MT4 versus MT5: the differences and which to choose

Two platforms from the same developer, and the question of which to choose is still live because MT4 has not
gone away. The answer depends on what you trade and whether you use external tools.

1. The core difference

MT5 is not an upgrade of MT4 but a different platform, rewritten from
scratch. That has one important consequence: EAs and indicators written for MT4 will not run on
MT5, and vice versa.

2. What MT5 adds

• More timeframes — 21 against MT4’s 9.
• More pending order types, including stop limit orders.
• A built-in economic calendar.
• Multi-threaded, multi-instrument
  strategy testing — considerably faster, and it allows
  portfolio testing.
• Support for equities and futures, with depth-of-market data where the broker provides
  it.
• Still under development. MT4 receives bug fixes only.

3. What MT4 still has

• An enormous library of EAs and indicators built up over more than a decade. If the tool you
  need exists only for MT4, that settles it.
• Lighter, running well on modest hardware and cheap
  VPS instances.
• Hedging by default — long and short positions can
  be held simultaneously on the same instrument. MT5 supports both modes, but the broker decides the
  configuration.

4. A difference worth knowing: netting and hedging

MT5 has two account modes:

• Hedging — each order is a separate position, as in MT4.
• Netting — all orders on one instrument combine into a single position.

If your strategy relies on managing several separate positions on the same instrument, confirm which mode the
broker issues before opening the account.

5. Which to choose

• New, not using EAs → MT5. There is no reason to start on a platform that is no longer
  developed.
• Dependent on an EA that only exists for MT4 → MT4, until a port appears.
• Also trading equities or futures → MT5.
• Running several accounts on a low-spec VPS → MT4 is lighter.

6. A note on symbol names

On both platforms the same currency pair can appear with different suffixes depending on account type. Before
moving a strategy from one platform to the other, check the contract size and spread of the exact symbol you
will be using — they can differ.

This article is for information only and is not investment advice. Conditions and fee levels are published by the brokers and can change at any time — check with the broker you actually use. Leveraged forex and CFD trading carries a high level of risk and can cost you your entire deposit.