What is MetaTrader 4 and MetaTrader 5, How to Use It?

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most widely used trading platforms in the financial markets. Designed by MetaQuotes Software, these platforms offer tools for traders across various asset classes, from Forex to stocks and commodities. Whether you’re just starting out or refining a seasoned strategy, understanding how MT4 and MT5 work—and how they differ—can enhance your trading performance. This guide from TradeSmart walks you through everything you need to know about both platforms, from setup to execution.

What is MetaTrader 4?

MetaTrader 4 (MT4), created by MetaQuotes Software and launched in 2005, remains one of the most widely used trading platforms in the forex and CFD space. Known for its simplicity and performance, MT4 has become a go-to solution for traders around the world.

MT4 allows users to access a wide range of financial markets, including forex, commodities, and indices. It features a suite of technical analysis tools, offering numerous built-in indicators and charting objects that support in-depth market research and more confident decision-making.

Traders benefit from MT4’s mobile compatibility as well, with dedicated apps available for both iOS and Android. Whether you’re working at your desk or travelling, you can open, modify, or close positions and track real-time price movements straight from your phone or tablet.

Security is also a key strength of MT4. The platform uses advanced encryption protocols to protect user data and transactions, giving traders peace of mind when managing their accounts and executing trades.

How to Use MetaTrader 4?

Mastering MetaTrader 4 (MT4) can significantly enhance your trading experience across forex, stocks, and futures. Here’s a step-by-step guide to getting started and making the most of the platform.

Step 1: Download and Installation

To begin, download MT4 from either the official MetaQuotes website or directly from your broker’s platform. Installation is simple—run the setup file and follow the instructions provided. The platform is compatible with Windows, macOS, and mobile devices, allowing for flexibility in how and where you trade.

Step 2: Log In and Set Up

Once installed, launch the platform and log in using your broker-provided credentials. After logging in, take some time to tailor the workspace to your preferences—this could include opening multiple charts, selecting specific timeframes, and adding indicators you regularly use.

Step 3: Add Instruments to Market Watch

To monitor your preferred assets, go to the Market Watch window. Right-click inside the panel, select “Symbols,” and choose the instruments you want to follow. This ensures your desired markets are readily available for quick access and analysis.

Step 4: Navigate Key Features

Explore the Navigator and Terminal windows. The Navigator gives you access to your trading accounts, indicators, and Expert Advisors (EAs), while the Terminal window helps you manage open trades, track your account history, and view important alerts.

Step 5: Open and Customise Charts

Open charts by right-clicking on a symbol in the Market Watch window and selecting “Chart Window,” or simply drag the asset into the chart area. You can then apply various technical indicators and switch between timeframes to perform detailed market analysis.

Step 6: Execute and Manage Trades

To place a trade, click “New Order” or right-click on the chart and choose “Trading.” You can execute instant market orders or set pending orders based on your strategy. Use the Terminal window to monitor your trades, adjust stop-loss and take-profit levels, and manage risk in real time.

Key Features of MetaTrader 4

MetaTrader 4 (MT4) remains a top choice among traders due to its powerful tools, intuitive layout, and flexibility. Here are the standout features that make MT4 a reliable platform for trading across different asset classes:

• Advanced Charting Capabilities: MT4 offers multiple chart types and a wide range of timeframes, enabling traders to conduct detailed technical analysis and track market movements with precision.
• Algorithmic Trading with Expert Advisors (EAs): Automate your strategies using Expert Advisors. These custom scripts allow trades to be executed automatically based on pre-set rules, reducing the need for manual intervention and emotional decision-making.
• Comprehensive Indicator Library: With over 30 built-in technical indicators and analytical tools, MT4 helps traders assess trends, momentum, and potential reversal zones.
• Customisation Through MQL4: The platform supports the creation of tailor-made indicators, scripts, and trading robots using the MetaQuotes Language 4 (MQL4), making it ideal for traders who want a personalised experience.
• User-Friendly Interface: Whether you’re just getting started or a seasoned professional, MT4’s intuitive design ensures seamless navigation and efficient trade execution.
• Flexible Order Types: MT4 supports a wide variety of order types—including market, pending, stop, and trailing stops—enabling traders to implement diverse strategies across different market conditions.

Why Forex Traders Choose MT4

MT4 is especially popular in the forex trading community for its real-time data access, fast execution, and comprehensive analysis tools.

• Access to Multiple Currency Pairs: Traders can analyse and trade a broad range of currency pairs with up-to-the-minute pricing and deep market liquidity.
• In-Depth Technical Analysis: With tools like moving averages, RSI, MACD, and Bollinger Bands, MT4 provides everything needed to anticipate price movements and plan trades effectively.
• Automation and Efficiency: Using Expert Advisors, forex traders can automate their strategies and remain active in the market even when they’re offline. This helps reduce missed opportunities and enhances consistency.

What is MetaTrader 5?

MetaTrader 5 (MT5) is an advanced, multi-asset trading platform created by MetaQuotes Software, offering a powerful environment for traders across Forex, stocks, commodities, and indices. Released in 2010 as the successor to MetaTrader 4, MT5 was designed to deliver enhanced features and broader market access while retaining the reliability and ease of use traders have come to expect.

Unlike its predecessor, MT5 supports both centralised and decentralised markets, making it suitable not only for Forex traders but also for those active in stocks and futures. With a more flexible architecture and faster processing speeds, MT5 is particularly appealing to traders who require comprehensive market analysis and order execution.

A key advantage of MT5 is its mobile trading capability. Available on both iOS and Android, the MT5 app allows traders to stay connected to the markets no matter where they are. From executing trades and managing positions to conducting real-time analysis, the mobile platform provides full trading functionality for those on the move.

How to Use MetaTrader 5?

Getting started with MetaTrader 5 (MT5) is straightforward, and mastering the platform can significantly enhance your trading experience. Whether you’re using the desktop version, web platform, or mobile app, the process begins with a few essential steps.

Download and Install the Platform

Begin by downloading MT5 either from MetaQuotes’ official site or your broker’s platform. Choose the version that suits your needs—desktop for full functionality, web for browser-based access, or mobile for trading on the go. Once downloaded, simply run the installation file and follow the instructions provided to set up the platform on your device.

Create and Verify Your Account

To access live markets, you’ll need to open an MT5-compatible trading account with a broker. This involves completing a registration form and verifying your identity with the required documents. If you already have an account, ensure it’s supported on MT5 or request a transfer from your broker.

Navigate the Platform

After logging in with your credentials, explore the user interface to get comfortable. The Market Watch window lets you monitor live price quotes, Navigator gives quick access to your indicators and accounts, and Terminal helps manage trades, view account history, and monitor news. MT5’s layout is designed to keep everything within reach, making it easier to track the markets and manage your trades efficiently.

Key Features of MetaTrader 5

MetaTrader 5 (MT5) is packed with features designed to streamline trading and enhance analytical capabilities. Whether you’re trading Forex, stocks, or commodities, MT5 offers a flexible and powerful environment for both manual and automated strategies.

• Trade Multiple Asset Classes: MT5 enables access to a broad range of markets including forex, stocks, futures, and options—all from a single platform. This multi-asset capability supports diversification and allows traders to manage risk across various instruments with ease.
• Build Automated Strategies with MQL5: One of MT5’s standout features is its support for algorithmic trading. Using the MQL5 language, traders can create Expert Advisors (EAs) that execute trades automatically based on predefined rules. This allows for hands-free trading and reduces emotional bias in decision-making.
• Extensive Technical Analysis Tools: With over 80 built-in indicators and drawing tools, MT5 equips traders with everything they need for technical analysis. The platform also allows the integration of custom indicators, giving traders the flexibility to tailor analysis tools to their unique strategies.
• Enhanced Charting and Visualisation: MT5 supports advanced charting with a wide range of timeframes and chart types. Whether you’re analysing short-term volatility or long-term trends, the platform’s interactive charts help you visualise market movements effectively.
• Depth of Market Functionality: The Market Depth feature provides real-time insight into liquidity and order flow by displaying buy and sell volumes at different price levels. This allows traders to better gauge market sentiment and make informed entry or exit decisions.

MetaTrader 5 in Forex Trading

MetaTrader 5 offers a toolkit tailored to the fast-paced forex market, helping traders stay competitive in a highly dynamic environment.

1. Live Market Data: Traders benefit from real-time pricing across a wide range of currency pairs, ensuring decisions are based on the most up-to-date information.
2. Built-In Economic Calendar: MT5 includes an integrated economic calendar that highlights major news events and their expected impact. This helps traders plan ahead and adjust their strategies in anticipation of market-moving announcements.
3. Support for Both Hedging and Netting: Whether you prefer to hedge your positions or consolidate them using netting, MT5 accommodates both trading modes, offering flexibility to suit different trading styles.
4. Fast Execution with One-Click Trading: Speed is crucial in forex trading. MT5’s one-click trading feature lets you execute trades instantly from charts or the Market Watch window, helping you respond quickly to market opportunities.
5. Reliable VPS Integration: To maintain uninterrupted operations—especially for algorithmic trading—MT5 offers seamless integration with Virtual Private Servers (VPS). This ensures your strategies run continuously without disruption due to internet issues or power outages.

MetaTrader 4 vs MetaTrader 5

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are powerful trading platforms developed by MetaQuotes Software, yet they cater to slightly different trading needs. While MT4 remains a staple among Forex traders, MT5 offers broader capabilities for those seeking to trade across multiple asset classes. Below is a side-by-side comparison to help you determine which platform aligns best with your trading strategy.

Despite their shared roots, the platforms serve different use cases. MT4 remains popular for its simplicity and strong forex-focused tools, making it ideal for traders who prefer straightforward execution. In contrast, MT5 caters to more advanced users who need access to a wider range of markets and more powerful analytical features.

Purpose and User Experience

MetaTrader 4 (MT4), released in 2005, is primarily tailored to the needs of Forex traders. It offers a streamlined interface and essential tools focused on currency trading, including 30 integrated technical indicators and 24 drawing tools. MetaTrader 5 (MT5), launched in 2010, builds upon this foundation by supporting a wider range of assets such as stocks, commodities, indices, and ETFs. Its multi-asset functionality makes MT5 a preferred option for traders looking to diversify beyond currency markets.

Technical Analysis Tools

While both platforms offer strong capabilities for technical analysis, MT5 stands out with more than 80 built-in indicators, compared to the 30 provided in MT4. This extensive selection enables deeper and more comprehensive market analysis. Although both platforms support custom indicators, MT5’s enhanced charting flexibility and broader toolset make it better suited for traders with more advanced strategies.

Algorithmic Trading Capabilities

MT4 uses the MQL4 programming language, allowing traders to develop Expert Advisors (EAs) and automate trading based on predefined rules. MT5 upgrades this experience with MQL5, a more powerful and efficient language that enables the creation of sophisticated trading algorithms. For algorithmic traders seeking high-speed performance and advanced functionality, MT5 provides a clear edge.

Order Types and Execution Features

One of the key differences between the platforms lies in order flexibility. MT4 offers four types of pending orders, while MT5 supports six, including Buy Stop Limit and Sell Stop Limit orders. These additional options allow for more precise strategy implementation. Combined with MT5’s advanced execution modes and improved order management, traders gain greater control over how and when their trades are triggered.

Built-in Economic Calendar

A notable advantage of MT5 is its integrated economic calendar—a feature not available in MT4. This tool delivers real-time updates on major economic events, making it invaluable for traders who rely on fundamental analysis. With the ability to track global news and announcements directly from the platform, MT5 users can make faster, more informed trading decisions.

Conclusion

Both MetaTrader 4 and MetaTrader 5 deliver powerful tools for traders, but each serves different needs. MT4 remains a reliable choice for Forex-focused strategies, while MT5 opens the door to multi-asset trading with enhanced features and advanced analytics. By understanding the strengths of each platform, you can select the one that aligns with your trading goals. Whether you’re interested in automated strategies, technical analysis, or fast execution, TradeSmart ensures you have the right tools and insights to trade with confidence. Ready to start? Visit TradeSmart and take your trading to the next level.