What Is MetaTrader? Everything You Need to Know About MT4 and MT5

MetaTrader is one of the most popular trading platforms in the world. It acts as a bridge between brokers and financial markets, allowing traders to execute operations from their computer or smartphone. In practice, MetaTrader connects you directly to global markets and provides all the tools you need to trade efficiently.

This is why MetaTrader is especially popular among forex traders. As long as a broker supports the platform, you can use MetaTrader to trade currencies, CFDs, commodities, stocks, indices and more. If the broker is not natively compatible, MetaTrader still works as an intermediary, giving you access to the same trading environment.

Today, there are two main versions: MetaTrader 4 (MT4), released in 2005, and MetaTrader 5 (MT5), launched in 2010. Both were developed by MetaQuotes Software Corporation, a company that remains a global leader in trading software solutions.

Why use MetaTrader for trading?

The first advantage of MetaTrader is that it is free, lightweight and easy to install. You can download it directly from the official website and start trading within minutes. Its speed is a major benefit in highly volatile markets where execution time matters.

MetaTrader supports multiple order types, including stop-loss, take-profit, market, pending, and trailing stop orders. These features help traders manage risks and maximise profits.

Another key benefit is the use of Expert Advisors (EAs), automated trading systems that execute strategies for you. EAs can follow complex algorithms and trade 24/7 without manual intervention. Additionally, the platform provides a detailed transaction history and performance analysis tools to help you refine your strategies.

With both MT4 and MT5, you can trade forex, bonds, stocks, indices, metals, commodities and derivatives such as:

• CFDs (Contracts for Difference)
• Futures
• Options

What is MetaTrader 4?

For more than a decade, MT4 has been the most popular platform for forex traders. Its simplicity, security, and wide range of features make it a classic choice. Even today, millions of traders worldwide use MT4 daily.

MT4 is built on the MQL4 programming language, which allows users to implement trading strategies, automate operations and perform technical analysis. Thanks to its flexibility, MT4 supports a variety of add-ons and customisation.

Some of the main functions of MT4 include:

Expert Advisors (EAs)

Automated trading systems, also known as trading robots, analyse markets and place trades in real time. You can create your own EAs, download them from the code library or purchase them from the MetaTrader Market.

Custom Indicators

In addition to 30 built-in indicators, MT4 lets you create custom indicators via the embedded MetaEditor. These help you analyse market conditions and refine trading decisions.

Scripts

Scripts automate single-time actions such as closing multiple trades, calculating risk, or exporting data. They are especially useful for repetitive tasks, but cannot run multiple operations simultaneously.

Libraries

A space to store custom functions and frequently used code blocks, making your trading setup more efficient.

MetaTrader 4 vs MetaTrader 5

In 2010, MetaQuotes released MetaTrader 5 (MT5), which is designed to support a wider range of financial markets, including stocks and commodities. By 2018, as multi-asset trading grew in popularity, MT5's adoption accelerated.

MT5 introduced significant improvements over MT4, such as more order types, advanced charts, additional indicators, a built-in economic calendar, and enhanced strategy testing tools. It uses a different programming language, MQL5, which is more powerful but not backwards compatible with MQL4.

To help you compare, here's a quick summary:

So, what is the verdict?

Many traders wonder if MT5 replaces MT4. The truth is: both platforms remain highly relevant. MT5 offers more advanced tools, broader market access, and modern features. Yet, MT4 continues to dominate because of its simplicity, stability, and compatibility with most brokers.

The main limitation is that MT4 and MT5 are not compatible with each other, so traders cannot transfer EAs or custom code between them. This explains why many experienced users stick with MT4, while newcomers and multi-asset traders lean towards MT5.

Ultimately, the choice depends on your objectives: If you want a proven, beginner-friendly platform with massive broker support, go with MT4. If you need advanced analysis tools, more markets, and faster strategy testing, MT5 may be the better option.

Both platforms are available at Libertex. You can open a free demo account to practice or dive into free lessons to improve your trading skills.

Conclusions

MetaTrader remains the most widely used trading software in the world, powering millions of accounts for forex, CFDs, commodities, and stock trading. While MT4 continues to dominate due to its simplicity, wide broker availability, and extensive EA library, MT5 is gaining momentum thanks to its advanced tools, more indicators, and broader asset coverage.

The decision between MT4 vs MT5 depends on your trading goals. Beginners may find MT4 easier to learn, while experienced traders and algorithmic strategists may benefit from the advanced analytics and multi-asset support of MT5.

Both platforms remain reliable, fast, and customisable, ensuring that MetaTrader will continue to be a cornerstone of online trading in 2025 and beyond.