Want to be Part of a Trading Revolution? Read our Guide to MT5 Forex Brokers.
Following on from its success with MetaTrader 4, MetaQuotes Software decided in 2010 that it was time to launch a new updated version. MetaTrader 5 has yet to reach the same heights of popularity, but there are many reasons you should consider giving it a try. There are also a number of MT5 Forex brokers to choose from, which will make the decision much easier for you. Let’s give you a few reasons for considering this new trading software, and then we’ll go into a little more detail about the platform itself…
Reasons to choose Forex brokers with
- It is perfect if you only want one consolidated position per currency pair.
- It offers the best backtesting tools, and comes with free self-downloading historical data that covers plenty of currency pairs.
- MT5 has a great built-in signals service, which is supplied automatically within one handy platform.
- With an MT5 Forex broker, you get the opportunity to develop your own trading tools, and are able to access a range of free code libraries and standard classes.
What is Metatrader 5?
Metatrader 5, otherwise known as MT5, is a new trading platform launched by MetaQuotes Software in 2010. It hasn’t yet reached the dizzy heights of popularity amongst traders and brokers as MT4, but there is still plenty of time for it to catch on. It has a number of features already covered with the previous incarnation, and still supports Expert Advisors, custom indicators and scripts. It also has some exciting extra features such as the improved strategy tester, a built-in market for trading, and news events objects, and it is far more flexible when it comes to the development environment.
What MetaTrader 5 is able to offer
Metatrader 5 was developed to be a replacement for MT4, but in the beginning, it wasn’t received as well as expected by many Forex brokers. Even now, it is still offered alongside MT4 rather than as a standalone platform, which means it’s left up to clients to decide which one they want to use. And it still tends to be MT4 they plump for.
We’re surprised that MT5 hasn’t taken off as well as it should have, because it certainly has a lot to offer. Traders can trade in stocks, options, futures and foreign currency pairs. There are 82 different tools including graphic objects and technical indicators, and more than 100 charts that can all be opened at the same time.
It is possible to choose from four different types of order execution:
- Instant orders, where a dealing desk may send re-quotes (although this isn’t an issue with an MT5 ECN Forex broker of course).
- Market orders are also possible, with the best possible market price.
- Request orders with acceptance pending.
- Exchange order matching amongst traders.
As well as a good choice of execution there are also three different types of order to choose from: a market order that is executed as soon as it’s placed; a pending order that will be placed as soon as the market meets certain preset conditions; and a stop order which is the type of order to place when a trader wants to minimise losses and take profit.
Placing orders via MetaTrader 5 is going to be very easy with the useful Hotkeys feature, which places them via the quotes dialog or direct from an instruments financial chart. MT5 keeps traders well informed by providing order details, prices, stop orders, volumes, and the profit or loss of selected positions.
If you are already au fait with the ins and outs of MT4, and are worried about trying something different, don’t be. MT5 is new, but in essence it is very similar to MT4.
Which is better? MT4 or MT5?
There really is not much difference, and it all comes down to a trader’s personal preference. The new features and extras aren’t going to be everyone’s cup of tea, but there are always going to be traders looking for something different. There’s no denying that MT4 is very user-friendly, and in the beginning, this may be just what you’re looking for. But as you gain more experience you might want to consider something with lots of new features and more options than you could ever possibly need.
While MT4 is the preferred trading platform for almost all Forex brokers, there are a number of brokers choosing to add MT5 as an extra option. We aren’t able to give you a definitive answer as to which is the best, as it will be up to you to make that decision for yourself. There are good and bad points for about of them, and we would advise you to try them both for size – possibly with the help of a demo account in the first instance.
In general, MetaTrader 5 is far more versatile than its predecessor, which allows for far more opportunities for individuals to make more money and execute more transactions. If you’re a particularly aggressive or ambitious trader then MetaTrader 5 is the perfect trading platform for you; but if you prefer to keep things simple and be in firm control of your risk, then you might be better sticking with MetaTrader 4.
MetaQuotes has made a number of significant improvements with MetaTrader 5, and it’s surprised us that it hasn’t been accepted as well as it should have been. It’s a human trait to stick with the familiar, so it shouldn’t come as such a surprise that traders tend to stick with what they know. But it does pay to explore other options and weigh up the advantages and disadvantages of them all. Only by being adventurous will you find the enjoyment you’re craving, and improve your chances of becoming a successful Forex trader.
Remember also that while MetaQuotes may have cornered the market in trading platforms, there are a number of Forex brokers offering their own in-house software, so it will pay to shop around.