MetaTrader 4 is still everywhere, but MetaTrader 5 is where new development happens. We compare testing, order handling, languages and broker support.
MetaTrader 4 (MT4) has been the retail forex standard since 2005. MetaTrader 5 (MT5) arrived in 2010 and is now what most brokers push for new accounts. If you are starting with automated trading today, the choice matters because Expert Advisors written for one do not run on the other.
Programming language
MT4 uses MQL4; MT5 uses MQL5. MQL5 is closer to C++, with proper classes, a standard trade library (CTrade) and better tools for handling positions and orders separately. Modern MQL4 borrowed a lot of syntax, but the trading functions are different, so code has to be ported, not copied.
Strategy Tester
This is the biggest practical difference for algo traders:
- MT5 can test on real tick data from the broker, including the real spread at each moment. MT4 generates ticks from one-minute bars.
- MT5 is multi-threaded and can use every core of your CPU for optimisation, and even a cloud network.
- MT5 can test several symbols in one run, which is essential for portfolio or correlation strategies.
If you plan to backtest seriously, MT5's real-tick mode alone is a strong reason to switch. We have seen the same trailing-stop EA show a profit on generated ticks and a loss on real ticks - the difference was entirely in how ticks inside each bar were modelled.
Positions: hedging and netting
MT5 supports two account modes. A hedging account behaves like MT4: you can hold a buy and a sell on the same symbol at once, and every trade is its own position. A netting account keeps one position per symbol, the way exchanges work. Most forex brokers give MT5 hedging accounts by default, so grid and basket strategies still work.
Timeframes and data
MT5 offers 21 timeframes (including M2, M10, H2, H8) against MT4's 9, plus a built-in economic calendar that EAs can read. That calendar is useful for building news filters directly into an Expert Advisor.
When MT4 still makes sense
- Your broker only offers MT4.
- You rely on an old EA with no MT5 version and no source code.
- You need a specific MT4-only tool or indicator.
Our recommendation
For new automated strategies, use MT5. The tester is more realistic, the language is more capable, and broker support is shifting that way. If you are moving from MT4, budget time to re-test everything: different tick modelling, different order functions and a different account mode can all change results.
Trading forex and gold carries a high level of risk and may not be suitable for every investor. Past performance and backtests do not guarantee future results. This article is education, not financial advice.