MT4 vs MT5: Which Trading Platform is Better?

If you’ve spent any time trading, you’ve probably come across MetaTrader 4 (MT4) and MetaTrader 5 (MT5); two of the most popular platforms in the trading world. But which one is the right fit for you? Whether you’re a forex trader focused on precision or someone looking to expand into multi-asset trading, understanding the difference between Metatrader 4 vs 5 can help you make more informed decisions about your trading strategies. Choosing the right platform becomes even more important when you realize that each platform offers distinct features and capabilities. MT4 has been the go-to choice for forex traders for years, while MT5 builds on that legacy with additional tools and expanded market access. 

This blog will break down the differences between the two platforms, looking at usability, technical features, algorithmic trading, and more. By the end, you’ll have a clearer idea of which platform suits your trading style and how to convert your existing tools like Expert Advisors (EAs) from MT4 to MT5.

What are MT4 and MT5?

MetaTrader 4 is a trading platform that was launched in 2005 by MetaQuotes. It was designed mainly for forex traders, and it has become the industry standard over the years. One of the key reasons for its popularity is its user-friendly interface and solid performance. MT4 provides traders with access to a range of technical analysis tools, including 30 built-in indicators, 9 timeframes, and 4 types of pending orders. Forex traders especially favor it because of its fast execution speed and reliable order management. The platform also supports automated trading through Expert Advisors (EAs), which allows traders to use or develop their own trading algorithms.

MetaTrader 5 was released in 2010 as a more advanced version of MT4. While MT4 focuses on forex trading, MT5 is a multi-asset platform that supports trading in stocks, commodities, futures, and more. It comes with several upgrades, including 38 built-in indicators, 21 timeframes, and 6 types of pending orders. MT5 also offers an economic calendar, integrated market depth, and additional order types. All of these features make it a more powerful tool for traders who want access to a wider range of assets. MT5 also uses a more advanced coding language called MQL5, which allows for more complex automated trading systems.

In short, while both platforms are designed for technical analysis and automated trading, MT4 is simpler and more specialized in forex, while MT5 offers you more asset coverage and enhanced features. 

What is the Difference Between MT4 Vs. MT5 Forex Trading Platforms?

Although these two tools are developed by the same company and may look similar at first glance, but they differ significantly when it comes to features and functionality. Knowing the differences can help you choose the right platform for your trading style and needs.

MT4 vs. MT5; Technical Features 

The first technical feature we want to compare between Metatrader 4 vs Metatrader 5 is how they support technical indicators. MT5 has 38 built-in indicators that allow you to conduct more in-depth analysis. If you’re into complex strategies, MT5’s wide range of free and paid indicators will meet your needs. MT4, on the other hand, comes with 30 built-in indicators and offers access to around 2,000 custom indicators from its Code Base, with over 700 paid indicators from its Market. While MT4’s offering is robust and wide, MT5 offers more depth with its enhanced capabilities. So, MT4 it less ideal for sophisticated trading. 

The next feature is an important one if you’re a trader who heavily relies on technical analysis. MT5 provides a more extensive range of charting tools. It has 44 graphical objects, which include advanced tools like Gann, Fibonacci, and Elliott wave analysis. These extra tools allow for more precise predictions of future price movements. MT4 has a solid set of 31 graphical objects, which covers basic needs but lacks the specialized options MT5 provides.

Now, let’s compare timeframes between MT4 vs. MT5. When it comes to timeframes, MT5 offers 21 different timeframes. You can analyze assets down to the minute (such as M1, M2, M3), or across multiple hours and days. This makes it much easier to perform detailed market analysis. In comparison, MT4 supports only 9 timeframes, which limits the level of detail in your analysis. 

Another big difference is the order types available on each platform. MT5 allows for 6 types of pending orders, which gives you more flexibility in setting up their entry and exit points. It includes the usual buy stop, buy limit, sell stop, and sell limit from MT4 but adds buy stop limit and sell stop limit. These additional order types give you more precise control over your trades. MT4 only offers the 4 basic order types, which can feel limiting if you’re using more advanced strategies. 

And the last technical feature that we shouldn’t overlook is the economic calendar. If you’re the kind of trader who likes to keep an eye on macroeconomic events, MT5’s built-in Economic Calendar is an invaluable tool. It provides real-time information about financial news that can affect the markets. MT4, on the other hand, lacks this feature. So, you should rely on third-party sources to track market-moving events.

