MetaTrader 5 (MT5) is a popular multi-asset platform for retail investors and day traders. More powerful than its predecessor MetaTrader 4 (MT4), MT5’s trading platform offers a rich variety of trading tools, benefitting not only experienced investors but also newer hands.
Using MetaQuotes Language 5 (MQL5), price analysis, algorithmic applications, Expert Advisors (Trading Robot or EA), and technical indicators can be developed through the free codebase included within MT5. Developers create new programs and add to the codebase, which may then be downloaded and exploited on the MT5 trading platform. If you cannot find the program you’re looking for in the codebase, purchasing the required program from a skilled developer in the MQL5 community is an option.
MT5’s mobile application offers professional technical analysis applications. You can now manage your account, examine transaction history, purchase (and sell) currencies and swap assets directly from your mobile device.
MT5’s mobile solution allows traders to trade Forex, stocks and futures while on the go, regardless of location. If you have an iPhone, iPad, or Android smartphone and are connected to the internet, using the MT5 App is straightforward. It is now possible to have the entire capabilities of the MT5 operating system in the palm of your hand. The only drawback, of course, is the display size.
Five Things You Should Know Before Placing Your First Trade
1. Financial Instruments. Deciding which financial instruments to trade can be daunting for beginner investors. To make an informed decision, allow time to conduct thorough analysis either through technical analysis or fundamental analysis, or both. As a Forex trader, you’re charged with the mission of determining which currency pairs are overvalued or undervalued (EUR/USD, GBP/USD and USD/JPY for example). The same is said for traders who trade cryptocurrencies or commodities. Is bitcoin against the US dollar (BTC/USD) undervalued, for instance?.
2.Market Watch. Located on the upper toolbar under the View Tab on MT5, a wealth of information is available here, such as the financial instrument’s symbol, Bid price, Ask price, last traded price and spread value—the difference between Bid and Ask prices.
3.Trading Strategy. Ensure you have a well-defined trading strategy that’s been thoroughly back tested (and forward tested in a simulated environment [demo account]). Your trading plan will determine the right analysis tools for the job. As an example, it will tell you whether you should adopt a trend-following method, or a range-based approach; it will also highlight tradeable markets (the markets the trading strategy has been tested on).
4.Demo Account. Simulated trading platforms, or more commonly called, demo accounts, are readily available from most reputable Forex brokers. A demo account provides access to live market real-time conditions (live market price) and allows the trader to familiarise themselves with the platform’s features. You’re also able to select various asset classes on a number of different timeframes. Only when you have seen consistency in a demo trading environment should you then begin to consider a small live trading account (live account).
5.Trading Parameters. Before placing a new order—be it an open order with a market order or a limit order (pending order)—it is encouraged to set limits using various other order types: protective stop-loss orders, take-profit orders, activate (or deactivate) one-click trading, for example.
Choosing a Forex Broker
This is a critical step. To select a broker that fulfils your requirements can be a challenge. This includes ensuring the brokerage offers your desired trading platform, works with transparent pricing, has reliable customer service and facilitates access to global financial markets. In addition, it is important to understand the trading platform’s features. Does it offer solutions for Fibonacci trading? What about a compressive list of analytical objects (drawing tools)?
FP Markets is a foreign exchange (Forex) and contract for differences (CFD) broker with a global presence in over 100 countries. Forex traders realise the significance of dealing with a fully regulated and licensed broker in the Forex market when trading with FP Markets. What this means is FP Markets must conform to strict regulatory requirements.
Always read the disclaimer, irrespective of which broker you choose to trade with.