MetaTrader 4 popularly known as MT4 was launched as a forex trading platform by MetaQuotes way back in the year 2005. But the traditional trading platform is still the most preferred trading software among forex traders. The powerful successor of MT4 was launched by MetaQuotes in 2010 which is referred to as MetaTrader 5 or MT5. The MT5 forex trading platform was also well-received by the trader’s community as a multi-asset trading platform which suits the requirements of a modern trader. But ‘Is trading on MT5 actually better than MT4?’ is an ambiguous question that keeps popping up in the minds of traders.
Today, we will be finding a comprehensive answer to this question by comparing both platforms.
Firstly, let’s talk about the asset classes that one can trade on the MetaTrader 5 online platform. Its predecessor MT4 was mostly focused on forex trading from the very beginning even though you can trade a number of asset classes alongside currencies. But in the case of the later version, the developers have put some effort into making MT5 more compatible for trading a bunch of different markets. On MT5 you can trade forex, crypto, stocks, commodities, indices, futures, bonds and more. So, MT5 can be a better choice for traders who want to diversify by trading different asset classes.
Coming to the tools, features and functionality of both platforms, MetaTrader 5 online platform does offer a lot of additional tools in comparison to MT4. It gives additional order execution types, 6 pending order types, 21 time frames, 38 built-in indicators and 44 graphical objects. On the other hand MT4 has just 4 pending order types, 9 timeframes, 30 indicators and 31 graphical objects. Basically MT5 is better for traders who are looking for a trading platform with more tools, features and options.
The speed, stability and security features are very essential for a seamless trading experience. Both MT4 and MT5 are very good in this regard and this is the number one reason behind their popularity. Still, the advanced capabilities of the MT4 web platform does make it more stable and faster in comparison to MT4. The MT4 platform is single threaded whereas MT5 is multi-threaded. Also, MT5 web platform gives better conditions for automated trading which is an emerging trend followed by modern traders.
One thing that all of us need to keep in mind is the fact that both MT4 and MT5 are just trading softwares and you need a trading account with a forex broker for actually trading in the forex market. So, you need to find a forex broker who has integrated MT4 or MT5 as a trading platform for their users. Finding an MT4 forex broker is much easier as most brokers do have an MT4 platform integration. But there are only a few brokers who are advanced enough to support trading on the MT5 web platform. Still, you can find enough options to choose from but they are less in comparison to MT4.
Talking about the user-friendliness and simplicity of platforms, MT4 and MT4 may appear more or less the same. They are very similar and have many things in common when you start exploring them for the first time. But since MT4 is more of a traditional platform, it turns out to be more comprehensive for beginners. MT5 has a modern design with added tools and features which may make it complex for a newbie trader. But those who want to take their trading to the next level should try transitioning to MT5 web platform for a better trading experience.
In conclusion, there is no common answer for the question in discussion as trading on MT5 can be better for many traders but that may not be the case for all of us. So, one has to rely on their own thinking to decide which of the two would be an ideal match for their trading style and strategy. You should also consider your skill levels and technical know-how before choosing MT4 or MT5. Learning and practice are the most important for getting good at using any software solution. So, take your time to learn before trading.