MT4 vs MT5 for funded trading: the differences that matter

MetaTrader 4 and MetaTrader 5 are both made by MetaQuotes. MT4 was released in 2005 and MT5 in 2010, and for years MT4 stayed the default at forex brokers and prop firms. That has changed. Every forex prop firm we track offers MT5, while only two still offer MT4 (see the MT4 list).

For a manual trader placing a few trades a day, the two feel much the same. The differences matter most if you rely on pending orders, run expert advisors (EAs), backtest, or hold several positions in one symbol. This guide covers those differences, where each platform is available, and the main alternatives.

Comparison at a glance

Feature	MT4	MT5
Released	2005	2010
Pending order types	4: buy limit, sell limit, buy stop, sell stop	6: adds buy stop limit and sell stop limit
Position accounting	Hedging only	Hedging or netting, fixed per account
Chart timeframes	9	21
Strategy tester	One symbol, optimisation on one core	Several symbols, optimisation across all cores, real-tick option
Programming language	MQL4	MQL5
Depth of market window	Not built in	Built in
Economic calendar	Not built in	Built in
Forex firms we track that offer it	2 of 10	10 of 10

Order types

Both platforms offer market orders and four pending types: buy limit, sell limit, buy stop and sell stop. MT5 adds two more, buy stop limit and sell stop limit. A stop limit order waits for price to reach a trigger level, then places a limit order at a price you choose. It lets you enter on a breakout while setting the worst price you will accept, which can help when spreads widen. MT5 also supports fill policies, such as fill or kill and immediate or cancel, which decide what happens when an order cannot be filled in full. The server normally sets the policy, so most traders never need to change it.

Two points matter for prop traders on either platform:

• Pending orders and news rules. Some firms count a pending order that fills inside a restricted news window the same as a trade you opened by hand. If your firm restricts news trading, cancel or move pending orders before the window opens.
• Trailing stops run in the terminal. The built-in trailing stop in both MT4 and MT5 is managed by your platform, not by the server. If the terminal is closed or loses its connection, the stop stops trailing. A virtual private server (VPS), or managing the stop yourself, avoids that.

Hedging and netting

MT4 uses a hedging model. You can hold several positions on the same symbol, including a buy and a sell at the same time, and each one is closed separately.

MT5 supports two models. In netting mode there is only one position per symbol: a new buy adds to a long position, and a sell reduces, closes or reverses it. In hedging mode, MT5 behaves like MT4. Forex prop firm MT5 accounts are usually set up for hedging, but the mode is fixed per account, so check it, especially if you run an EA written for one model.

A platform that allows hedging does not mean the firm does. Some firms allow opposite positions within one account and others ban them, and nearly all ban hedging across separate accounts, including two accounts of your own. Check the firm’s rules, not just the platform settings.

Timeframes and charting

MT4 has nine chart timeframes, from one minute to monthly. MT5 has 21, adding steps such as 2, 3, 10 and 20 minutes and 2, 3, 6, 8 and 12 hours. MT5 also has more built-in indicators and drawing tools, a depth-of-market window and an economic calendar inside the terminal.

One practical point applies to both. The daily candle follows the server’s time zone, and many firms reset the daily loss limit at server midnight or at a fixed time in a stated zone. It helps if your charts show the same day boundary as the firm’s rule, so you know exactly when a new trading day starts.

Strategy tester

The strategy tester is where the two platforms differ most:

• MT4 tests one symbol at a time, and optimisation runs on a single processor core. Its most detailed mode builds ticks from one-minute data, so results depend heavily on the quality of the price history.
• MT5 can test several symbols together, spreads optimisation across all processor cores (and, for a fee, the MQL5 Cloud Network), and can test on real tick data where the server provides it. It also supports forward testing on a separate period.

For prop trading, a backtest is only useful if it applies the firm’s rules. Build in the daily loss limit, the maximum loss, any consistency rule, and the firm’s commissions and spreads, or you will be measuring a strategy the account would not allow. Past results, simulated or real, do not predict future performance.

