For aspiring and experienced traders alike, online trading platforms could be overwhelming. Two prominent names you’ll likely encounter are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both platforms are developed by MetaQuotes Software and cater to different trading needs. This blog post delves into the key differences between MT4 and MT5, helping you choose the platform that best suits your trading goals.

MT4 and MT5 core functionalities:

At their core, both MT4 and MT5 offer the essential tools for trading various financial instruments. These include:

• Charting and technical analysis: A range of technical indicators, drawing tools, and chart types to analyze market trends and make informed trading decisions.

• Order placement and management: Execute trades, set stop-loss and take-profit orders, and manage open positions.
• Automated trading: Develop or use automated trading strategies (Expert Advisors) to automate trading activities.

6 main differences of MT4 and MT5

Although MT4 and MT5 have the same core functionalities, they differ in 6 important areas:

1. Supported assets:

MT4: Primarily designed for forex trading and contracts for difference (CFDs). It supports a limited range of other asset classes, such as commodities and indices, depending on the broker.

MT5: A multi-asset platform, supporting trading in forex, stocks, indices, commodities, futures, and even cryptocurrencies. This broader range caters to traders interested in diversifying their portfolios.

Meanwhile, the assets supported by Decode , our official partner trading platform are Forex, Crypto, Commodities, and Indices

2. Order types: 

MT4: Offers four basic order types: market, limit, stop, and trailing stop.

MT5: Introduces two additional order types: stop limit and take profit limit. These provide greater control over order execution, allowing you to set both price and time-based conditions for order activation.

3. Timeframes:

MT4: Provides nine standard chart timeframes, ranging from one minute to one month.

MT5: Expand on this with 21 timeframes, including additional options like two, three, four, and six minutes, as well as two, three, and six hours. This wider range allows for more granular analysis across different trading styles.

4. Backtesting:

MT4: While it offers basic backtesting functionality, it could be slow and limited in customization options.

MT5: Offers a significantly faster and more advanced backtesting engine, allowing for more complex testing scenarios and strategies. This is a good option for traders who rely heavily on automated trading strategies.

5. Programming language:

MT4: Uses MQL4, a proprietary scripting language specifically designed for MT4.

MT5: Employs MQL5, a more advanced and object-oriented language. MQL5 offers features like object-oriented programming and debugging tools, making it easier to develop and manage complex trading strategies.

6. Additional features:

MT4: Primarily focused on core trading functionality.

MT5: Introduces additional features such as an integrated economic calendar, a built-in marketplace for trading signals and Expert Advisors, and support for multi-currency accounts.

Now let’s dive into some tips on choosing the right trading platform. 

Choosing the right platform:

The best trading platform for you depends on your specific trading needs and preferences. Here’s a quick guide:

Choose MT4 if you primarily trade forex or CFDs and you prefer a simpler, more user-friendly interface compared to MT5.

Also, if you are a beginner trader: The platform aligns well with the common starting point for many new traders. The familiarity with forex and CFDs, along with the user-friendly interface, can create a less overwhelming learning curve for beginners as they navigate the world of online trading.

Choose MT5 if you want to trade a wider range of asset classes such as cryptocurrencies, futures, IPOs, ETFs, Energy, etc. Also, when You require more advanced order types and backtesting capabilities. Lastly, you plan to develop or use complex automated trading strategies.

MT4 versus MT5 in a brief

Both MT4 and MT5 are powerful trading platforms, each catering to specific trading needs. Understanding the key differences between these two platforms will help you make an informed decision and select the platform that best aligns with your trading goals and preferences.

Want to delve deeper into a specific aspect of MT4 or MT5? Share your questions and trading interests in the comments below. For those eager to hone their forex trading skills, Decode’s official education partner – ORION Wealth Academy offers valuable resources and guidance.