MetaTrader 5 (MT5) for Forex Traders | Top Pros and Cons

Key tools and platforms

MetaTrader 5 (MT5) offers a range of tools and platforms to cater to various trading needs, including:

Desktop version

MT5's desktop version provides powerful tools for in-depth price analysis, supports algorithmic trading via trading robots or expert advisors (EAs), and facilitates copy trading.

MQL5 language

MT5 employs the MQL5 language, enabling automated trading software to run on your computer and execute trading functions round the clock. It can track financial symbols continuously, copy trades, generate reports, analyze news, and even create customized graphical interfaces.

Algorithmic trading

MT5 allows you to automate your successful trading strategies by providing a development environment for creating and optimizing your own EAs. Alternatively, you can access a variety of pre-built EAs for free from Code Base or purchase/rent them from the "MetaTrader Market”, which hosts a vast collection of trading applications. You can also request custom applications from professional programmers via the freelance service.

Virtual hosting

For users employing automatic trading systems (expert advisors), MT5 offers built-in VPS (Virtual Private Server) hosting. This ensures the uninterrupted functioning of your EA, even during power outages or internet disruptions. Benefits include 24/7 EA operation, easy setup, minimal latency to your broker's server, and no need for complex installation or configuration.

Order entry

MT5 features a depth-of-market (DOM) screen that serves as a universal order entry platform for Forex, stocks, and futures. It offers one-click trade activation and the ability to place trade orders directly on a chart, executing them when specific price or indicator conditions are met.

Charting

MetaTrader 5 offers an array of powerful charting features for traders, including:

Multichart capability

MT5 allows traders to open up to 100 currency or stock charts simultaneously, enabling comprehensive analysis of price movements. With 21 different timeframes available, including tick-by-tick and monthly, traders can gain insights into even minor price fluctuations.

Technical analysis tools

MT5 boasts an extensive collection of 80 technical indicators and 44 analytical objects, including Gann and Fibonacci tools, geometric shapes, and various channels. This suite of tools empowers traders to conduct in-depth technical analysis.

Chart within a chart

The platform supports a "chart within a chart" feature, enabling traders to display a smaller chart within the main chart. This feature enhances the ability to perform detailed analysis.

Price format options

Traders can choose from various price formats, including OPEN, HIGH, LOW, and CLOSE (OHLC), to customize the display of bar open, high, low, and close prices.

Color display customization

MT5 allows traders to customize the color display of charts and chart elements, enhancing the clarity and interpretability of price data.

Execution modes

MT5 supports four execution modes: instant, request, market, and exchange execution. It accommodates both traditional netting and hedging systems, making it suitable for various markets, including stocks, options, and Forex.

Order variety

Traders can utilize two market orders, six pending orders, and two stop orders, providing flexibility in executing their trading strategies.

Analytics

MetaTrader 5 offers a robust suite of analytical tools and features for traders, which includes:

Fundamental analysis

MT5 analysis software includes fundamental analysis capabilities, allowing traders to monitor a wide range of economic and industrial indicators. The platform provides access to news reports from international agencies and features an economic calendar to keep traders informed about important events.

Financial news

Traders can access financial news from global sources through MT5, ensuring they stay updated on significant developments that may impact the markets. The platform offers a daily broadcast of newsletters covering global events.

Financial analysis tools

MT5 equips traders with a set of financial analysis tools designed to facilitate the analysis of market trends. These tools empower traders to make well-informed trading decisions.

Customizable reports

The platform allows traders to generate customizable reports that provide insights into their trading performance. These reports help identify areas for improvement and track overall progress.

Activity dashboard

MT5 features an activity dashboard that offers a comprehensive overview of a trader's account data. This includes information on profit and loss, deposits and withdrawals, account balance, growth, and dividends graphs.

News subscription

Users have the option to subscribe to various news sources, enabling them to receive real-time headlines and filter news based on their preferences.

