Forex trading is a lucrative venture and the very first thing required to dive into the currency trading world is a fully functional trading platform. There are many platform options that one can consider while starting to trade forex. But the most popular and commonly used trading platforms are MT4 and MT5. But choosing the best one between the MT4 and MT5 platforms would be a bit confusing for an average trader. You will need to consider their similarities and differences for selecting a suitable trading platform for yourself. Hence, we have made this comprehensive review of the MT4 and MT5 forex trading platform with a brief comparison of their features and functionality.
The first thing you need to know about MT4 and MT5 platforms is that they were launched by the same company in different years. Metaquotes corporation launched MT4 in the year 2005 and later launched MT5 as a multi-asset trading platform in 2010. So, they are very much similar and even look the same at the very first glance even though they are quite different from each other.
MT4 offers just 9 timeframes for technical analysis while MT5 platform provides 21 different timeframes.
- Technical indicators
MT4 has 30 built-in technical indicators whereas MT5 platform offers 8 additional indicators making it 38 built-in indicators in total.
- Graphical objects
With MT4, traders can use 31 graphical objects as tools for analysis. On the other hand, the MT5 platform has added 11 more graphical objects making the total number 44.
- Order execution types
In MT4 trading, we get 3 order execution types and for the MT5 platform there are 4 types of order executions possible.
- Pending order types
On MT4, there are only 4 pending order types available but you get 6 pending order types on the MT5 platform.
- Partial order filling policy
On the MT5 platform, you get an option for partial order filling by which the trade will get partially executed for the volume that is available. But this feature is not there in MT4 as there the order just gets cancelled without partial order filling if the specified volume level is not met.
- Order fill policy
On MT5 trading platform, you get the following order execution conditions: fill or kill, immediate or cancel and return. But on MT4 there is only one condition and that is fill or kill.
- Strategy tester
MT4 provides a single thread strategy tester whereas the MT5 trading platform has a multi-threaded strategy tester with multi-currency support and real ticks.
- Programming language
MT4 uses the MQL4 programming language while the MT5 trading platform uses MQL5 programming language.
- Embedded community chat
On the MT5 trading platform you get this community chat feature which is referred to as embedded MQL5 community chat. There is no such option to chat with other users on the MT4 platform.
- Email system
Both MT4 and MT5 trading platforms have a built-in email system for users to send and receive emails through the platform itself. But MT5 allows sending email with attachments whereas you cannot attach anything to the email being sent via MT4.
MT5 trading platform allows netting while MT4 doesn’t.
Both MT4 and MT5 trading platforms allow hedging. Hedging is a popular trading style by which traders open multiple positions in the same or opposite direction which is a technique to minimise losses if the trade goes against them.
- Market Depth
The market depth feature was added to MT5 trading platform first and MT4 didn’t have it earlier.
- Economic calendar
The built-in economic calendar was also introduced on the MT5 trading platform which was lacking in the case of MT4.
- Speed and stability
When it comes to speed and stability MT5 trading platform is superior to MT4 which makes it a powerful successor. It is also more suitable for executing complex strategies which makes it an apt platform for algo trading.
With that, we are concluding the comparison between traditional MT4 platform and modern MT5 trading platform. To sum it up, the best platform for a trader depends on their own preferences and requirements. Take your time to explore these platforms and make a wise choice for a better trading experience.