Choosing between MetaTrader 4 and MetaTrader 5 is a common dilemma among retail traders, especially those who are just getting started. Although both are designed by MetaQuotes, there are several differences, making each one suited for different categories of traders.
Thankfully, a wide range of brokerages offer both mt4 and mt5 download links, so if you are struggling to make a pick, here are 4 major differences between the platforms. Regardless of choice, be aware that both are used by millions of traders around the world – therefore both can be trusted.
The majority of traders analyze prices so they can get a better understanding of order flow changes. As a result, charts are important and this is where differences between the platforms emerge. More specifically, you are able to use 9 timeframes of MT4, and that number increases to 21 on MT5.
You might be trading commodities or stocks, which are now active and volatile, so the ability to analyze price actions on multiple timeframes can play a crucial role. Experts believe that MetaTrader 4 is a more suitable solution for beginners who want to keep things simple during the early stages. Once they get accustomed to trading, it’s possible to make an upgrade to MT5.
MQL4 and MQL5
Both platforms allow the use of Expert Advisors. Basically, traders can write software and design algorithms that help them when trading. There are many EAs available even for free, addressing order placement, market statistics, and others.
However, for MT4 the programming language used is MQL4, while for MT5 it’s MQL5. Despite the name resemblance, in reality, these are two completely different languages and one can’t export an EA written in MQL4 in order to be used on MT5. This is one of the main complaints voiced by traders who have been actively using EAs for years.
Technical analysis features
Markets are clouded by uncertainty due to the Russia-Ukraine war, rising inflation, and social unrest. During such periods, traders rely even more on technical analysis. Access to a wide range of tools is necessary, and both platforms are packed with indicators.
MT4 offers 30 built-in indicators, 2,000+ free customer indicators, and over 700 paid indicators. When using MT5, you can use up to 38 technical indicators and 44 analytical objects, on an unlimited number of charts.
Although there is added value with MT5, many traders continue to use MT4 because they have been using it for years. Still, those with higher expectations , who are constantly upgrading their strategies, might find the new analysis indicators integrated into MT5 more suited.
In terms of other differences, MT5 offers access to the Depth of Market (DOM), which shows bids and offers for financial securities at varying prices, depending on volume. Also, you can take advantage of an economic calendar and market news.
Netting, multi-threaded strategy tester, fund transfer between accounts, and an embedded MQL5 community chat are features traders could find useful. Ultimately, it’s down to personal preferences regarding which platform is the best choice.