If you’ve been researching prop trading, you’ve certainly seen that the majority of prop firms use MetaTrader 5 (MT5) rather than its more traditional brother, MT4.
Have you ever wondered why?
You would assume prop firms would stick with what they know, since MT4 has been the preferred platform for retail traders for years. However, they don’t. Rather, the majority of prop firms are moving to MT5, and to be honest, it makes a lot of sense.
This post will explain why prop businesses use MT5 for forex trading, what it means for you as a trader, and how you may benefit from it the most.
Let’s get started.
MT5 Is Simply More Advanced
MT5 is not just an updated version of MT4. It’s a completely different platform with more advanced tools, better speed, and greater flexibility.
Think of it like this: MT4 is like a flip phone. It still works but the MT5 is a smartphone—it just does faster and better.
Here’s what makes MT5 the better choice for prop firms:
- Multi-asset trading – Unlike MT4, MT5 supports trading in stocks, futures, and commodities alongside forex.
- More order types – MT5 allows for both limit and stop-limit orders, giving traders more control over entries and exits.
- Faster execution speeds – No trader wants delays, and MT5’s infrastructure reduces latency, making it perfect for prop firms with strict risk rules.
- Depth of Market (DOM) – You can see real-time liquidity which is a great for more professional trading approaches.
Most prop firms don’t just want traders who can push buttons but they want traders who can trade professionally. And MT5’s advanced features give them that edge.
More Timeframes Means Better Market Analysis
One of the biggest complaints about MT4? It only has nine timeframes.
For traders who like to fine-tune their strategies, that’s pretty limiting. MT5? It has 21 timeframes. Yes 21.
That means instead of just bouncing between the M1, M5, M15, H1, and D1 charts, you can fine-tune your analysis with in-between timeframes like:
M3, M10, M20 – Great for scalpers who need precise entries
H2, H6, H12 – Perfect for swing traders looking at momentum shifts
W2, W3 – Great for long-term trend confirmation
Prop firms want traders who understand market structure across multiple timeframes and having more options in MT5 makes that a lot easier.
Advanced Charting and Built-in Indicators
Prop firms don’t just look for traders who can hit buy and sell buttons. They want traders who can read the market like a book and that means using proper charting tools.
MT5 comes with 38 built-in indicators as compared to MT4’s 30 plus 44 graphical objects for technical analysis. That means more ways to analyze trends, measure momentum, and find key price levels.
Here’s what makes MT5 better for charting:
Customizable charts – You can change chart colors, styles, and indicator settings with ease.
Built-in Fibonacci tools – No need for clunky third-party add-ons.
Better indicator combinations – You can apply multiple MT5 indicators on a single chart without lag.
Prop traders need clarity and precision, and MT5 delivers that with cleaner charts and better built-in tools.
Depth of Market (DOM) – A Prop Trader’s Secret Weapon
This is a big one. MT5 offers Depth of Market (DOM), something MT4 doesn’t have.
What’s DOM? It’s a tool that lets you see the actual buy and sell orders in the market. Instead of just looking at historical price action, you can see real liquidity levels and where big money is sitting.
Why do prop firms love this? Because it allows traders to:
Spot key supply and demand zones more effectively
Avoid getting trapped by false breakouts
Identify liquidity pools where big players are trading
For prop firms looking for serious traders having access to real market data like this is a must.
Risk Management Features Means More Disciplined Traders
Prop firms live and die by risk management. They’re not interested in traders who gamble—they want traders who know how to manage losses and protect capital.
MT5 makes that easier with:
Built-in stop-loss and take-profit tools – You can set SL/TP levels directly from the chart.
Partial order fills – Instead of getting stuck with a rejected order, MT5 allows for partial execution, which keeps trades flowing smoothly.
Advanced order types – Stop-limit orders give traders more precision when managing risk.
Prop firms love MT5 because it forces traders to be more strategic instead of just clicking buy and pray.
Faster Execution = Fewer Slippage Issues
If you’ve ever been burned by slippage where you enter a trade at one price but get filled at another then you know how frustrating it can be.
MT5 has a more advanced trade execution system, which means:
Faster order processing – Essential for scalpers and day traders.
Better handling of high volatility – Helps during news events and major market moves.
Lower latency on prop firm servers – Because MT5 is built for speed, orders execute more efficiently.
Slippage can make or break a trader’s success in a prop firm challenge. MT5’s improved speed and efficiency give traders a better shot at sticking to their strategy without unexpected losses.