MetaTrader 5 (MT5) is one of the most popular trading platforms in the financial markets. It is designed for investors looking to trade various assets, including Forex, stocks, futures, and CFDs. It comes with numerous features, such as a user-friendly interface, technical analysis tools, automated trading robots (Expert Advisors), and news bulletins. Additionally, MT5 offers a platform with market depth, more timeframes, and allows for more than four types of order executions.
The primary distinction between MT5 and its predecessor, MetaTrader 4 (MT4), is its enhanced integration capabilities with exchanges. Due to the coding structure and architecture of MT5, Expert Advisors and indicators written for MT4 cannot be directly run on MT5. However, MT5 comes with a more advanced programming language, MQL5, which provides developers with the capability to code more complex strategies and algorithms. In summary, MT5 is a comprehensive trading platform tailored to meet modern trading needs.
MetaTrader 5 (MT5) Key Features
MetaTrader 5 stands as a pinnacle of trading software evolution, addressing the dynamic needs of modern traders. It not only offers state-of-the-art tools but also promises enhanced functionality and efficiency.
MetaTrader 5 Official Web site
User-Friendly Interface
MT5’s interface stands out due to its clean design and intuitive layout. It’s constructed with both new traders and seasoned professionals in mind. The platform offers customizable charts, multiple windows views, and a variety of themes. Furthermore, one-click trading capabilities ensure rapid order execution, which is crucial in the fast-paced world of trading.
Technical Analysis Tools
Traders can dive deep into market analysis with MT5’s array of over 80 technical indicators and charting tools. It supports multiple chart setups and timeframes, from one-minute to monthly charts, allowing traders to get a macro and micro perspective of market movements. The addition of drawing tools and graphical objects further enriches the analysis process, making it possible for traders to identify patterns, support and resistance levels, and much more.
Automated Trading Robots (Expert Advisors)
MT5 takes automation to a new level. Beyond the capacity to use Expert Advisors (EAs) for automatic trading, traders can backtest their strategies using the platform’s built-in strategy tester. This ensures that strategies can be refined and optimized before being deployed in live markets. The platform’s marketplace also offers a plethora of pre-written EAs and tools available for purchase or rent.
Comparison Between MT5 and MT4
While both platforms emerge from the same developer, MetaQuotes Software, they cater to different facets of the trading world, with MT5 seen as a more comprehensive iteration.
Platform Integration Capabilities
Unlike MT4, which was predominantly designed for forex trading, MT5 offers a broader scope. It provides direct access to other markets like stocks, commodities, and futures. This versatility ensures that traders aren’t limited to a single market, fostering a more diverse trading portfolio.
Coding and Compatibility Differences
MT5 and MT4 operate on distinct programming frameworks: MQL5 and MQL4, respectively. MQL5 offers more advanced features, allowing for the creation of more complex algorithms and tools. However, this advancement means direct compatibility between the two platforms is limited. Scripts, indicators, and EAs designed for MT4 often require modifications to run on MT5.
Order Types and Trading Features
MT5 surpasses its predecessor by introducing more order types and execution modes. With features like the “Fill or Kill” and “Immediate or Cancel” orders, traders have better control over their trades. Furthermore, the platform introduces a built-in economic calendar and a more extensive history database, enhancing both the trading and analysis experience.
MetaTrader 4 and MetaTrader 5 Comparison
| Feature/Function | MetaTrader 4 (MT4) | MetaTrader 5 (MT5) |
|---|---|---|
| Markets | Primarily Forex | Forex, Stocks, Futures, CFDs |
| Programming Language | MQL4 | MQL5 |
| Timeframes | 9 (M1, M5, M15, M30, H1, H4, D1, W1, MN) | 21 (Includes all in MT4 plus more) |
| Integrated Economic Calendar | No | Yes |
| Technical Indicators | Over 30 | Over 80 |
| Order Types | 4 (Market, Pending, Stop, Limit) | 6 (Includes all in MT4 plus Fill or Kill, Immediate or Cancel) |
| Supported Charts | Bar, Candlestick, Line | Bar, Candlestick, Line, Tick |
| Expert Advisor (EA) Compatibility | Yes (only for MQL4) | Yes (only for MQL5) |
| Market Depth | Typically No | Yes |
| Direct Access for Stocks | No | Yes |
Programming Capabilities in MT5
MT5’s success as a trading platform is underpinned not just by its user interface but also by its powerful programming capabilities. This allows for a level of customization and automation that caters to both beginner and advanced traders.