Scanners/Watchlist

While the base MT5 platform doesn't offer a dedicated scanner, traders can create watchlists with filters to serve as a quasi-scanner. Additionally, the MT5 marketplace provides a selection of real-time stock scanners for traders seeking this functionality.

Best MT5 brokers

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

Study Review

MT5 indicators

MetaTrader 5 (MT5) offers a range of powerful indicators designed to assist traders in making informed decisions. Experts have shortlisted the following as key MT5 indicators for beginners:

The Alligator Indicator

Image: The Alligator Indicator

Created by Bill Williams, this indicator uses moving averages to visualize market transitions from non-trending to trending phases. It provides clear visual signals for entering and exiting trades, aiding traders in capturing trends and price movements.

Money Flow Index (MFI)

Image: MFI Indicator

Combining volume and price action, MFI identifies potential reversals in ranging markets. It helps traders recognize overbought and oversold conditions, enabling strategic adjustments to their trading strategies.

Fibonacci Bar Indicator

Image: Fibonacci Bar Indicator

This tool automatically draws Fibonacci levels based on the latest bar, simplifying the identification of support and resistance areas. It's a valuable resource for traders relying on Fibonacci retracement levels.

Cronex Impulse MACD Indicator

Image: MACD Indicator

Building upon the MACD, this stable MT5 indicator measures moving average crossovers and their separation to assess trend strength. It filters market noise, aiding in mid to longer-term trend analysis.

Bollinger Bands

Image: Bollinger Bands Indicator

This volatility indicator helps traders spot potential breakouts and trend reversals by incorporating a moving average and standard deviation bands. Bollinger Bands are effective in gauging price volatility and identifying trading opportunities.

Ichimoku Kinko Hyo

Image: Ichimoku Kinko Hyo Indicator

A comprehensive tool developed by Goichi Hosoda, Ichimoku provides a holistic view of price action. It includes various components like moving averages, support/resistance levels, and cloud charts. Traders can leverage its lines and cloud to identify trends and potential buying or selling opportunities.

Can I install indicators in MT5 mobile?

Yes, you can install custom indicators on the mobile version of MT5. To do this, you'll need to download the indicator file and follow the installation process specific to your mobile device.

How do I set indicators on MT5?

Adding an indicator to your MT5 chart is straightforward. Simply follow these steps

Can I add new indicators to MT5?

Yes, you can add new indicators to MT5 using two methods

Also read the article about XMaster Formula Indicator

How to trade on MT5?

Trading on MetaTrader 5 (MT5) is a straightforward process once you understand the basics. Here's a step-by-step guide to get you started:

Choose a broker

Begin by selecting a broker that offers MT5 as its trading platform. You'll need to open a trading account with this broker.

Download and install MT5

Once you've registered with your chosen broker, download and install the MT5 platform on your device. It's available for various operating systems, including Windows, macOS, iOS, and Android.

Select an asset

Choose the financial instrument or asset you want to trade. You can do this by opening the chart for the specific asset you're interested in.

Plan your strategy

Decide on your trading strategy. Determine whether you want to enter the market at the current price (market order), set a specific price for entry (limit order), or enter when the market reaches a certain price level (stop order or trailing stop order).

Place your order

To place an order, click on the "New Order" button on the platform's toolbar. Alternatively, you can press F9 to open the order creation window. In this window, specify the asset you wish to trade, the order type (market, limit, stop, or trailing stop), the trading volume, and set stop loss and take profit levels if desired.

Execute the order

Once you've filled in the necessary details, click either the "Sell" or "Buy" button to execute your order. Your trade will then be live in the market.

Monitor your positions

Keep an eye on your open positions using the Trade tab located in the Terminal window at the bottom of the screen. You can modify or close your positions as needed based on market conditions and your trading strategy.

Close your position

When the market reaches your predetermined profit target or stop loss level, consider closing your position to secure your gains or limit your losses.

MT5 bots

MetaTrader 5 (MT5) introduces a powerful avenue for traders through algorithmic trading. Unlike its predecessor, MT4, MT5 boasts a more robust programming language known as MQL5, which allows for the creation of highly accurate trading robots or advisors. These automated bots take the reins of Forex trading, executing strategies without your constant involvement. What's remarkable is that almost any manual trading strategy can be transformed into a software code, and you don't need extensive programming knowledge to do it.

MT5 equips traders with several features for algorithmic trading, making it accessible to both beginners and advanced users. The platform’s offerings include:

Algorithmic trading isn't limited to experienced programmers. MT5 makes it accessible to traders with varying skill levels. You can automate your trades, create sophisticated strategies, or choose from a plethora of existing trading programs. However, it's worth noting that MT5 uses a different programming language, MQL5, compared to MT4's MQL4. Transitioning from MT4 to MT5 may require learning this new language and rewriting existing code if you decide to make the switch.

Can I install new bots in MT5?

Yes, traders have the option to install new bots in MT5. They can source these bots from the MetaTrader Market, various websites, or even create their custom bots using the MQL5 programming language. The flexibility of MT5 empowers traders to tailor their automated trading strategies to their specific needs.

Are bots free or paid in MT5?

In MT5, bots come in both free and paid varieties. The MetaTrader Market, an official source, offers a selection of both free and paid bots. Additionally, traders can discover free bots on other websites. While free bots provide value, it's important to note that paid bots may deliver enhanced features and superior performance, making them a preferred choice for some traders. Ultimately, the choice between free and paid bots depends on individual trading requirements and objectives.

MetaTrader 5 copy trading

MetaTrader 5 copy trading illustration

MetaTrader 5 (MT5) is a widely appreciated trading platform known for its standout feature - copy trading. Within MT5, a trading signals service allows traders to showcase their real-time activity. Users can select signal providers whose strategies align with their preferences, subscribe to them, and automatically replicate trades. It's crucial to exercise due diligence before subscribing, and MT5 provides tools for evaluating performance, including visualizations on MetaTrader charts and online result analysis.

Choosing free signals lets you evaluate quality through a demo account, eliminating financial risk. The "Signals" tab in the "Toolbox" on MT5 offers insights into signal provider effectiveness, including profits and losses, entry and exit points, and communication between providers and subscribers. Ratings and reviews from subscribers also help assess providers, and MT5 ranks them by trading results, making it easy for users to choose their preferred signals.

Additionally, MT5 offers virtual hosting services, ensuring uninterrupted trading robot activity and 24/7 signal subscriptions.

Is MetaTrader 5 free?

MetaTrader 5 (MT5) is indeed available for free, making it accessible to retail traders who want to use this powerful trading platform. You can obtain MT5 from your broker's website or directly from MetaQuotes' official website. Once downloaded, you can get started with a demo account to practice and explore the platform's features at no cost.

Is MT5 good for beginners?

MetaTrader 5 (MT5) is a versatile trading platform catering to various financial instruments, including Forex, stocks, futures, and CFDs. It's important to note that MT5 is more complex than its predecessor, MT4, which may require beginners to invest some time in learning its intricacies.

However, MT5 also offers several advantages for beginners, such as diverse market access to explore various assets, advanced trading tools for precise strategies, enhanced charting with a rich set of resources, and the ability to trade across multiple asset classes, including stocks, indices, commodities, and cryptocurrencies. This versatility provides beginners with a broader range of options to diversify their trading activities. Read also: Is Metatrader 5 good for day trading? in the TU article.

Customer support

Within the MetaTrader 4 (MT4) platform, traders can access a comprehensive help section that covers a wide range of essential topics. This dedicated help page serves as a valuable resource for users, ensuring that they can navigate the platform and make informed trading decisions effectively.

Additionally, for sales inquiries or direct communication with MetaQuotes, traders can reach out to the company's representative offices located globally, including Cyprus, Turkey, UAE, Pakistan, Thailand, Japan, and Bulgaria.

MT4 vs MT5