What is MetaTrader? MT4 vs MT5: Trading Platform Guide | LiteFinance

2026.03.03 2026.03.03 What is MetaTrader? Difference Between MT4 and MT5

Jana Kanehttps://www.litefinance.org/blog/authors/jana-kane/

Choosing between MT4 and MT5 is a common dilemma for traders. Both platforms belong to the MetaTrader family created by MetaQuotes, yet they offer different tools and trading opportunities.

MetaTrader 5 was launched in 2010 as a more advanced platform with futures trading capabilities and a more powerful strategy tester. However, MetaTrader 4 remains highly popular, and both versions continue to operate. This article explains how MetaTrader works and the key differences between MT4 and MT5.

Major Takeaways

• MetaTrader is one of the most widely used Forex trading platforms, offered in two main versions, MT4 and MT5. The developer, MetaQuotes, provides brokers with the server infrastructure on a commercial basis, while traders download and install the client terminal, the trading platform itself, directly from their broker’s website.
• MetaTrader 5 is a more advanced version of MT4, offering a wider range of indicators, additional timeframes, and pending order types. The strategy tester has also been enhanced with forward testing, enabling traders to test strategies across multiple assets simultaneously.
• MT4 is generally considered beginner-friendly, whereas MT5 is typically preferred by more seasoned Forex traders, particularly those involved in scalping and automated Forex trading.

What Is MetaTrader? Leading Trading Platform

MetaTrader is a platform used for Forex trading. In the Forex market, a broker acts as an intermediary, connecting traders to the interbank market. A trading terminal, in turn, provides access to real-time quotes, technical analysis tools, and order management features. Today, MetaTrader refers to two core platforms, MT4 and MT5.

MT4 platform overview:

MT5 platform overview:

How MetaTrader Works with Forex Brokers

MetaTrader is a trading platform developed by MetaQuotes, an independent trading software company that licenses its platform to brokers under various agreements, including full licenses and white-label solutions. Once a broker signs an agreement, it receives access to the server infrastructure, administrative tools, and the client terminal. In other words, the broker operates the MetaTrader ecosystem, while MetaQuotes remains responsible for platform development and upgrades.

Traders download and install only the client terminal from the broker’s website. After installation, the platform must be connected to a trading account by logging in with the credentials provided by the broker. To do this, go to File → Login to Trade Account, enter your login and password, and select the appropriate server. This information is sent by email when you open a live account. You can also open a demo account directly from the platform.

How to Download and Install MetaTrader Platforms MT4/MT5

Both platforms are installed in the same way. The client terminal can be downloaded directly from the broker’s website. For example, on the LiteFinance website, download links for MT4 and MT5 are available in the Trade Forex section.

Next, run the installation file, accept the license agreement, and follow the on-screen instructions. The installation usually takes no more than five minutes. Then, if you are already registered, open a trading account in your Client Profile and log in to the platform using your account details to connect to the broker’s server.

Important: You can log in to your account only through the version of MetaTrader downloaded from your broker's website. For instance, an account opened with LiteFinance cannot be accessed using a MetaTrader platform downloaded from another broker.

The setup process for the mobile versions is similar for both platforms. Go to your broker’s website, choose the appropriate version for Android or iOS, and download the app from the App Store or Google Play. Once the app is installed, follow the on-screen instructions to log in to your account.

MetaTrader 4 (MT4): The Forex Trading Standard

MT4 is one of the most popular platforms for Forex trading. Its clean interface and straightforward functionality make it especially appealing to beginners. At the same time, it offers all the essential tools for market analysis and trade management. For more advanced users, MT4 also supports strategy testing on historical data and allows traders to install custom indicators, scripts, and Expert Advisors written in MQL4 for algorithmic trading.

Key Features of MT4 Trading Platform

MT4 is easy to navigate since many tools can be accessed in multiple ways. For example, you can open the Navigator or Market Watch window from the toolbar or the top menu. Orders can also be managed via the Terminal or directly from the chart with a right-click.

Trading tools on the MT4 platform.

1. Main Menu. This section provides access to most of the platform’s core features, many of which are also available through other panels and shortcuts:

• Logging in to a trading account.
• Opening new chart windows.
• Customizing toolbars.
• Adding built-in and custom indicators.
• Launching the Strategy Tester.
• Adjusting chart settings and parameters.
• Opening the MetaEditor for algorithmic trading.
• Accessing the History Center, etc.

2. Toolbar. Provides quick access to key commands, such as opening the New Order window, changing chart types, switching timeframes, applying saved templates, and more.

3. Market Watch. Displays real-time quotes for trading instruments and their price changes. The user can customize the list of symbols (instruments). Right-clicking on a symbol opens a context menu where you can view Specification details, including contract size, swap rates, and the triple swap day.

4. Data Window. Shows detailed price data for the bar or candlestick currently selected on the chart.

5.Navigator. Allows quick switching between trading accounts and provides access to Expert Advisors, custom indicators, scripts, and other platform components.

6. Chart Window. Displays real-time price movements of the selected financial instrument. You can open multiple charts simultaneously, arrange them in different layouts, apply indicators, attach Expert Advisors or scripts, change timeframes, and select the chart type. Open positions and pending orders are also displayed directly on the chart.

