WHAT’S THE DIFFERENCE BETWEEN MT4 AND MT5? (2024)

FAQs

WHAT’S THE DIFFERENCE BETWEEN MT4 AND MT5? ›

MT4: Provides basic Level II pricing, which gives traders a glimpse of the bid and ask prices but lacks detail on market liquidity. MT5: Introduces advanced Market Depth with DOM (Depth of Market) functionality, allowing traders to see the full range of orders at different price levels.

The new MT5 version is considered to be superior for stock trading and order management, while the older MT4 platform is considered to be superior for forex trading. As a matter of fact, most retail traders will notice little difference between the two platforms.

The 9 timeframes included with MT4 are fairly standard. MT5 adds 2,3,4,6, 10, and 20-minutes charts and 2, 3, and 6-hour charts. MT5's strategy backtesting is far more advanced. It is multithreaded, which means multiple simulations can be run simultaneously.

MT4 offers a simpler interface, meaning you may be able to familiarize yourself with it quicker and jump-start your trading journey. MT5 has more features and can support advanced trading activities. Your decision ultimately depends on your specific trading preferences and needs.

If you see a "Not enough money" message, it means your account doesn't have enough funds to meet the margin requirement. To resolve this, add funds, close some open trades, or increase your leverage ratio (e.g., switch to 1:400).

While MT4 may be more suitable for beginner traders and those focused primarily on forex trading, MT5 offers additional features and functionalities that cater to more advanced traders and investors seeking a broader range of assets and trading opportunities.

MT5 Will Replace MT4, but Slowly

“Yes, currently MT4 is still popular among both old school and new traders; however, we believe that traders will move from it in the near future,” said Andreas C. Kapsos, Managing Director of Match-Prime Liquidity.

In September 2022, a ban on the MT4 and MT5 apps in Apple's App Store, which affected all markets, made headlines. Though the reasons for the decision were unclear, there was speculation that it was related to trading scams published in the iOS app store, impersonating popular trading platforms.

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It is also possible to run multiple instances of MT4 and MT5 at the same time on the same PC, but this does require some planning. This may be useful to manage multiple trading accounts at the same time since only a single trading account can be managed at a time in the MT4/MT5 applications.

It's easy, fast, and reliable. Despite being a forex trading platform, MT4 does a splendid job at making things simple and easy to learn for its users.

It provides various benefits for traders and can help them with their strategy and to make a profit. However, the nature of this software means it can be manipulated by online scammers.

A leverage of 50 to 100 should be good for such a small account. This means you would be trading with 50 to 100 times the amount you have in your account, which allows for reasonable risk management while still providing enough capital efficiency to trade micro lots (0.01 or 0.02).

MT4 is focused on forex trading, while MT5 is a multi-asset platform that also supports stocks, futures, and other markets. So MT4 may be slightly easier to use for new forex traders. MT5 has more advanced charting, with additional indicators and tools. It has a more modern interface and faster performance.

It is also possible to run multiple instances of MT4 and MT5 at the same time on the same PC, but this does require some planning. This may be useful to manage multiple trading accounts at the same time since only a single trading account can be managed at a time in the MT4/MT5 applications.