While MT4 is designed to trade forex alone, MT5, on the other hand, is designed to trade forex and other assets such as stocks, futures, commodities, and indices. However, some brokers, such as ZFX, offer the trading of non-forex instruments through MT4. Yes, MetaTrader 5 is better than MetaTrader 4 because MT5 offers a more varied range of features for trading.
The ease of use and ability to customise MT4 and MT5 have made these online platforms the most popular in the world. With so many features and the opportunity to automate your trading, every trader now has the chance to take their knowledge and performance to the next level. MT5 provides additional order fill policies and pending orders which offer even more advanced ways of trading. With MT5, hedging is not possible as the platform is based on the USA non-hedging rule.
Both of these platforms offer many trading indicators and tools, generally, depending on the broker you are using. The standard version of the MT4 platform includes about 30 built-in indicators. Before discussing the differences between these two platforms, let’s talk about each of them individually and learn how they work.
Additional MT4 vs MT5 differences
This makes it reasonably accessible when trying to identify a trend before you open a buy or sell position. With that said, MT4 is arguably the better option if you are a seasoned currency trader – as more than 1,200 only forex brokers are compatible with the platform. MT4 also stands out when it comes to automated trading – as most developers choose it over MT5. Regarding charting tools, each platform offers around 80 technical metrics to help users understand market trends and make proper decisions. However, MetaTrader 5 received more modern charting tools, including 21-time frames (MetaTrader 4 has 9-time by comparison) and more graph objects.
Additionally, it offers a greater number of tools that can be used to predict market movement and a faster processor that makes trading a more efficient process. MT5 is also better than MT4 because it allows traders to manage all types of assets like CFDs, stocks and forex in their portfolio through a single platform together. The MT5 platform’s pending order types are among its most advantageous features. They consist of the buy limit, the sell limit, the buy stop, the sell stop, the buy stop limit, and the sell stop limit, two more than the amt4 platform.
What we really like about MT4 and MT5 is that both platforms supported demo trading. This means that you can get a feel for your chosen platform in a 100% risk-free environment. Any positions that you take will mirror real-life market conditions – in terms of pricing, volatility, liquidity, and execution times. On the one hand, both MT4 and MT5 are platforms suited primarily to technical traders that rely on pricing action and indicators.
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In short, if you are new to trading, MT4 is the right choice. The basic functions in MT4 are more than enough for trading. If you already have trading experience, try MT5 as it has more features. FBS broker provides access to both MetaTrader 4 and MetaTrader 5.
- Both MT4 and MT5 can operate on your browser of choice — Windows, Firefox, Safari, Microsoft Edge and even Opera.
- Also, because of its long history, it is loved by many people.
- 4 – Commission on Advantage MT4 is taken only when a position is opened, at double the levels listed in the table above .
- Metatrader 4 records each trade individually and permits maintenance of each position separately, but Metatrader 5 combines all positions automatically.
As such, you will notice that there is a major difference between MT4/5 and popular retail trading platforms such as eToro or Robinhood. It is also worth noting both platforms have alert functionality with audio, and the latest financial news. Attached to the bottom of the chart in the shape of a small, yet trendy, time function, it alerts traders when high-impacting macroeconomic news is about to hit the wires.
Both MT4 and MT5 have ways of producing customised analytics. The general rule of thumb is that MT5 tend to have a greater number of timeframes, in-built technical indicators and graphical objects. There are also indicators available in MT5 that are not available in MT4, such as Fibonacci and Elliot tools. Both platforms have an alert functionality and financial news functionality. MT5 also has an economic calendar built-in, whereas MT4 does not, which improves the global financial news functionality in the MT5 platform.
Besides, it gives a chance for parallel testing of multiple pairs. Compatible with multiple operating systems, including Windows, Linux, Mac, and Android. Ultimately, when it comes to MT4 versus MT5, the choice is a matter of personal preference. To determine the best solution, look at your trading habits and preferences and consider which solution offers a better fit for your needs.
Kane Pepi is a British researcher and writer that specializes in finance, financial crime, and blockchain technology. Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers.