To start trading on the financial markets, you need to register a personal cabinet, open an account and choose a trading terminal. For a trader, choosing the right platform is one of the key moments to enter the market.  MetaTrader is one of the most popular platforms in the world and has two versions - MetaTrader 4 and MetaTrader 5.

On both platforms, you can trade currencies, stocks, futures, crypto, and more. They offer access to real-time market prices and allow you to manage multiple orders at once. Whether you're a beginner or an expert in trading, understanding the difference between MT4 and MT5 can be helpful.

What is MetaTrader4?

MetaTrader4 is a platform that was released in 2005 specifically for forex traders. Nevertheless, the platform can be used to trade stocks, indices, and commodities using a contract for difference (CFD). Thanks to the trading tools, you can implement your favorite strategies, and the interface can be customized to suit your needs.

What is MetaTrader5?

MetaTrader5 was released in 2010 with enhanced trading capabilities. The platform provides access to almost all financial markets and the necessary tools for successful trading. MT5 offers algorithmic trading and trade copying and advanced technical and fundamental analysis.

Main differences between MetaTrader 4 and MetaTrader 5

It is important to note that MT5 is a completely new platform, not an upgrade to the MT4 version. That is why they have different functionalities.

- MT4 has four types of pending orders, MT5 introduces 2 additional types of pending orders, allowing you to set order limits and giving you more control over stop loss orders.

- MT4 has only 9 timeframes compared to MT5 which offers 21 timeframes. The timeframes included in MT4 are the standard ones: minute (M1, M5, M15, M30), hourly (H1, H4), daily (D1), weekly (W1) and monthly (MN). MT5 has 2, 3, 4, 6, 10, and 20-minute charts, as well as 2, 3, and 6-hour charts.

- MT4 contains most of the standard indicators, while MT5 includes 8 additional indicators. Both platforms have access to a large number of free indicators from the Code Base and thousands of paid indicators from its Marketplace that can be downloaded and used. MT5 also has indicators that are not available in MT4, such as the Fibonacci and Elliot tools.

- MT5 is significantly faster than MT4 as it has a better server infrastructure with four dedicated servers compared to one in the previous version.

- MT5 has a built-in economic calendar with real-time information about events, which allows traders to easily follow the current world situation. MT4 does not have this feature, but you can easily use a third-party calendar.

- Both MT4 and MT5 support demo trading. You can try trading in real market conditions without the risk of losing your capital. All you need to do is open a free demo account.

Both platforms give you access to all your buy and sell orders both via the browser and mobile versions on iOS and Android smartphones and tablets. The common features remain the same and you only need internet access to trade on MT4 and MT5.

MT4 or MT5, what to choose?

For most traders, a trading platform needs to be reliable and easy to use, which is something that MT4 and MT5 do well. If you are new to trading, MetaTrader4 is a great choice. It contains the necessary functions and trading tools to help you get to know the market better and put your skills to the test. MT5 can be easily used to trade multiple asset classes, with different accounts, which is suitable for more experienced traders.