Metatrader 4 vs Metatrader 5: Which is the Top Choice for Forex Trading in 2024?

Traders cannot access all financial markets through MT4. To address this limitation, MetaQuotes developed MT5, offering access to markets that are unavailable on MT4.

MetaTrader is a popular trading platform known worldwide as a standard in the industry. For Forex Trading, MetaTrader's two main versions, MT4 and MT5, are essential to know about. Both versions are excellent for trading, but choosing between them can be tough. Since MetaQuotes Software Corp. developed both, they share some similarities but also have key differences.

In this blog, we'll highlight these differences to help you pick the best one. Read on, choose, and start trading!

MetaTrader 4 (MT4):

MetaTrader 4, developed by MetaQuotes Software, is a highly popular online trading platform released in 2005. It has been downloaded over 10 million times from the Google Play Store and has a 4.8-star rating on iOS.

MT4 is reliable, feature-rich, and has strong community support, making it a dominant platform in Forex trading. Although designed for Forex, it can also be used to trade indices, stocks, and commodities via CFDs.

Pros:

Simple to use

Strong community support

Easy navigation

Supports automated trading with Expert Advisors (EAs)

High stability and security

Provides learning resources

Multi-language support

Real-time market data and news feeds

Cons:

Slower than MT5

Fewer trading options and tools

Outdated user interface

Limited customization options

MetaTrader 5 (MT5):

MetaTrader 5, released in 2010 by MetaQuotes Software, is a multi-asset online trading platform. While it looks similar to MT4, it offers more features and faster trading speeds. MT5 can’t fully replace MT4, but it serves different purposes with unique features.

MT5 allows users to trade in almost all financial markets, not just Forex. It includes stocks, indices, commodities, and even cryptocurrencies.

Pros:

Modern and customizable user interface

More charting tools, technical indicators, and timeframes

Access to over 500 financial markets including Forex, indices, commodities, stocks, and cryptocurrencies

Improved execution speed

Cons:

Smaller support ecosystem compared to MT4

More complex due to additional features

Less broker support compared to MT4

Limited broker availability

User Interface:

Both MT4 and MT5 have a similar layout, but MT4 is simpler and easier for beginners. MT5 has more tools and options, making it more modern and sophisticated.

TimeFrames:

MT4 has 9 timeframes, while MT5 offers 21, providing more flexibility for traders.

Charting Tools:

MT4 supports basic chart types and customization, while MT5 enhances charting with additional types and more advanced customization options.

Indicator Count:

MT4 includes 30 built-in indicators, whereas MT5 has 38, offering more analytical tools.

Programming Language:

MT4 uses MQL4, known for simplicity, while MT5 uses the more advanced MQL5.

Automated Trading:

Both support automated trading, but MT5 offers improved backtesting and optimization.

Asset Listing:

MT4 primarily supports Forex and CFDs, while MT5 supports a broader range of instruments, including stocks, futures, and options.

Technical Analysis Tools:

MT5 surpasses MT4 with more indicators and graphical objects, an economic calendar, and depth of market features.

Demo Trading:

Both platforms offer demo accounts, but MT5 has more advanced features beneficial for experienced traders.

Mobile Trading:

Both MT4 and MT5 have mobile versions, but MT5 offers more advanced features, including more timeframes and chart types.

Strategy Testing and Optimization:

MT5 is faster in strategy testing and optimization, providing better performance insights.

Economic Calendar:

MT4 lacks an economic calendar, while MT5 includes an integrated one for real-time information.

Broker Support:

MT4 has widespread broker support, while MT5, though gaining popularity, still has less support.

MT4 VS MT5: Which to Choose in 2024?

Traders need a trustworthy and convenient platform. MT4 is renowned for its longevity and support network, but it doesn't access all financial markets. MT5 was developed to fill this gap, allowing access to more markets.

If you want to explore different financial markets, MT5 is the better choice.

Conclusion:

Both MT4 and MT5 have unique features and capabilities, making them valuable in different ways. 2024 is a great year to explore the Forex market and open new opportunities. Happy Trading!

FAQ:

Can I use the same account for both MT4 and MT5?

No, you cannot use the same account for both versions.

Which platform is better for automated trading?

MT5 is better due to improved backtesting and optimization.

Can I use MetaTrader on a demo account?

Yes, both versions support demo accounts.

Is it possible to use both MT4 and MT5?

Yes, you can use both platforms simultaneously.

Is the MetaTrader platform free to use?

Yes, it's free to download and use, though some brokers may charge for certain services.

Can I use MetaTrader on an Android mobile?

Yes, both versions are available on Android devices.

Author's Note

If any queries arise, kindly reach out to me.