The difference between MT4 and MT5 deeper explained
The difference between MT4 and MT5 deeper explained
The difference between MT4 and MT5 deeper explained
Of course. This is an excellent question, as the difference is fundamental for traders.
The most important thing to understand is that when people say "MetaTrader," they are almost always referring to **MetaTrader 4 (MT4)**. MT5 is not just an update; it's a separate, more advanced platform built for a different purpose.
Here is a detailed breakdown of the differences between MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
---
* **MetaTrader 4 (MT4):** Designed primarily for **Forex and CFD traders**. It's the industry standard, incredibly popular due to its simplicity, stability, and massive community support.
* **MetaTrader 5 (MT5):** Designed as a **multi-asset platform** for trading Forex, Stocks, Futures, and Commodities. It's more powerful and complex but has been slower to adopt in the Forex CFD space.
---
| Feature | MetaTrader 4 (MT4) | MetaTrader 5 (MT5) | What it means for you |
| :--- | :--- | :--- | :--- |
| **Primary Purpose** | **Forex & CFDs** | **Multi-Asset** (Stocks, Futures, Forex, Bonds) | MT5 can trade more markets natively, but MT4 is laser-focused on Forex. |
| **Trading Style** | **Netting System** (Hedging often disabled by brokers) | **Hedging System** by default | In MT5, you can easily have multiple opposite positions for the same symbol. In MT4's common netting mode, they are merged into one. |
| **Pending Orders** | 4 types (Buy Limit, Buy Stop, Sell Limit, Sell Stop) | **6 types** (Adds Buy Stop Limit & Sell Stop Limit) | MT5 offers more flexibility and precision for order entry. |
| **Technical Indicators** | 30 built-in indicators | **38 built-in indicators** | MT5 has more analytical tools out of the box. |
| **Timeframes** | 9 timeframes (M1 to MN1) | **21 timeframes** (M1 to MN1, including M2, M3, etc.) | MT5 provides more granularity for market analysis. |
| **Strategy Tester (Backtesting)** | Single-threaded, slower. Basic optimization. | **Multi-threaded, much faster**. Advanced optimization with genetic algorithms. | Backtesting and optimizing Expert Advisors (EAs) is significantly faster and more powerful in MT5. |
| **Programming Language** | **MQL4** | **MQL5** | The languages are different and **not natively compatible**. An EA or indicator for MT4 will not work in MT5 without being rewritten. |
| **Depth of Market (DOM)** | Not available | **Available** | MT5 shows market depth, which is crucial for exchange-traded instruments like stocks and futures. |
| **Economic Calendar** | Not built-in (requires indicator) | **Built-in** directly into the platform | Easier access to fundamental news events. |
| **Security** | Good | **Enhanced** (Faster encryption algorithms) | MT5 has more modern security protocols. |
---
#### 1. Market Focus & Design Philosophy
* **MT4** was launched in 2005 and became a phenomenon in the retail Forex market. Its entire ecosystem—from the way it handles orders to its community—is built around spot Forex and CFDs.
* **MT5** was launched in 2010 to be a one-stop-shop for all financial markets. It connects not just to the over-the-counter (OTC) Forex market but also to centralised exchanges (for stocks, futures, etc.). This is its biggest advantage but also the reason it was slow to catch on with Forex traders who were already entrenched in the MT4 ecosystem.
This is a critical difference for trading strategies.
* **MT4 (Netting):** In its most common configuration, if you open a Buy and then a Sell position on the same EUR/USD pair, the platform will net them out, showing you a single net position. While many brokers now allow hedging on MT4, its core design is netting.
* **MT5 (Hedging):** It is designed to allow true hedging. In the same scenario, MT5 will show two separate, distinct positions (one Long and one Short). This gives traders more flexibility in managing individual trades.
**MT5 is the clear winner here.**
* MT5's Strategy Tester can utilize multiple CPU cores simultaneously, making backtests run many times faster than on MT4.
* Its optimization process uses genetic algorithms to find the best parameters more efficiently, saving you a tremendous amount of time.
This is the single biggest barrier to switching from MT4 to MT5.
* **MQL5** is a more modern, powerful, and object-oriented language compared to **MQL4**.
* Code written for MT4 **will not work** on MT5. It must be manually converted or rewritten. While there are conversion tools, they often require manual tweaking.
* Because MT4 has been around for so long, it has a vastly larger library of free and paid indicators and Expert Advisors (EAs). The MT5 marketplace is growing but is still smaller.
---
* You are a **Forex and CFD trader**.
* You want access to a massive, established library of indicators, scripts, and EAs.
* Your broker, strategy, or community primarily uses MT4.
* You prefer a simpler, more straightforward interface that has been tried and tested for almost two decades.
* You trade **multiple asset classes** like stocks, futures, and Forex from a single platform.
* You rely heavily on **backtesting and optimization** and need the fastest performance.
* You are developing new EAs and want to use a more modern and powerful programming language (MQL5).
* You are a new trader and your broker offers both. It's better to start on the more modern, capable platform if you have no existing investment in MT4.
Think of it this way:
* **MT4 is like a reliable, high-performance sports car** tuned perfectly for the road of Forex trading. It's a specialist tool that does one job exceptionally well.
* **MT5 is like a modern, all-terrain vehicle.** It's more powerful, can handle any road (market), and has the latest technology, but it can feel like overkill if you only ever drive on the Forex highway.
The industry is slowly shifting towards MT5, but MT4's immense popularity and entrenched ecosystem ensure it will remain a dominant platform for years to come.
indigostrader
19.11.2025, 05:22 #1
The difference between MT4 and MT5 deeper explained
Of course. This is an excellent question, as the difference is fundamental for traders.