MT4 vs. MT5; Usability & Mobility 

Both platforms are available on desktop, mobile, and web browsers. Whether you prefer trading on Windows, macOS, or even Linux, both Metatrader 4 vs 5 will work for you. They also have apps for Android and iOS that allow you to trade on the go. In terms of design, both platforms are similar, though MT5 has a more modern look with a customizable interface. If you like having control over how your platform looks and feels, MT5’s extra customization options might offer you a more lucrative option.  

MT4 vs. MT5; Security Features

Both platforms take security seriously by using encryption protocols and secure login procedures to keep your data and funds safe. MT5, as the newer platform, includes more advanced security features such as two-factor authentication. This extra layer means you should verify your identity through a code sent to your mobile device. MT5’s modern architecture also offers better defense against cyber threats like malware and hacking.

MT4 vs. MT5; Third-party Add-ons and Integrations

Both platforms support third-party add-ons, which can expand their functionality. MT4 has a rich ecosystem of third-party tools. You can find numerous plugins, custom indicators, and automated trading systems (EAs). Whether you need a trade copier or a risk management tool, MT4 has a wide range of options from independent developers.

While MT5 also supports third-party add-ons, it has fewer available options compared to MT4. However, many features that previously required plugins on MT4, like additional timeframes and an economic calendar, are built directly into MT5. So, you don’t need external add-ons anyway.

MT4 vs. MT5; Market Coverage 

One of the key differences between MT4 vs. MT5 lies in the range of markets they support. MT4 is developed for forex trading and CFDs (Contracts for Difference), which makes it a highly specialized platform for trders who focus on currency markets. It offers access to forex and a limited number of CFDs, which is ideal if you’re primarily a forex trader and don’t need extensive asset coverage.

But if asset coverage is important to you, MT5 is a multi-asset platform that goes beyond just forex and CFDs. It includes support for futures, stocks, options, and commodities. This broader range of assets means you can diversify your portfolio by trading in multiple markets from a single platform. So, if you want to access a wider range of instruments and not just focus on forex, MT5 is the more versatile choice. 

The table below summarizes all the information that we covered in this section: 

By carefully reviewing these features and comparing MT4 vs. MT5, you can learn enough information that will help you make the right decision. If you don’t know how to use these platforms, here’s a comprehensive guide that teaches you how to use MT4. 

How to Speed Up MetaTrader Performance?

MetaTrader, while a powerful trading platform, can sometimes experience slowdowns. Here are some tips to optimize its performance:

Hardware Considerations

• Processor: A faster processor, especially one with multiple cores, can significantly improve MetaTrader’s performance.
• RAM: Ensure you have ample RAM to handle the platform’s demands, especially if you’re running multiple charts or complex indicators.
• Storage: Use a solid-state drive (SSD) for faster data access and reduced loading times.

Software Optimizations

• Minimize Background Processes: Close unnecessary applications that might be competing for resources.
• Update Drivers: Ensure your graphics drivers and other system drivers are up-to-date.
• Disable Antivirus Real-Time Protection: Temporarily disable real-time scanning while using MetaTrader, as it can sometimes interfere with performance.
• Limit Indicators: Reduce the number of indicators you’re using on each chart. Overloading charts can slow down the platform.
• Optimize Charts: Adjust chart settings to reduce the amount of data being processed. For example, consider using lower timeframes or reducing the number of historical bars displayed.
• Use a VPS: A Virtual Private Server (VPS) offers a dedicated server environment that delivers faster processing speeds and reduced latency, greatly enhancing MetaTrader’s performance. Be sure to optimize MetaTrader for your Forex VPS to maximize these benefits.

MetaTrader-Specific Settings

• Chart Settings: Experiment with different chart settings, such as reducing the number of historical bars displayed or disabling certain chart features.
• Indicator Settings: Optimize indicator settings to reduce computational load. Some indicators, especially those that involve complex calculations, can be resource-intensive.
• Expert Advisors (EAs): If you’re using EAs, ensure they are well-optimized and avoid running multiple resource-intensive EAs simultaneously.
• MetaTrader Settings: Check MetaTrader’s settings for any options that might be affecting performance, such as the number of history bars stored or the maximum number of charts allowed. 

Understanding the Forex Market’s Rhythm

The forex market, being global, operates 24 hours a day, five days a week. However, there are certain periods when market activity is significantly higher, leading to greater volatility and potential trading opportunities. That’s why we recommend you learn the best months, days, and hours to trade forex.

