MT4 vs MT5: Which is Best for Traders in 2025?

Table of Contents

Key Takeaways

What is MetaTrader 4 (MT4)?

What is MetaTrader 5 (MT5)?

What Is the Difference Between MT4 and MT5?

Pros and Cons of MT4 and MT5

Can You Use Both MT4 and MT5?

Future of MetaTrader Platforms

Final Verdict: Which Platform Is Best for You?

FAQs

If you’re stepping into the world of trading, you’ve probably heard of MetaTrader 4 and MetaTrader 5. These two platforms dominate the financial markets, but choosing the right one can be not so easy. While MT4 is more common and popular among forex traders, MT5 is known for more features and advanced tools.

So, what’s the difference between MT4 and MT5? Which one suits your trading strategy and style better? Read our guide to find out about key features, technical indicators, and usability of each platform.

Key Takeaways

• MT4 is commonly used for forex trading, offering a simple interface, strong trading robots, and broad broker support.
• MT5 supports multiple asset classes, for example, stocks, futures, and commodities, with advanced analysis tools.
• One of the key differences between the two platforms: MT4 is forex-focused, while MT5 provides an extensive range of markets and features.

What is MetaTrader 4 (MT4)?

MetaTrader 4 (MT4) is one of the most widespread trading platforms in the financial world, especially for forex trading. Its blend of simplicity and reliability quickly made it the preferred choice for both traders and brokers.

MT4 is packed with essential tools, such as advanced charting tools and instruments, technical analysis, and custom indicators. It supports various financial instruments, mainly forex but also CFDs on assets such as commodities, stocks, and indices. Beginners can practice with demo trading before risking real money.

While MT4 may not have the newest features, it remains a solid choice for traders who want a straightforward and efficient trading platform.

What is MetaTrader 5 (MT5)?

MetaTrader 5 (MT5) is a modern and upgraded trading platform that was intended to go beyond forex. Unlike MT4, which focuses mainly on forex market trading, MT5 enables traders to access multiple asset classes.

MT5 offers advanced trading tools, faster execution, and better support for exchange trading. It’s built for modern traders who rely on algorithmic trading and trading signals to automate strategies. With more timeframes, depth-of-market data, and improved order types, MT5 gives traders more control over asset prices and decision-making in the financial markets.

What Is the Difference Between MT4 and MT5?

When choosing between MT4 or MT5, it’s essential to understand their differences. While both are top-tier trading platforms created by the same company, MetaQuotes Software Corp, they have different potential and cater to different trading needs.

Now, let’s explore the key differences between MT4 and MT5 in detail.

Programming Languages

One of the biggest differences between MT4 and MT5 is the programming language. MT4 implements the language of MQL4, which is easier for basic automated trading but less flexible. MT5 runs on MQL5, a more advanced language designed for professional trading automation. It allows for better handling of complex market functionality, making it a good option for traders who rely on sophisticated algorithms.

Backtesting and Multi-Currency Testing

If you’re into individual trading using automated strategies, MT5 has a clear advantage. It supports multi-currency backtesting, meaning you can test strategies on multiple assets at once. MT4, on the other hand, only allows single-currency testing, which can be a limitation for traders analyzing multiple markets.

User Interface and Experience

While both MT4 and MT5 platforms are user-friendly, the latter has a more modern and customizable interface. It provides additional timeframes (21 vs. 9 in MT4) and an economic calendar, helping traders make more informed and robust decisions. Seasoned traders who need detailed market insights will likely prefer MT5, while beginners may find MT4 easier to navigate.

Hedging vs. Netting

MT4 and MT5 both support hedging, which allows investors and traders to get into various positions on the same asset. However, MT5 also includes a netting system, commonly used in commodities exchanges and stock trading. Netting consolidates positions, which is useful for institutional traders but may not be necessary for retail forex traders.

Pros and Cons of MT4 and MT5

Choosing between MT4 vs MT5 depends on your trading needs. Both MetaTrader 4 and MetaTrader 5 have their strengths and weaknesses.

MT4 Pros

1. Beginner-Friendly.MetaTrader 4 provides an intuitive interface, making it ideal for retail traders just starting out.
2. Widely Supported by Brokers. Most forex brokers offer MT4 as an option, which ensures a smooth trading experience.
3. Algorithmic Trading Support. MT4 includes Expert Advisors (EAs) and built-in technical indicators for automated strategies.
4. Multiple Accounts Management. With MT4 you can easily switch between multiple accounts, which is useful for traders managing different portfolios.
5. Lightweight and Reliable. MetaTrader 4 works smoothly even on lower-end devices, with stable performance.

MT4 Cons

1. Limited Market Access. Primarily designed for trading forex, MT4 has less support for stock and commodities exchanges.
2. Basic Charting Tools. MT4 lacks some advanced market trends analysis tools found in newer trading platforms.
3. No Multi-Currency Backtesting. Strategy testing is restricted to single currency pairs.
4. Dated Interface. The design of this trading platform feels outdated compared to modern alternatives.

MT5 Pros

1. Supports More Markets. MetaTrader 5 allows for trading of various assets, not only forex. The list includes CFDs, commodities, futures, stocks, and more, making it a versatile option.
2. Advanced Trading Features. While trading on MT5 you can use a built-in economic calendar, more order types, and built-in technical indicators.
3. Better Algorithmic Trading. MT5 comes with faster execution speeds and improved backtesting, including multi-currency testing.
4. More Timeframes and Indicators. MT5 platform offers 21 timeframes (vs. 9 in MT4) and additional technical analysis tools.
5. Depth of Market (DOM) Feature. This platform provides insight into order flow and liquidity, useful for professional traders.

MT5 Cons

1. Steeper Learning Curve. The platform’s advanced tools may be overwhelming for beginners.
2. Not Fully Supported by All Brokers. Some forex brokers still prioritize MT4, making MT5 less accessible.
3. No Backward Compatibility. MT4 scripts and indicators do not work on MT5, forcing traders to adapt.

Both MT4 and MT5 have their advantages. If you’re focused on trading forex, MT4 is still a great choice. But if you need access to other markets and advanced tools, MT5 may be the better option for your trading strategy.

Can You Use Both MT4 and MT5?

Traders can use MetaTrader 4 and MetaTrader 5 simultaneously to diversify their strategies. Since both trading platforms have unique strengths, using two platforms can help traders access different trading instruments and features.

However, most brokers do not allow a single account to run on both platforms. You may need separate accounts to trade on MT4 or MT5. Also, running two platforms on the same device can be tricky, as brokers often restrict simultaneous use. If your strategy requires both, check with your broker for compatibility.

Future of MetaTrader Platforms

As the financial markets evolve, traders often wonder about the future of MetaTrader 4 and MetaTrader 5. Let’s explore what’s ahead from a trader’s perspective.

Will MT4 Be Phased Out?

Despite its popularity, MT4 is an older platform with limited updates. MetaTrader 5 was designed as its successor, offering more features and improved performance. Some brokers have already reduced MetaTrader 4 support, and experienced traders speculate that it could be gradually phased out. However, many forex traders still rely on MT4, meaning it will likely remain relevant for the foreseeable future.

Future Updates and Longevity

MetaTrader 5 continues to receive updates, making it more attractive for modern trading needs. With enhanced automation, better analytics, and support for diverse markets, MT5 is expected to dominate in the coming years. While MetaTrader 4 remains functional, its lack of future updates may push traders toward more modern and feature-rich trading platforms.

Final Verdict: Which Platform Is Best for You?

Choosing between MT4 or MT5 mostly depends on your trading style and goals. Beginner traders may find MetaTrader 4 more user-friendly, with its simple interface and strong forex focus. If you trade multiple asset classes or need advanced tools, MetaTrader 5 offers an extensive range of features, including better backtesting and more order types.

The main difference is versatility – MT4 is great for forex, while MT5 is a good option for traders exploring stocks, commodities, and algorithmic strategies. Both platforms are powerful, so the best choice depends on your needs and experience level. You can open MT5 account with J2T and check whether this platform is suitable for your needs.

FAQs

Which is better: MT4 or MT5?

MT4 is ideal for forex trading, offering simplicity and strong trading robots. MT5 supports more assets and offers better fundamental analysis and advanced features. Choose MT4 vs MT5 based on your trading style and experience.

Why is MT4 better for forex?

MetaTrader 4 was built for forex trading, featuring a user-friendly interface, low resource usage, and strong support for trading robots and copy trading. Many traders prefer it for its simplicity and widespread broker support.

Can I use my MT4 account in MT5?

MT4 and MT5 use different technologies, and accounts are not interchangeable. If you want to switch, you’ll need to open a new demo account or live account on MetaTrader 5.

Can I transfer money from MT4 to MT5?

Since MT4 and MT5 are separate platforms, you need to withdraw funds from your MT4 demo trading or live account and deposit them into an MT5 account with the same broker.

Is MT4 being discontinued?

While MT4 is still popular among traders and investors. MetaTrader 5 is its official successor. MetaQuotes has stopped developing MT4, but many brokers continue to support it. Over time, it’s expected that more traders may shift to MT5 as a more up-to-date option.