Summary:
Explore the differences between MT4 and MT5, including programming languages, trade variety, market quotes, order processing, and advanced analysis tools.
It is crucial to choose trading software that is suitable for forex trading needs. Although in the past traders mainly used MT4 software, in recent years more and more people have also started using MT5. So, what are the differences between MT5 and MT4? Before making a choice, let's explore the differences between MT4 and MT5 together.
What is the Differences Between MT4 and MT5?
Language and technology are different. MT4 uses the MQL4 programming language, while MT5 uses MQL5. MQL5 is more powerful than MQL4, supports object-oriented programming, and has more functionality and flexibility. MT5 supports multiple time frames, including 1 minute, 2 minutes, and 8 hours, while MT4 only supports fixed time frames.
The support scope varies. MT4 mainly focuses on forex trading, while MT5 supports more trading varieties, including stocks, commodities, bonds, etc. This has made MT5 a more diversified trading platform.
Market-depth quotes vary. In MT5, traders can view market-deep quotes to better understand market liquidity, resulting in higher transparency and intuitiveness. MT4 does not have this feature.
Order processing methods are different. In MT4, each order is independent and allows the same variety to open opposite orders. But in MT5, it will merge these orders and display them as one order. This may make it inconvenient for you to view transaction history, as it is not possible to visually verify all transactions.
The difference in order-listing methods is also one of the differences between MT4 and MT5. MT4 provides four common listing methods, including buy stop loss, sell stop loss, limit buy, and limit sell. On this basis, MT5 has added two new listing methods, namely breaking through the limit price to buy orders and breaking through the limit price to sell orders. These new methods allow you to automatically execute orders when prices exceed specific levels, which may be very useful in certain strategies.
The built-in technical analysis tools are different. MT4 includes 30 built-in indicators and 24 analysis objects, while MT5 has added eight new indicators on this basis. But the number of indicators does not necessarily mean better trading. Usually, mastering one or two indicators proficiently is enough to assist your trading decisions.
| Difference | MT4 | MT5 |
| Programming Language | MQL4 | MQL5 |
| Timeframe Support | Supports fixed timeframes only | Supports various timeframes including 1 minute, 2 minutes, and 8 hours, etc. |
| Trading Instruments | Primarily focused on forex trading | Supports a wider range of trading instruments including stocks, commodities, bonds, etc. |
| Market Depth Quotes | Not supported | Supports market depth quotes, providing greater transparency and intuitiveness |
| Order Handling | Each order is independent, allows opposite orders | Combines opposite orders, making it less convenient to check trade history |
| Pending Orders | Offers four common types of pending orders | Offers six types of pending orders, including Buy Stop Limit and Sell Stop Limit, allowing for automatic execution upon price breakthrough, useful in certain strategies |
| Built-in Tech Analysis Tools | Includes 30 built-in indicators and 24 analytical objects | Includes 38 built-in indicators and 24 analytical objects |
From the above differences, it can be seen that MT5 is relatively more powerful in terms of functionality. So, why do both platforms and traders currently prefer to use MT4? The main reason is the different positioning. If traders need to conduct extensive backtesting or trade stocks and other varieties, then choosing MT5 may be more appropriate. But for most ordinary forex traders, MT4 is already sufficient to meet demand. MT4 runs smoothly and stably, with easy-to-use functions and charts, making it the preferred choice for forex trading.
Whether choosing MT4 or MT5 in forex trading, it is important to ensure that a legitimate and secure trading platform is chosen. This is the key to ensuring the safety of traders' funds. If there are any doubts during trading, do not hesitate to consult professionals at any time.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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