MetaTrader 4 was released in 2005 and remains the most widely used retail trading platform in the world. MetaTrader 5 arrived in 2010 as its replacement and still has not replaced it. Understanding why explains most of what you need to know about choosing between them.
Why MT4 survived its own successor
MT5 was not designed as an upgrade to MT4. It was built as a different platform aimed at a broader range of markets — stocks, futures and exchange-traded instruments alongside forex.
Crucially, MT5 is not backward compatible. Indicators and expert advisors written for MT4 do not run on MT5 without being rewritten.
By 2010 an enormous ecosystem of MT4 tools existed. That ecosystem did not migrate, brokers kept offering MT4 because clients wanted it, and the result is that both platforms have coexisted for well over a decade.
The practical differences
| Feature | MT4 | MT5 |
|---|---|---|
| Timeframes | 9 | 21 |
| Built-in indicators | 30 | 38 |
| Pending order types | 4 | 6 |
| Economic calendar | No | Built in |
| Depth of Market | No | Yes |
| Strategy tester | Single-thread | Multi-thread, faster |
| Position accounting | Hedging | Netting or hedging |
| Programming language | MQL4 | MQL5 |
| Third-party tools | Very large | Growing |
The difference that actually matters
Position accounting, because it changes how your trades behave.
Hedging means each trade is a separate position. You can hold a buy and a sell on the same instrument simultaneously, and each has its own ticket, stop and target.
Netting means one position per instrument. Buying 1 lot and then selling 0.5 lots leaves you with 0.5 lots long — the trades combine rather than coexisting.
MT4 is always hedging. MT5 accounts can be either, set by the broker.
If you open an MT5 netting account expecting hedging behaviour, a sell order intended as a new position will instead close or reduce an existing buy. This surprises traders who move from MT4 without checking, and it matters particularly for anyone following signals — a sell signal on an instrument you are already long will not open what you expected. Your account type is shown in the terminal and in your broker’s account details.
Timeframes
MT4 offers M1, M5, M15, M30, H1, H4, D1, W1 and MN.
MT5 adds intermediate options — M2, M3, M4, M6, M10, M12, M20, H2, H3, H6, H8, H12 among others.
In practice the extra timeframes matter less than the count suggests. The standard nine cover nearly every approach, and the intermediate ones are used by a small minority.
Where the additions do help is when a strategy benefits from a specific period — some traders prefer H2 or H8 for structural reasons — and MT4 simply cannot display it.
Pending orders
MT4 has four: buy limit, sell limit, buy stop, sell stop.
MT5 adds two: buy stop limit and sell stop limit, which trigger a limit order once a stop level is reached.
These are useful in specific breakout-retest situations and unnecessary for most traders.
The economic calendar
MT5 includes one, displayed in the terminal with events marked on charts.
This is a genuine convenience given how much the Risk Management and Fundamental Analysis sections emphasise checking releases before trading. Having it in the same window as your charts removes a step.
MT4 has no calendar, so you check separately.
Backtesting
MT5’s strategy tester is substantially better — multi-threaded, faster, supports multi-currency testing, and models tick data more accurately.
For a trader developing automated strategies this is the strongest argument for MT5.
For a discretionary trader it is largely irrelevant, since backtesting a manual approach in the platform tester is not practical anyway.
Which should you choose?
The honest answer for most retail traders: it barely matters, and the deciding factor is usually external.
| Situation | Choose |
|---|---|
| Your broker offers only one | That one |
| You need a specific MT4 indicator or EA | MT4 |
| You want a built-in calendar | MT5 |
| You develop and backtest EAs | MT5 |
| You trade stocks or futures too | MT5 |
| Starting fresh, no constraints | MT5 |
| Following a service built on MT4 tools | MT4 |
Starting fresh, MT5 is the reasonable default — it is actively developed, MT4 receives minimal updates, and the tool gap has narrowed considerably.
But a trader already comfortable on MT4 with tools that work has no compelling reason to switch. The platform is not where your results come from.
What does not differ
Worth stating, because platform choice absorbs more attention than it deserves.
Execution speed, spreads, slippage and available instruments are determined by your broker, not by which MetaTrader version you run. The same broker with the same account type will give you the same fills on either.
Neither platform gives you better prices, better analysis, or any trading advantage over the other.
Traders who switch platforms hoping for better results are looking in the wrong place. The variables that determine outcomes — position size, stop placement, which setups you take, whether you follow your rules — are identical on both. Your broker’s execution quality and your own process matter enormously; the version number does not.
Signals, copiers and platform choice
One practical consideration for anyone following signals.
Most signal services and copy tools support both, but not all do. If you rely on a particular tool, confirm its compatibility before choosing.
Telegram Trade Linker supports both MT4 and MT5, so platform choice does not constrain that decision. Other tools may be MT4-only, particularly older ones built during the period when MT4 dominated.
Worth checking before committing rather than discovering afterwards.
Running both
You can install both on the same computer, and many traders do.
Common reasons: an MT4 indicator that has no MT5 equivalent, two brokers offering different platforms, or wanting the MT5 calendar alongside an MT4 trading account.
They run independently with separate installations, settings and charts. There is no conflict.
What to do next
The next lesson covers installing the platform and logging in — including the details that cause most first-time connection problems.
Frequently asked questions
Is MT5 better than MT4?
Technically more capable — more timeframes, a built-in calendar, better backtesting — but not better for trading results. Execution, spreads and slippage come from your broker, and the variables determining outcomes are identical on both.
Why do brokers still offer MT4 if MT5 exists?
Because MT5 is not backward compatible. Indicators and expert advisors written for MT4 do not run on MT5 without being rewritten, so the large MT4 tool ecosystem never migrated and clients kept asking for it.
What is the difference between hedging and netting?
Hedging treats each trade as a separate position, so you can hold a buy and sell on the same instrument simultaneously. Netting combines them into one position per instrument. MT4 is always hedging; MT5 can be either, set by the broker.
Which platform should a beginner choose?
Whichever your broker offers. Starting fresh with no constraints, MT5 is a reasonable default since it is actively developed while MT4 receives minimal updates. The choice is not worth extended deliberation.
Can I use MT4 indicators on MT5?
No. They are written in different languages — MQL4 and MQL5 — and require rewriting. This is the main reason many traders remain on MT4.
Can I install both MT4 and MT5?
Yes, on the same computer with separate installations, settings and charts. Many traders do this to keep an MT4-only indicator or to run accounts at two brokers offering different platforms.