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MT4 vs MT5 what are the kwy differences and which one is better

Metatrader 4 vs. Metatrader 5

In the world of trading, there are many choices you will make. How much to risk per trade? Which is the best market at a particular moment, or even how far to set your stop loss. And yet, before answering any of these comes one of the most important decisions, and that is choosing a platform, even choosing between versions of platforms as is the case with MetaTrader.

So, which is the best platform out of all the offers out there?

The answer to that question is not easy. Right away, several options come to mind. From cTrader to  Sterling, and apps like Ninja trader. Yet the name considered to be the gold standard is typically MetaTrader.

In this guide, we will look at the two iterations of MetaTrader and analyze why both have become so popular for retail and institutional traders alike.

What is MetaTrader?

MetaTrader is software that was developed by MetaQuotes in the year 2005. As the world turned towards digitalization, financial markets went online. This created demand for online-based trading software.

MetaTrader became popular due to its user-friendly trading interface. Online brokers at the time adopted and licensed the technology, and to this day, continue to hold dominance in the market.

Most brokers across the globe offer some version of the MetaTrader software whether it’s MT4 or MT5.

There are also mobile versions of the software, which allow traders to trade on the go.

Learn the differences between trading with MetaTrader 4 and MetaTrader 5 with Tradeview Forex

MetaTrader 4 (MT4)

Released in 2005, MT4 is undoubtedly the most popular platform. MetaTrader 4 is a forex trading platform that is used by most retail traders. This platform includes all elements that a brokerage house should offer.

MetaTrader terminal allows traders to have a flexible trading environment, mobility, availability of trading tools, indicators, amongst other features. Some statistics indicate that around 90% of retail forex traders use the MetaTrader 4 platform.

So forex brokers with MT4 functionality dominate the retail currency markets. This truly is a case of not fixing something that isn’t broken.

The greatest feature of MT4 is MarketWatch. A place where traders are able to see the list of available assets for a particular broker.

In addition to this, MT4 gives traders free technical analysis by using indicators and trend lines. That is why the platform also offers algorithmic trading and trade copier services.

MetaTrader 5 (MT5)

MetaQuotes released MetaTrader 5 in 2010. By principle, it’s the same as MT4. It comprises the same user functionalities and the basic tools. 

MT5 came out in 2010, or five years after MT4. It is MetaQuotes’ latest trading platform. Most brokers around the world offer an iteration of the software in their offering.

MT5 is described as an all-in-one solution. In part because MT5 offers multi-asset trading, an array of tools as well as a modern look with the ability to open hundreds of charts.

There are various types of MT5 forex brokers. Many don’t utilize the platform for assets beyond forex and CFDs.

Differences between MT4 and MT5

The main difference between MT4 and MT5 (in Tradeview’s case) is that traders are able to trade on exchange or “real” equities on MetaTrader 5, rather than just CFDs on stocks.

Typically on both MT4/MT5, brokers only allow users to trade via CFDs. However, it should be mentioned that Tradeview has been offering real on-exchange stocks trading for several years. As the pandemic has heightened the demand for stocks, this has been a very popular offering.

Traders are able to access equities listed on the major indices in the United States, this includes the likes of Tesla, Facebook, Amazon, Gamestop, and even recent additions like Coinbase.

For Forex traders, both platforms provide access to over 300+ currency pairs, with commodities and Cryptocurrencies also available.

Related: Get better results by following MetaTrader tips

Pros and Cons of Metatrader 4 and Metatrader 5

MT4

Pros:

  1. MT4 is suitable for retail traders who seek access to CFDs in all currency pairs.
  2. Multi-device functionality like Windows, Mac, Linux, Android, and iOS.
  3. User-friendly interface
  4. Technical trading indicators
  5. Access to expert advisors

Cons:

  1. MT4 does not provide a custom timeframe in their trading platform.
  2. Traders cannot enjoy automated trading through the web trading platform.

MT5 

Pros:

  1. State-of-the-art encryption ensures a high level of security.
  2. Backtesting and copy trading features.
  3. The messaging segment enables real-time contact between the broker and its clients.
  4. On-exchange equities

Cons:

  1. No hedging
  2. MT5 is made up of a new code. Custom programs created for MT4 need to be re-written for MT5.

Both platforms are robust and user-friendly for traders at any level. From the pros who want to use expert advisors, or even create their own robots, to beginners who simply want to draw support and resistance lines. MetaTrader software can provide the tools you need.

Before opening a live account, you are invited to test out a Tradeview demo account to see if you are comfortable with the platform. Feel free to download this here.

Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.
Website: www.tradeviewforex.com

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.
Website: www.tvmgloballtd.com

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.
Website: www.tradeview.eu

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.
Website: www.tradeviewlatam.com