The MT5 vs. MT4 showdown seems to have started as soon as both of these platforms hit the Forex market at the same time. Each of them has a following, and although MetaTrader 5 is an improved successor to MetaTrader 4, they still have some differences and unique advantages. Is MetaTrader 5 better than MetaTrader 4? It all depends on your unique needs. To find a winner in this competition, you will have to dive deeply into the features and differences between MT4 and MT5. If you want to know more HiTech content: Read the related article about How to Choose the Perfect Software to Trade Financial Assets Online?
MT4 Pros & Cons
MetaTrader 4 (MT4) has an intuitive interface that makes it easy to use and navigate for traders of any level. Even a beginner will easily understand How to Use MetaTrader4. Moreover, there is also a large community of users here. This means that there are many resources and support available, including expert advisors and dedicated indicators.
Key advantages:
- Advanced charting tools allow traders to automate trading with Expert Advisors (EAs) and execute trades based on pre-defined rules and strategies.
- MT4 is available on mobile devices, making it convenient for traders who want to monitor their trades and manage their accounts on the go.
Cons:
- Does not support trading in other asset classes such as stocks or futures.
- No support for hedging. MT4 only supports position netting.
- There is no built-in economic calendar, which can be inconvenient for traders who rely on this information.
- MT4 offers a limited range of order types, which can be a disadvantage for traders who need more advanced order types such as trailing stops.
MT5 Pros & Cons
MetaTrader 5 (MT5) offers advanced features and tools on ForexStore.
In particular, the platform supports trading in multiple asset classes, including stocks, futures, and options, in addition to Forex, giving traders more diverse trading options.
Key benefits
- The platform offers a wider range of timeframes, including 2-minute and 8-hour charts, which can be useful for traders who prefer a more accurate analysis of market trends.
- Allows you to use advanced trading algorithms and special indicators.
- Allows for both hedging and netting of positions, giving traders more flexibility in managing their positions.
- MT5 has a customizable user interface.
Disadvantages of the platform
Although the interface is customized to the needs of the user, this can create inconvenience for beginners. Not surprisingly, MT5 currently has a smaller user community. Therefore, fewer experts can help a newbie with trading. In MT4, it is implemented better. Also, if you already have an MT4 profile or your indicators, not everything can be easily transferred to MT5.
Related: What is historic data in trading, and why is it useful?
MT5 vs. MT4: How to choose?
So, no one can tell you which option to choose because each of them is tailored to a unique set of needs that a trader may have. Therefore, you should focus on those factors that are decisive in your case. Here are some things you should consider before creating an account on any platform:
- What asset classes do you want to trade? If it is only Forex, the functionality of MT4 will be quite enough for you. If you are also going to trade stocks, futures, and options, MT5 is better suited to the tasks that your preferred platform has to perform.
- When you are just starting your trading journey, you can be confused by numerous settings, and it distracts you from the main tasks at hand. Therefore, beginners should use MT4. However, the tools and capabilities offered by the previous version of the trading platform may not be enough for professionals, and in this case, MT5 may be a better choice. It also has an advanced programming language, so you can use advanced trading algorithms.
- Order types such as trailing stop or Fill-or-Kill orders are available on MT5 but not on MT4. If the type of order is essential to you, this can also be a factor in deciding on one or another platform. There are also more options for data testing, which gives you a better chance of creating a successful trading strategy.
- However, support is essential for beginners, and they often turn to experts (EA) for automated trading. This option is available on both platforms. But since the community in MT4 is bigger, so are the options to find a talented expert that you can rely on more right here.
So, both trading platforms deserve the attention of investors and traders and have something to offer their followers. So, this is a battle in which there is no winner, only your personal choice based on the exact criteria relevant to your situation.
Bottom line
Choosing between MetaTrader 5 (MT5) and MetaTrader 4 (MT4) depends on your trading needs and preferences. They are both easy to use and have a sufficient number of necessary tools and, therefore, give many opportunities for good profits.
