If you’ve tried online trading before or are an active trader, you’ve probably come across two popular trading platforms: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both are developed by MetaQuotes and used by traders worldwide.
But they’re not the same. The difference is more of a younger and older sibling than an outdated and advanced version. So, here, choosing the newer one isn’t always the right answer.
Let’s break it down so you can choose the right platform for your trading style.
The Unwavering Popularity of MetaTrader 4
MT4 has been around since 2005 and is still going strong, especially with forex traders. It’s lightweight, easy to use, and hyper-focused on currency trading. Even after the launch of MT5, many traders have remained loyal to MT4.
It is a popular choice among:
- Forex-focused traders
- Traders who prefer simpler trading strategies
- Those using older devices
Pros and Cons
MT5 has a massive user community, a lot of indicators and expert advisors (EAs) available, is easier to learn for beginners, and has more broker support globally.
However, you won’t find a built-in economic calendar and can only use a limited number of timeframes and asset classes.
If you’re a forex scalper, day trader, or just want something simple and proven, MT4 might be all you need.
The Next-Gen Features of MetaTrader 5
MetaTrader 5 is the newer, shinier, and more feature-rich option. It’s built for multi-asset trading, which means it accommodates not just forex, but also stocks, commodities, bonds, and more.
MT5 is best for:
- Traders looking to diversify beyond forex
- Swing or long-term traders
- Those who want more analytical tools and faster execution
- People who prefer customising and fine-tuning every detail
Pros and Cons
MT5 supports more markets, has more timeframes, has a built-in economic calendar, and offers faster backtesting. Not to mention, it also has more order types and market data.
But this platform might be a bit more complex for beginners, and your broker might not support it yet.
If you’re planning to trade multiple asset classes or want deeper market insight, MT5 is the way to go.
Matching Your Trading Style
The way you trade, your experience, and your preferences also affect your choice of trading platform. Since both MT4 and MT5 offer different features, going with what works for you is best.
Choose MT4 if you’re a:
- Beginner trader. It has an easier learning curve and very few complexities.
- Forex scalper. MT4 is already preferred for forex trading for its simple user interface, low resource use, and fast execution.
- Automated trading with custom bots. MT4 has a bigger library of EAs and bots for trading.
MT5 is better for:
- Experienced or advanced traders. It offers more analytical tools and a wider range of data.
- Swing trading. MT5 has more timeframes and deeper analysis tools.
- Multi-asset trading. It supports stocks, commodities, and futures.
If you’re still not sure, you don’t have to stick with one forever. Both MT4 and MT5 are free to download.
Most brokers offer demo accounts for both platforms, so you can play around risk-free before committing. Try them side by side and see which interface you like more.