MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are among the most popular trading platforms in the world.
Millions of traders all around the globe use their services and tools to trade forex, stocks, cryptocurrency, and other asset classes.
But which one should you pick?
Let’s find out!
MT4: A Simplified Trading Platform for Forex Traders
MT4 is a forex trading and financial market analysis platform, which offers an intuitive, user-friendly UI that makes currency trading easier.
The Key Features of MT4:
- Custom Charts and Indicators: MT4 has 30 built-in technical indicators and 31 graphical objects, making it easier to run chart-based analysis.
- Focus on Forex: MT4 offers all the necessary tools for trading and currency analysis. This platform invested most of its resources to make forex trading easier.
- Automatic Trading: MT4 offers Expert Advisors, which are automatic, algorithm-driven robots that will help you automate strategies, test them, and optimize them based on their performance.
- Lightweight Software: Regardless of the market volatility, MT4 stays efficient and responsive. This platform can work without an issue even on the systems with basic hardware configuration and common internet connection.
In short, if your main focus is on forex trading, you value quick execution, and want a platform with a relatively less steep learning curve, the simple and highly adaptable MT4 is a good option for you.
MT5: The Ideal Platform for the Multi-asset Traders
MT5 is more like an updated and extended version of MetaTrader 4, and it has way more tools for multi-asset trading than the traditional MT4 platform.
As an extended version, MT5 possesses all the core features of MT4, including its custom indicators and expert advisors (EAs).
The Key Features of MT5:
- Multi-asset Support: MT5 will help you trade not only in forex but also in other asset classes like stocks and cryptocurrency. It’s a great trading platform for those who want to diversify their portfolio.
- Economic Calendar: This platform has a news feed and economic calendar. It can help you monitor the key events that can affect your trading plans.
- More Built-in Indicators and Tools: MT5 has 38 technical indicators, 44 graphical objects, and many other useful trade analytics tools.
- Additional Timeframes and Order Types: MT5 supports 21 timeframes and two additional order types, which are the “Buy Stop Limit” and the “Sell Stop Limit.” This allows the traders to conduct highly flexible detailed analysis.
- DOM: MT5 has DOM, which is a tool that showcases bids and asks prices for stocks or other commodities across multiple levels.
MT4 Vs. MT5
There is no one-size-fits-all when it comes to trading platforms. Your final choice will depend on your expertise, trading styles, and specific needs.
If you focus on forex trading, you should choose MT4 as it provides an efficient platform for forex trading.
However, if you want to trade across multiple asset classes, and need advanced analytical tools, choose MT5.
MT4’s learning curve is much less steep, which is a great boon for beginners. Meanwhile, for the expert multi-asset traders, MT5 is more suitable.
Final Thoughts!
If you’re only focusing on forex trading and are new to the trading business, the MT4 platform will provide you with a better, stress-free, simplified trading environment.
Meanwhile, if you are looking to diversify your portfolio and dip your hands into multiple asset classes, it’s better to go for MT5.
Choosing MT5 means you will have a future-proof solution. However, it might take more time to get used to this platform and all its tools.
So, evaluate your needs to choose the platform that suits your interests.
