MT4 and MT5 are the trading platforms created by Metaquotes and are the most widely used platforms for trading forex, metals, and indices. But which is best? This article will discuss some of the main differences between the MT4 and MT5 platforms, so you can make a decision on which one is going to suit your trading business best.
You can get an MT4 or an MT5 download for PC from your broker. Both platforms are free to use which is great. Some of the indicators (more on this later) by third parties are slightly more expensive for the MT5 platform, although the difference is usually negligible.
The coding process is very similar, but MT5 coding has extra security in place to stop premium indicators from being decompiled, so is slightly more complicated, hence the extra cost. So, in terms of cost, MT4 wins, but only very slightly.
Indicators, Expert Advisors & Tools
Developers have created thousands of free and paid indicators and expert advisors to automate some or even all of your trading activities. There are more available for MT4 simply because MT4 has been around longer, but most developers who are creating new codes for the platforms are releasing both together.
Over time, MT4 is being phased out, and so you will find eventually most developers just release the MT5 version of their codes. With this in mind, the situation for third party indicators and expert advisors is pretty balanced. However, MT5 wins hands down when it comes to pre-installed tools, not for the selection, which is largely the same, but for the ease of use. It’s easier to move drawings, click things in place, and just generally nicer to use the tools.
Support is being discontinued for MT4 from Metaquotes. This is because they are focusing solely on MT5 with the intention of eventually phasing out MT4. However, most brokers are still offering support as they get as many MT4 downloads as they do MT5. This is probably because there are a lot of people who have had their own indicators and advisors coded for MT4 and so it is still heavily used.
Both MT4 and MT5 have mobile apps. They have quite similar functionality, but the charting features of the MT5 app far outweigh those of the MT4 app. For a start, it shows you with arrows where you entered and exited positions historically on the chart. This is exceptionally useful for backtesting as you can visually see which of your trades played out on the chart itself.
One thing that is preferable on the MT4 app is on the history tab, as it breaks the trades down into day and week, etc. This is useful if you just want to see today’s trades. On MT5 you have to physically search for a date in order to view a particular day’s statistics. Despite this, the MT5 app has the edge and is a much clearer interface visually.
While both platforms have similarities, MT5 is slightly more user-friendly and has the edge over MT4.