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Difference Between MT4 and MT5 — Which Platform is Superior?

Difference Between Mt4 And Mt5

MetaQuotes Software Corp. developed its first trading platforms for trading Forex, CFDs, stocks, and futures in 2000 and 2001. At the time, they were limited in the capabilities of the trader terminal and were not widely available to traders. In early 2002, the company released MetaTrader 3, which had significantly expanded programming language capabilities and functionality. This trading platform lasted for three years.

In 2005, software development company MetaQuotes developed MetaTrader 4, the most popular trading platform since then due to its multifunctionality and ease of use.

The upgraded version of the trading platform, MT5, was officially launched in 2010. However, MT5 could not surpass MT4. Read on and you will learn more about the advantages that MetaTrader 4 brings, as well as what makes the MetaTrader 5 platform more special than ever.

MetaTrader 4

MT4 was originally designed to support retail Forex trading. MetaTrader 4 is popular because it is feature-rich, user-friendly, and mobile-friendly. The platform has an intuitive interface that is not overloaded with information, panels, and buttons. Certain functions are available simultaneously in both the toolbar menu and the right-click launch menu.

Key features of MT4:

This platform is designed for Forex trading. You can trade currencies, as well as CFDs on indices, stocks, bonds, commodities and cryptocurrencies.
MetaTrader 4 is a single-threaded platform for 32-bit operating systems. It also runs on 64-bit operating systems, but compatibility issues may arise.
MT4 platform supports more than 30 languages.

Another reason for the popularity of MetaTrader 4 is the marketing and technical support from the developer MetaQuotes. The software development team is constantly working to upgrade and improve the platform code. In addition, the license is within the financial means of brokers, so MetaTrader products are more positively received than other platforms.

Advantage

The main advantages of MT4 over other platforms are:

Multifunctionality. The platform has three execution modes; nine order types, including trailing stop; thirty built-in technical indicators, nine timeframes.
You can program in MQL4. The platform allows adding custom tools — scripts, Expert Advisors and indicators. You can also create your own trading tools in MetaEditor.
Get a tester. You can test manual and automated trading strategies on historical data, evaluate the performance of your trading system, and record backtest results for statistical analysis. No other trading platform, except TM5, has such functions.
Provides support from the trader community. MQL5.com is one of the largest investor and trader communities where you can copy signals, discuss trading, request the development of original indicators, EAs or trading robots, scripts. The MQL4 programming language is one of the most popular and convenient languages for expanding native trading systems, which is another advantage of MT4.
Security. In MT4, the exchange of information between the trader, the terminal and the platform server is encrypted with a 128-bit key, based on a special algorithm using a digital signature. Even if a Trojan virus enters the computer, the platform is protected from hacking.

And another benefit is that this trading platform is completely free

MetaTrader 5

MT5 is a modern, customized multi-asset platform. MetaTrader 5 was first released in June 2010. The developers envisioned MT5 as a complete replacement for MT4, similar to how MT4 replaced all previous versions.

At some point, MetaQuotes even decided to drop MT4 support and stop selling licenses to promote the new terminal modification. But ‘something went wrong.’ MT5 was not as successful as MT4 despite going through updates and upgrades, so MetaQuotes decided to use both versions.

Next, we will move on to the differences between MetaTrader 4 and MetaTrader 5. I will also share some tips that will help beginner traders make the right choice between these two trading platforms.

Benefit

MetaTrader 5 (MT5) is a modern multi-asset trading platform. In MetaTrader 5, the developers tried to upgrade technical analysis options, testers and order execution options. Some functions are more convenient than the previous version.

