So, the question is, MT4 vs MT5 – What’s the best in 2021? Metaquotes earned great fame after creating the tremendously successful MT4 platform for currency trading, launched MetaTrader 5 (MT5), the multi-asset trading platform in 2010.
This platform was designed using a distinctive programming language called MQL5 for enriching the Forex traders with multiple functionalities.
The major advantage of this revised version of this trading platform benefits with high-end capabilities, and you’re free to trade an enormous range of products on this platform.
MT5 can be used for trading numerous assets, including commodities, stocks, etc. besides Forex trade. Earlier, the trading community didn’t accept the brokers offering the MT5 platform immediately, but the time isn’t the same now.
There’s a warm discussion concerning MT4 vs. MT5, and after vast research, we’re going to unleash the which is the best among two!
We’ve gone deeper than you’ve expected!
MT4 vs MT5 – What’s the best in 2021?
These two platforms are pretty different from each other, and unless you don’t know about the benefits associated with each one of these separately, things won’t get clear!
First, shall we discuss what MT4 has got for you!
MT4 vs MT5 – Advantages of MT4
It’s true that several Forex traders who are trading since long feel comfortable with MT4, and let’s tell you, this platform’s future doesn’t seem bright. That doesn’t mean that MT4 is worthless. We assist you to go through the following benefits:
1) Real-Time Access to Market Liquidity & Prices
The real-time action is among the biggest advantages of MT4. You can execute trades accordingly after accessing Forex quotes in real-time, isn’t that nice? There’s a “Market Watch” window, indicating the listing of the currencies and various other securities you select to trade via a broker.
Besides the security symbol, you also see the real-time bid/ask quote. Margin currency, contract size, margin percentage, spread, and other such details are also visible. A feature called “Depth of Market” is present for telling you about real-time market activity.
In this feature, you can see stuff like the number of buy/sell orders for a currency pair at various prices, and that’s something pretty useful. As you know about the market sentiments, you can design your plans perfectly and earn more vice versa.
Also, you get info in case bid side liquidity is higher in contrast to the offer side liquidity. So, the chances of orders getting filled are higher when there is increased liquidity. If you’ve got short-term trading strategies such as scalping, then this could be highly beneficial.
2) Numerous Trading Orders for High Flexibility
Being a Forex trader, you can implement numerous strategies, as per your choice with MT4. You are assisted with numerous types of execution modes and trading orders. MT4 permits you four types of pending orders and two market orders. For elevating the level of flexibility, you get three types of trade execution modes.
3) High Stability and Strong Security
MT4 was won high trust due to its impressive stability and unbeatable security. A 129-bit key encrypts Data exchange between servers and client terminals, and MT4 also supports RSA digital signatures. Trading with this platform means your IP is hidden.
These high-end security promises permit you to perform monetary transactions in a fully secure environment. You don’t need to worry regarding any cybercriminals, and your trading accounts are always safe.
As this platform is highly stable, and also with the benefit of speed trade execution, you can conveniently trade with minimal negative slippage. Accessing MT4 from numerous devices is possible, including desktop, laptop, smartphones, tablets, etc. So, you are ready to trade whenever you want!
How convenient is the mobile version? Well, we need to appreciate MT4 here, as you enjoy similar functionalities to that of the desktop on your mobile also, no matter they are the technical analysis tools, charts, or a full set of orders!
Not just that, mobile MT4 arrives with some additional features as well, including chat functionality and push notifications. If you’re a modern young market participant, then this gadget-friendly platform is sweet for you.
4) Automated Trading Option for Experts
If you’re an expert trader, then MT4 Expert Advisors (EA) will help you in deploying automated trading strategies. Leveraging market moments go easy with Automated trading, without any human bias or any intervention on their part.
Besides that, MQL4 Integrated Development Environment (IDE) permits you to create your own technical indicators and EAs. You can optimize and backtest the strategy on the system’s Strategy Tester after creating an EA.
Besides creating and deploying your own strategies, MT4 also permits you to deeply monetize their strategies. You can publish them on “Marketplace,” or MQL5 codebase. You can use your programming talent to earn since mastering MQL4 language isn’t challenging at all.
Regarding versatility, MT4 is highly appreciable. It’s customization options are equally cool. With user-friendly controls, endless technical tools, demo-testing abilities, extensive educational resources, etc., MT4 proves to be a wonderful platform for not just experts, but beginners also.
5) Technical and Fundamental Analysis Tools for Traders of All Levels
MT4 offers appreciable charting capabilities and numerous in-built technical indicators. Besides that, there are multiple tools for price analysis, as well. There’s much for Forex traders of all levels.
A total of 30 in-built technical indicators is available on this platform. These include major trends as well as volume tools such as Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), Fibonacci Retracements, On-Balance-Volume (OBV), etc.
You can view unlimited charts simultaneously, and displaying each currency pair in 9 different timeframes, is also possible, from a minute to monthly intervals. You can also source additional charts from the MQL4 community, and several traders also prefer building their own indicators as well.
