Introduction
Traders usually have a critical question when it comes to prop trading and handling funded accounts: MT5 to MT4—which platform is favored by prop firms?
This essay examines the distinctions between MetaTrader 4 (MT4) and the more current MT5 trading platform, investigating which one prop firms favour and why your platform selection could affect your trading career profoundly.
Fast review of MT4 and MT5
MT4 (MetaTrader 4)
- Published in 2005.
- Mostly meant for Forex trading.
- Smaller design demands fewer system requirements.
- Uses the MQL4 programming language to create custom indicators and EAs.
- Lacks some sophisticated features like Depth of Market and support for multiple assets.
MT5, MetaTrader 5
- Launched in 2010.
- A real multi-asset platform enabling:
- Offers more timeframes (21 versus MT4’s 9).
- More powerful than MQL4 but not backward compatible, it employs the MQL5 programming language.
- Integrated Economic Calendar, Depth of Market, and a more sophisticated Strategy Tester are all features.
Reasons why platform choice matters:
Working with Funded accounts, prop traders have to adhere to tight risk limits, defined asset coverage, and occasionally required application of particular tools (like trading logs or particular execution techniques). Your platform’s features, therefore, directly influence:
- Your trading plan scope (e. g. multi-asset versus pure Forex).
- Your capacity to safely automate solutions.
- Meeting the prop company’s risk criteria calls for excellent execution speed.
- Access to performance tracking analytics.
Then, which trading platform—MT4 or MT5—favors prop firms?
MT4: The Historical Preference Among Prop Firms
MT4 has been the centrepiece of prop trading for many years for a few reasons:
- Many traders think MT4’s user interface is straightforward and light.
- Lower expenses: Because their resource consumption was lower, prop firms often ran MT4 servers less expensively.
- Thousands of MQL4-built existing indicators, scripts, and Expert Advisors (EAs) make up a massive ecosystem.
- Often easier, funded accounts available via MT4 featured primarily Forex and occasionally CFDs.
- Times are, nevertheless, evolving. . .
Why Prop Firms Are Switching to MT5
Though MT4 is well-liked, more prop companies are choosing MT5 as their preferred setting. Here is why:
Multi-asset trading:
MT5 supports:
- Increasing numbers of funded accounts by prop firms cover more than simply Forex.
- Stocks, Indices, Commodities, Cryptocurrencies, and Futures.
- Firms that deal with property distribute risk across several markets.
- Under different market situations, traders have more chances to reach their profit goals.
- MT4 simply cannot match MT5’s asset coverage.
- Speedier Execution
Precise execution is what helps prop firms to flourish by reducing slippage and guaranteeing adherence to stringent trading standards. The MT5 trading platform provides:
- Multi-core CPU for faster backtesting
- Because of delayed order execution, this enables traders to avoid exceeding drawdown limits on funded accounts.
- Depth of market (DOM)
MT5 lets prop traders:
- See live order book information.
- Schedule entries and exits more carefully.
- Order bigger volumes without too much market influence.
This can be what separates keeping or losing a financed account in fast-moving prop trading situations.
- Sophisticated Risk Analytics
Prop companies like instruments enabling them to closely monitor risk. MT5 offers:
- More thorough trade history analysis
- built-in financial calendar.
- Enhanced reporting capabilities.
This openness lets prop companies monitor traders dealing with funded accounts and remain in compliance with legal regulations.
- Assistance from brokers and regulation
Particularly in Europe and other regulated markets, brokerage companies are being pushed by regulatory developments to provide MT5 rather than MT4. As brokers change, prop businesses do the same to guarantee flawless integration between their trading activities and brokerage partners.
Limitations:
Although technically superior, some prop businesses continue to use MT4 since:
- Cost: Moving infrastructure and training traders can be expensive.
- Many investors and companies have invested for years in MQL4 EAs that will not operate on MT5.
- Simplicity: Certain traders like MT4’s easier UI.
But the advantages of MT5—particularly for multi-asset prop trading—more and more outweigh these justifications.
The Judgement: For Funded Accounts, MT4 or MT5?
Thus, what platform truly do prop firms choose?
- Modern Prop Companies MT5
Concentrate on multi-asset trading.
Tighter risk management for funded accounts.
Quicker, more consistent implementation.
For big positions, the depth of the market is a crucial characteristic.
- Legacy/Smaller Companies: MT4
Cost-sensitive.
activities centered on forex.
Use available MQL4 tools and scripts.
More prop companies are adopting the MT5 trading platform for their funded programs in 2025 and beyond, therefore establishing it as conventional. For traders hoping to establish a long-term career in prop trading, knowing MT5 should be strongly recommended to keep them competitive and broaden their trading horizons.
Advice on Moving from MT4 to MT5
Here’s how to manage the change if you’re entering prop trading and handling a financed account:
MT5 offers more sophisticated order types; get familiar with stop limits, partial fills, and DOM.
Some custom indicators must be rewritten in MQL5. Move your indicators.
Run demonstration trades to get accustomed to the somewhat different feel of MT5.
Learn how to search for chances across several asset classes using multi-asset data.
Conclusion:
MT5 is gaining ground among legacy traders and companies, even if MT4 remains popular, particularly in the world of prop trading and funded accounts. Prop companies now need tools that enable multi-asset trading, speed, and more in-depth analysis—all areas where MT5 shines.
Understanding to dominate MT5 is not only wise if you want to get a financed account or are thinking of a career in prop trading; it is fast becoming crucial.