Plus points when comparing MT5 and MT4:

Depth of Market (DOM) Data. In MetaTrader 4, DOM was barely useful and was rarely used. In MetaTrader 5, DOM is a real trading tool. The developers added visible volumes in stock trading.
In MT5, Market Depth displays information about the most recent orders of buyers and sellers with a step change in price and actual order volume at specific quotes.
Order management system. The developers have added a grid system to Metatrader 5. The chart shows only one order, which is the average value of all open positions for an asset. This is quite convenient because you do not need to keep track of many trades.
Tester. Multicurrency functionality has been added to the MT5 tester, backtest statistics have been expanded. The results of testing and optimizing EAs or indicators in MT5 have become more accurate due to the appearance of forward testing. What was tested in MetaTrader 4 in 20 minutes, with the same parameters, took only 5 minutes in MetaTrader 5..
Timeframes. MetaTrader 5 includes several non-standard timeframes. In MetaTrader 4, you must install an additional script to analyze non-standard timeframes.
Technical Analysis. MT5 includes more built-in technical indicators. Some of these indicators need to be added to MT4 manually. There are also two additional pending orders, Buy Stop Limit and Sell Stop Limit.

Compare MT4 and MT5 ( Difference Between MT4 and MT5)

Let’s compare MetaTrader 4 vs MetaTrader 5: which is the better choice? MT5 is a new upgraded version of MT4, designed for 64-bit operating systems. MetaTrader 5 is a multi-market platform.

MT5 is faster, more flexible and more functional. Operations that take minutes to process on MT4 take seconds on MT5. The MT5 platform is multi-threaded.

For example, you can run the optimization process with the number of threads corresponding to the number of cores. The number of pending orders has been increased; the order matching policy has also been changed. All these upgrades are aimed at speeding up internal data transmission and providing traders with new multi-level tools for building complex trading systems.

MetaTrader 5 is a multi-asset trading platform designed for trading forex and non-forex assets. MT5 functionality with its enhanced depth of market functionality allows you to make money trading futures, options and other derivatives. You can also engage in Forex trading at the same time.

MetaTrader 4 vs MetaTrader 5 Comparison:

MT4MT5Order matching policyFill or Kill commandFill or Kill command

Immediate or Cancel command

Return

Hedging/NettingHedging OnlyHedging and NettingNumber of pending orders46Market DepthNot includedIncludeTechnical indicators/chart symbols30/3138/44Time frame921Strategy testerSingle threadedMultithreaded. MQL5 Cloud NetworkMarketForexForex/Stock Market (stocks, bonds, futures, options)Economic calendarNot includedIncludeIntegrated MQL5 ChatNot includedInclude

I will go into more detail about some of the differences between MetaTrader 4 and MetaTrader 5.

Differences between MT4 and MT5 in interface

How is the interface of MT4 and MT5 different? It is difficult to visually identify the difference between MetaTrader4 and MetaTrader5. In the new platform version, the developers focused on upgrading the platform’s functions, and almost left the interface unchanged.

While there are some differences in the main menu, the most frequently used functions remain the same. Similar to MT4, you can open the ‘Market watch’ or ‘Navigator’ window in MT5. You can also enable additional menus for timeframes and chart display types.

This is what MT4 looks like when all the main windows and panels are open:

This is the MetaTrader 5 interface:

There will be minor changes if you compare MetaTrader 5 with 4. In MT5, the icons on the toolbar are larger, additional tabs of the “Terminal” window also appear.

Changes to the main menu in MetaTrader 5 compared to MetaTrader 4:

In the “File” menu, you can now deposit or transfer funds directly within the platform.
Depth of market added to View menu.
The “Insert” menu includes two additional options, “Experts” and “Scripts”. Built-in software for Algorithmic traders will also be included here. Additionally, you can add your own custom EAs in MetaTrader 5.
The “Chart” menu includes more charting tools.

The “Terminal” window includes the “Economic calendar” and the VPS server.

Conclusion. After studying all the functions of MT4, it will take you a few hours to get familiar with MetaTrader 5. And conversely, if you are a proficient MT5 user, you will easily operate MT4.

What is the difference between MT4 and MT5 timeframes?

MT5 supports 21 timeframes, more than double the traditional 9 timeframes supported by MT4. The 9 main timeframes, just like in MT4, are located on the toolbar. To open a non-standard timeframe, you need to right-click on the chart and select the “Timeframe” tab.

