Is MT5 better than MT4?


Here’s a question which has probably crossed the minds of many retail forex traders: Is MT5 better than MT4?

It only takes a quick search online to see that MT4 is clearly the more popular of the two, both from a forex traders’ perspective as well as brokers’ offerings.

But why is this the case? After all, MT5 is newer software and has some great improvements over its predecessor, such as more chart timeframes and a greater range of default indicators.
One could argue that the problem lies with the fact that more brokers offer MT4, and that not many have started supporting MT5. This is true, to an extent, but brokers will always offer those platforms that traders are using the most, and so it’s prudent to look at why traders themselves haven’t necessarily been demanding MT5 support.

Perhaps the biggest reason is the programming language called Expert Advisors. Called EAs for short, these are the automated trading systems that MetaTrader is popular for. Programmed code written for MT4 EAs will not work with MT5. This is a drawback for those forex traders that devoted much time and energy learning how to code for MT4 to build their own strategies; not to mention those that have built their preferred library of EAs over time, and do not want to have to trawl the web for those same indicators to work with MT5. Custom indicators tell the same story: those written for MT4 will not work with MT5.

Hedging is another factor. MT5 does not allow investors to have concurrent trades running in opposite directions. It’s a significant omission for those looking to temporarily hedge when the opportunity arises.

The interface also warrants a mention here. Although the same layout is mostly retained between MT4 and MT5, the buttons on the newer platform are slightly larger and therefore take up more precious screen real-estate. A small issue perhaps, but when the focus should be on charts and pricing– the more screen space the better.

Personally, I think traders’ habits play a big part in the popularity (or lack thereof) of MT5. It takes no small amount of time and effort to learn, and customise, a new trading platform and forex traders have enough to concentrate on with their strategies alone. The old saying ‘if it ain’t broke, don’t fix it’ rings particularly true in this case.

MT4 is a great platform, especially once you get to know its ways. Until there are compelling reasons to change – with no downsides – I have a feeling that MT4 will remain the most popular for some time.





Spread bets and CFDs are leveraged products. Spread betting and CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.This information has been prepared by IG, a trading name of IG Markets Limited. The material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Education feed

Editors’ Picks

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/USD dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

USD/JPY: Bears losing their grip as market attempts to bottom

USD/JPY is trading on the bid in the US session following a rise from 108.42 the low to a high of 108.66.

USD/JPY News

Editors’ Picks

EUR/USD steadying above 1.1050 amid upbeat German export data

EUR/USD is trading above 1.1050, attempting a recovery after Germany reported an increase in exports in October. EUR/USD dropped sharply on Friday amid upbeat US Non-Farm Payrolls and weak German industrial output. 

EUR/USD News

GBP/USD off 7-month highs, still firmer as Tories hold the lead

GBP/USD retraces from the new seven-month highs of 1.3180 but remains strongly bid, as weekend polls have reaffirmed a solid lead for PM Johnson's Conservatives. Cable dropped on Friday amid upbeat US data.

GBP/USD News

USD/JPY: Bears losing their grip as market attempts to bottom

USD/JPY is trading on the bid in the US session following a rise from 108.42 the low to a high of 108.66.

USD/JPY News

Cryptos: Market ready to launch, not knowing who will lead it

The market hesitates between Bitcoin and Ethereum to lead the next bullish run. Ethereum will suffer heavy losses if not in command. Bullish clarity may call for terminal motivation bearish jerks.

Read more

Gold bulls hold in there on geopolitical and trade risks, despite robust USD

Gold prices were under pressure at the start of the week as the US dollar seeks correction of the latest slide following a very healthy headline accumulative number in US jobs creation which included strong revisions.

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology