MT4 vs MT5 (Which MetaTrader Platform Should You Choose?)

The background

MT4 was released in 2005 and quickly became the world's most popular forex trading platform. It was designed specifically for forex and CFD trading, and it nailed the basics so well that it remains dominant more than two decades later.

MT5 was released in 2010 as a more advanced multi-asset trading platform. MetaQuotes built it from scratch with newer technology, more features, and support for additional markets. Despite being over a decade old itself, MT5 is still considered the "newer" option and is gaining ground rapidly.

Charting comparison

One of the most noticeable differences is in the charting capabilities.

• Timeframes: MT4 offers 9 timeframes. MT5 offers 21 timeframes including useful additions like 2-minute, 2-hour, 6-hour, 8-hour, and 12-hour charts.
• Indicators: MT4 has 30 built-in indicators. MT5 has 38 built-in indicators.
• Drawing objects: MT4 offers 31 analytical objects. MT5 offers 44 analytical objects.
• Chart types: Both offer candlestick, bar, and line charts. No significant difference here.

For traders who rely heavily on technical analysis and multi-timeframe analysis, MT5's additional timeframes are a genuine advantage. The extra indicators and drawing tools are a nice bonus, though custom indicators can fill any gaps on either platform.

Order types

• MT4 supports 4 pending order types: buy limit, sell limit, buy stop, sell stop
• MT5 supports 6 pending order types: everything MT4 has plus buy stop limit and sell stop limit

The additional stop limit orders on MT5 let you combine the logic of a stop order and a limit order. For example, a buy stop limit waits for the price to reach a certain level, then places a limit order to buy at or below a specified price. This gives you more precise control over your entries.

For most beginners, the 4 order types on MT4 are sufficient. But as your strategies become more sophisticated, the extra options on MT5 become useful.

Markets and instruments

• MT4 was designed for forex and CFDs only
• MT5 supports forex, stocks, futures, options, bonds, and commodities

If you only trade forex, this difference does not matter. If you want to diversify into other markets or if you might want to in the future, MT5 is the better long-term choice.

Programming and automation

• MT4 uses MQL4, a simpler programming language
• MT5 uses MQL5, a more powerful language with object-oriented programming support

MQL4 EAs do not work on MT5 and vice versa. This is the biggest barrier for traders switching from MT4 to MT5. If you have invested time or money in MT4 EAs, you cannot simply move them over. They need to be rewritten.

The MQL4 ecosystem is currently larger with more free and paid EAs and indicators available. But the MQL5 ecosystem is growing fast, and new development is increasingly focused on MT5.

This is an area where MT5 has a clear advantage

• MT4 uses a single-threaded Strategy Tester. Backtests run on one processor core and can be slow.
• MT5 uses a multi-threaded Strategy Tester that utilizes all available processor cores, making backtests much faster.
• MT5 supports real tick data for more accurate backtesting.
• MT5 supports multi-currency backtesting, meaning strategies that monitor multiple pairs can be tested properly.
• MT5 offers forward testing to validate optimized parameters on unseen data.
• MT5 can use the MQL5 Cloud Network for distributed optimization across thousands of computers.

For strategy developers who rely on backtesting, MT5's capabilities are significantly superior.

Economic calendar

• MT4 does not have a built-in economic calendar
• MT5 has a full economic calendar built into the platform with event filtering, impact ratings, and historical data

This is a convenient feature for fundamental traders who want quick access to upcoming economic events without leaving the platform.

Position management

• MT4 uses a hedging system only. You can open multiple positions on the same pair, including opposite directions.
• MT5 supports both hedging and netting modes. In netting mode, all positions on the same symbol are combined into one. Most forex brokers set MT5 to hedging mode by default.

For forex traders, both platforms work the same way (hedging). The netting option becomes relevant if you trade exchange-based markets like stocks or futures.

Broker support

• MT4 is supported by more brokers worldwide
• MT5 broker adoption is growing rapidly, and some brokers now only offer MT5 to new clients

The gap is closing, but MT4 still has the widest broker compatibility. Before choosing a platform, check what your preferred broker offers.

Built-in VPS

• MT4 does not have a built-in VPS service
• MT5 offers a built-in MetaQuotes VPS that can be activated directly from within the platform

This is a nice convenience feature for MT5 users who want easy VPS setup for automated trading.

Which one should you choose

Choose MT4 if:

• You want the simplest possible platform to learn on
• You have existing MT4 EAs and indicators you depend on
• Your broker only offers MT4
• You trade only forex and do not need additional markets
• You want access to the largest community and resource library

Choose MT5 if:

• You are starting fresh with no existing MetaTrader tools
• You want more timeframes, indicators, and order types
• You plan to trade stocks, futures, or other markets besides forex
• You develop strategies and want superior backtesting
• You want a platform that will receive continued updates and support
• You want a built-in economic calendar and VPS

For most beginners starting from scratch today, MT5 is the recommended choice. It offers everything MT4 does plus meaningful improvements, and it is the platform with the longer future ahead of it. Compatible brokers like IC Markets and Fusion Markets offer both platforms.