If you’re deep into chart analyzing, then you’ll find MT4 fantastic. There are several drawing objects and mathematical tools to help you in analyzing price activities of any complexity.
You can extensively customize these charts as per your experience and expertise level, and save them according to your profile. You can set alerts of financial news or major economic data conveniently, and you can also customize access to data relevant to any given market.
Forecasting the price movements, defining entry and exit points, identifying support and resistance levels, setting stop-loss levels, you can do everything directly from the charts.
MT4 vs MT5 – Disadvantages of MT4
See, automation is always welcomed, but in the case of MT4, a few things have backfired, and we’ll highlight the same here.
MT4 has to run the server 24×7, which gives birth to the possibilities such as freezing of the personal computer, malfunction, etc. when transactions increase in quantity, and the load gets heavy.
Besides that, we can’t ignore the possibilities of a wrong order, as the risk level is pretty high. There are several malicious Forex companies making automatic trade and purposefully issuing large losses.
It’s also necessary to establish an account by selecting a trustworthy Forex company, however opening up accounts with numerous Forex companies is also a way of risk diversification.
Let’s list down the disadvantages of MT4:
- The backtesting functionality isn’t supported by high-quality historical data.
- MQL4 isn’t entirely bug-free, and you might have to bother sometimes.
- No custom time frame is available for charting tools.
- MT4 isn’t compatible with high-frequency trading actions, which it’s something compulsory for the full-time traders.
- Few traders prefer having the social trading option in their trading platform, but MT4 doesn’t offer any sort of social trading elements.
- MQL4 language is applicable just for trading-related programs.
- New CFD or Forex brokers won’t get a license, as from 2018 onward, MetaQuotes isn’t providing MT4 license to any new broker anyway ahead of 2018. So, they can’t offer this platform to the clients. That means in case you’re looking to change your Forex broker, and move to a new one, you’ll have to flip to the new platform (for instance, MT5).
MT4 vs MT5 – Advantages of MT5 Platform
As MT5 is the higher version of MT4, you can expect some betterment, new features, and facilities here. We’d prefer mentioning here, MT5 has a brighter future than MT4. It’s true that it wasn’t accepted with open arms by the traders at the time it was launched in 2010, but it’s true that MT5 has got much for you!
Shall we begin describing the benefits?
1) Highly appreciable features
MT5 arrives with an exceptionally powerful trading system and brings you some amazing features like support for not just the various sorts of order, but also execution’s modes, and Market Depth. Concerning Forex trading, the order accounting technique is the hedging technique.
This lets you open numerous positions, either in the opposite/same direction, in one instrument. Besides that, with the MT5 platform, you enjoy four order execution methods. These include Request, Instant, Market, and Exchange.
2) Prediction and Charting
Being able to perfectly predict the direction of the market is such an amazing feeling being a Forex trader, isn’t it? It certainly adds on to the chances of success, and who doesn’t want to become a successful trader?
With MT5, you enjoy numerous analytical tools, permitting perfect price analysis and forecasting. Here, the key aspects are as follows:
- As many as 100 charts can be opened at a time.
- There are a total of 21 time-frames in the charting system.
- There are 80 analytical objects, along with built-in technical indicators.
- A total of 38 technical indicators and 39 graphical objects are available.
- There are 17 display styles available for choice for client indicators.
- You get 4 scaling modes.
With these exceptional tools’ availability for technical analysis, you can prepare well for whatsoever market changes.
3) Availability of useful tools
MT5 platform marks the availability of various amazing tools that you need for carrying out fundamental analysis. These tools include the financial news service brought to you by international news agencies, economic calendars, etc. So, you’ve got enough help for the movements of prices of numerous financial instruments.
4) Algorithmic trading
The MT5 platform offers algorithmic or robotic trading feature, which, besides being pretty fascinating, is by far the best! Robots take over your task of analyzing the market and trade.
You just decide the strategy, set up specific instructions, and that’s all! The robot would follow all those instructions and carry further the execution of trades for you.
For making algorithmic trading possible, the credit goes to the MQL5 environment. It permits the development, testing, and optimizing trading robots to meet your trading requirements. Besides that, the MQL5 environment permits quicker order execution in contrast to the MetaTrader 4 platform.
MT5 environment, besides permitting you to employ complex expert advisors, also proves to be supportive for processing huge amounts of data.
5) Additional Services and Inbuilt Advanced Reports
The MT5 system also permits you to purchase additional services for elevating its functionality level. Actually, this offers ultimate capabilities until the platform is concerned.
The MT5 environment, besides providing a trading robot market (as we read above), also provides a database of freelance strategy developers and copy trading service and virtual hosting providers.
The MT5 platform benefits you with inbuilt advanced reports for letting you easily and quickly analyzing trading activity. These reports prove to be highly helpful while tracking the initial and final deposit values. You’re able to understand the indicators such as Profit Factor, GHPR, Z-score, etc. in a deeper way.
Summarizing, it’s crucial to have a straightforward, multifunctional trading platform if you really want to enjoy high-level success in Forex trade. An MT5 Forex broker is truly a high bet in this regard.
