That's because whether your preference is cryptocurrency, Forex, commodities, CFDs (contracts for difference), or some other asset class, MetaTrader's offerings have you covered. Plus, it doesn't matter if you're brand new to the game or have been an active investor trader for decades, the two versions of MT can handle it all.
If you've been away from the markets for a while or are just getting involved, it's common to ask what's the difference between MT4 and MT5? It's a perfect question. The first thing to know is that MetaTrader 5 is not just a new and improved version of MetaTrader 4. They're actually two very different products that were each created with specific functions and features. Once you realize that MT5 does offer a much wider array of features but is not just a ramped-up big brother to MT4, you're ready to dig in and find out how these two electronic trading platforms differ, what each one excels at, and which one is right for you. Here's a cheat sheet of facts that should help you know the essentials about the two products and make an informed decision about which one to call your own.
One Is Mainly For Foreign Exchange Transactions
MT4 came along first and was designed for Forex traders exclusively. Later, when the company realized how popular its product was, it began receiving requests from non-Forex traders for a different version. They designed MT5 to accommodate those requests. That's why it's able to handle transactions in stocks, Forex, cryptocurrency, futures, CFDs (contracts for difference), and several other kinds of tradable assets. Your location doesn't matter because the platforms work through your chosen brokerage firm. Thus, you can use Metatrader 5 in South Africa, Europe, the US, or anywhere else with equal ease and all the features. The same goes for MT4.
You Can Do Trials Of Either One
You can try the products out for a few weeks and decide which one suits your style of trading, the kinds of assets you trade, and your need for extra bells and whistles. There's no big secret, and brokers really don't care which one you prefer. Most reputable brokerage firms offer both platforms.
You'll Need A Broker To Make Transactions
Be sure to speak with your brokerage's customer service desk if you have specific questions about downloading or testing either platform. And remember that you must go through a licensed broker in order to buy or sell securities. Even if you download the software to your own computer, you won't be able to make transactions without your broker.
What Are The Differences?
When the company had MT5 on the drawing board, there was talk of using it as a full replacement for MT4, but they decided against going that route. One of the reasons they opted to keep 4 alive is because the original had such a loyal and huge following. There are Forex enthusiasts that had come to love the user-friendliness of MetaTrader 4, and that's still the situation today. If you've used both, you already know that both 4 and 5 look and feel the same. But there's no getting away from that core difference: the former is for Forex trading only.
How Has Each Product Improved?
The creators upgraded MetaTrader 4 to make it much faster than the original version. If you like doing thread tests on 4, you can do so on the new offering but not the old one. As for 5, there's much more memory than in its first model, and the fresh build is adaptable for smartphones. The charts are better, too, complete with more detail and a more user-friendly interface.
Only On MT5
There are several indices and assets are only available on MT5. Netting is allowed, as is hedging. Traders can use an unlimited number of stock symbols. You can send attachments with email messages. There are eight variations on pending orders and a full 44 graphic objects the system can handle. It supports exchange trading as well as numerous currencies and threads at the same time. It can fill partial orders and offers tables as well as charts. There are a whopping 38 technical indicators built-in to the program.
