MetaTrader 4 vs MetaTrader 5: Which is Better in 2024?

1. Introduction: The MetaQuotes Monopoly

For over 15 years, MetaQuotes has held a near-monopoly on the retail forex trading landscape. If you've ever traded forex, chances are you've used either MetaTrader 4 (MT4) or its successor, MetaTrader 5 (MT5). But a common question still plagues beginners and veterans alike: Which one should I choose?

Despite MT5 being the "newer" version (released in 2010), MT4 (released in 2005) remains stubbornly popular. This guide breaks down the core differences in 2024.

2. Interface, Timeframes, and Analytical Arsenal

At first glance, MT4 and MT5 look identical. They share the same aging, Windows 95-esque aesthetic. However, under the hood, they differ vastly.

Timeframes:

• MT4 offers the classic 9 timeframes (M1, M5, M15, M30, H1, H4, D1, W1, MN).
• MT5 offers an impressive 21 timeframes, including uncommon ones like M2, M3, H2, and H3, giving scalpers and precision traders much more granularity.

Indicators & Objects:

• MT4 comes with 30 built-in indicators and 31 graphical objects.
• MT5 comes with 38 integrated indicators, 44 graphical objects, and an unlimited number of charts.

3. Order Execution: Hedging vs. Netting

This is the most critical difference for strategy developers.

MT4 is built for Hedging: If you buy 1 lot of EURUSD, and then buy another 1 lot of EURUSD, MT4 displays them as two completely separate tickets. You can close them independently. MT5 was built for Netting (originally): In netting, those two orders would merge into a single 2-lot position at an average price. However, due to massive pushback, MetaQuotes eventually updated MT5 to support both Hedging and Netting modes (dependent on the broker's server settings).

4. Algorithmic Trading: MQL4 vs MQL5

If you use Expert Advisors (EAs), you must pay attention here:

• MQL4 is simpler, procedural, and arguably easier for non-programmers to cobble together basic scripts.
• MQL5 is a highly advanced, object-oriented framework (similar to C++). It executes backtests exponentially faster and supports multi-threaded, multi-currency backtesting. (Note: An EA built for MT4 will absolutely NOT work on MT5, and vice versa. There is no backward compatibility).

5. Asset Classes: Forex vs. Everything

• MT4 was built specifically for Decentralized Forex. It struggles to handle centralized exchange data (like real volume or Level 2 Market Depth).
• MT5 is a Multi-Asset Platform. It natively supports Stock routing, Futures, Options, and Bonds, complete with Level 2 Depth of Market (DOM) integration.

6. Final Verdict (2024)

Choose MT4 if: You are a pure Forex trader, you rely on a legacy EA that hasn't been rewritten, or you simply prefer a lighter resource footprint on your VPS.

Choose MT5 if: You trade Stocks/Crypto CFDs, you are developing new algorithmic strategies and need insanely fast backtesting, or you demand custom timeframes.