MT4 vs. MT5: Which Trading Platform is Best for Algorithmic Traders?

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two of the most popular trading platforms used by algorithmic traders. While many assume that MT5 is simply an upgraded version of MT4, the reality is that these platforms serve different purposes. For algorithmic traders, choosing the right platform is crucial, as it affects trade execution, strategy optimization, and overall trading efficiency. This article explores the differences between MT4 and MT5 and explains why MT4 remains the preferred choice for most traders.

What Are the Key Differences Between MT4 and MT5?

MT4 was designed primarily for forex trading, offering a stable and efficient environment for executing trades. However, it could still operate trades for stocks, commodities, and futures. MT5, on the other hand, was developed as a multi-asset platform to accommodate stocks, commodities, and futures trading in addition to forex.

Here are some of the key differences:

• Programming Language: MT4 uses MQL4, while MT5 uses MQL5. These languages are not backward-compatible, meaning custom indicators and Expert Advisors (EAs) developed for MT4 will not work on MT5 without modification.
• Order Execution Models: MT5 includes more order types and execution modes, but MT4 remains superior for forex trading due to its optimized processing algorithms.
• Market Depth & Trading Features: MT5 includes built-in depth of market (DOM) features, which are useful for traders who rely on order book visibility.

Despite these differences, MT4 continues to dominate algorithmic trading due to its established market presence, greater liquidity, and a broader selection of tools.

Why MT4 Remains the Best Choice for Algorithmic Traders

1. MT4 Allows Both Demo and Live Accounts, Unlike MT5

MT4 supports both demo and live accounts, making it a standout for algorithmic traders. MT5, however, limits users to live trading, skipping risk-free testing.

• MT4 Edge: Test Expert Advisors on a demo account before risking capital. Open a free, lifetime Vantage demo account to backtest strategies!
• MT5 Drawback: No demo option means real-money testing—risky for refining algorithmic trading plans.

This flexibility makes MT4 perfect for beginners and pros alike.

2. Longevity & Market Support – MT4 Has the Most Broker & Server Availability

MT4 has been the MetaTrader gold standard for over 20 years, earning deep broker support—crucial for forex trading.

• Broker Advantage: Heavy investment in MT4 servers ensures fast, stable execution.
• MT5 Lag: Slower adoption leaves MT5 with fewer liquidity providers, slowing trades.

For algorithmic traders prioritizing reliability, MT4 is the broker-backed winner.

3. MT4 Has the Largest Collection of Trading Tools & Customization Options

Another major advantage of MT4 is its extensive ecosystem ofExpert Advisors (EAs), indicators, and scripts. Because MT4 has been around for so long, traders have access to thousands of third-party tools that enhance trading performance.

Some proprietary tools, such as Algo Forest’s Expert Advisors (EAs), Indicators, and Scripts are optimized specifically for MT4’s ecosystem. Since MT5 uses a different programming language (MQL5), many of these tools cannot be used or easily migrated, making MT4 the superior choice for traders who rely on customized trading solutions. However, Algo Forest is developing and optimizing their trading tools for MT5 in the near future.

4. MT4 Has the Most Liquidity & Faster Trade Execution

Liquidity is one of the most critical factors for algorithmic traders, as it affects spread, execution speed, and overall profitability. Because MT4 has been the dominant trading platform for years, it has the highest liquidity, making it easier for traders to execute large-volume trades with minimal slippage.

More liquidity means:

• Tighter spreads, reducing trading costs.
• Faster order execution, which is essential for algorithmic strategies that rely on speed.
• Better order filling, ensuring minimal slippage in volatile markets.

When Should Traders Consider MT5?

Though MT4 excels for forex trading, MT5 has niche appeal for algorithmic traders:

• You need Depth of Market (DOM) for order book visibility.
• You trade multiple assets (stocks, futures) with extra timeframes.
• You use the built-in economic calendar for fundamental analysis.

Still, these don’t often outweigh MT4’s MetaTrader strengths.

Conclusion

For most algorithmic traders, MT4 remains the superior choice due to its flexibility, tool availability, and broker support. While MT5 offers new features, its lack of demo trading, lower liquidity, and limited broker support make it less ideal for forex algo trading.

Ready to maximize your trading efficiency? Explore Algo Forest’s Expert Advisors, indicators, and trading solutions today!