I original posted this on ForexTalk Forum but got permission to share it here also, hope you will enjoy the article.
MT4 and MT5 are product of the same company which is
MetaQuotes Software Corp. MT5 is latest version of MetaTrader software.
So, what is the different between those two? Which one is better?
1. Installation and Interface
Since MT4 and MT5 are developed by the same company, the install processes are pretty much similar and easy. You just need to download the software from the
MT5 official website or
brokers website that support MT5 and install it to your computer.
The interface of MT4 and MT5 are also pretty similar. A slightly different that is MT5 have bigger icons and the buttons are more spaced out. You may think that it take up space but personally I like it that way since it's easy to look. Below are screenshots of MT4 and MT4 after installed.
2. TimeFrame
MT5 support more timeframes which may be useful for market analysis. Originally, MT4 only support M1, M5, M15, M30, H1, H4, D1, W1, MN but MT5 also support timeframes such as 3 minutes or 6 hours.
3. Indicators/ EAs
MT4 use MQL4 while MT5 use MQL5. Two programming languages are different so naturally that MT4 indicators/EAs will not work on MT5.
At the moment MetaQuotes does not offer any tools to convert from MQL4 to MQL5. If you want your favorite tools to work on MT5 you will need to hire programmer to work on it. That is one of important reason why many traders feel hesitate to transfer to MT5!
4. Hedging
MT5 does not support Hedging strategies by default! (If you don't know what is hedging then
about.com has a really good article for this.)
I know that NFA (the self-regulatory organization for the U.S) does not allow the use of hedge so
NFA regulated brokerages must play accordingly to the rule but why MT5? I don't think that MetaQuotes is regulated by NFA.
Solution: Use custom plugin on MT5 if you want to use hedge. I would recommend to ask your brokerage about this first.
Other features are pretty much the same between MT4 and MT5 such as Strategy Tester, Chart Types, etc.
4. Conclusion
So, which one is better? if MetaQuotes and brokers are no longer offer MT4 then you do not have much choice there rather than move on MT5!
If you don't use hedge strategies, don't depend on indicators/EAs (or can easily replace it yourself) then I guess you will feel comfortable with MT5.