MT4 vs MT5: Which Is Better for Trading?

1. What is MetaTrader 5 (MT5)?

MT5 is the newer and more advanced trading platform. It was also developed by MetaQuotes Software. It came out after MT4 and was built to handle more than just the Forex market. MT5 is a true multi-asset platform.

A. Designed for Diverse Markets

The biggest difference is what you can trade. MT5 gives you access to a much wider range of financial products.

• You can trade Forex (currency pairs) and CFDs (Contracts for Difference).
• Crucially, MT5 connects you to centralized markets like Stocks, Futures, and Bonds. This makes it a complete tool for traders who want to diversify their portfolio.

B. Enhanced Trading Capabilities

MT5 is a significant technological upgrade. It is faster and offers more features for detailed analysis.

• More Tools: It has 38 built-in technical indicators and 44 graphical objects. This allows for deeper market analysis than MT4 offers.
• Timeframes: Traders can look at charts in 21 different ways. Whether you trade quickly or hold for the long run, this gives you plenty of options.
• Order Control: You also have more control over your orders. MT5 offers six types of pending orders. This means you can decide exactly when and how your trades are placed.
• Netting System: It supports both the hedging and netting systems for order accounting. The netting system is a must-have for trading stocks and other exchange-traded products.

C. Algorithmic and Copy Trading

You can use MT5 for automated trading, just like MT4. The key difference is that MT5 uses a newer programming language called MQL5.

• Expert Advisors (EAs): You can set up automated robots and EAs. They trade for you 24/5. No need to place every trade yourself.
• Better Testing: MT5 has a powerful, multi-threaded Strategy Tester. This means it can test EAs much faster and more accurately across multiple currency pairs at once.
• Community: You can also use Copy Trading. This lets you automatically copy the trades of skilled investors. Their trades will go directly into your own account.

If you want speed, flexibility, and the option to trade many different assets, MT5 is a powerful all-in-one choice.

2. What is MetaTrader 4 (MT4)?

MT4 is a popular electronic trading platform. Created by MetaQuotes Software, it launched in 2005. It quickly became the go-to choice for online Forex trading and remains the most widely used platform today.

A. How MT4 Works as a Bridge

It’s important to understand that MT4 is not a brokerage company itself. Instead, it is powerful software that links a trader to their chosen broker.

• Broker Connection: Brokers pay a license fee to use MT4’s server technology. They then offer the client software to their users for free.
• Order Flow: You place an order to buy or sell a currency pair on MT4. The platform sends your request straight to your broker. Your broker then completes the trade in the market and updates your account.

B. Key Features for Retail Traders

MT4 got popular because it’s simple and reliable. It has great analysis tools too.

• Forex Focus: It’s built for Forex. That’s currency trading. Brokers might let you trade gold or stock indices, too. But it shines in currency markets.
• Analysis Tools: It has strong charting. Check price data in 9 timeframes. Use over 30 built-in indicators like RSI and Moving Averages.
• Automated Trading (EAs): A big plus is automated trading. Expert Advisors are trading robots. Code them in MQL4. They run Forex strategies for you.
• Large Community: Since 2005, it had a huge community. Thousands share custom EAs, indicators, and scripts.

That’s why pros still pick MT4. Even with new platforms out there.

3. MT4 vs. MT5: The Key Differences

The table below breaks down the main technological and functional differences between the two platforms, helping you see which platform’s features align best with your trading goals.

Feature	MetaTrader 5 (MT5)	MetaTrader 4 (MT4)
Supported Markets	Multi-Asset (Forex, Stocks, Futures, Options, Bonds)	Forex and CFDs
Exchange Trading	✔️	❌
Hedging	✔️	✔️
Netting	✔️	❌
Timeframes	21	9
Technical Indicators	38	30
Graphical Objects	44	31
Pending Order Types	6	4
Depth of Market (DOM)	✔️	❌
Time & Sales Data	✔️	❌
Order Fill Policy	Fill or Kill, Immediate or Cancel, Return	Fill or Kill
Partial Order Filling	✔️	❌
Strategy Tester (Backtesting)	Multi-threaded + Multi-currency + Real ticks (Fast)	Single thread (Slow)
Programming Language	MQL5	MQL4
Built-in Economic Calendar	✔️	❌
Email System	✔️ (with attachments)	✔️ (no attachments)
Transfer Funds Between Accounts	✔️	❌
Embedded MQL5 Chat	✔️	❌
Trading Reports	Tables & Charts	Tables
Multilingual Unicode	✔️	❌
Symbols Limit	Unlimited	1024

