MT4 vs MT5 2023 Update Which Forex Trading Platform Is Best

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There are more than 1,200 MT4 brokers in the market, as online brokers prefer this platform over MT5. MT5 allows you to hedge and net your trades, protecting you against potential losses and also reducing your financial risk. Hedging is a type of risk management strategy that allows you to offset any potential losses by opening a position opposite to your current position.

However, MT5’s automatic trading function is designed to implement a positional system that allows traders to hold and carry a position for a longer period of time. Metatrader 5 offers the hedging and netting option for trading. It could even reverse the direction of the trade, if you use size bigger than what you used on the initial trade. MetaQuotes continues to develop and maintain the MT5 trading platform.

MT4 vs MT5: Trading Products

As for the MetaTrader 5, it has much more time frames available for traders. The MT5 offers traders 21 different timeframes, which range from 1 minute to a yearly chart. This allows traders to analyze the market at a larger scale, which can be a huge advantage of MT5. There are numerous advantages that MT4 has over other trading platforms available in the market. and commodities, the latter of which is traded largely as a futures contract , must usually be traded through a centralized process before ownership can change hands with full legal effect. At the time of the MT5 development and release, it can be assumed that Metaquotes foresaw a retail stocks and commodities trading boom, and designed the software to fit that market. On this platform, traders can readily monitor real-time price variations. Additionally, one can analyze price charts over various timeframes, and this makes it reasonably accessible when attempting to determine a trend prior to opening a position to buy or sell. MetaTrader 4 is a popular trading platform among forex traders and is accessible on mobile and desktop platforms. The MT4 is simple to download and install on Windows, macOS, Android, and iOS devices.


The little difference between MT4 and MT5 makes MT5 a stronger and more efficient software altogether. Our platform provides you with advanced charting tools and technical analysis instruments that help you determine the market’s future trend and also back-test MT4 platform results. A programming language is a computer language that is created by software developers to interact with the computer. This helps in producing machine code output and helps platforms function seamlessly.

Assisted Markets

Fully compatible with all browsers and operating systems, the MT4 web trading platform needs only an internet connection. In an industry where milliseconds can mean the difference between a big win or a sizable loss, execution speed matters. While a broker’s server configuration has a role to play, efficiency at the platform level matters, too.

With that said, both MT4 and MT5 offer an unlimited number of charts that can be fully customized. This allows you to view the price action on as many assets as you see fit. In the case of MT4, the third-party platform offers 30 built-in technical indicators.

The main menu is slightly different, but the most commonly used features remain the same. You can customize the interfaces to suit your individual trading needs. All you need to work with these platforms is an internet connection. The MetaTrader 4 software offers 9 timeframes; this ranges from the 1-minute timeframe to the monthly chart. There are slight differences between the two which could help make your decision on what trading platform you choose. There really isn’t much to separate the two mobile trading apps – as both allow you to enter positions, check the progress of your forex EA, and perform research.

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It can be fully modified to suit the need of the individual 5 expectations from the investment world for 2020r. Developers will find a tremendous market, and traders seeking automated trading solutions and custom indicators will be served well with over 22,000 to chose from in the market. Most brokers offer MT4, granting a broad choice, while it also remains the premier choice for retail asset management via PAMM accounts. Thousands of micro and small asset managers developed their business with MT4, supporting the entire financial ecosystem. Manual traders are not ignored by MT4, which comes with nine timeframes, 30 built-in technical indicators, and 24 graphic objects. Tick charts, streaming news, and alerts allow traders to identify trading signals and calculate entry and exit levels.

Another thing to note is that there’s no backwards compatibility for these languages, meaning programs written for MT4 can’t run on MT5. This can be a limitation for traders who want to upgrade, and it’s important to note that in the future, it’s unlikely that program language upgrades will be extended into MQL4 as well as MQL5. MT5’s programming language has better back testing, so you can test and execute programmed strategies faster than on MT4. MQL5 allows you simultaneous multi-currency pair back testing, so overall it’s probably more advantageous than the MT4 programming language.

MT4 vs MT5 Trade Execution

It is important to note that not all online trading platforms are compatible with MT4 or MT5. Instead, many brokers – especially those aimed at newbies, have their own web-trading platform. On the other hand, you have popular platforms like Libertex – which offers support for both MT4 and MT5. On MT4, you can trade currency pairs and CFDs, while MT5 offers you access to assets like stocks, bonds, futures, currency pairs, CFDs, and many others. MetaTrader 5 is capable of connecting with the centralized exchange, which gives its users access to numerous different markets.

