Launched in 2010, MetaTrader 5 (MT5) has been specifically designed with the retail trader and the smaller institutional traders in mind. It gained huge traction in the market very quickly, primarily due to its true multi-asset capabilities. It allows traders to go beyond forex and into stocks, indices, exchange-traded commodities and derivative instruments like CFDs. Of course, its multi-device operability, user-friendly interface, and robust tools for fundamental and technical analysis have also played an important role in its popularity.

In fact, it is the key features of MT5 that take the trading experience to the next level. Here’s a look.

Algorithmic Trading and Back-Testing Capabilities

MetaTrader 5 is built on MQL5, a high performance and object-oriented programming language. With this, users get improved back testing capabilities, including multiple pair back testing. The language can also be used for developing trading robots and algorithms.

Algorithmic trading on MT5 has freed up huge amounts of time and effort that traders would otherwise need to invest in monitoring the markets and identifying viable trading opportunities. Now, all they need to do is set up the parameters for entering and exiting trades and the platform takes care of the rest. The trader even gets notifications when positions are opened and closed, so that they can stay in touch with their trading, even on the go.

Using this versatile programming language, technical indicators with special characteristics can also be created by traders. Access to a wide range of free indicators is provided by the MQL5 codebase, while the Marketplace allows traders to shop for their preferred indicators and Expert Advisors (EAs). So, traders don’t need to be programming experts to capitalize on these functionalities.

Wide Range of Technical Indicators

With MT5, traders can access 44 analytical objects, 38 technical indicators and unlimited charts in 21 timeframes. Plus, these tools can be customized according to the trading strategy, in terms of settings and analytical parameters. There is also the option of adding indicators to a separate sub-window or to the chart itself. Additionally, traders can choose to add one indicator over another.

There are also choices for variations in timeframes, allowing traders to study market volume and price momentum from different angles. Traders also have access to both tick volume data and real volume traded data.

Single-Click Trading

MT5 provides traders a highly flexible trading experience with the help of 6 pending orders, 2 kinds of market orders and 2 types of stop orders. In addition, it offers the “one-click trading” option, which reduces trade execution time. With this feature, traders can complete many different operations, including modifying orders, entering positions and setting stop loss levels with just a single click. The feature can be used across all execution modes.

Economic Calendar

MT5 allows traders to gain real time insights into financial developments posted by reputed international news agencies. On a daily basis, multiple newsletters about global events and analysts' predictions are made available. The platform has an in-built economic calendar, which offers the time, date, description and the degree of importance of macroeconomic data releases. These help traders in evaluating underlying market trends and predicting the price movements of assets.

Depth of Market

The Depth of Market (DoM) feature of MT5 enables traders to look at the live market bids of any particular instrument. It also provides access to the best current prices for the instrument. The DoM tool works differently in over-the-counter markets, as compared to exchange. In case an instrument is being traded in the exchange mode, order volumes and real time prices are featured by the DoM. If over-the-counter markets are being used for trading the instrument, DoM is generally based on the quotes of the broker.

Comprehensive Security

Robust security measures are vital for any trading platform, and MT5 offers some of the highest security features.

  • The data exchanged between the server and the trading platform is compressed and encrypted using a 128-bit system.
  • The platform has an extended authentication mode as well. It can be enabled on the server and provides added protection against unauthorized access.
  • In the authentication process, the identity of clients is not the only thing that is verified. The trade server also has to undergo authentication. This ensures that the server is the one it is claiming to be.
  • All configuration files with server configuration accounts and settings are encrypted. This ensures that it is almost impossible to connect to a trade server with configuration files that are copied from the /config folder of a different platform.

The Leap from MT4

Although MT5 shares some features with MetaTrader 4 (MT4), there are considerable differences as well. One of the biggest differences between the two platforms is that MT4 was created just for the forex market. MT5, on the other hand, has been designed for stocks and commodities, in addition to forex. This is because the platform can be connected to a centralized exchange. Unlike forex, stocks and commodities are traded on a centralized platform. This makes MT5 a true exchange platform, whereas MT4 is a specialized one.

The other major difference between the two platforms is the programming language. MT4 is based on MQL4, whereas MT5 uses MQL5. MQL5 is exciting because it offers “black box” programming. Essentially, this makes programming much easier, making it a logically superior framework for developers and users of trading robots and other EAs. MQL5 also has better back-testing capabilities. With this, even multi-currency pairs can be simultaneously tested. It is also important to note that there is no backward compatibility. This means programs written for MT4 cannot be run on MT5.

Then there are the advancements in terms of features. MetaTrader 5 has a more comprehensive list of analytical tools than MetaTrader 4. MT4 has 31 analytical objects, 30 in-built technical indicators, and 2,000 free custom indicators, along with 700 paid ones. MT5, on the other hand, has 44 analytical objects and 38 in-built indicators. Chart analysis can be done in just 9 timeframes on MT4, while MT5 offers 21 timeframes. Features such as the economic calendar and Depth of Market are also missing on MT4.

We believe that MT5 is a trading platform that brokers cannot afford not to offer. We have built powerful platforms like DTrader and DBOT, but we still offer MT5 for those who want it. It is a truly versatile platform suitable for both new and more experienced traders.

Which online trading platform do you trust the most? Tweet us @Derivdotcom and share your experiences.

You can also read our latest broker review done by 100 Forex Brokers

Join over 1 million traders worldwide

Sign up for an account now.