As the most widely used gold trading platforms globally, the debate between MT4 and MT5 has never ceased. Despite both being products of MetaQuotes, their positioning differs significantly. This article provides a comprehensive analysis from functional features, applicable scenarios, to trading costs, helping you find the most suitable trading tool.
Core Differences: The Genetic Disparity Between MT4 and MT5
1. Target Market & Tradable Instruments
- MT4: Designed exclusively for forex and CFDs, supporting mainstream commodities like precious metals and crude oil, but with limited coverage of non-forex products (e.g., stocks, bonds).
- MT5: Targets diversified financial markets, adding exchange-traded instruments like stocks, futures, and options—ideal for cross-market investors.
2. Functionality & Performance Upgrades
MT5 achieves multiple breakthroughs:
Analytical Tools:
- Built-in technical indicators increase from 30 (MT4) to 38.
- Chart timeframes support 21 types (vs. MT4’s 9).
- New features: economic calendar, Depth of Market (DOM).
Algorithmic Trading:
- MQL5 language enables multithreading and 64-bit systems.
- Faster backtesting with multi-currency strategy testing.
- Simulates real slippage and latency.
Order Management:
- Pending orders expand from 4 to 6 types.
- Supports partial fills and order merging.
3. User Interface & Compatibility
- Ease of Use: MT4’s simplicity suits beginners; MT5’s complexity demands steeper learning.
- Compatibility: MT4’s MQL4 isn’t compatible with MT5’s MQL5, preventing direct EA migration.
Target Audience: Let Your Trading Needs Decide
MT4 Best For:
- Beginners: Intuitive interface, abundant resources.
- Scalpers: Low-latency execution and hedging (where permitted).
- EA Developers: MQL4’s lower barrier for basic strategies.
MT5 Best For:
- Diversified Traders: Stocks, futures, etc.
- Quant Professionals: Multi-currency backtesting, tick-data simulation.
- Long-Term Holders: Complies with FIFO rules (e.g., U.S. regulations).
Cost Comparison: Hidden Fees Matter
1. Spreads & Commissions
Both depend on broker policies, but MT5 may incur additional fees (e.g., stock trading commissions).
2. Swap Rates
MT5’s position consolidation may alter swap calculations.
3. Development Costs
MQL5’s complexity raises learning/outsourcing expenses.
Case Study: JRJC’s MT5 Upgrade
JRJC (jrjr.com/?803wyh), a global precious metals platform, fully adopted MT5 in 2024 while maintaining MT4 compatibility. Key advantages:
- Enhanced Stability: 64-bit architecture reduces slippage.
- Expanded Tools: DOM analysis for metal markets.
- Seamless Transition: Historical order migration.
This reflects MT5’s growing industry traction despite MT4’s larger user base.
Verdict: No "Best," Only "Best Fit"
- Stick with MT4 if: You prioritize simplicity, abundant resources, and basic needs.
- Switch to MT5 if: You trade across markets, develop advanced algos, or seek cutting-edge tech.
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Future Outlook
With MetaQuotes phasing out MT4 updates, MT5’s ecosystem will mature faster. Opt for brokers supporting both platforms for flexibility.
FAQ
Q1: Can I use MT4 EAs on MT5?
A: No, MQL4 and MQL5 are incompatible. EAs require rewriting.
Q2: Which platform has lower latency?
A: Both offer similar execution speeds, but MT5’s 64-bit architecture may handle high-frequency trades better.
Q3: Is MT5 mandatory for U.S. traders?
A: Yes, due to FIFO compliance. Non-U.S. traders can choose either.
Q4: Does MT5 support hedging?
A: Yes, but broker policies vary. Confirm before trading.
Q5: Which platform is cheaper for forex?
A: Costs are broker-dependent. Compare spreads/commissions.