  • Earn your way to flexible terms, cutting edge platform, and a dedicated conversion specialist.
  • Trading Forex and CFDs with leverage poses significant risk of loss to your capital.
  • Our MT4 vs MT5 comparison found that both platforms look, feel, and operate almost like-for-like.
  • Traders place this type of order when they believe the price will continue to fall after passing a specific, pre-set value.

They paved the way for the growing popularity of retail trading, and offered many people access to financial Forex & CFD trading. This enables MT5 to place bids and offers for different financial instruments at varying prices. This MT5 functionality also displays open buy and sell orders for various securities at varying prices.

Brokers added CFDs to MT4, transforming it into a multi-asset platform. New applications start to flood the MT5 universe, and a slow displacement materialized over the past five years, but as long as MT4 is available, so will be its preference and dominance. Margin trading involves a high level of risk and is not suitable for all investors. Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle.

It can also be considered tax-efficient as it allows you to choose the size of your wager and exempts profits earned from stamp duties and taxes. Understanding Forex Risk ManagementThe forex market is the most liquid and largest market in the world. However, like any other financial market, the forex market can also be risky during times of high volatility. How to Calculate Forex Position SizingEach trader in the forex market defines their position size before moving forward with a trade. The only thing required to use an MT4 or MT5 demo account is to open a real account with an actual financial broker.

What is the difference between the MT4 and MT5 Forex trading platforms?

Metatrader 4 – the retail trader’s favorite platform, is a multi asset platform with web, desktop and mobile versions. It became a favorite because it’s offered by most brokers and it has the core functionalities of a good platform including – multiple charts, order types including trailing stop loss and alerts. It also gives traders the opportunity to customize and enhance the platform by using EAs . Expert Advisors are scripts which traders can either purchase or code themselves. With that said, MT4 is particularly popular with forex traders. In fact, you will find that hundreds of the best forex trading platforms in the online space support MT4.

MT5 can be used to trade stocks, futures, options, as well as forex. He strongly believes that with a Positive Mental Attitude we can achieve any goal. The interface language will help in the flexibility of integrating with other systems. With MT5 there are new programming languages have been incorporated these are ASP, .Net and PHP. For many years Forex traders have been wondering when will MT5 replace MT4 platform and how this process will look like.

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MT4 has only one dedicated server that is restricted in its communication with other servers. Discover the latest trading trends, get actionable strategies and enjoy complimentary tools. This can be a serious drawback for traders who were wishing to “upgrade”, and is a key reason why such a change shouldn’t be seen as an upgrade. Initially, the designers believed that the MT5, a more advanced version, would replace the MT4.

Easy Order Ladder Trading

One of the major benefits of the MT5 platform is that traders are not restricted to using the built-in analytical resources, such as MT5 tables, indicators, and graphs. Owing to MQL5, an object-oriented and a high-performance programming language, traders are able to create their own technical indicators. With MT5, hedging is not possible as the platform is based on the USA non-hedging rule. It means that a trader must close one trade before entering another trade on the same financial instrument.

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Crucially, unless your primary objective is to deploy an automated robot or forex EA – both MT4 and MT5 are suited for experienced traders. Our review of MT4 vs MT5 also showed that the MetaTrader 4 has fewer in-built trading indicators compared to MT5. However, you can download different types of indicators for both of these platforms. While some people prefer to focus on charts and the technical side of trading, there are others that prefer to focus on the fundamentals. MetaTrader 4 was created many years ago and over the years there have been hundreds of indicators created for this trading platform. That said, there are some differences between the order types of MetaTrader 4 and MetaTrader 5.

Can I Use An MT4 Account On MT5?

A key difference between the two platforms also worth highlighting is MT5 offers market depth (DOM – depth of market), allowing clients to view where bids and offers are priced across markets. MT4, released on July 1, 2005, is a simple and easy to use electronic trading platform, primarily reserved for the online retail forex market. MT5, released five years later on June 1, 2010, however, is an all-in-one state of the art multi-asset trading platform. Press ReleasesIC Markets is revolutionizing on-line forex trading; on-line traders are now able to gain access to pricing and liquidity previously only available to investment banks.


In contrast, the MT5 is programmed with MLQ5, which employs a positioning system. MLQ4 is easier and superior to MLQ5, even though MLQ5 allows traders to develop and modify scripts, making it more efficient than MLQ4. Regarding account types, the MT4 and MT5 platforms use the hedging system, although the MT5 platform also supports the netting system.


MetaTrader 4 was created in 2005 and mostly focuses on Forex trading, while MetaTrader 5 was created in 2010 and offers traders access to many different markets. Also, an additional feature of the MT5’s strategy tester is that it allows you to test strategy for multiple currencies using real ticks. Simply put, the strategy tester of the MetaTrader 5 is an improved version of what MetaTrader 4 offers to traders.

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