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How Do You Convert an MT4 EA to MT5? 

Converting an MT4 Expert Advisor to MT5 is more than just a matter of changing the file format. MT4 uses MQL4, a programming language that was designed for single-threaded trading strategies, but MT5 uses MQL5, which uses a more object-oriented and multi-threaded architecture. Here’s a step-by-step guide to converting an MT4 EA to work on the MT5 platform:  

Analyze Your MQL4 Code

The first step in conversion is to analyze the original MQL4 code and identify any functions that are not directly compatible with MQL5. Common functions that often require rewriting include: 

• OrderSend(): In MQL4, this function handles all order placements. In MQL5, you’ll need to replace this with OrderSendAsync() or the Trade classes that handle positions in a more complex way.
• OrderClose() and OrderModify(): In MT5, these order functions are replaced by PositionClose(), PositionModify(), and other specific methods for managing trades.

This is a very important step in the conversion process. So, make sure you check your MQL4 code for these functions.  

Modify the Order Execution Logic 

MT4 uses a simple approach to order execution. MT5, however, offers a more granular and sophisticated system. This allows traders to use more pending order types, such as Buy Stop Limit and Sell Stop Limit. You will need to update your order placement logic to account for these new possibilities. Additionally, MT5 supports multiple options like Fill or Kill, Immediate or Cancel, and Return. So, it’s really crucial to configure your EA accordingly.

In MT4, when placing orders using OrderSend(), you specify all order parameters at once. In MQL5, this process is handled differently, often through the CTrade class. In this process, the order and its properties are separated, and orders can be sent asynchronously.

Adapt for Market Depth and Order Types 

MT5 provides access to market depth. This allows traders to see the number of buy and sell orders at various price levels. If your EA is designed to handle volume or market depth data in MT4, you may need to restructure your code to accommodate MT5’s DOM (Depth of Market) feature. MT5 also supports six pending order types, compared to MT4’s four, so any EA logic that places pending orders should be adapted to incorporate the new types for enhanced control over entry and exit points.

Transition to the MQL5 Object-Oriented Approach 

One of the biggest differences in MQL5 is its object-oriented nature. MT4 follows a procedural style, while MT5 uses classes and objects. To take full advantage of MT5’s capabilities, you’ll want to convert your code to use MQL5’s classes like CTrade, CPosition, and CHistory. These provide a cleaner, more modular way of handling trading operations.  

Implement Error Handling and Debugging 

MT5 offers advanced tools for error handling and debugging. You should use the built-in Print(), GetLastError(), and other debugging functions to make sure your EA operates smoothly after conversion. MT5 also allows for multi-currency backtesting. This means you can test your EA on multiple symbols and timeframes to check for issues that are related to the conversion.

Test the Converted EA 

It’s really important to test your EA  in the MT5 Strategy Tester after you’ve updated your code. 

This tool allows you to simulate trading scenarios, optimize parameters, and run backtests across various market conditions. Pay close attention to:

• Execution speed: MT5’s multi-threaded nature may affect how quickly trades are executed, especially when you’re trading multiple symbols.
• Order handling: Make sure that all trades are executed correctly. This is very important if your EA relies on hedging or uses advanced order types like Stop Limit.
• Resource usage: MT5’s more advanced architecture allows for better use of system resources, but poorly converted code may not benefit from this improvement. Check that your EA uses CPU and memory resources efficiently.

Debug and Fine-Tune 

Converting an EA from MT4 to MT5 is usually not flawless on the first try. You can use MT5’s debugging tools to iron out any issues. For example, MT5 provides step-by-step debugging, which can help you isolate problems in your logic or order management functions. You should also pay special attention to how your EA handles multi-symbol trading if that’s part of your strategy. 

Consider Automating the Conversion Process (Optional) 

There are so many available tools that can help you automate the conversion of MT4 code to MT5. However, these tools typically only handle basic syntax changes and may not account for deeper architectural differences. So, it’s always recommended that you manually review and optimize your code after using any automatic converter.

Converting an MT4 EA to MT5 isn’t just about changing the code syntax. You’ll need to review and adjust your code to make use of MT5’s advanced features like multi-threading, market depth, and improved order systems. Complete testing and debugging are key to making sure everything works smoothly. 

Conclusion 

In conclusion, deciding between metatrader 4 vs 5 depends on your trading needs, but with MT4 now deprecated, it’s clear that MT5 is the future of trading platforms. If you’re serious about Forex trading, using the latest technology is essential for success.

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