The most important thing to understand is that when people say "MetaTrader," they are almost always referring to **MetaTrader 4 (MT4)**. MT5 is not just an update; it's a separate, more advanced platform built for a different purpose.
Here is a detailed breakdown of the differences between MetaTrader 4 (MT4) and MetaTrader 5 (MT5).
---
* **MetaTrader 4 (MT4):** Designed primarily for **Forex and CFD traders**. It's the industry standard, incredibly popular due to its simplicity, stability, and massive community support.
* **MetaTrader 5 (MT5):** Designed as a **multi-asset platform** for trading Forex, Stocks, Futures, and Commodities. It's more powerful and complex but has been slower to adopt in the Forex CFD space.
---
| Feature | MetaTrader 4 (MT4) | MetaTrader 5 (MT5) | What it means for you |
| :--- | :--- | :--- | :--- |
| **Primary Purpose** | **Forex & CFDs** | **Multi-Asset** (Stocks, Futures, Forex, Bonds) | MT5 can trade more markets natively, but MT4 is laser-focused on Forex. |
| **Trading Style** | **Netting System** (Hedging often disabled by brokers) | **Hedging System** by default | In MT5, you can easily have multiple opposite positions for the same symbol. In MT4's common netting mode, they are merged into one. |
| **Pending Orders** | 4 types (Buy Limit, Buy Stop, Sell Limit, Sell Stop) | **6 types** (Adds Buy Stop Limit & Sell Stop Limit) | MT5 offers more flexibility and precision for order entry. |
| **Technical Indicators** | 30 built-in indicators | **38 built-in indicators** | MT5 has more analytical tools out of the box. |
| **Timeframes** | 9 timeframes (M1 to MN1) | **21 timeframes** (M1 to MN1, including M2, M3, etc.) | MT5 provides more granularity for market analysis. |
| **Strategy Tester (Backtesting)** | Single-threaded, slower. Basic optimization. | **Multi-threaded, much faster**. Advanced optimization with genetic algorithms. | Backtesting and optimizing Expert Advisors (EAs) is significantly faster and more powerful in MT5. |
| **Programming Language** | **MQL4** | **MQL5** | The languages are different and **not natively compatible**. An EA or indicator for MT4 will not work in MT5 without being rewritten. |
| **Depth of Market (DOM)** | Not available | **Available** | MT5 shows market depth, which is crucial for exchange-traded instruments like stocks and futures. |
| **Economic Calendar** | Not built-in (requires indicator) | **Built-in** directly into the platform | Easier access to fundamental news events. |
| **Security** | Good | **Enhanced** (Faster encryption algorithms) | MT5 has more modern security protocols. |
---
#### 1. Market Focus & Design Philosophy
* **MT4** was launched in 2005 and became a phenomenon in the retail Forex market. Its entire ecosystem—from the way it handles orders to its community—is built around spot Forex and CFDs.
* **MT5** was launched in 2010 to be a one-stop-shop for all financial markets. It connects not just to the over-the-counter (OTC) Forex market but also to centralised exchanges (for stocks, futures, etc.). This is its biggest advantage but also the reason it was slow to catch on with Forex traders who were already entrenched in the MT4 ecosystem.
This is a critical difference for trading strategies.
* **MT4 (Netting):** In its most common configuration, if you open a Buy and then a Sell position on the same EUR/USD pair, the platform will net them out, showing you a single net position. While many brokers now allow hedging on MT4, its core design is netting.
* **MT5 (Hedging):** It is designed to allow true hedging. In the same scenario, MT5 will show two separate, distinct positions (one Long and one Short). This gives traders more flexibility in managing individual trades.
**MT5 is the clear winner here.**
* MT5's Strategy Tester can utilize multiple CPU cores simultaneously, making backtests run many times faster than on MT4.
* Its optimization process uses genetic algorithms to find the best parameters more efficiently, saving you a tremendous amount of time.
This is the single biggest barrier to switching from MT4 to MT5.
* **MQL5** is a more modern, powerful, and object-oriented language compared to **MQL4**.
* Code written for MT4 **will not work** on MT5. It must be manually converted or rewritten. While there are conversion tools, they often require manual tweaking.
* Because MT4 has been around for so long, it has a vastly larger library of free and paid indicators and Expert Advisors (EAs). The MT5 marketplace is growing but is still smaller.
---
* You are a **Forex and CFD trader**.
* You want access to a massive, established library of indicators, scripts, and EAs.
* Your broker, strategy, or community primarily uses MT4.
* You prefer a simpler, more straightforward interface that has been tried and tested for almost two decades.
* You trade **multiple asset classes** like stocks, futures, and Forex from a single platform.
* You rely heavily on **backtesting and optimization** and need the fastest performance.
* You are developing new EAs and want to use a more modern and powerful programming language (MQL5).
* You are a new trader and your broker offers both. It's better to start on the more modern, capable platform if you have no existing investment in MT4.
Think of it this way:
* **MT4 is like a reliable, high-performance sports car** tuned perfectly for the road of Forex trading. It's a specialist tool that does one job exceptionally well.
* **MT5 is like a modern, all-terrain vehicle.** It's more powerful, can handle any road (market), and has the latest technology, but it can feel like overkill if you only ever drive on the Forex highway.
The industry is slowly shifting towards MT5, but MT4's immense popularity and entrenched ecosystem ensure it will remain a dominant platform for years to come.
1 Gast/Gäste
1 Gast/Gäste