MQL4 and MQL5 expert advisors

The two languages are not interchangeable. Programs compiled for MT4 (.ex4 files) will not run on MT5, and MT5 programs (.ex5 files) will not run on MT4. The syntax is similar, since MQL4 was updated years ago to resemble MQL5, but the trading model differs. MT5 separates orders, deals and positions, so the code that opens, tracks and closes trades must be rewritten. Porting a simple indicator is usually quick, while porting a complex EA can be a sizeable project.

Before using an EA at a prop firm, check the firm’s automation rules. Of the ten forex firms we track, five allow EAs with conditions, such as bans on high-frequency trading, tick scalping or arbitrage. Four restrict them, for example to trade-management tools, to code you own and can show, or to accounts with a paid add-on. One prohibits them without prior approval. Some firms also treat the same EA running on many traders’ accounts as one strategy, which can count toward allocation limits or lead to accounts being closed. The list of firms that allow EA trading is a starting point, and our rules comparison shows the detail at each firm.

Availability at prop firms

When we last checked our data, all ten forex firms we track offered MT5, two offered MT4, eight offered cTrader and two offered TradingView. Two of the ten crypto firms we track offer MT5, and none of the futures firms we track use MetaTrader. The MT5 list shows the current firms.

Availability also depends on where you live. Several firms we track do not offer MetaTrader to US residents, and some move them to a different platform. Some programs or account sizes are limited to particular platforms, and a few firms charge a small extra fee for some platforms. Confirm the platform for the exact program and size before you pay.

Setting up a prop firm account

A few platform details cause more trouble at prop firms than the choice between MT4 and MT5:

• Server and login. The firm sends a server name, login and password for each account. Enter the server exactly as given, since a similar name may belong to a demo server or another company.
• Symbol specifications. Symbol names often carry suffixes, and contract sizes for index and metal CFDs differ between firms. One lot of an index CFD can be 1 unit of the index at one firm and 10 at another. Open the symbol’s specification before sizing a trade, or your risk per trade could be ten times what you planned.
• Several accounts. Each MetaTrader terminal logs in to one account at a time, so traders with several accounts usually run separate terminal installations. Check the firm’s rules before copying trades between them.
• Mobile apps. Both versions have mobile apps. They are useful for monitoring, but less suited to precise order entry.
• Records. The terminal’s journal and account history record every order and modification. Export them if you ever need to dispute a decision.

Alternatives: cTrader and TradingView

cTrader

cTrader, made by Spotware, is the most common alternative at the forex firms we track. It has a clean interface, built-in depth of market, detachable charts, and both hedging and netting accounts. Automated strategies, called cBots, are written in C#, which suits traders who already program in it. Its library of ready-made tools is smaller than MetaTrader’s. Note that some firms that allow EAs on MetaTrader do not allow automation on cTrader. See the cTrader list for the firms that offer it.

TradingView

TradingView is a charting platform first. At a prop firm you trade from TradingView charts through a connection the firm supports. Its Pine Script language writes indicators, alerts and backtests, but it does not place trades by itself through a broker connection the way an EA does. Automating it usually means routing alerts through outside tools, which many firms restrict. Only a few forex firms we track offer TradingView, while most futures firms we track do. See the TradingView list.

Which should you choose

• You trade by hand and the firm offers both MetaTrader versions. MT5 is the more current platform and the one more firms offer, so your setup carries over if you change firms.
• You rely on MT4 indicators or EAs. Use MT4 where it is still offered, but plan a port to MQL5, because your choice of firms is narrow.
• You build and backtest EAs. MT5’s tester is faster and more realistic, provided the firm allows automation.
• You want depth of market or C# automation. Look at cTrader.
• You trade from charts and alerts. Look at TradingView, where the firm offers it.

Whichever you pick, open a free trial or demo on the firm’s server if one is available, and test your order types, the server time and any EA before you pay. Most traders do not pass evaluations, and fees are usually not refunded, so make sure the platform is not the reason.