6) Expanded Mini Terminal with Numerous Features
You can conveniently transform the Mini Terminal to a highly-features control panel With the MT5SE plugin for your whole account, performing a simple button click. By doing that, opening and managing orders become easier, and you receive all necessary info regarding your selected trading symbol.
7) Easy Order Ladder Trading
Do you want to attain unpreceded accuracy concerning opening and managing positions quickly? Easy Order Ladder Trading is highly helpful here. Using the new order ladder, you can open both pending as well as market orders. The calculation of the risk and reward for an order takes place faster, and these are convenient to set up.
For example, opening the pending order goes so simple. Tab the blue ladder at the price that’s requested. For take-profit, move the mouse up, and for stop-loss, move it down. On your keyboard, hold the SHIFT’ button to open a market order and simply hover the mouse on the ladder.
MT4 vs MT5 – Disadvantages of MT5 Platform
Hedging is disabled in MT5. We call that the worst negative of MetaTrader as hedging is a decent risk management approach since the majority of the liquidity providers do permit hedging positions. When hedging is disabled, it’s expected for spreads to go high.
Whatever custom indicators and expert advisors with MQL 4 for MT4, You have to code all again with MQL 5 to properly use them with MT5.
MT5 is coded from scratch. It isn’t based on MT4, meaning that there can be some bugs. Even when MT4 was launched, it had several bugs. Although MT5 is old now, still, a few bugs exist, which we expect to be debugged soon.
MT 4 VS MT 5 – Direct Comparison
Comparing MT 4 VS MT 5 in current times regarding speed, then MT5 is quicker than MT4. It will not slow down your platform. It’s a completely multi-threaded and fledged 64-bit platform, whereas MT4 is a 32-bit, mono-threaded platform having a 2GB (or a 4GB limit of memory in case you utilize it on any operating system of 64-bit ).
MT5, being the software’s latest version, runs fantastic on the operating systems of 64-bit. On the other hand, MT4 is perfect for a 32-bit operating system.
You will require the set-up execution file for installing this software. It is essential to make sure that MT5 will be able to run on the 32-bit operating systems or not. However, if we talk about running MT4 on 64-bit systems, then you’ll see that it does not work as quickly as on 32-bit systems.
It’s not every time the case, however, in case you use MT4 on a VPS server with numerous CPU cores, then it’ll not work efficiently. MT4 & MT5, both have distinctive built-ups of servers. MT4 has just one dedicated server, which is restricted in communication with other servers.
Whereas, on MT5, it deploys jobs to other servers, and they work with joint hands, offer synergy, and will achieve hardware utility too. Thus, improving results as the distinctive servers communicating & working together will lead to the optimization of the resources.
The difference of servers: That’s the most important one
There are basically four major servers, which MT5 uses: the trade server, access server, the history server, and lastly, the backup server. This is in contrast to MT4 that uses just a single server engine. On the platform of MT4, reports, which you can pull from this software are just accessible in the format of HTML.
But, with MT5, the reports are accessible in both the HTML as well as Open XML table formats. MT4 is straightforward and simple as well. It has approx 30 in-built indicators & 33 objects of analytics.
It permits for four kinds of pending orders, two distinctive execution modes, two kinds of market orders, two stop orders, and in last, a trailing stop function.
However, it’s still easy to navigate via it, and numerous traders just love to use it. MT5 has 38 built-in indicators. It provides a separate economic calendar tab with great features, for example ‘impact,’ ‘forecast,’ ‘previous,’ ‘news event,’ ‘schedule,’ and many more.
It provides 6 types of pending orders, which are data on time, DOM access (Depth of Market), and sales from the exchange. The quantity of analytical objects, which helps in identifying financial instrument cost trends, is up to around 31 on MT4, and 44 on MT5.
Those objects may indicate cycles as well as support/resistance build levels, channels, etc. Spotting a difference in the log files is possible too. On MT5, log files will be automatically compressed, and on MT4, this is not the case.
You can receive codes from the base of the code on MT5, as zipped folders that are compressed are only available on the MT5 platform. You will be able to store them on your local drive too. So, in the MT4 VS MT5 comparison, MT5 seems a better choice.
MT4 vs MT5: The Conclusion
MT5 permits for partial orders, for example, the highest volume of trade are met & the trade isn’t filled, traders can choose ‘partial edit’ for permitting for the left volume to be canceled.
The industry is presently evolving, advancing, and moving towards MT5. The focus is currently shifting to MT5. In case you’ve got interest in trading with Admiral Markets, there are numerous options available for traders that are professional.
Traders will gain access to custom indicators, as well as an extended range of trading tools, which are useful with the MetaTrader, which is a Supreme Edition plugin for both MetaTrader 4 & MetaTrader 5.
Alternatively, in case traders don’t want to download any sort of trading platform, then they can just trade directly in their browser with the help of the MetaTrader Webtrader platform!
Also read – How to Turn MT4 Indicators into MT5 Within Minutes.