Quick Answer: MT4 vs MT5 for Forex
MetaTrader 4 is best for forex-focused traders who rely on automated trading systems and custom indicators. MetaTrader 5 suits traders who want advanced analytical tools, more order types, and multi-asset trading capability. Both platforms are industry-standard, free to download, and supported by hundreds of brokers worldwide.
What Are MetaTrader 4 and MetaTrader 5?
MetaTrader 4, released in 2005, revolutionised retail forex trading by providing institutional-grade charting and automated trading to individual traders. It quickly became the global standard with over 70% market share.
MetaTrader 5, launched in 2010 as MT4's successor, aimed to expand beyond forex into stocks, futures, and options. Despite superior technical capabilities, MT4 retained dominance due to broker adoption rates and trader familiarity.
Both platforms share the same developer (MetaQuotes Software) and similar interfaces, but serve different trading needs.
Key Differences Between MT4 and MT5
Trading Instruments
MT4: Designed exclusively for forex and CFDs. Supports currency pairs, metals, and indices through CFD contracts.
MT5: Multi-asset platform supporting forex, stocks, futures, options, and bonds. Suitable if you trade beyond forex markets.
Order Types and Execution
MT4: Four execution modes and four pending order types (Buy Limit, Sell Limit, Buy Stop, Sell Stop). Simple and sufficient for most forex strategies.
MT5: Six execution modes and six pending order types (adds Buy Stop Limit and Sell Stop Limit). Supports market depth (Level II pricing) for better transparency.
Timeframes for Chart Analysis
MT4: Nine timeframes from M1 (1-minute) to MN (monthly). Adequate for standard trading strategies.
MT5: 21 timeframes including M2, M3, M4, M6, M10, M12, M20, H2, H3, H6, H8, H12. Greater flexibility for precise timing entries.
Technical Indicators
MT4: 30 built-in indicators plus thousands of custom indicators available through MQL4 community.
MT5: 38 built-in indicators and 44 analytical objects. MQL5 code is more powerful but less compatible with MT4 indicators.
Automated Trading
MT4: Runs Expert Advisors (EAs) coded in MQL4. Massive library of existing EAs available. Strategy tester with single-currency backtesting.
MT5: Uses MQL5 programming language (not backward compatible with MQL4). Multi-currency strategy tester allowing simultaneous testing across pairs. More sophisticated but requires recoding existing MT4 EAs.
Economic Calendar
MT4: No built-in economic calendar. Traders rely on third-party websites or broker-provided calendars.
MT5: Integrated economic calendar with real-time updates, event impact ratings, and historical data.
Which Platform Should You Choose?
Choose MT4 If You:
- Trade forex exclusively with no interest in stocks or futures
- Use existing Expert Advisors coded in MQL4
- Prefer wider broker selection (more brokers offer MT4)
- Value simplicity and proven reliability
- Rely on specific custom indicators built for MT4
- Are comfortable with nine standard timeframes
Choose MT5 If You:
- Trade multiple asset classes beyond forex
- Need advanced order types like Stop Limit orders
- Require more timeframes for precise technical analysis
- Want built-in economic calendar integration
- Prefer modern coding language for automated strategies
- Value market depth and Level II pricing
How to Test Both Platforms
Step 1: Download from Broker
Never download MetaTrader from unofficial sources. Always download through your broker's website to ensure correct server configuration and avoid malware.
Step 2: Open Demo Account
Create risk-free demo accounts with virtual funds. Test both platforms simultaneously to compare interface and features directly.
Step 3: Test Your Strategy
Execute your typical trades on demo accounts. Verify order execution, charting tools, and any indicators or EAs you use.
Step 4: Evaluate Broker Implementation
Broker implementations vary. Some add custom features, different spreads, or unique trading instruments. Test the specific broker's MT4 and MT5 offerings separately.
Common Mistakes When Choosing
- Assuming MT5 is better because it's newer: MT4 remains superior for pure forex traders who don't need multi-asset capability.
- Not testing demo accounts first: Always verify the platform suits your strategy before depositing funds.
- Ignoring EA compatibility: MT4 EAs don't work on MT5. Budget time and cost for recoding if switching.
- Overlooking broker spreads: The same broker may offer different spreads on MT4 vs MT5. Compare actual trading costs, not just platform features.
- Choosing based on others' recommendations: Your trading style determines the best platform. What works for scalpers differs from swing traders.
Can You Use Both Simultaneously?
Yes. Many traders run MT4 for automated strategies using existing EAs whilst using MT5 for manual trading with advanced charting. You can install both on the same computer without conflicts.
Some brokers offer accounts on both platforms, allowing you to split strategies across platforms based on their strengths.
Broker Availability Considerations
MT4 enjoys near-universal support with virtually every forex broker offering it. MT5 adoption has grown but remains less widespread, particularly amongst smaller brokers.
Check your preferred broker's offerings before committing. If a broker you trust offers only MT4, that limits your choice regardless of MT5's theoretical advantages.