When establishing our broker, one of the first choices we will have to make is deciding which trading platform to use, whether an in-house developed platform or an existing one.
For various reasons such as cost or time saving, hiring an existing platform is the most suitable option 99% of the time. Without a doubt, the most widespread platform is MetaQuotes’ MT4/MT5.
However, buying the license is really expensive, so the best option is to find a MetaQuotes Authorised provider such as Smart Broker Solutions. Nevertheless, choosing is not easy because they have two platforms, MetaTrader 4 (MT4) and MetaTrader 5 (MT5), so the goal of this article is to explain the differences between MT4 and MT5, so you can decide which one is best suited for your trading platform.
In this post, we tell you what the difference is between MT4 and MT5 so that you can choose the option that best suits your needs.
MT4 vs MT5: Is MetaTrader 5 better than MetaTrader 4?
The most important thing in deciding whether MT4 or MT5 is more appropriate is to analyse the differences in their characteristics. At first sight, we might think that MT5 is superior to MT4 as it is the evolution of the latter, but the reality is that it depends on our needs.
MT4 was released in 2005 and quickly became one of the most popular platforms in the world because of its ease of use and adaptability to any type of investment while MT5 was released in 2010. MT5 is not a direct evolution of MT4, but an alternative, as it was designed with more options and features, making it more complete, but at the same time more suitable for trading in markets beyond Forex.
What’s the major difference between MT4 y MT5?
There are several differences between MT4 and MT5 in technical terms such as the language used, the number of technical indicators or the tools for graphical analysis as can be seen in the table below.
| Differences | MetaTrader 4 | MetaTrader 5 |
| Markets | Forex & CFDs | Forex, CFDs, Stocks, Futures, Options |
| Partial order execution | 4 | 6 |
| Nº Technical Indicators | 30 | 38 |
| Graphic analysis objects | 31 | 44 |
| Timeframes | 9 | 21 |
| Language | MQL4 | MQL5 |
| Economic Calendar | No | Yes |
| Order execution policy | Fill or Kill | Fill o Kill, Immediate or Cancel or Backwards |
| Chat MQL5 | No | Yes |
| Operating difficulty | Low | Medium |
| Strategy Tester | A single thread | Multi-threaded, Multi-currency and Real Ticks |
However, at Smart Broker Solutions we believe that the decision to use MT4 or MT5 should not be based on the technical characteristics of each trading platform, but on the market, we are targeting and the products we want to offer.
MT4 was a revolution within Forex brokers, that is why currently 90% of traders use MT4 or most indicators and/or tools are designed for MT4.
MT5 is aimed at a different market, such as stocks, commodities or futures due to the possibility of connecting to a centralized market, because in the Forex market there is a large number of participants offering liquidity at very similar prices, so the market operates in a decentralized way. On the opposite side are shares and commodities, which are traded through a centralized regulated market.
The decision to use MT4 or MT5 should not be taken lightly, as there is no compatibility between the two platforms, so if we choose one and decide to change in the future we have no choice but to buy the license.
MT4 o MT5, which one should I choose?
In conclusion, the main difference between MT4 and MT5 is that MetaTrader 5 was developed to attract market brokers beyond Forex, while MetaTrader 4 remains today’s dominant trading platform when it comes to Forex and CFDs.
One is not better than the other, it will depend on the broker profile you are trying to create. Whatever the final choice, from Smart Broker Solutions we offer both, MetaTrader 4 and MetaTrader 5 solutions to help you create your own broker and accompany you on the way with solutions tailored to your needs.
Discover the difference between Metatrader 4 and 5 withour expert:
