MT5 vs MT4: A Side-by-Side Comparison of the Two Trading Platforms

The increased variety of analytical tools in MT5 is not a significant advantage in comparison with MT4. There are several times more custom indicators written for MT4, more than a hundred. It is difficult to define the difference between MetaTrader4 vs MetaTrader5 visually. In the new platform version, the developers focused on the upgrading of the platform functions, hardly changing the interface. In MT5, the Depth of Market displays the corresponding information about buyers’ and sellers’ nearest orders with a step of a price change and real volume of orders at specified quotes.

• MT4’s programming language is named MQL 4, and MT5’s programming language is creatively called MQ5.
• However, what makes Spotware’s platform stand out above the competing platform from MetaQuotes are 2 key tools in particular.
• Comparing two of the trading industry’s leading platforms has been going on for a while now.
• The lower part of the terminal has two new tabs compared to MT4.
• Irrespective of which third-party platform you opt for – you will need to choose a suitable broker.

It sets the industry standard for a Forex trading platform, which is why it’s offered by many Forex brokers. There is no consensus among traders regarding MetaTrader programming languages. Someone says that they are very similar and that you only need to study the libraries’ added functionality and refine the code. Someone, on the contrary, believes that languages are different and you need to study each programming language in detail. More precisely, it is formed according to the performance of the trader providing signals.

Choice of financial instruments and market depth

This is where you can find publications and resources based on economic news from a country’s financial market or various macroeconomic indicators. Considering how such indicators can affect prices of financial instruments, being able to access these curated resources in one place will prove highly beneficial. MT4 and QUIK are fundamentally different platforms designed to trade in different markets. MetaTrader 4 is designed to trade CFDs on currencies, stocks, or commodities. QUIK is a trading platform designed to trade on stock exchange markets.

Using MetaTrader can be beneficial whether you are a beginner or an expert at trading. But, to make the most of MetaTrader, you need to know when to use MT4 and when to use MT5. As you consider the better fit when it comes to MT4 versus MT5, pay attention to smaller criteria that may affect your trading experience. For example, both platforms offer hedging in certain trades, but only https://xcritical.com/ MT5 offers netting, which some traders lean on heavily to control their relative risk exposure. This makes MT4 ideal for beginning or amateur traders, or for traders who aren’t interested in creating their own scripts or algorithms to support their trading strategy. MT5, by contrast, has a more complex programming language, but it also offers the ability to write or alter scripts.

Copy Trading in MT4 vs MT5

In contrast, MT5 provides 38 built-in technical indicators to get insights into market direction. As in MT4, you will have access to a large number of free custom indicators from the Code Base and thousands of paid ones from its Market. Although you will be placing your orders through a third-party platform – both MT4 and MT5 will execute your positions in real-time. MT5’s programming language has better back testing, so you can test and execute programmed strategies faster than on MT4.

You set the order accounting mode, hedging or netting, when you open an account. In MT5, the developers made the process of sending orders more complicated. Therefore, it is difficult to say what is better MT4 or MT5, in relation to the order execution policy. In the “File’ menu, you can now top up or transfer money directly in the platform. The multi-currency function has been added to the MT5 tester, the backtesting statistics have been expanded.

MT4 vs MT5 – what’s the difference?

The software developers team is continuously working on the upgrading and improvement of platform code. The license is affordable for brokers, so the MetaTrader products are more popular than other platforms. Recently, Social Trading and Copy Trading have been heard more and more frequently, following in the footsteps of Mirror Trading which was earlier widespread. These two types of platforms for sharing trading ideas on forex, indices, etc. are increasingly being presented by various parties.

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Yes, you can trade on both MT4 and MT5 if your chosen broker supports both platforms. However, you will need to have two separate accounts because you cannot log in to the MT5 platform with your MT4 account and vice versa. In addition to the above, MT5 also offers exchange execution. Either way, execution times are impeccable at both MT4 and MT5 – so this shouldn’t form part of your platform decision-making process. With that said, we should note that the vast majority of third-party robot providers will developer their software for MT4.

Real ticks — EA testing and optimisation are done using real ticks, which simulate close to real conditions possible. Unlike generated ticks, where data is based on cached one-minute records, real ticks are gathered from liquidity providers and exchanges. In addition to the standard pending order types in MT4, MT5 has two more additional types — Buy Stop Limit and Sell Stop Limit. The four standard types of pending orders are executed when a single condition is met, but the additional two has to satisfy two conditions before the pending order is executed.

Community and Support

Traders who run many backtests will find this feature particularly helpful as it can save them a great deal of time. It also permits simultaneous backtesting of multiple currency pairs. MT5 may be the new platform on the block, but it does offer innovations that MT4 lacks. Switching to the new platform could open more opportunities to profit and earn more. For example, if a trader goes long 1 lot of EUR/USD and then makes an additional trade with the same parameters, the first trade must be closed first before the second one. MT5 has the ability to receive data from time and sales that occur over the Exchange market.

For example, the number of exchange brokers supporting MetaTrader 5 grew by 15 in the year 2015. MT5 popularity trend is clearly growing among both brokers and traders. Overall, the MT4 version is still the most popular one — mainly due to the large number of custom programs written exclusively for the platform. The lower part of the terminal has two new tabs compared to MT4. The Company tab grants the trader direct access to his or her trading cabinet at the broker’s website.