MetaTrader 4 vs MetaTrader 5, which one is better?

MetaTrader has been the go-to brand for trading platforms in the trading community for almost 2 decades. The two main versions, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), are both powerful systems. They do however serve slightly different purposes, so the choice between them largely depends on a trader’s specific objectives.

متاتریدر 4

Since its launch in 2005, MT4 has quickly become the go-to forex trading platform for traders around the world. Despite the release of MT5 in later years, MetaTrader 4 has retained its popularity, largely because of its user-friendly interface, advanced analytics tools, economic indicators, and its automated (algorithmic) trading feature.

More specifically, MT4 offers an intuitive trading platform that’s quick and easy to navigate. Its layout can be tailored to the needs of every trader, adding to its appeal, particularly amongst beginners who seek a system that limits the overwhelm that often comes with learning something new.

Additionally, MetaTrader 4 is particularly renowned for its premium technical analysis tools. These comprise 30 built-in indicators, over 2k free custom indicators, and 700 paid options, enabling comprehensive market analysis of any complexity. It also provides 24 analytical tools, including lines, channels, Gann and Fibonacci instruements, shapes, and arrows, allowing you to manually apply these to charts and indicator windows to forecast price movements, identify trends, and set support and resistance levels. This ensures you have all the tools necessary for informed trading.

MetaTrader 4 allows for the implementation of various maret, pending, and stop orders, alongside a trailing stop, enabling you to trade optimally in any market condition. It also offers three execution modes – instant, request, and market – allowing you to choose the most suitable option for each trading scenario. Market orders are executed instanty.

In contrast, pending orders are triggered when market conditions meet specific criteria. Stop orders like take-profit and stop-loss, help secure profits and minimise losses, helping a  trader safeguard their funds.

As far as automated (algorithmic) trading is concerned, this is probably one of MetaTrader 4’s strongest features. With it, a trader can develop, test, and apply Expert Advisors (EAs), or trading robots as they’re otherwise known, as well as technical indicators. EAs are essentially algorithms that can be programmed to execute trades based on predetermined criteria, removing the emotional component that often drives trading decisions.

MetaTrader 5

MetaTrader 5 was released in 2010 and has since earned a notable reputation as an advanced trading platform, suited to traders looking to diversify their portfolio beyond forex. This is because the system supports a broader range of financial instruments. While the MT4 and MT5 share similarities

In regards to technical analysis, MT5 offers 38 technical indicators (compared to MT4’s 30), 21 timeframes (as opposed to the 9 that MT4 offers), 1-minute history, and an unlimited number of charts. It also gives a trader access to 44 analytical objects (MT4 has 24) such as Gann, Fibonacci and Elliot tools, geometric shapes, various channels, and more, which, contrary to the technical indicators, must be applied manually. This wider selection allows traders to analyse the markets with greater precision and tailor their strategies to different timeframes.

When it comes to user-friendliness, MT5’s interfact is similar to MT4’s. This ensures a seamless transition should a trader move from using one platform to another. MT5 does however support multi-window views, allowing traders to monitor multiple assets simultaneously with more ease.

In contrast to MT4, MetaTrader 5 offers buy stop limit and sell stop limit orders which combine stop and limit orders for more precise trade execution. A buy stop limit order is triggered when the future ask price reaches the specified stop level, placing a buy limit order at a lower price.

Conversely, a sell stop limit order activites when the future bid price hits the stop level, placing a sell limit order at a higher price. In both cases, the stop level is set above or below the current market price, with the stop limit price set on the opposite side of the stop level.

While both MT4 and MT5 allow for automated trading, MT5’s strategy tester is somewhat more advanced, allowing for multi-currency testing. This is useful for traders who utilise strategies that include multiple assets.

In contrast to MT4, MetaTrader 5 includes a built-in Depth of Market (DOM) tool, which provides a more comprehensive view of the market by displaying the number of buy and sell orders at different price levels. This feature may be useful for traders looking to assess market liquidity and plan their trades based on the order’s book depth. While DOM is especially beneficial in futures and stock trading, it can be useful for forex traders who need more detailed market data.

Why do forex traders opt for MetaTrader 4?

There are several reasons that forex traders may opt for MT4 over MetaTrader 5. Let’s discuss some of them.

1. MT4 has over the last almost 20 years earned its spot as the industry standard for forex trading. As a result, the majority of traders worldwide have become more familiar with the simplicity of its interface and its vast features, making it one of the most sought-after platforms, even today.
2. The MT4 platform has been designed with forex traders in mind, so if you’re more focused on currency trading and prefer a more straightforward, reliable system, MetaTrader 4 is probably a good choice. In contrast, MT5 was created to handle not just forex also other types of assets like stocks, commodities, etc, which may make it more complex to navigate, but still an excellent choice for those looking for a platform that can handle multiple asset classes with ease.
3. Taking into consideration the length of time that MetaTrader 4 has been around, it has built sextensive community and support network that continue to grow. As such, MT4 users may find trading related resources more readily available. Examples include tutorials, forums, custom tools, and more.
4. For new traders, learning how to use a new trading platform could feel daunting. MT4’s easy to use design means that beginners can start trading relatively quickly without having to invest excessive time familiarising themselves with the system. This allows them to focus on developing their trading skills, gain confidence, and boost their experience in the market.
5. In addition to being very easy to use, MT4 is also highy customisable. This flexibility allows new traders to start with a basic setup and gradually add more tools and features as they become more confident and experienced. This ability to personalise the platform ensures that it remains accessible to beginners while offering room for growth.

Picking the most suitable platform for you ultimately boils down to your trading needs and the types of assets you’re looking to trade. If you’re a forex trader that’s new to trading currencies, the MetaTrader 4 may be better option in terms of ease of use, features, and functionalities.

Trading with IronFX

IronFX is an leading global broker with clients worldwide. The broker offers a top-tier, flexible trading experience to its traders, one characterised by flexible trading conditions, multiple account types, a wide range of trading instruments from a variety of asset classes (forex, stocks, indices, futures, commodities and metals), fast trade execution, seamless withdrawals and deposits, and market access via the MetaTrader 4 (MT4) trading platform, undoubtedly one of the world’s most renowned trading systems amongst global traders. The IronFX Academy also offers an abundant source of educational resources to boost one’s skills and acquire fundamental trading insights.

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