What is the difference between MT4 and MT5 trading platforms?
Since Metatrader 5 was released on 2010, five years after the release of Metatrader 4, and also due to the numerical sequence in platform names, there is a common misconception that Metatrader 5 was a new, improved version of Metatrader 4, designed to make The same work better.
This is not true, although it is a trading platform and a return test machine, just like Metatrader 4, and the graphical user interfaces look quite similar.
Metatrader 5 was designed to do some things that Metatrader 4 could not do. It was actually intended for a different market and therefore there are really very few reasons to get into a discussion about “MT4 vs. MT5 ”.
Essentially, Metatrader 5 is designed to be able to trade markets other than Forex, such as stocks and commodities, essentially because it is better able to connect to a centralized stock exchange.
The other major differential design factor was its compliance with the US “no coverage rule”, only Metatrader 4 can handle coverage: Metatrader 5 cannot.
This is good for traders in the US, as they are legally barred from hedge in any case, but in most parts of the world, many traders find that an inability to hedge is an unnecessary disadvantage.
So, in a nutshell, Metatrader 5 was developed to attract non-Forex markets and American markets and meet the needs inherent in those markets better than Metatrader 4 could.
This is the true story of MT4 vs. MT5.
The two main differences have already been covered, but there are a number of others that are worth mentioning in any MT4 and MT5 comparison.
It should be noted that there is no backward compatibility. Programs written for Metatrader 4 cannot be run on Metatrader 5.
This can be a serious disadvantage for traders wishing to “upgrade”, and is one of the main reasons why such a change should not be viewed as an upgrade.
It is true that Metatrader 5 maintains two main advantages related to programming over Metatrader 4.
Firstly, your return test functions, where you can test scheduled trading strategies, perform at a much faster rate, which is a very time-saving feature you are the type of trader that needs to perform a large number of subsequent tests.
It also allows simultaneous testing on multi-currency pairs. Together, this can accelerate back testing procedures immeasurably.
Which trading platform is best for you?
Sand you have to comply with US regulations for any reason, want to do a lot of testing using the offline platform, or want access to hard-to-reach commodity exchanges through Metatrader 4, Metatrader 5 is the obvious choice.
Otherwise, I advise using the Metatrader 4, which remains an industry proven and tested gold standard platform. It's much more popular than Metatrader 5, and for good reason: it's easy to use and manage and generally has fewer flaws than its competing browser-based platforms.