MT4 vs MT5 for Crypto Trading

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MT4 and MT5 stand out as the leading innovations developed by MetaQuotes, a company based in Cyprus. While they've become highly regarded in the forex market, they also perform admirably with other trading assets, including cryptocurrencies. Many traders have questioned whether notable differences exist between MT4 and MT5 in the context of crypto trading. Let’s take a closer look at these two charting solutions.

What is MT4?

MetaTrader 4, also known as MT4, is the flagship charting software from MetaQuotes, introduced in July 2005—just five years before the emergence of MetaTrader 5 The launch of MT4 was perfectly timed, coinciding with the rise of retail forex trading and its increasing popularity.

MT4 is characterized by its streamlined, user-friendly interface and its capability to generate trading 'robots' or automated trading systems. In just a few short years, it became the preferred platform among forex traders—a reputation it maintains to this day, as nearly all forex brokers offer this platform to their clients.

Nonetheless, MetaTrader isn’t limited to forex; it also supports a variety of other trading instruments, such as cryptocurrencies, indices, commodities, and future contracts.

What is MT5?

MetaTrader 5 was developed to enhance the already popular MT4 while preserving the essential features that made MT4 a go-to choice for traders. Released in June 2010, MT5 aimed to provide a comprehensive multi-market charting solution.

With MT5, developers introduced support for a wider range of instruments compared to MT4, including options, stocks, and bonds. In addition, MetaQuotes improved the platform's performance, adding new features like diverse order types and advanced technical tools.

Even though MT5 technically outperforms MT4, the latter continues to enjoy immense popularity. However, the adoption rate of MT5 has been gradually increasing over the years.

Key Differences Between MT4 and MT5

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Let’s take a closer look at the technical differences that set MT4 and MT5 apart.

Performance

Fortunately, while MT5 does have slightly higher computer requirements, they're still far less stringent than those of many contemporary trading applications. To run MT4, a computer must meet these specifications:

• 32-bit Intel-based processor possessing a minimum frequency of 1.7 GHz (or its equivalent).
• 256MB RAM.
• Windows XP (or equivalent).

Meanwhile, MT5 requires a PC with:

• Any 64-bit Intel processor with at least 2.0 GHz (or its equivalent).
• 512MB RAM.
• Windows 7 (or equivalent).

This upgrade in performance for MT5 allows brokers to connect to more servers within the trading terminal compared to MT4, resulting in reduced latency.

Market Selection

MT4 can handle a maximum of 1,024 markets, while MT5 offers limitless possibilities.

Time Frames

MT4 provides nine time frames for analytical assessment: M1 (1 minute), M5 (5 minutes), M15 (15 minutes), M30 (30 minutes), H1 (1 hour), H4 (4 hours), D1 (daily), W1 (weekly), and MN (monthly).

In contrast, MT5 boasts an additional 12 time frames, including: M2 (2 minutes), M3 (3 minutes), M4 (4 minutes), M6 (6 minutes), M10 (10 minutes), M12 (12 minutes), M20 (20 minutes), H2 (2 hours), H3 (3 hours), H6 (6 hours), H8 (8 hours), and H12 (12 hours).

Execution Types

MetaTrader 4 offers three types of order execution: instant execution, market execution, and request execution.

MT5 encompasses all these plus an additional type—exchange execution—designed for assets traded on exchanges, such as options and stocks. Unfortunately, this feature is not applicable to cryptocurrencies.

Order Fill Policies

MT4 provides the standard 'Fill or Kill' order policy, meaning your order will execute at the set volume if market conditions permit and there's enough margin available; otherwise, it won't execute at all.

Conversely, MT5 offers two more order execution policies: 'Immediate or Cancel' and 'Return.'

Order Types

MT4 allows four distinct order types: buy stop, sell stop, buy limit, and sell limit. Meanwhile, MT5 incorporates these four plus two additional types—buy stop limit and sell stop limit.

Indicators

While MT4 features 30 technical indicators, MT5 introduces eight more, with recent additions like the Triple Exponential Moving Average and Variable Index Dynamic Average.

Graphical Objects

Ultimately, MT5 offers five additional graphical objects on top of the 19 provided by MT4, introducing new tools such as arrowed lines, Fibonacci channels, and Elliott Waves.

The Downside Of MT4 and MT5

Both MT4 and MT5 are designed for trading forex, which is a decentralized instrument often exchanged off-exchange and typically facilitated by individual brokers through dealing desks. Meanwhile, cryptocurrencies represent an exchange-based product. This distinction highlights that MetaTrader cannot provide real-time trading activity between buyers and sellers along with market depth and volume. order book Order books in cryptocurrency trading can serve as invaluable resources for assessing market sentiment and spotting notable opportunities. As a result, crypto traders might prefer charting platforms with more advanced capabilities that connect directly to exchanges for enhanced transparency and data visualization.

Source: Vito Goričan via Pexels

MT4 is certainly the more straightforward option when compared to MT5. Nevertheless, MT5 retains many of MT4's core features, adding some new enhancements into the mix. Hence, while MT5 offers a slight edge, it’s a subtle difference. A significant drawback for both platforms is the need for regular updates, especially given their longstanding presence in the market. However, this should not deter cryptocurrency traders from using either MT4 or MT5; both platforms are excellent for placing and managing trades, as well as for performing effective technical analysis.

MT4 vs MT5: Which One Wins?

Please be aware that the content shared here is not intended to serve as legal, tax, investment, financial, or any other type of advice. It’s essential to only invest what you can afford to lose and consult with a qualified financial advisor if you have any uncertainties. For additional details, we recommend looking into the terms and conditions along with the help and support resources provided by the issuer or advertiser. MetaversePost is dedicated to providing accurate, impartial news; however, market conditions can change unexpectedly.