I don’t think this innovation makes sense. If scalpers notice the difference between a one-minute and a two-minute timeframe, for day traders the difference between an M12 and M15 minute timeframe is not so noticeable. Besides, you can easily solve the problem of non-standard timeframes in MT4 by installing a script.

Conclusion. The increased number of timeframes is not a huge advantage of MT5. While it can certainly be useful for some, the traditional timeframes available in MT4 are more than enough to satisfy the need to experiment with the basics of trading.

What is Metatrader’s order matching policy?

There are three types of order execution in MT4:

Instant execution. When a trader sends a request to a broker to open an order, the platform automatically inserts the current price into the order. If the broker accepts the price, the order is executed. If the price is not accepted, the order is reversed at the new price; this is called a requote.
Order execution request. The order is executed at a price previously received from the broker. The trader can accept the offered price or reject the order.
Market execution. The forex broker decides to execute the order without agreeing on a price with the trader. If the trader places an order, this implies an early agreement on the execution price, even if this price is different from the final price.

The broker selects the type of execution on the account and defines it in the trading conditions.

In MT5, there are several other order execution types that the trader can specify in the order window:

Fill or Kill order. The order can only be executed at the specified price with the full position size. For example, a trader wants to buy 1 lot of EURUSD at 1.22543. But there are only 0.6 lots available for sale on the market at this price; other sell offers are at higher prices.
In this case, the order will not be executed. This is the only additional order execution type available in MetaTrader 4 and MetaTrader 5.
Immediate or Cancel order. The trade will be executed within the existing volume; the remaining volume will be canceled. From the previous example, volume 0.6 lots is bought, 0.4 lots is canceled.
Return. If the order is partially filled, the remaining volume will not be canceled but will remain on the market.

Traders have not paid much attention to the improvements introduced in MetaTrader. Speed is a key factor in trading, which has led to the popularity of One-Click Trading. In highly liquid ECN markets, prices change in milliseconds and there is always enough volume in the market at the current price.

In MT5, the developers have made the order submission process even more complicated. Therefore, it is difficult to say whether MT4 or MT5 is better when it comes to order execution policy.

Conclusion. MetaTrader 4 vs MetaTrader 5, in terms of order execution policy. The advantage of MetaTrader 5 is the ability to adjust the order execution policy completely or partially. However, this option is used only by professionals, not the majority.

. As for order execution, my advice for beginners is to choose MT4 — the fewer options, the easier it will be to understand the basics of the platform.

Hedging/Netting

In MetaTrader 4, you can open as many orders as you want on the same chart. Each new transaction is a new order. Such a system allows you to use locking, opening an opposite position with the same volume to overcome temporary price reversals.

In MetaTrader 5, the developers wanted to change the general system by using the so-called average order management system. The trader can open any number of positions on one chart, but they are all aggregated into one order using the offset method. Locking is impossible in this situation, which is the reason for criticizing the platform. Just six years later, in 2016, MetaQuotes introduced changes so that the platform can now support two order management systems.

Hedging mode allows you to open any number of positions on one asset. You cannot change the volume of an opened position, you can only enter more orders. The hedging system is supported by MetaTrader 4 and, since 2016, by MetaTrader 5.
Netting mode allows you to have only one open position in a financial instrument at a time. If you open a position in the same direction, both positions will be aggregated. If the directions of the positions are opposite, the first order will decrease by the volume of the second order; it will be closed completely if both orders have the same volume; the order will be switched to the opposite direction if the second position has a larger volume.

You set up order management, hedging or netting when you open an account. If you don’t find these options, contact your broker.

Conclusion. Which is better, MetaTrader 4 or 5? Both order management systems have their advantages: hedging allows locking; netting keeps only one order on the chart, you do not have to monitor multiple orders at the same time. So, the choice will be in favor of MT5.

Another note: FIFO or First In First Out rule. Traders must close the earliest opened positions first if dealing with multiple orders of the same size and currency pair.

You cannot enter the order first and exit the order last. This rule typically applies in the US. So for such countries, the grid system in MT5 is an advantage.