MQL5 Programming Language
MQL5 is the proprietary programming language of MT5 and represents a significant upgrade from MT4’s MQL4. MQL5 facilitates the development of custom trading robots, indicators, scripts, and libraries. With its object-oriented approach, MQL5 is not only more efficient but also offers enhanced capabilities such as multi-threaded testing and trading, and working with standard libraries in C++.
Algorithmic Trading and Strategies
MT5’s strength lies in its capacity to implement and execute complex algorithmic trading strategies. Traders can develop, backtest, and optimize their algorithms using the platform’s built-in Strategy Tester. This ensures strategies are robust and effective under different market conditions. Moreover, traders can simulate latency, slippage, and other real-market conditions to get a realistic assessment of strategy performance.
Indicator and Tool Development
The platform doesn’t just support standard indicators; traders can also develop custom indicators tailored to their trading strategies. The process is streamlined, thanks to MQL5, enabling the creation of both simple and advanced technical analysis tools. This flexibility allows traders to visualize and act upon their unique market perspectives.
Additional Features and Tools in MT5
MT5, in its quest to be the most comprehensive trading platform, incorporates a range of features that extend beyond just trading.
Market Depth and Price Analysis
MT5 provides a feature known as “Market Depth,” which offers a clear view of the market’s different price levels and the volumes available at each level. This Level II pricing mechanism allows traders to understand the supply and demand dynamics of an instrument, helping in more informed decision-making. Coupled with real-time price analysis, traders can gain insights into potential price reversals or continuations.
News Bulletins and Economic Calendar
Staying updated with market events is crucial for traders. MT5 integrates real-time news bulletins and an economic calendar directly into the platform. These tools ensure traders are always aware of global economic events, earnings releases, or breaking news that could influence the markets.
Community and Support Resources
MT5 boasts a vibrant community where traders and developers come together to share insights, tools, and Expert Advisors. The MQL5 community portal also provides forums, a marketplace for trading tools, and educational resources. For issues related directly to the platform, MT5 offers extensive documentation and support resources, ensuring users can troubleshoot problems or deepen their platform knowledge.
MetaTrader 5 Frequently Asked Questions
What is the MetaTrader 5 (MT5) platform?
MT5 is a multi-asset trading platform designed for trading Forex, stocks, futures, and CFDs. It offers advanced trading tools, charts, and automated trading features.
How does MT5 differ from its predecessor, MT4?
MT5 offers more timeframes, order types, a built-in economic calendar, and direct access to stock exchanges, while MT4 is primarily focused on Forex trading.
Can I use my MT4 Expert Advisors (EAs) on MT5?
No, MT4 EAs aren’t directly compatible with MT5 due to differences in the programming language (MQL4 vs. MQL5).
Is MT5 available on mobile devices?
Yes, MT5 offers mobile versions for both Android and iOS devices, allowing for trading on-the-go.
Can I access multiple accounts on MT5?
Yes, MT5 has a multi-terminal feature, allowing traders to manage multiple accounts simultaneously.
Does MT5 support algorithmic trading?
Absolutely, MT5 supports algorithmic trading through Expert Advisors (EAs) and offers a built-in strategy tester for optimization.
Is there a demo version of MT5 I can try?
Yes, most brokers offer a demo version of MT5, allowing users to practice trading with virtual funds.
How do I create custom indicators on MT5?
Custom indicators can be developed using the MQL5 programming language and integrated into the MT5 platform.
Can I trade cryptocurrencies on MT5?
If the broker offers cryptocurrencies as trading instruments and supports them on MT5, then yes, you can trade them.
Is MT5 secure for trading?
Yes, MT5 employs advanced encryption techniques to ensure data security and provides a two-factor authentication feature for added protection.