7. Terminal. The Trade tab shows open positions, account balance, equity, margin, and floating profit/loss. Other tabs provide access to account history, alerts, mailbox messages, journal logs, and additional trading information.

The platform also supports one-click trading, trailing stops, and other built-in tools. In addition, copy trading is available through the MQL5 community.

MT4 Technical Indicators and Charting Tools

MT4 includes 30 built-in technical indicators and 31 graphical objects. The indicators are grouped into four categories: Trend, Oscillators, Volumes, and Bill Williams. There is also a separate Custom section that contains indicators added manually to the platform. The number of custom indicators is not limited.

Graphical objects include:

• Lines;
• Channels;
• Fibonacci;
• Gann;
• Shapes;
• Andrews’ Pitchfork;
• Cycle Lines.

Price charts in MT4 can be displayed as line, bar, or candlestick charts. In addition, scripts and custom indicators can be used to create alternative chart types, such as Heiken Ashi or Point and Figure (Tic-Tac-Toe) charts.

MQL4 and Expert Advisors in MT4

The MetaTrader platform offers automated trading capabilities through Expert Advisors developed in the MQL4 programming language. At the same time, it does not natively support trading robots written in other programming languages.

Algorithm for working with Expert Advisors:

1. Creation. The EA code is written in MetaEditor, which is integrated into MT4 and can be accessed via Tools. Alternatively, you can use ready-made EAs available online.
2. Installation. The compiled EA file in .ex4 format must be copied to the MQL4 → Experts folder in the terminal’s data directory (File → Open Data Folder).
3. Launch. To run the EA, drag it from the Navigator window onto a chart. Then enable the AutoTrading button on the toolbar. If necessary, also allow automated trading in Tools → Options → Expert Advisors.

The platform allows multiple trading robots to operate simultaneously, including several on the same instrument. However, running a large number of robots may slow down the terminal. Moreover, some Forex brokers may impose restrictions on the use of Expert Advisors.

MetaTrader 5 (MT5): The Next-Generation Multi-Asset Platform

MetaTrader 5 is the latest version of the MetaTrader platform and an enhanced successor to MT4 with expanded functionality and broader market access. However, the core trading tools in MT5 remain largely unchanged. The main differences lie in additional menu items and extended features. Overall, the market analysis process, charting system, and order management have remained virtually the same.

Significant improvements have been introduced to the Strategy Tester, and the technical capabilities for chart analysis have been further expanded. At one point, there were online reports suggesting that MetaQuotes planned to discontinue MT4 to promote MT5. However, due to MT4’s large user base, the company ultimately decided to keep both platforms available for the time being.

MT5 Advanced Features and Capabilities

The visual interface and menu structure in MT5 are largely similar to those in MT4. The differences are mainly in the platform’s underlying architecture, with MT5 offering faster processing.

1. Expanded order execution policies.

MT4 supports three types of order execution:

• Market Execution. The broker does not pre-confirm the price with the trader. By placing an order, the trader agrees that it may be executed at the best available market price, even if it differs from the quoted price. In case of slippage, the order is filled at the nearest available price. This is the most commonly offered execution type.
• Execution on Request. The broker provides a price quote, and the trade is executed only after the trader confirms it.
• Instant Execution. The order is executed at the specified price if the requested volume is available.

The user cannot choose the type of execution themselves. It is chosen by the broker and specified in the order itself.

In MT5, developers have added additional order-filling policies:

• Fill or Kill. If the necessary amount of a trading instrument is unavailable at the specified price, the order is not executed.
• Immediate or Cancel. The order is executed with the maximum available volume in the market, within that indicated in the order, and the remaining volume is canceled.
• Return. Any unfilled portion of the order remains active and is executed at the next available price.

2. Position accounting system: hedging and netting.

In MT4, the default system is hedging, meaning each order creates a separate position. If you open 10 short and long positions, they will all be displayed on the chart.

In MT5, the default system is netting, meaning all trades for the same instrument are combined into one position with the total volume and average price displayed.

With the netting system, MT5 developers aimed to simplify how positions are displayed on the chart. Instead of showing 10 separate trades, the platform combines them into a single position, making it easier to manage. However, this approach removes the ability to lock a position by opening two opposite trades of the same volume.

3. Pending orders.

Pending orders are useful when there is no clear signal to open a trade immediately. The trade is triggered only when the price reaches a specified level, confirming the signal. MT4 offers four standard types of pending orders: Buy Stop, Sell Stop, Buy Limit, and Sell Limit.

Two more orders have been added to MT5:

• Buy Stop Limit. When the price rises to the level specified in the Price field, the platform automatically places a Buy Limit order at the level set in the Stop Limit field.
• Sell Stop Limit. When the price falls to the level specified in the Price field, the platform automatically places a Sell Limit order at the level set in the Stop Limit field.

In MT4, pending orders are placed directly at a specified distance from the current market price. In MT5, with Stop Limit orders, you can additionally specify the price level at which a Limit order will be placed automatically once the Stop level is reached.

Multi-Asset Trading on the MT5 Platform

MetaTrader 5 is a multi-asset trading platform that allows traders to access multiple asset classes, including Forex, stocks, futures, commodities, and cryptocurrencies, within a single interface. Unlike MetaTrader 4, which was primarily designed for the decentralized Forex market, MT5 features a multi-asset architecture that supports trading on centralized exchanges and in over-the-counter markets.

MQL5 Programming and Enhanced Automation

MetaTrader 5 uses the MQL5 programming language to develop trading robots, custom indicators, and scripts. The platform includes a built-in editor and compiler for convenient development and testing. Compared to its predecessor, MQL4, MQL5 offers increased speed and expanded functionality. It is a high-level, object-oriented language similar to C++, enabling the creation of not only expert advisors but also comprehensive analytical systems.

Key improvements in MT5 automation:

• Object-oriented programming. Enables the development of more complex and flexible trading systems using libraries.
• Higher execution performance. MQL5 programs are significantly faster and more efficient than MQL4. This makes MT5 suitable for high-frequency trading.
• Multi-currency strategy tester. Allows backtesting and optimization using historical data across multiple instruments simultaneously.
• MQL5 Cloud Network. If local computing resources are insufficient, traders can use a distributed cloud network to accelerate strategy optimization.
• Python integration. Python support was originally introduced in MetaTrader 5 and later extended to MetaTrader 4.

While these capabilities are especially valuable for professionals, they are unlikely to be essential for beginners.

MT4 vs MT5: Key Differences

Which is better, MT4 or MT5? A comparison of the trading platforms.

Many sources highlight the increased number of built-in indicators, timeframes, and order types as the main advantages of MT5. However, custom indicators and additional timeframes can be added to both platforms, and advanced order types are typically used only by seasoned traders. In practice, MT5’s real strengths lie in its advanced charting capabilities, multi-currency strategy tester, and higher overall performance.

Performance and Speed: Which Platform Executes Faster?

MT5 offers higher efficiency for several reasons:

• Architecture. MetaTrader 5 is a 64-bit multi-threaded platform. Unlike the 32-bit single-threaded MetaTrader 4, it can utilize multiple CPU cores simultaneously, ensuring faster processing of trading operations.
• Order execution. MT5 is built on a more advanced trading engine, providing faster and more stable order execution. This advantage becomes especially clear during periods of high market volatility and when using scalping strategies.
• Strategy Tester. The multi-threaded Strategy Tester in MT5 runs significantly faster than in MT4, allowing traders to optimize Expert Advisors several times quicker on the same hardware.
• Scalability. The MT5 server architecture supports distributed load across multiple servers, improving stability and scalability, while MT4 operates within a single-server environment.

In most cases, the difference is hardly noticeable for intraday traders or those using long-term strategies. However, in certain situations, especially in fast-moving financial markets, even fractions of a second in execution speed can make a significant difference.

Automated Trading in MT4 vs MT5

Both platforms support automated trading, enabling trade execution based on algorithms built into the code. In MT4 and MT5, multiple Expert Advisors can run simultaneously, each managing trades through a unique Magic Number set in the parameters. The algorithmic trading framework is similar on both platforms. The main difference is processing speed, as MT5 handles and executes Expert Advisor signals more quickly due to its enhanced architecture.

Strategy Tester and Backtesting Performance

The advanced Strategy Tester is one of MT5’s core strengths. It has evolved into a comprehensive, standalone environment designed to evaluate both discretionary and algorithmic trading systems of virtually any level of complexity.

Features and advantages of the MT5 Strategy Tester:

• Forward testing. Historical data is split into two parts: the first is used to optimize a trading strategy, and the second to validate it on new data. If performance drops significantly during the validation phase, the strategy is likely not robust.
• Optimization. The MT4 tester utilizes only a single CPU core. In contrast, MT5 supports multi-threaded optimization and integrates with the MQL5 Cloud Network, allowing traders to leverage distributed computing resources on a paid or free basis.
• Data accuracy. MT5 enables testing on real tick data provided by brokers, ensuring high modeling precision. In MT4, ticks are generated from one-minute bars, which reduces testing accuracy.
• Realistic trading conditions. MT5 supports floating spreads and slippage simulation during backtesting. In MT4, the spread remains fixed.
• Multi-currency testing. MT5 allows strategies to be tested across multiple instruments simultaneously, whereas MT4 supports testing on only one symbol at a time.

Conclusion

MT4 and MT5 are the best platforms for novice traders, and are offered by more than 90% of brokers. More advanced platforms, such as cTrader and NinjaTrader, are generally chosen by experienced traders.

In addition to a basic set of technical indicators and graphical objects, these two platforms allow you to add custom tools written in MQL4 and MQL5, respectively. Both MetaTrader 4 and MetaTrader 5 support online trading with advisors, which can also be added manually.

MT5 is a more technically advanced platform. Its key benefits include faster processing speed and an improved strategy tester with multi-currency testing capabilities.

You can download both platforms from the LiteFinance website and practice trading on a demo account. Wishing you all the best in your trading journey!