MetaTrader 5 – What is MT5?
MetaTrader 5 is a multi-asset, multi-functional trading platform used by traders from around the world. The platform features extensive in-depth functionality with multiple add-ons through its vast marketplace of third-party providers, ranging from conducting fundamental and qualitative to technical and quantitative research. If you haven’t heard of MT5, clearly, you are living under a rock.
In this guide, we’ll try to break down what MT5 is and how it can help you in your trading journey.[table_of_content]
Origin of MT5
Let’s give you a bit of a history lesson before digging deeper. MT5 was launched in 2010 to accommodate non-forex markets, particularly stocks, futures, and commodities, which are centralized trading exchanges.
Its predecessor, MT4, was launched in 2005 mainly for trading forex markets.
The MetaTrader 5 platform utilizes the MQL5 programming language, which is used by automated trading software that runs on your computer and executes trades for you.
MetaTrader 5 is available in desktop, web, and mobile versions. The desktop edition provides superior tools for in-depth market analysis, algorithmic trading, and order execution. The mobile version also supports the same functionality.
MT5 can monitor financial symbols 24 hours a day, copy deals, produce and submit reports, analyze news, and even offers a customized graphical interface.
The MT5 platform includes 38 technical indicators, 44 analytical objects, 21 timeframes, and infinite charts. Also, it provides a newsfeed, so you can keep yourself updated.
Keep in mind that these are the fundamental platform features. Through the MetaTrader marketplace, you can buy additional indicators and specialized in improving your trading experience.
Candlestick, line and bar charts are available on the MT5 base platform, with time frames varying from 1-minute to monthly. To get a complete view of the price action, you can connect multiple time charts by a symbol.
You can find indicators in the Navigator window, which classifies them by trend or oscillation. Over 38 technical indicators are available in MT5, ranging from simple price/trend-based indicators like moving averages and Bollinger bands to oscillation/momentum-based indicators like RSI and MACD.
The MetaTrader 5 platform supports both the conventional netting mechanism for exchange markets such as the stock market and the options market, as well as the forex market’s hedging option system.
It supports two market orders, six pending orders, and two stop orders and supports four execution modes: instant, request, market, and trade execution.
Ease of Access
MetaTrader 5 is a simple platform to use. It has a convenient and user-friendly interface that makes it easy to access all commands from the main menu, with the most commonly used functions accessible on the toolbar.
The Market Watch provides forex market quotations as well as quotes for other instruments, and the Navigator provides algorithmic trading tools and management of technical research.
Opening a demo account is also relatively easy and requires only the selection of a trading server and the entry of contact details.
Ok, let’s move on to how it compares with its predecessor.
MT4 vs. MT5
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Metatrader 5 was developed to trade markets other than Forex, such as stocks and commodities, primarily because it can connect to a centralized trading exchange.
The other major distinguishing factor of MT5 was its adherence to the “no hedging rule” in the United States. It states that clients of Forex brokers in the United States must deal on a FIFO (first-in, first-out) basis.
This means that if a trader buys one lot of GBP/USD and then buys another lot of GBP/USD, the first trade must be closed before closing the second trade.
Although Metatrader 4 records each trade individually and allows you to handle each individual position separately, Metatrader 5 aggregates all positions automatically. As a result, only Metatrader 4 can handle hedging; Metatrader 5 cannot.
Metatrader 5 employs a programming language known as MQL5, as opposed to Metatrader 4‘s MQL4.
The amazing thing about MQL5 is that it allows “black box” programming, which means that it is easier to program. Thus, logically, it would be a great framework for users and developers of trading robots and other expert advisors.
Who can trade on MT5?
MT5 can handle the most advanced and experienced systemic and discretionary traders and developers. This platform will benefit experienced traders the most, particularly those who enjoy developing algorithmic trading programs and robots.
MT5 is ideally suited for tech-savvy traders interested in algorithmic trading.
It will seem cumbersome to newcomers when compared to the more familiar retail online brokerage platforms.
There is a significant learning curve. The platform itself resembles an Excel spreadsheet, but its functionality is extensive.
The MetaTrader Market provides so many improvements to the platform that can enhance results for newbies.
Your questions about MT5
We know you still have a few questions, so we’ll try to answer them in this section.
1. As a beginner, where should I begin?
MetaTrader 5 would, of course, need you to have a live or demo account with a broker. You can try out the MetaQuotes Demo Account.
You can also open a demo account with a broker that supports MetaTrader 5. It may be simpler to first open an account with a broker and then use the login information to connect to that broker and the trading account via MetaTrader 5.
2. What should I expect from MetaTrader 5?
As a trading platform, MetaTrader 5 is extremely powerful. Here are some of the advantages it has over other platforms:
- Market depth, as well as various order forms, four execution modes.
- Market depth, as well as various order forms, four execution modes.
- There are over 80 technical indicators and analytical tools available.
3. What is the cost of MetaTrader 5?
You can download the MT5 free through the MetaTrader website or through your broker.
- A powerful in-depth software
- A robust platform for algorithmic trading
- A massive marketplace for add-on trading indicators and EAs
- MQL wizard simplifies making your own robot Trade Alerts
- Supports stock and options trading
- You have to take a steep learning curve from MT4
With its feature-rich platform, a stockpile of trading tools, and diverse range of tradable asset classes, MetaTrader 5 is ideal for advanced traders.
As a beginner, you can also try out MT5. We assure you that won’t be much of a problem!
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Hein is a Forex and CFD enthusiast with a passion for writing good informative quality content. He strives to showcase the best Forex Brokers in South Africa. Join him on his Journey!
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