Algorithmic trading — or “algo trading” — has transformed the forex and CFD industry. Instead of manually entering trades, brokers and traders now rely on automated systems, robots, and expert advisors (EAs) to execute orders based on pre-defined strategies.
When it comes to platforms that support algorithmic trading, MetaTrader 4 (MT4) and MetaTrader 5 (MT5) dominate the market. But with the constant evolution of trading technologies in 2025, many brokers wonder: Which platform is better for algorithmic trading brokers — MT5 or MT4?
Let’s break it down in simple terms.
A Quick Overview of MT4 and MT5
- MT4 (MetaTrader 4) was launched in 2005 by MetaQuotes and became the global standard for forex trading. It’s famous for its stability, simplicity, and huge library of Expert Advisors (EAs).
- MT5 (MetaTrader 5) came out in 2010 as an upgraded multi-asset version of MT4. It’s designed for trading not just forex, but also stocks, commodities, and indices — with faster processing and more features.
Although MT5 is newer, many traders still prefer MT4 due to familiarity and its vast EA marketplace. However, for algorithmic trading brokers, MT5 offers clear advantages that can’t be ignored in 2025.
What Is Algorithmic Trading?
Algorithmic trading means using software programs to automatically open, modify, and close trades based on a set of coded rules.
For example, an algorithm might say:
“Buy EUR/USD when the 50-day moving average crosses above the 200-day moving average.”
This automation removes human emotions from trading, executes faster, and allows 24/7 strategies — which is why it’s a must for modern algorithmic trading brokers.
Key Differences Between MT4 and MT5 for Algorithmic Trading Brokers
Let’s explore the main factors that matter for brokers who offer algorithmic or automated trading.
1. Programming Language: MQL4 vs MQL5
- MT4 uses MQL4, a simple language ideal for basic trading bots and indicators.
- MT5 uses MQL5, a more powerful, object-oriented language similar to C++.
MT5 Advantage:
MQL5 allows faster processing, multi-threaded execution, and more complex strategies. This makes it perfect for brokers who want to attract advanced algo traders.
For example, MQL5 can handle multiple positions, advanced risk logic, and portfolio-based systems — things that MQL4 struggles with.
2. Speed and Performance
MT5 has a 64-bit, multi-threaded architecture, while MT4 runs on a 32-bit, single-threaded system.
MT5 Advantage:
MT5 executes trades faster, handles larger data volumes, and backtests strategies more efficiently. This is crucial for high-frequency trading (HFT) and scalping bots, which need millisecond precision.
For brokers, this also means less server load and smoother order execution.
3. Strategy Tester and Backtesting
For algorithmic traders, backtesting — testing a strategy on historical data — is vital.
- MT4: Single-threaded tester, tests one currency pair at a time.
- MT5: Multi-threaded and multi-currency tester, plus real tick data and cloud-based backtesting.
MT5 Advantage:
MT5’s strategy tester is more accurate and faster. Brokers using MT5 can advertise superior backtesting environments, which attract professional algo developers and institutional traders.
4. Market Depth (DOM)
MT5 includes a built-in Depth of Market (DOM) feature, showing real-time bid and ask volumes at different price levels. MT4 does not have this natively.
MT5 Advantage:
DOM allows algorithmic strategies to consider liquidity before execution — ideal for brokers offering ECN or STP models.
5. Hedging and Netting Systems
- MT4: Supports only hedging (multiple positions in the same symbol).
- MT5: Supports both hedging and netting.
MT5 Advantage:
Algorithmic trading brokers prefer MT5 because it can serve both retail hedging clients and institutional netting accounts. This flexibility helps them expand globally.
6. Asset Classes Supported
- MT4: Primarily designed for forex trading.
- MT5: Multi-asset — supports forex, stocks, commodities, futures, crypto, and indices.
MT5 Advantage:
In 2025, traders expect more than just forex. Brokers can use MT5 to offer diversified portfolios, increasing trading volume and client retention.
7. Reporting and Risk Management
MT5 provides detailed reporting tools and integrates easily with third-party risk management systems. It offers real-time exposure data and trade analysis.
MT5 Advantage:
For algorithmic trading brokers, transparency and reporting accuracy are crucial. MT5’s advanced backend tools make monitoring easier and reduce compliance risks.
8. Community and Marketplace
MT4 has a massive online community and a vast library of free and paid Expert Advisors (EAs). However, most new developments are now happening on MT5, as MetaQuotes has shifted focus entirely to MT5 since 2023.
MT5 Advantage (Future-Ready):
New plugins, APIs, and updates are being made for MT5, not MT4. For long-term brokerage growth, MT5 is the safer investment.
Broker’s Perspective: Cost and Licensing
For brokers, cost is always a factor.
- MT4: Generally cheaper for initial setup, but support is limited since MetaQuotes no longer issues new MT4 licenses.
- MT5: Slightly higher setup cost, but comes with continuous updates, better scalability, and long-term support.
MT5 Advantage:
Though costlier upfront, MT5 is more future-proof, and its broader asset support helps brokers earn more from diverse markets.
Example Scenario
Let’s compare how an algorithmic broker benefits from each:
| Feature | MT4 | MT5 |
| Programming Language | MQL4 (Basic) | MQL5 (Advanced, OOP) |
| Speed | Moderate | High-speed, multi-threaded |
| Backtesting | Single currency | Multi-currency, cloud-based |
| Market Depth | Not available | Available |
| Asset Support | Forex only | Multi-asset |
| Hedging/Netting | Hedging only | Both |
| Regulation-Friendly | Limited tools | Enhanced reporting |
| Future Updates | No new releases | Regular updates |
| Ideal For | Retail traders, simple bots | Institutional, algorithmic, multi-asset brokers |
Winner for Algorithmic Trading Brokers: MT5
Why Algorithmic Trading Brokers Prefer MT5 in 2025
Here’s why most new algorithmic trading brokers in 2025 are migrating to MT5:
- More advanced coding with MQL5.
- Multi-threaded speed and stability.
- Faster, accurate backtesting with real tick data.
- Multi-asset support for diversification.
- Regulatory-friendly reporting and risk tools.
- Continuous updates and better technical support.
While MT4 remains popular for legacy traders, the future belongs to MT5 — especially for brokers focused on automation, scalability, and long-term growth.
Final Verdict
If you’re an algorithmic trading broker or planning to start one in 2025, MT5 is clearly the smarter choice.
It’s faster, more flexible, supports advanced automation, and integrates easily with liquidity and CRM systems. MT4 may still serve traditional forex traders, but MT5 gives you a modern, multi-asset ecosystem that aligns with the future of trading.
So, for brokers serious about algorithmic trading, scalability, and long-term performance —
MT5 isn’t just better than MT4; it’s the evolution of it.