Difference Between MT4 and MT5 | Full Comparison Guide

Understanding the difference between MT4 and MT5 is one of the most important steps for any trader who wants to choose the right trading platform. Both platforms were developed by MetaQuotes and are used by millions of traders worldwide. While they look similar at first glance, they serve different trading needs.

MetaTrader 4 (MT4) is known for its simplicity and strong focus on forex trading. MetaTrader 5 (MT5), on the other hand, was built as a more advanced and flexible platform that supports multiple asset classes and modern trading tools.

Choosing the right platform is not about which one is newer — it’s about which one matches your trading goals, experience level, and preferred markets. In this guide, we’ll explain the key differences between MT4 and MT5 in simple terms so you can confidently choose the right one.

Difference Between MT4 and MT5

The main difference between MT4 and MT5 lies in market access, tools, speed, and advanced features. MT4 was primarily designed for forex traders, while MT5 is a multi-asset platform that supports stocks, commodities, indices, and cryptocurrencies.

Let’s break it down:

• MT4 is best for forex-only traders who want a simple, stable platform

• MT5 is best for traders who want advanced tools and access to many markets

While MT5 has more features, MT4 remains popular because of its ease of use and massive library of indicators and expert advisors.

A Brief History of MT4 and MT5

MetaTrader 4 (MT4)

MT4 was released in 2005 and quickly became the most widely used trading platform in the world. It was built specifically for forex trading and became popular due to its clean interface, fast execution, and strong support for automated trading.

Even today, MT4 remains the top choice for many retail forex traders and brokers.

MetaTrader 5 (MT5)

MT5 was launched in 2010 as the next generation of MetaTrader platforms. Unlike MT4, MT5 was designed to support multiple financial markets such as stocks, futures, commodities, and indices — not just forex.

MT5 also introduced better charting tools, faster backtesting, and built-in economic news, making it a more complete trading system.

Key Features and Functionalities of MT4 and MT5

1. Market Coverage

One of the biggest differences between MT4 and MT5 is the type of markets each platform supports.

MT4:
MT4 is mainly built for forex trading. While brokers can add CFDs, its core design is focused on currency pairs.

MT5:
MT5 supports forex, stocks, indices, commodities, futures, and cryptocurrencies. This makes it perfect for traders who want to diversify across different asset classes. If you only trade forex, then MT4 is enough. But if you trade multiple markets, then MT5 is better

2. Programming Language

MT4:
Uses MQL4, which is simple and beginner-friendly. Most expert advisors (EAs) and indicators online are built for MT4.

MT5:
Uses MQL5, which is faster, more powerful, and supports complex trading algorithms and multi-threaded backtesting.

 Beginners prefer MT4. Advanced algo traders prefer MT5.

3. Order Types and Execution

MT4:
Supports 4 pending order types:

• Buy Limit

• Sell Limit

• Buy Stop

• Sell Stop

MT5:
Supports 6 pending order types:

• Buy Limit

• Sell Limit

• Buy Stop

• Sell Stop

• Buy Stop Limit

• Sell Stop Limit

This extra flexibility makes MT5 better for advanced trade strategies.

4. Timeframes

MT4:
Offers 9 timeframes, ranging from 1 minute to 1 month.

MT5:
Offers 21 timeframes, including 2-minute, 3-minute, and 8-hour charts, giving traders more precision in market analysis.

This is another major difference between MT4 and MT5 for technical traders.

5. Economic Calendar

MT4:
No built-in economic calendar. Traders must rely on third-party websites.

MT5:
Has a built-in economic calendar showing major news events and market-impacting data releases.

This makes MT5 better for traders who use fundamental analysis.

6. Hedging and Netting

MT4:
Supports hedging only, meaning you can open multiple buy and sell trades on the same instrument.

MT5:
Supports both hedging and netting. Netting combines all positions on the same asset into one, which is useful for stock and futures traders.

This gives MT5 more flexibility across different markets.

7. Backtesting and Strategy Optimization

MT4:
Allows backtesting on one currency pair at a time and has basic optimization tools.

MT5:
Supports multi-currency backtesting, faster processing, and advanced optimization features.

For algorithmic traders, this is one of the biggest differences between MT4 and MT5.

8. Interface and Ease of Use

MT4:
Simple, clean, and beginner-friendly. Easy to learn and navigate.

MT5:
More advanced interface with extra features, which may feel overwhelming for beginners but powerful for experienced traders.

MT4 vs MT5 Comparison Table

Pros and Cons of MT4

Pros of MT4

• Very easy to use

• Lightweight and runs on low-end devices

• Massive EA and indicator marketplace

• Perfect for forex-only traders

• Strong community support

• Stable and reliable execution

Cons of MT4

• Limited market access

• No built-in economic calendar

• Slower strategy testing

• Less advanced order types

Pros and Cons of MT5

Pros of MT5

• Supports multiple markets (stocks, futures, crypto, etc.)

• More indicators and timeframes

• Built-in economic calendar

• Faster backtesting and optimization

• Supports both hedging and netting

• Better for advanced strategies

Cons of MT5

• Harder for beginners

• MT4 indicators and EAs don’t work on MT5

• More features than some forex traders actually need

Which Is Better: MT4 or MT5?

There is no universal winner; the right choice depends on your trading style.

Choose MT4 if:

• You trade forex only

• You want a simple, beginner-friendly platform

• You rely on classic expert advisors

Choose MT5 if:

• You trade stocks, commodities, or crypto

• You want advanced charting and tools

• You use automated strategies and deep backtesting

In simple terms, the difference between MT4 and MT5 comes down to simplicity versus versatility.

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Frequently Asked Questions (FAQs)

1. Can I use MT4 indicators or EAs on MT5?

No. MT4 tools are not compatible with MT5 because they use different programming languages.

2. Is MT5 better than MT4?

MT5 has more features and markets, but MT4 is better for simple forex trading. The better platform depends on your needs.

3. Is MT5 faster than MT4?

Yes. MT5 is multi-threaded and generally faster in data processing and backtesting.

4. Why do many brokers still use MT4?

Because MT4 is widely trusted, easy to use, and many traders prefer its simplicity.

5. Which is better for beginners — MT4 or MT5?

MT4 is better for beginners because it is easier to understand and use.