MT4 vs MT5 for Automated Forex Trading — A Detailed Comparison

Automated Forex trading has become a powerful tool for traders who want to maximize profits while minimizing manual intervention.

Using an Expert Advisor (EA) — a script that executes trades based on a predefined algorithm — lets traders respond quickly to market signals, backtest strategies, and operate their portfolios 24 hours a day.

When choosing a platform for automated trading, the two most popular options are MetaTrader 4 (MT4) and MetaTrader 5 (MT5).

Both platforms have extensive functionality and large communities of traders and developers.

But which is more suitable for automated Forex strategies?

This in-depth guide will help you make an informed decision by comparing MT4 and MT5 side by side.

We will cover their technical capabilities, coding languages, backtesting functionality, asset classes, and much more — all from the perspective of automated Forex traders.

1. MetaTrader 4 (MT4) — The Reliable Standard

MetaTrader 4 was released in 2005 and quickly became the industry standard for Forex traders.

To this day, MT4 maintains a huge user base due to its simplicity, stability, and vast ecosystem of custom indicators and Expert Advisors.

For automated Forex traders, MT4's main appeal lies in its lightweight architecture and vast community resources.

Hundreds of thousands of EAs, indicators, and custom strategies have already been coded in MQL4 — the proprietary scripting language of MetaTrader 4 — and many traders find it easier to buy or find a plugin that fits their needs quickly.

2. MetaTrader 5 (MT5) — The Next Generation Platform

MetaTrader 5 was released in 2010 as a successor to MT4.

It was designed to be faster, more flexible, and more powerful, offering additional functionality for traders who need more depth — from multithreading capabilities to more sophisticated backtesting.

For automated traders, MT5's main appeal lies in its ability to handle a wider range of financial instruments (stocks, indices, futures, and Forex), its faster processing, and its improved MetaEditor.

This makes MT5 a great choice for developing and optimizing more sophisticated strategies.

3. MQL4 vs MQL5 — The Difference Between the Scripting Languages

The main coding languages for MetaTrader platforms — MQL4 for MT4 and MQL5 for MT5 — are similar in many ways, but MQL5 is more powerful, flexible, and robust.

MQL5 is an object-oriented language (similar to C++) which lets you implement more sophisticated strategies, libraries, and modules.

This makes it a better match for advanced algorithm traders who need greater control and flexibility in their code.

MQL4, meanwhile, is more simplified and easier for beginners or intermediate traders to learn.

Because of its longstanding popularity, a vast code base of custom indicators and EAs is available for MT4.

4. Backtesting Capabilities — Why It Matters to Algorithmic Traders

Backtesting lets you trial your EA against historical data to gauge its performance.

This is a key part of developing and fine-tuning automated strategies.

MT4 Backtesting:

• Single-currency backtesting:

Backtesting is done on a single financial instrument at a time.

This makes portfolio strategies or multi-currency strategies hard to backtest accurately.

• Slow and less accurate:

The algorithm operates in a single thread and typically produces less accurate results, especially for strategies that rely on tick data.

MT5 Backtesting:

• Multithreading and multi-currency:

MetaTrader 5 lets you backtest strategies across multiple instruments and timeframes in a single pass.

• Higher accuracy:

Using tick data and multithreading makes backtesting faster, more reliable, and more realistic.

5. Market Availability — Instruments you can trade with EA

MetaTrader 4 is predominantly a Forex platform — designed mainly for currency pairs.

Brokers typically do not enable extensive stocks, futures, or commodity instruments on MT4.

MetaTrader 5, meanwhile, is a multi-asset platform.

It lets traders execute strategies across stocks, indices, futures, and Forex — all from a single platform.

This makes MT5 a more versatile tool for algorithmic traders who wish to diversify their portfolios.

6. MetaTrader 4 vs MetaTrader 5 — Side-by-Side Comparison

7. Summary — Which Platform Should You Choose?

Your choice largely depends on your trading goals, resources, and expertise.

If you:

• Prefer simplicity and vast community resources:

MetaTrader 4 might be more suitable.

• Develop sophisticated strategies across multiple instruments:

MetaTrader 5 is a better match.

• Require multithreading, multi-currency backtesting, and advanced coding capabilities:

MetaTrader 5’s powerful architecture will serve you well.

How SMARTT Automates Your Forex Strategy — Whatever Platform You Choose

Whether you prefer the lightweight MetaTrader 4 or the more sophisticated MetaTrader 5, SMARTT can be a powerful ally in your automated Forex journey.

SMARTT’s algorithm is designed to integrate seamlessly with both platforms, allowing traders to execute their strategies accurately and efficiently — without needing to constantly watch the charts.

Using SMARTT, you can leverage the expertise of a community of traders and strategies, backed by advanced technology.

This lets you stay in the market 24 hours a day, without worrying about missing opportunities due to human factors.

Whether you’re a beginner who wants a reliable, hands-free solution or a more advanced trader looking for sophisticated automation, SMARTT brings a unique blend of expertise and technology to help you maximize profits while minimizing risk.

So, while choosing the right platform is an important first step, choosing the right algorithm to execute your trades is just as crucial.

With SMARTT, you can rest assured your trades are backed by powerful, well-tested strategies — whether you’re using MetaTrader 4 or MetaTrader 5.