MetaTrader 4 and MetaTrader 5 are both trading platforms similar in presentation, delivering simple, easy-to-use functions on both live and demo accounts. The platforms also allow users to modify the interface to suit personal preferences.
MT4 was released in 2005 and was designed specifically for forex traders. The platform is also well suited to CFD trading.
MT5 platform was developed five years later than the MT4 and has additional features that are not available to traders using the MT4.
In fact, MT5 was built from scratch and has a substantially different architecture. MT5 was created to provide certain functions that could not be added to MT4 due to its original architecture.
One of the major differences between MT4 and MT5 is the variety of markets that can be traded through the platforms. MT4 was specifically designed for Forex trading. MT4 also supports CFD trading as well.
MT5 software was to extend the selection of markets that traders have access to. Besides Forex and CFDs, trades can be made in futures, stocks, bonds, and options. This enables trading on thousands of different products that are not available through the MT4 platform.
MT4 is designed to accept four different types of pending orders. These include: buy limit, buy stop, sell limit & sell stop.
MT5 can handle six different types of pending orders. The additional pending order types are: buy stop limit and sell stop limit. These features allow a trader to buy or sell a position when the price passes a requested entry point, and also specify the price that they are willing to go to in order to open the trade.
Hedging and netting accounts
MT4 offers hedging accounts only, while MT5 offers hedging and netting accounts.
A hedging account has no limitations on the number of positions that can be held for the same instrument. This means long and short open positions can be held on the same instrument.
A netting account consolidates all positions into a net position. Long and short positions are netted as a single position.
The MT4 software offers 9 timeframes, ranging from the 1-minute timeframe to the monthly chart.
MT5, on the other hand, offers 21 different time frames across all financial instruments. This includes a two and three-minute timeframe as well as different hourly charts. This will be beneficial for traders who want to conduct a thorough analysis of the instruments, especially when identifying supply and demand levels.
Building own Expert Advisors
Another benefit that MT5 trading platform offers is that it allows traders to build their own EAs. This way they are not restricted to the built-in technical indicators. It ensures an extra level of accuracy when it comes to market analysis and forecasting which way the price will move.
The MT5 allows the trader to use 38 technical indicators and 44 graphical objects (30 technical indicators and 31 graphical objects in MT4), ensuring that accurate technical analysis is achievable. The trader will also be updated with the latest macroeconomic news due to the economic calendar.
The MT4 software is available on both mobile and desktop devices. This is also the same for the MT5 platform. However, MT5 can also be access straight on the web browser which MT4 can’t, as you will need to download the software onto your desktop.