MT5 vs MT4: Which Platform Is Better for Automated Trading?

Choosing the right trading platform is crucial when it comes to automated trading. Both MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are widely used, but their features, architecture, and capabilities differ significantly—especially when automation is involved. In this article, we’ll explore how MT4 and MT5 compare in terms of performance, automation tools, strategy execution, and flexibility.

 

🧠 Architecture and Programming Languages

While MT4 and MT5 may look similar on the surface, their foundations are different.

🔵 MT4 is built using the MQL4 language, which is simple, reliable, and suitable for straightforward Expert Advisors (EAs). It’s a good fit for beginners or for those running basic automated strategies.

🟢 MT5, on the other hand, uses MQL5—a more advanced object-oriented language that allows for faster execution, multi-threaded processing, and more complex strategies. This makes MT5 better suited for professional algorithmic trading and high-frequency models.

 

⚙️ Backtesting Capabilities

Testing your strategy before live deployment is essential—and this is where MT5 clearly shines.

🔵 MT4 offers basic backtesting for single-currency strategies, and it doesn’t support multi-threading. This means tests are slower and limited in scope.

🟢 MT5 allows multi-currency, multi-threaded backtesting with real tick data. You can simulate more realistic market conditions and optimize strategies much faster.

If your trading success depends on accurate and fast backtesting, MT5 offers a considerable advantage.

 

📈 Number of Indicators and Timeframes

🔵 MT4 includes 9 timeframes and around 30 built-in indicators. While you can add custom ones, the structure is a bit rigid.

🟢 MT5 comes with 21 timeframes and over 38 built-in indicators. This expanded toolkit helps traders and automated systems identify patterns with more granularity and precision.

For EA developers and algorithmic systems that rely on diverse timeframes and indicators, MT5 provides more flexibility.

 

🧩 Order Types and Execution Models

In automated trading, the ability to use advanced order types is a strong asset.

🔵 MT4 supports four types of pending orders and a single-threaded execution model, which limits simultaneous trade management.

🟢 MT5 supports six types of pending orders and a multi-threaded environment, allowing your robot or EA to execute trades more efficiently—even across different assets and accounts.

This makes MT5 the superior platform for managing complex strategies with multiple open positions or assets.

 

🌐 Market Depth and Asset Diversity

MT5 was designed with multi-asset support in mind. That means:

🟢 You can use MT5 to trade forex, stocks, futures, commodities, and CFDs from one interface.

🔵 MT4, however, is mostly confined to forex and CFDs.

If you’re planning to use automated trading across diverse instruments, MT5 offers the versatility required.

 

🤖 EA Compatibility and Community Support

🔵 MT4 has a larger historical base of free and paid EAs. Many developers still publish on MQL4, and the platform’s simplicity makes it easier for new users.

🟢 MT5 is gaining ground with modern, optimized EAs that take full advantage of its advanced processing. However, not all MT4 EAs are compatible with MT5, which can be a drawback for those switching platforms.

If you're just starting and want access to thousands of community-built tools, MT4 might still hold an edge. But for cutting-edge algorithmic trading, MT5 is the better long-term choice.

 

📊 Real-Time Performance & VPS Compatibility

Both platforms support VPS (Virtual Private Server) integration, but MT5 often provides faster trade execution due to better internal optimization. For traders using low-latency VPS environments, MT5’s performance is usually superior—especially when handling multiple EAs or trading large volumes.

 

✅ Final Verdict: MT4 or MT5?

Here’s a quick comparison summary:

 

 

🟩 Final Thoughts

If you're focused on simple, proven strategies and want to leverage the massive existing library of EAs, MT4 may still be a good fit. But if you're serious about long-term automated trading with more power, accuracy, and diversity, MT5 is the superior platform.

Many advanced tools, including systems like SMARTT, are now optimized for MetaTrader 5. SMARTT allows automated trading with powerful risk controls and access to top trader strategies—all deployable directly on MT5, without manual coding or setup.

To learn more, visit our homepage or reach out via the contact us page.