When setting up a forex trading platform, platform providers will typically offer you software for receiving market data. The most widely used software is MT4 ( MetaTrader 4 ) and MT5 (MetaTrader 5), released by MetaQuotes Software Corp. So the question arises:What specific features do MT4 and MT5 offer forex traders, and what exactly are the differences between them? This article will help you answer these questions.
To distinguish between MT4 and MT5, we first need to understand their origins. This inevitably brings us to their creator, MetaQuotes Software Corp. The company developed MT4 in 2004 to support its online forex trading operations,This software allows users to view forex market quotes and enables clients familiar with programming to write their own code. Within just five years of its creation, MT4’s market share had climbed to nearly 90%, demonstrating its powerful functionality and widespread market acceptance.However, as the market continued to expand, countless pirated versions of MT4 came to the attention of regulatory authorities worldwide. Driven by increasing regulatory pressure and a desire to generate higher service fees, MetaQuotes Software Corporation developed MT5.However, although MT5 was released as early as 2010, a closer look reveals that most forex platforms today are still built using MT4. The reason for this is that MT5 cannot be considered a pure upgrade of MT4. Furthermore, MT5 and MT4 cannot be distinguished simply by describing one as more user-friendly or having more features than the other.
The main differences between MT4 and MT5 can be summarized in four points.
First, the programming languages are different. From a coding perspective, MT5 and MT4 use different languages: MT4 uses a language called MQL, while MT5 uses a language called MQL5. There’s no need to delve deeply into the differences between these two languages; it’s enough to know that because the programming languages of the two software platforms are different, the data cannot be converted between them.
Second, the number of analytical tools differs. As a later-released platform, MT5 naturally offers more charts, fundamental analysis tools, and various technical indicators than MT4. However, the fact that MT4 remains wildly popular nationwide shows that the analytical tools originally available in MT4 are sufficient in most cases.
Third, the scope of markets supported differs. Unlike MT4, which is specifically designed for forex trading,MT5 reflects MetaQuotes’ broader ambitions. In addition to supporting forex trading, MT5 also supports trading in stocks, futures, and other financial derivatives. This results in MT4 being more streamlined than MT5; for forex platforms, the forex trading services provided by MT4 are already sufficient.
Fourth, the order execution modes differ. MT4 uses the KOF (Fill or Kill) order execution mode, which means that an order is either filled in its entirety or canceled entirely. MT5, on the other hand, offers greater flexibility; if your broker uses MT5, your order can be partially filled and partially canceled.
Therefore, after considering the differences between MT4 and MT5, it’s not hard to understand why “outdated” MT4 is still widely used on today’s forex trading platforms—because MT4 still meets the current needs of these platforms. Of course, if you want access to more features, you can try the more flexible MT5.