Tip: Open two demo accounts with both systems and compare MT4 and MT5. Also, share your opinion in the comments section below the article!

Pending Orders — MT4 to MT5

The number of orders in MT4 and MT5 is also different. MT4 has four types of pending orders Buy/Sell Stop or Buy/Sell Limit. MT5 has six types of pending orders.

Buy Stop Limit is a combination of Buy Stop or Buy Limit. When the Ask price reaches the value set in the Price section, the platform will automatically place a Buy Limit order at the level specified in the Stop Limit price box.

Sell Stop Limit is a combination of Sell Stop and Sell Limit. Once the Bid price reaches the value specified in the Price section, the Sell limit order will automatically be placed at the level set in the Stop Limit price.

Conclusion. These MT5 options are interesting for professional traders. The pending orders provided by MT4 will satisfy the beginner trader.

Metatrader MT4 and MT5 broker mobile version

There is no difference between MT4 and MT5. Both platforms have mobile versions for Android and iPhone/iPad. The mobile versions of MT include all the main functions of the desktop version: quote recognition, opening and execution policies, etc. You can manage your open positions using both the desktop and mobile versions.

LiteFinance: How to install LiteFinance MT4/MT5 mobile version:

On the main page of the LiteFinance trading platform website, go to the Forex Trading tab and click Download MT4/Download MT5 in the Trading Platforms menu.

Select the required operating system: AppStore or Android

Download and install the app.

In the “Forex Trading/Mobile Apps” section you can also find additional mobile software, examples of trading strategies, Forex analysis, etc. All applications are free for LiteFinance clients.

Analysis — MT4 vs MT5

MT4 has about 30 built-in indicators and 33 analytical objects. MT5 has 38 built-in indicators and 44 analytical objects that help determine the price trends of financial instruments. MT5 also offers built-in DailyForex signals, as well as a separate economic calendar tab.

“Insert/Indicators”. The “Trend” tab has six additional indicators. In addition to the standard Moving Average, Bollinger Bands and Parabolic SAR, there are also their modified versions, such as Fractal Adaptive Moving Average, Double Exponential Moving Average, etc.

There are also two new oscillators: Chaikin Oscillator and Exponential Moving Average.

“Insert/Objects”. Analysis objects have been added using a separate Elliott tab and additional objects in other tabs.

If you want me to focus on these tools in more detail, leave a comment in the comments section.

The variety of analytical tools in MT5 is not a significant advantage over MT4. The number of custom indicators dedicated to MT4 is even several times greater, surpassing the threshold of one hundred, becoming the main advantage of MT4.

Conclusion. Are you new to trading and just starting to analyze trading platforms? Choose MetaTrader 4 or LiteFinance trading terminals because they are simple and easy to understand.

To become a professional trader step by step, you can develop your own indicators or add free custom tools. All of them are added by the developers to MetaTrader 5, and you can actively do it with MetaTrader 4.

Algorithmic Trading in Metatrader 4 vs 5

Algorithmic trading in MT5 is largely unchanged from MT4, with a few minor differences: the “Insert” menu has two new tabs for scripts and experts. There is no comment on this yet. It is difficult to understand what the tabs mean if a trader can add EAs and custom scripts written in MQL5.

The developers have made significant changes to the strategy tester that has been radically improved. In MT5, the strategy tester is a unique tool for optimizing manual and algorithmic trading of any complexity. Its functionality surpasses that of the MT4 tester and the built-in tester Fx Blue and Forex Simulator .

What is the difference between MetaTrader 4 tester and MetaTrader 5 tester?

Speed. The Expert Advisor testing process, which takes about 30 minutes in MetaTrader 4, will take a maximum of 10 minutes.
Optimization. Optimization suggests testing all possible parameter combinations to find the most ideal one. In MT4, only one processor core is used for optimization.
In MT5, the developers have implemented the MQL5 Cloud Network model which can be used to combine the power of hundreds of processing cores.
The Test Agents Manager service allows you to use the free processing power of other community members on a paid or free basis. This technology has increased the optimization speed of Expert Advisors in MT5 by hundreds of times.
Multi-currency pair backtest. In MT5, you can test an Expert on multiple currency pairs at the same time. It speeds up the backtesting process significantly.
Testing methods. In MT5, testing methods are not based on difficult control points with results far from reality.
A forward test method is added. The test part is divided into three parts. The EA, optimized for the first two parts, is run on the last forward part. If the results are identical, the EA is optimized.

Conclusion. The backtest process in MT5 is the best and most useful improvement introduced by the developers. In MetaTrader 4, an Expert with increasing equity on a real account often leads to losses. Or the results in real trading are far different from the results of backtesting.

In MT5, due to the multi-threaded information processing in the MQL5 Cloud Network model, optimization will be many times more accurate. Therefore, there is a general opinion on traders’ forums that it is better to test Experts and trading systems in MetaTrader 5, but it is more convenient to enter orders in MetaTrader 4.

WEB and MT4 and MT5 Compatibility

The web version differs from the desktop version in that it opens in a browser. There is no need to download the metatrader installation file and install the platform. Others may find the Webtrader convenient, but I consider the Web terminal a stripped-down version of the desktop platform. It is convenient because it allows you to open orders with just a few clicks, but, for example, you cannot load advisors and indicators into it.

MT4 and MT5 developers have provided several versions of the platform: desktop, web version, mobile version for Android and iPhone/iPad. Both mobile and web versions are fully compatible with the desktop platform. A position opened on the computer can be closed from the mobile device or browser at any time.

The web version is not so popular: if a person has a computer at hand, he will prefer a full-fledged desktop platform, or else a mobile one. As an alternative to the browser platform, I recommend that you familiarize yourself with the LiteFinance online terminal integrated into your Personal Account. This is a perfect trainer for beginners with basic indicators and order opening functions.

Should I use MT4 or MT5 for copy trading?

The copy trading model is similar on both terminals. So it doesn’t matter which terminal is connected to the social trading platform. There are two ways to copy orders on both platforms:

Copy orders and signals from the MetaQuotes community. The function of connecting to the copy trading community is available in MetaTrader 4 and MetaTrader 5. You can use this option in the following way:
Step 1. Get familiar with signals, providers and their strategies. You can find signals in the “Terminal” window by clicking on the “Signals” tab. Here, I will not focus on how to choose the right signal provider for yourself in MT4. If you need a detailed overview, please leave your comments in the comments section.

Step 2. Subscribe to the signals you are interested in. You can only copy signals and orders after registering on MQL5.com, which is the entire MetaQuotes website.
This copy trading model has two major drawbacks. First, all signals cost money. On the screen, you can see some examples of fees: $30-$40/month.
If the signals don’t work, you will still lose money when you subscribe. Second, the way signal providers are ranked is quite vague.
More precisely, it is formed according to the performance of the trader providing the signal. The rating does not indicate the potential experience of the trader. However, MetaQuotes is not responsible for this, although it can send risk warnings related to the investment strategy. It is difficult to know whether it is a real trader or a bot wasting your money.
However, there is still a better way to start copying successful orders:

6. Copy trades using the broker’s social trading system. This model includes several advantages:

Sign up for free.
Transparent trader rating. Signal providers rating is based on broker’s clients. And broker is responsible for its reliability and reputation.
Speed. Copying the signal provider’s orders with the broker depends on the broker’s server. Therefore, the copying speed here is higher than when working via MT with MQL5.

MQL4 vs MQL5

MQL4 (MetaQuotes Language 4) is a programming language built into the trading platform. You can use MQL4 to write code for Expert Advisors, indicators, scripts, and the MT4 function library. MQL4 is based on another popular programming language, C++.

The language is flexible, so you can develop simple structures and complex programs capable of performing multiple calculations and controlling individual parameters. MQL4 functionality includes tools for analyzing current and previous quotes; it has built-in capabilities for managing and controlling trading orders.
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