MT4 vs MT5: A Detailed Comparison for Forex & CFD Traders

Similarities Between MT4 and MT5

 MetaTrader 4 and MetaTrader 5 are some of the most commonly utilised  trading platforms . However, before we talk about the similarities and differences between the two, we need to highlight the main features of each platform. 

What is MT4?

  MetaTrader 4  was released in 2005 and quickly became a cornerstone of forex trading. It consists of two components: the client and server. The server component is run by brokers like TMGM. This means you can create a TMGM account and get free access to the client component of MT4, which grants you access to the  financial markets . 

 It was primarily developed for forex traders interested in diverse  forex trading strategies , but MetaTrader 4 (MT4) also gives you access to other financial markets, including  commodities  and  indexes , via Contracts for Difference (CFD). 

 The thing that made MetaTrader 4 one of the most popular online trading platforms was the fact that users could write scripts and robots known as Expert Advisors (EAs). They allow you to trade automatically based on predefined rules. 

 This feature is flanked by inbuilt  technical analysis tools , charting, and customisation options. The one thing that’s important to note is that there isn’t an official macOS version of MetaTrader 4. That being said, it is available for iOS, and we have a custom version of MT4 for macOS users. 

What is MT5?

  MetaTrader 5  was released in 2010, building on the success of its predecessor, MT4. The developers at MetaQuotes added more enhancements and features that brought it up to speed. Notably, MT5 is officially available on all operating systems, including macOS. 

 Beyond that, MetaTrader 5 has more tools for advanced users, including additional ways to create trading scripts using the MQL5 programming language. These advanced tools are coupled with access to a wider range of financial markets. 

 MT4 was primarily built for forex trading and that remains its main focus. However, it also gives you access to indices, stocks,  cryptos  and commodities CFDs. MT5 gives you access to more tradable assets including  CFD trading  instruments such as forex, stocks, futures, options, bonds, and commodities. 

 Unlike hedging, netting allows you to offset the position with the same security or a different one. The aim is to offset potential losses from one position with profit from the other. Another benefit of MT5 vs MT4 in terms of risk management is that it has integrated news feeds and an  economic calendar , so you’ve got more market insights to work with.