Overview — MT4 vs MT5

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are industry-standard trading platforms developed by MetaQuotes. MT4 is widely used for Forex and supports Expert Advisors written in MQL4. MT5 is a newer, multi-asset platform with a built-in economic calendar, advanced order types, a more powerful strategy tester, and uses MQL5 for automated trading.

Which to choose? If you trade primarily FX and need extensive third-party indicators & EAs, MT4 remains prevalent. If you want multi-asset support (stocks, futures), advanced backtesting, and newer features, consider MT5.

Installation & Account Setup

1. Download & Install

Get MT4/MT5 from your broker or the official MetaQuotes installer. Brokers provide pre-configured builds and server credentials.

1. Download the installer (Windows, macOS wrapper/third-party installers, or native apps for mobile).
2. Run the installer and follow prompts.
3. Launch the platform and log in with the credentials your broker provided (server, login, password).

2. Demo vs Live Accounts

Start with a demo account to practice. Demo accounts mimic market conditions but may have differences in execution and slippage. When moving to live, verify deposit/withdrawal procedures and regulation of your broker.

3. Mobile & Web Versions

MT4/MT5 apps for iOS/Android and MT5 web terminal allow monitoring and simple order execution on the go. Mobile versions have fewer features but are useful for trade management and alerts.

The User Interface — Essential Windows

Familiarize yourself with these core areas:

• Market Watch — live quotes for available instruments.
• Navigator — account(s), indicators, Expert Advisors, scripts, and custom indicators.
• Chart Window — where price action is analyzed (candlesticks, lines, bars).
• Terminal / Toolbox — trade tab (open positions), account history, alerts, mailbox, and logs.
• Toolbars — chart types, timeframes, drawing tools, and indicators quick-access.

Charting, Timeframes & Drawing Tools

Charts are the core of technical analysis. Key chart types and features:

• Chart types: Candlestick (most popular), Bar, Line.
• Timeframes: from 1 minute (M1) to monthly (MN). Use multiple timeframes to validate setups.
• Drawing tools: trendlines, horizontal support/resistance, Fibonacci retracements, channels.

Save your drawing templates and chart templates to quickly apply indicator sets and visual styles to new charts.

Indicators & Templates

MT platforms include built-in indicators (Moving Averages, RSI, MACD, Bollinger Bands) and allow custom indicators. Use templates to load a set of indicators and visual settings with one click.

How to add indicators

1. Open Navigator > Indicators, or right-click the chart > Indicators List.
2. Drag and drop the indicator onto the chart or double-click to open its settings dialog.
3. Adjust parameters (periods, source, colors) and save as part of a template.

Creating & applying templates

Once your chart is configured, right-click > Template > Save Template. Apply a template later via Charts > Template > Load Template, or use the template dropdown on the toolbar.

Placing Orders — Market & Pending

Orders are the fundamental actions to enter or exit the market. MT4/MT5 supports market orders and various pending orders (Buy Limit, Sell Limit, Buy Stop, Sell Stop). MT5 adds additional pending order types (Buy Stop Limit, Sell Stop Limit).

Quick steps to place a market order

1. Open the chart or Market Watch → right-click instrument → New Order, or press F9 (MT4).
2. Choose volume (lot size), set stop loss and take profit (recommended), and select Market Execution.
3. Click Buy by Market or Sell by Market. The trade appears in the Terminal > Trade tab.

Placing pending orders (example)

1. Open New Order > select Order Type = Pending Order.
2. Choose the pending type (e.g., Buy Limit) and set the price level and expiry (optional).
3. Click Place to submit the pending order to your broker.

Managing Orders & Trade Management

Common order-management tasks:

• Modify stop loss / take profit: Right-click the open position > Modify or double-click the line on the chart.
• Partial close: Some brokers allow partial position closures. Adjust volume and close part of your trade.
• Trailing stop: Set a trailing stop on the trade to lock in profits automatically as the price moves favorably.

Order execution modes

Be aware of execution models: Instant Execution may reject or requote during price changes; Market Execution executes at the best available price (possible slippage). Know your broker’s execution type.

Expert Advisors (EAs) & Automation

EAs are automated trading programs that run on MT4 (MQL4) or MT5 (MQL5). They can open/close trades, manage risk, and implement strategies without manual intervention.

Installing an EA

1. Copy the EA file (.ex4/.mq4 for MT4 or .ex5/.mq5 for MT5) into the \MQL4\Experts or \MQL5\Experts directory (File > Open Data Folder).
2. Restart the platform or refresh Navigator > Experts.
3. Drag the EA to a chart and adjust input parameters. Enable AutoTrading in the platform toolbar.

Risk & safety considerations

• Backtest EAs extensively before live use.
• Run EAs on demo or small live accounts first.
• Keep an eye on uptime and connection stability — outages can lead to unintended trades.

Backtesting & Strategy Tester (MT5 advanced)

Both MT4 and MT5 include strategy testers to backtest EAs. MT5’s multi-threaded tester supports walk-forward testing, multi-currency tests, and higher-quality tick data.

1. Open the Strategy Tester (Ctrl+R).
2. Select Expert Advisor, symbol, timeframe, and testing model (Every tick, Control points).
3. Set date range, optimization criteria, and click Start.

Templates, Profiles & Workspace Management

Save chart templates and workspace profiles to keep a consistent environment across sessions. Profiles store multiple charts and their arrangements; templates save indicators and visual settings for individual charts.

1. Right-click chart → Template → Save Template.
2. File → Profiles → Save As to persist a multi-chart layout.

Useful Shortcuts & Tips

Common Issues & Troubleshooting

• No price updates: Check server connection (bottom-right), verify account login, ensure ‘AutoTrading’ is enabled, and check firewall/antivirus blocking.
• Offline charts: Re-open the chart, ensure the symbol is enabled in Market Watch, or reopen the platform.
• EA not executing: Confirm EA is allowed in options (Tools → Options → Expert Advisors), AutoTrading is ON, and EA is attached to the correct chart/symbol.
• Missing indicators: Place custom indicator files in \MQL4\Indicators or \MQL5\Indicators and restart or refresh Navigator.

Security & Best Practices

• Use strong, unique passwords and enable two-factor authentication if your broker supports it.
• Keep platform and EAs up to date; download EAs and indicators from trusted sources only.
• Run EAs on a VPS for 24/7 automated trading when required (choose a reputable VPS provider with low latency to your broker’s servers).

MQL4 vs MQL5 — Key Differences

• MQL4 — primarily for MT4, simpler event model, widely used for Forex EAs and indicators.
• MQL5 — for MT5, object-oriented, more powerful built-in functions, better multi-threaded backtesting and market depth support.

Pre-Trade Checklist for Platform Users

• Is your connection stable and server status green?
• Are stop loss and take profit levels set for each trade?
• Have you checked spreads and swap/rollover rates for overnight positions?
• If using EAs, have you run recent backtests and forward tests on demo?
• Do you have a VPS or backup plan for automated strategies?

Further Reading & Next Steps

Practice in a demo account, create templates for your trading style, and test EAs with realistic parameters. Next lesson: Buy/Sell, Market, Limit, and Stop Orders (in-depth order types and examples).