4. Is MT5 Truly Better Than MT4?

You might look at the features and think MT5 is better. It’s newer than MT4. It’s an upgrade. But it’s not that simple. The best platform depends on how you trade. And what you want to trade.

MT5 isn’t a replacement for MT4. It’s an alternative.

A. The Core Difference

MT4 (The Forex Specialist): MT4 came out in 2005. It soon became the industry standard. Why? It’s stable, easy to use, and adaptable. It was built for OTC markets like Forex and CFDs.

MT5 (The Multi-Asset Powerhouse): Released in 2010, MT5 was designed to be a more complete platform with more features. Its main goal was to allow trading in markets beyond Forex, such as Stocks, Futures, and Bonds.

Choose MT4 If…	Choose MT5 If…
You only trade Forex and CFDs (currency pairs, indices, gold).	You want access to Stocks, Futures, and Bonds in addition to Forex.
You are a beginner and value simplicity, reliability, and an established interface.	You require more advanced tools, such as 21 timeframes, 38 indicators, and the Depth of Market (DOM).
You rely on a specific Expert Advisor (EA) or indicator built years ago using the MQL4 language.	You are an algorithmic trader who needs the fastest backtesting capabilities.

In short, MT4 is the trusted, stable platform for dedicated Forex traders. MT5 is the modern, feature-packed tool for multi-market traders seeking speed and versatility. The best platform is the one that meets your trading goals.

5. VPS Malaysia and MetaTrader Platforms

VPS Malaysia doesn’t offer the platforms themselves. But their service boosts your MT4 and MT5 experience big time.

A Forex VPS is like your own remote computer. It’s always on and online. Perfect for MetaTrader users because:

• 24/7 Automation: Our Forex VPS can run EAs non-stop. Your trades keep going even if your home PC is off or loses connection.
• Speed and Low Delay: Our servers sit close to big Forex brokers. Cuts latency for super-fast order execution.
• Platform Flexibility: Pre-installed MT4 and MT5 on our Forex VPS. Switch accounts easily from anywhere.

VPS Malaysia’s Forex VPS plans provide cheap and reliable services. They offer NVMe SSD storage and locations in Malaysia for Asia-Pacific brokers. Traders love the 99.99% uptime and free setup. It lets you max out charting, EAs, and reliable trades. Essential for serious Forex work.

Frequently Asked Questions (FAQs)

Q1: Can I use both MT5 and MT4?

Yes, you can. Run them at the same time. But your broker must support both. You’ll need separate accounts—one for each.

Q2: Is MetaTrader free?

Yes. Both MT4 and MT5 are free to download and use. Brokers get the license from MetaQuotes. They give it to you at no cost.

Q3: Can I trade on MetaTrader without a broker?

No. MT4 and MT5 are just the platform software. They’re not banks or brokers. Open an account with a MetaTrader-supporting broker to trade for real.

Q4: Will MT4 get shut down soon?

While MetaTrader 5 has more features and has been adopted by more brokerage firms, the company, MetaQuotes, has not made any public statement saying that MT4 will be officially shut down. MT4 is still widely used by Forex brokers and traders globally.

However, MetaQuotes stopped giving out new MT4 licenses to brokers in 2018. They also ended support for older MT4 client versions back in 2017. For now, MT4 is still available for download and use, but its long-term future focus will likely remain on MT5.

Q5: How does MetaTrader differ from cTrader?

cTrader has a modern look. It’s sleek and user-friendly. It offers 26 timeframes—more than MT4’s 9 or MT5’s 21. The charts are top-notch. Many trusted brokers support it now.

But MetaTrader wins in popularity. It’s everywhere. Way more brokers offer it.