# MetaTrader > MetaTrader 4 and 5 are popular forex and CFD platforms with expert advisors for automation. Learn their differences, MQL, strategy testing and broker checks. Source: https://learn.tradelabsai.com/industry/metatrader/ Track: The Trading Industry · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "MetaTrader", https://learn.tradelabsai.com/industry/metatrader/ MetaTrader is a family of trading platforms developed by MetaQuotes Software. MetaTrader 4 (MT4), released in 2005, became the standard platform for retail forex trading, and MetaTrader 5 (MT5), released in 2010, extended it to more asset classes. Hundreds of brokers worldwide offer MetaTrader, which provides charts, indicators, one click trading and, most famously, expert advisors: automated trading programs written in MetaQuotes' own languages. Because the platform is licensed to brokers, your trading conditions depend on the broker, not on MetaTrader itself. ## MT4 versus MT5 | Feature | MT4 | MT5 | |---|---|---| | Released | 2005 | 2010 | | Main markets | Forex and CFDs | Forex, CFDs, and exchange traded stocks and futures with some brokers | | Programming language | MQL4 | MQL5 (more powerful, object oriented) | | Timeframes | 9 | 21 | | Order types | Basic | More pending order types | | Depth of market | No | Yes | | Strategy tester | Single threaded | Multi threaded, multi currency, real tick testing | | Hedging | Yes | Both hedging and netting account modes | MetaQuotes has encouraged brokers to move to MT5 and stopped issuing new MT4 licences, but MT4 remains common. ## Expert advisors and indicators | Program type | What it does | |---|---| | Expert advisor (EA) | Automated strategy that can open, manage and close trades | | Custom indicator | Calculates and displays values on charts | | Script | Runs a one off action, such as closing all positions | EAs can run continuously on a computer or a virtual private server near the broker's servers, a common setup for forex automation. See [VPS, Cloud and Bare-Metal Servers](https://learn.tradelabsai.com/infrastructure/vps-cloud-and-bare-metal-servers/) and [Automated vs Semi-Automated Trading](https://learn.tradelabsai.com/algo-trading/automated-trading/). ## The strategy tester MetaTrader's tester can backtest EAs on historical data. Results depend heavily on data quality and settings: | Setting | Effect | |---|---| | Modelling mode | Real ticks are most realistic; "open prices only" is fast but crude | | Spread | Fixed spreads understate costs in fast markets. See [Spread Costs](https://learn.tradelabsai.com/orders/spread-costs/) | | Commission and swap | Must be included for realistic results | | History quality | Gaps and poor data distort results | **Example: An EA that looked perfect** A trader buys an EA advertised with a backtest showing a smooth equity curve and a 95% win rate. Rerunning the test with real tick data and the broker's actual variable spreads, the trader finds the EA risks large losses to make small gains: a grid strategy that adds to losing positions. The backtest period happened to contain no sustained trend against it. On a forward test in a demo account, a strong trend triggers a drawdown of more than 60%. The smooth curve came from risk hidden in rare events, not from skill. See [Overfitting and Curve Fitting](https://learn.tradelabsai.com/research/overfitting-and-curve-fitting/) and [Fake Performance and Track Record Verification](https://learn.tradelabsai.com/start-here/fake-trading-performance/). ## Choosing a MetaTrader broker Because the platform is the same everywhere, broker quality makes the difference: - **Regulation and fund safety.** See [Trading Regulators: SEC, CFTC, FINRA and NFA](https://learn.tradelabsai.com/industry/trading-regulators/). - **Spreads, commissions and swaps.** - **Execution model:** market maker or STP and ECN. See [Types of Brokers](https://learn.tradelabsai.com/industry/types-of-brokers/). - **Server location and reliability.** - **Symbol specifications:** contract size, minimum lots, leverage. See [Lots: Standard, Mini and Micro](https://learn.tradelabsai.com/forex/lots-standard-mini-and-micro/). Some scam operations have used MetaTrader to look legitimate. The platform's presence says nothing about whether the broker is regulated. See [Identifying Trading Scams](https://learn.tradelabsai.com/start-here/identifying-trading-scams/). ## Pros and cons | Pros | Cons | |---|---| | Widely available and free through brokers | Charting less modern than some alternatives | | Large library of indicators and EAs | Many low quality or misleading EAs for sale | | Strong automation support | MQL is specific to MetaTrader | | Works on desktop, web and mobile | Conditions vary greatly by broker | ## Frequently asked questions ### What is MetaTrader used for? Trading forex and CFDs, and on MT5 also stocks and futures with some brokers, with charting, indicators and automated expert advisors. ### Should I use MT4 or MT5? MT5 is newer, more capable and increasingly the default; MT4 remains popular for its large library of existing tools. ### Are MetaTrader expert advisors profitable? Some may be, but many sold EAs hide large risks or are overfitted; test them carefully on realistic data and demo accounts first. Next, learn about a popular futures platform in [NinjaTrader](https://learn.tradelabsai.com/industry/ninjatrader/). ## Continue learning - Next lesson: [NinjaTrader](https://learn.tradelabsai.com/industry/ninjatrader/) - Previous lesson: [TradingView](https://learn.tradelabsai.com/industry/tradingview/) - Related: [TradingView](https://learn.tradelabsai.com/industry/tradingview/): TradingView is a browser based charting and social platform covering stocks, crypto, forex and futures. Learn its features, Pine Script, alerts, plans and limits. - Related: [Forex Trading](https://learn.tradelabsai.com/markets/forex-trading/): How forex trading works in practice: choosing pairs, lot sizes, pips, leverage, sessions, costs and risk management, with a fully worked EUR/USD trade. - Related: [CFD Trading](https://learn.tradelabsai.com/markets/cfd-trading/): How CFD trading works in practice: opening positions, margin and leverage limits, overnight financing, stop orders, choosing a broker and managing risk. - Related: [Automated vs Semi-Automated Trading](https://learn.tradelabsai.com/algo-trading/automated-trading/): Automated trading systems place and manage orders without manual input. Learn levels of automation, platforms, what to automate first and the safeguards. - Related: [Charting Platforms Compared](https://learn.tradelabsai.com/industry/charting-platforms-compared/): Compare popular charting platforms: TradingView, MetaTrader, NinjaTrader, thinkorswim and others. Learn their strengths, costs, markets and which traders they suit. - Related: [How to Choose a Broker](https://learn.tradelabsai.com/industry/how-to-choose-a-broker/): A practical checklist for choosing a broker: regulation, safety of funds, real trading costs, markets, platforms, support and the red flags to watch for.