With more than 10 million estimated users, MetaTrader is amongst the most powerful and best-known trading software. It supports multiple markets, including forex or stocks, and connects to brokerage accounts for seamless trading, making it an extremely valuable tool in any trader's arsenal.
MetaTrader is split into two platforms, each offering different features. As such, questions about how MetaTrader 4 performs vs MetaTrader 5 (otherwise called MT5) are common. So, what’s the difference between MetaTrader 4 and MetaTrader 5?
What is the Difference Between MetaTrader 4 and 5?
MetaTrader 4 and MetaTrader 5 are both highly capable pieces of software that share similarities, such as supporting mobile devices. However, there are many subtle differences between the two that traders should consider when deciding which is right for them.
Market Coverage
People who ask, ‘Should I use MetaTrader 4 or 5?’ must consider the markets they’d like to trade. MetaTrader 4 is the market standard for forex trading, and although it does support other asset classes, the MT4 development process focused on forex.
On the other hand, MT5 was designed for people trading multiple asset classes, such as stocks, commodities, and futures. It boasts a multithreaded engine for faster execution and a netting system for stock trading. So, while MT4 is well suited to forex traders, MT5 is the more versatile platform.
Technical Analysis
While both platforms offer basic charting and analysis tools like trendlines, shapes, and Fibonacci retracements, MetaTrader 5 offers more precise and customisable options. For example, superior control over drawing colours/styles and several Gann tools for advanced technical analysis.
Strategy Programming
For plotting complex strategies, which is better, MT4 or MT5? Both platforms can facilitate the activity, but MT5 excels. It uses the MQL5 programming language, which is object-oriented and offers more flexibility, while MT4 uses MQL4, which offers easier scripting tailored to single-asset strategies.
Available Timeframes
A trader's commonly used timeframes also influence the MT4 vs MT5 debate. MT4 offers nine standard timeframes that many people utilise, like one minute, one hour, or one day. However, MetaTrader 5 provides 21 timeframes, including atypical options like 11 minutes or seven hours.
Hedging Positions
Why use MT4 instead of MT5? If you’re a forex trader, you may leverage the hedging strategy to help mitigate risk. Only MT4 lets traders hedge by opening simultaneous long and short positions. MT5 lets users net out positions, achieving a similar result in a way tailored toward stocks or futures.
Broker Compatability
Brokers handle order execution/fulfilment, and traders must trust them with their money, so it’s essential to consider broker compatibility when choosing trading software.
So, what is the difference between MetaTrader 4 and 5 regarding broker support? Being older and more established, MT4 is much more widely supported than MT5, which is worth considering if you use a smaller broker. People can also sign up for ActivTrades, which supports both MetaTrader versions.
Depth of Market (DOM)
When deciding between MetaTrader 5 or 4, it’s worth considering if you require the depth of market feature, which displays the best bid and ask prices for a particular financial instrument. This feature is only available on MT5, while MT4 offers a more basic system.
Which is Better MetaTrader 4 or 5?
So, which one is better, MetaTrader 4 or 5? Although people may think MT5 is automatically the better option as it’s more recent and offers some additional features, the answer is more nuanced and depends on personal preferences, trading expertise, and the markets a trader requires access to.
Generally speaking, MetaTrader 4 is tailored forex trading software, making it the superior option for currency traders. It’s lightweight, boasts a more straightforward programming language, and offers hedging. MT4 is also simpler and more widely supported by brokers, making it more accessible.
On the other hand, MetaTrader 5 is better suited to people who would benefit from its depth of market feature, require charting customizability, trade a variety of markets, and want to create advanced scripts. It’s a more advanced tool and could be overly complex for beginners.
Common MT4 & MT5 Questions
With the two platforms offering similar functionality with a few critical differences, it’s natural that people have a few questions about how the two pieces of software compare. Some of the most common questions include:
Why Use MT4 vs MT5?
MetaTrader 4 is older and less versatile, so why is it still so popular? More brokers support the software, and its developers have tailored it to forex trading (the largest financial market). It also boasts an easier scripting language, making it the better choice for select use cases like creating algorithmic strategies. Check out our beginners guide to MT4 if you're looking to get started with the software.
How Do You Use MetaTrader 5 for Beginners?
The process of setting up and using MT4 or MT5 is straightforward. Download and install the client, link it to your brokerage account, explore the various assets, find a potential opportunity, perform analysis using the built-in tools, and place a trade. Your broker will automatically execute it. To begin your journey with MetaTrader 5, have a look at our MT5 download page with all the relevant information you need to start.
Do MT4 Indicators Work on MT5?
MetaTrader 4 has been around for longer than MT5, so it makes sense that people would want to port their MT4 indicators to the newer MetaTrader 5 platform. Unfortunately, it’s not possible to use MT4 indicators or Expert Advisors on MT5 as the two platforms use different programming languages.
Does MT4 Still Work?
Although MetaTrader 4 was released back in 2005 and has been superseded by MT5, the older version of the trading software is still commonly used and receives regular updates, although development has slowed somewhat. The most recent MT4 update was in February 2025, so it’s still actively maintained.
Summary
While both are similar tools that let people view assets, perform analysis, and place trades, there are several key differences between MetaTrader 4 and MetaTrader 5. For example, MT4 is more widely accepted and supports hedging, while MT5 supports additional markets and technical indicators.
Both versions of MetaTrader are powerful trading tools used by people around the world. But out of MetaTrader 4 or 5, which is better? There’s no best choice. It comes down to personal preference. MT4 suits beginners and forex traders, while MT5 caters to advanced users trading multiple markets.
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