by James Patrick

MT4 vs MT5 : Which One Should You Use?

If you have been planning to start your very own forex brokerage for sometime now, one question which must have definitely come to your mind is whether you should use MT4 or MT5. While the names might look similar, a common misconception within the industry is that MT5 is just an upgrade to the previous MT4. However, this is not the case.

To be very specific, both platforms allow traders to trade on the global forex market, and each of them arrives with a wide range of functionalities; however, they both serve very different purposes. While the MT4 platform has mainly been constructed to give traders access to the global forex market, the MT5 platform is an upgrade, and it lets traders access financial instruments such as CFD, futures, and stocks.

But there is more difference between these two platforms than meet the eye, and in today’s article, we will explore exactly that and help you understand which platform would be better suited for your needs. Without further ado, let’s get started.

Definition

One of the first and most important aspects we need to understand before we dive into the differences between the platforms is their essential definitions. 

In simple terms, MT4 or MetaTrader 4 is an electronic trading platform first launched in 2005, and it allows forex brokers to participate in the global forex market. It is one of the most popular trading platforms within the community and is offered by most brokers around the world. The MT4 platform arrives with Expert Advice, Trading Signals, Mobile Trading, and the Market section, all of which are integral components of the platform and are designed to enrich the experience of the modern trader.

On the other hand, MT5 is also a trading platform for forex traders; however, it was specifically designed to allow traders to access futures, stocks, CFDs alongside the regular forex financial instruments. The MT5 platform was launched in 2010, and contrary to popular belief, it is not an upgrade to the MT4 platform. Till date, it is offered by very few brokers as compared to the MT4 platform, and one of the specialties of this platform is the fact that it complies with the US FIFO (First In, First Out) policy and thus suits the widely popular no hedging rule. 

Additionally, one of the main specialties of the MT5 platform can be found in its design and functionality, which allows traders to trade in commodities, options, stocks, and futures, all of which are inaccessible through the MT4 platform. 

Thus, in a way, it can be understood that the MT4 platform is much more preferred by traders outside of the US, while the MT5 platform is more popular among US traders due to its underlying compliances.

Key Differences Between MT4 and MT5

Now that you know the basic definition of the MT4 and MT5 platforms shared, below is the list of key differences between them. 

Features
Partial Order Filling Policies
Order Fill PolicyFill or KillFill or Kill Immediate or Cancel, Return
Pending Order Types46
Depth of Market
Times & Sales ( Exchange Data )
Technical Indicators3038
Graphical Objects3144
Time Frames921
Economic Calendar
Email System
Transfer Funds Between Accounts
Embedded MQL5 Community Chat
Strategy TesterSingle ThreadMulti-threaded + Multicurrency + Real ticks
Multilingual Unicode
Netting
Hedging
Symbols / Securities1024Unlimited
Supported MarketsForexFOREX / Futures / Options / Stocks / Bonds
Exchange Trading

Now that we understand the key differences between the MT4 and MT5 platforms let us understand the two major differences in detail. 

Conclusion: Which One Should You Choose?

After understanding all the differences between both the platforms, the decision of choosing one over the other, comes down to your needs. If your brokerage serves traders outside of the US and do not require fast backtesting and programmable features, along with being able to trade with no technical support from the developer, go with the MT4 platform.

On the other hand, if your brokerage serves traders who need constant technical support, requires fast backtesting capabilities, designs and creates expert advisors, and resides within the US, then choose the MT5 platform. 

The facts are in front of you; all you need to do is make a choice and along the way, if you come across any trouble, make sure you reach out to us at Starting Brokerage, and our team of experts will be more than happy to assist you along every step of the way.

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