Quick Summary (Easy)
- Want to find and test good EAs? → Use MT5. Its advanced backtesting features are far superior for understanding EA performance and risk.
- Own many MT4 EAs or indicators and can’t get MT5 versions? → Continue live trading on MT4 while starting testing on MT5 in parallel.
- Trade manually with simple strategies? → Either is fine. The final performance depends more on broker execution quality, cost, and VPS location than the platform itself.
Basic Differences Between MT4 and MT5 (Start Here)
- Release Year: MT4 was released in 2005, MT5 in 2010. MT5 is a different architecture, not just an upgrade.
- Compatibility: MT4 EAs/indicators don’t work on MT5 as-is (need conversion or repurchase).
- Future Trend: New features and community resources are increasingly shifting toward MT5.
Trading Costs & Execution Quality
If you use the same broker and account type, there’s no major difference in spread, swap, commission, or slippage caused by the platform. The real difference comes from broker selection and server proximity (latency).
EA Backtesting & Optimization (Automated Trading)
EA performance directly depends on test quality. Backtesting is essential to understand risk and expected return.
MT5 Improvements
- Enhanced tick accuracy (MT5 reproduces real broker ticks, while MT4 only simulates from 1-minute data).
- MT5 allows more detailed settings for spreads, commissions, latency, leverage, and other parameters.
- Supports multi-currency testing (easier portfolio evaluation).
- Distributed optimization for faster testing (uses multiple CPU cores).
✅ Real-world tip: Developers and analytical traders benefit from MT5’s PDCA efficiency and higher survival rate. MT5 exposes risks that are invisible in MT4.
Supported Financial Instruments
- MT5: Multi-asset platform covering forex, stocks, futures, indices, commodities, CFDs, and crypto.
- MT4: Primarily forex-focused.
✅ Real-world tip: If you plan to trade CFDs or stocks in the future, MT5 is more flexible from the start.
Speed & Stability
- MT5: 64-bit & multithreaded – ideal for long-term and multi-currency backtests.
- MT4: Fine for lightweight EAs, but large-scale testing takes longer.
✅ Real-world tip: If you run multiple EAs, perform frequent optimizations, or conduct long tests, MT5 is the clear choice.
EA (Auto Trading) Environment
- MT5: Uses MQL5 language. MT4 EAs are not compatible, but most new or advanced EAs now support MT5.
- MT4: Still has a huge library of free and paid EAs, with a wealth of community knowledge.
✅ Future Outlook: Overall, MT5 has the upper hand.
Order Functions & Position Management (Very Important)
- MT5: Supports both Hedging and Netting systems depending on the broker.
- MT4: Only supports Hedging (manages multiple positions per symbol separately).
✅ Real-world tip:
- For grid, partial exits, or hedging strategies → use MT4 or MT5 (Hedging Account)
- For one position per symbol → MT5 (Netting) works fine.
Supported Brokers & Future Trends
- Some brokers still mainly support MT4, but MT5 recommendations are increasing.
- Since MetaQuotes has stopped issuing new MT4 licenses, the market is shifting toward MT5.
✅ Real-world tip: If you value scalability and future-proofing, MT5 is the better option.
Mobile Apps & UI Experience
- MT5: More timeframes, more intuitive interface and indicator management.
- MT4: Simple and easy to navigate for long-time users.
✅ Real-world tip: Beginners should start with the MT5 app. MT4 users can stay if comfortable—but testing is easier in MT5.
Common Misconceptions (Quick Fix)
- “MT5 can’t hedge” → Depends on account type. Many brokers offer hedge-capable MT5 accounts.
- “MT5 has fewer resources” → Not true anymore. Tutorials and forums are rich, and backtest knowledge is stronger on MT5.
- “Which platform wins more trades?” → Profitability depends on strategy edge × execution × cost × management. Same broker and account type = no major difference. The platform is just the tool.
Which One Fits You? (Quick Reference)
- Want to develop and optimize new EAs? → ✅ MT5
- Trade beyond forex? → ✅ MT5
- Prioritize long-term testing and optimization? → ✅ MT5
- Have legacy EAs (MT4 only)? → ✅ MT4
Pre-Start Checklist
- Broker account type: MT5 hedge or netting?
- VPS location: Close to broker’s server?
- PC/VPS specs: CPU cores, RAM, storage (can MT5 utilize multi-core optimization?)
- Risk management: Max DD, lot sizing (fixed/compound), losing streak handling, weekend close
- Monitoring & recovery: Terminal downtime alerts, abnormal execution, auto restart setup
Beginner Roadmap (Final Advice)
- MT5 should be your main choice. Speed and optimization power are major advantages.
- With the same broker/account type, cost and execution are nearly identical. Therefore, focus on broker quality and VPS proximity.
FAQ
- Q. Can MT4 EAs run on MT5?
- A. No. The architecture is different; you need to convert or get an MT5 version.
- Q. Does MT5 support hedging?
- A. Depends on account type. Some brokers offer hedge-enabled MT5 accounts.
- Q. Can I backtest on MT5 but trade live on MT4?
- A. Yes. It’s practical to optimize with MT5 and keep live trading on MT4.
- Q. Is there execution difference between MT4 and MT5 with the same broker?
- A. Hardly any. The difference lies in execution quality and server latency (VPS location).
- Q. Which is better for beginners?
- A. For scalability, testing efficiency, and long-term usability, MT5 is recommended.
- Q. How important is VPS location?
- A. Extremely important for scalping or HFT. Reducing latency directly reduces slippage.
- Q. Question?
- A. Answer