economic Calendar to follow market-moving macroeconomic events.

Demo trading

Both MT5 and MT4 support Demo trading. This means you can try trading in real-life market conditions without the risk of losing capital. All you have to do is open a free Demo account. It works exactly like a Real account, except that you trade with virtual, not real money. A Demo account is the best way for every beginner to check out the platform and test the trading tools.

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Usability & mobility

MT5 and MT4 platforms are available in three formats: desktop, mobile, and browser.

• Desktop: Windows, macOS, Linux

• Mobile: Android, iOS

• Browsers: Mozilla Firefox, Google Chrome, Apple Safari, Microsoft Edge, Opera, and Internet Explorer

Both MT5 and MT4 are very similar in terms of design and usability. The main menu is slightly different, but the most commonly used features remain the same. You can customize the interfaces to suit your individual trading needs. All you need to work with these platforms is an internet connection.

MT5 vs MT4: Pros & Cons

If you’re evaluating which platform between MT5 and MT4 better suits your trading needs, it’s essential to consider their advantages and limitations.

MT5 pros

• MT5 is a versatile platform, allowing the trading of Forex, stocks, indices, commodities, and cryptocurrencies.

• It boasts a more extensive array of charting tools, technical indicators, and timeframes than MT4, making it ideal for detailed market analysis.

MT5 cons

• Fewer Robot and Expert Advisor developers currently favor MT5, which might limit the availability of certain automated trading tools.

MT4 pros

• MT4 is highly suitable for beginner traders due to its simpler and more straightforward interface.

MT4 cons

• MT4 offers fewer trading options and tools compared to MT5, limiting its functionality in broader financial markets.

• MT4 operates slower than MT5, which could be a disadvantage in fast-moving markets.

Whether you choose MT5 or MT4, you need a reliable broker like FBS. We have free educational materials, including video lessons about MetaTrader (“How to open your first trade in MT5”, ”Technical indicators in MT5”, and more).

FAQ

Which platform is better for me, MT5 or MT4?

Both MT5 and MT4 are esteemed trading platforms, yet MT5 stands out for seasoned traders. MT4 is straightforward and suitable for beginners, providing all the necessary functions to start trading. However, MT5 is the superior choice for its advanced capabilities, operational speed, and extensive support for a wide range of financial instruments. It’s the preferred platform for those looking to leverage sophisticated trading tools and execute complex strategies, making it the ultimate choice for the ambitious trader.

Can I use both MT5 and MT4?

Yes, you can trade on both MT5 and MT4 if your chosen broker supports both platforms. However, you will need to have two separate accounts because you cannot log in to the MT5 platform with your MT4 account and vice versa.

Is MetaTrader free for me?

Yes, both MT5 and MT4 are completely free to download and use. There are no fees or charges for using the platform.

Can I trade in MetaTrader without a broker?

No, you cannot trade without a broker. MT5 and MT4 are trading platforms that provide the necessary tools for making trades. But in any case, you will need to open an account with a broker, like FBS.

How to download MetaTrader with FBS?

Go to the FBS website, choose a platform, and find the appropriate format to download.