MetaTrader 5: Review the Pros and Cons of MT5
Launched in 2010 by MetaQuotes software Corp., MT5, or the MT5 Platform, is a multi-asset online trading platform boasting enhanced real-time charting capabilities and a wide range of additional functionalities. In addition, MT5 uses a different programming language from MT4 (MQL4): MQL5.
MT5’s platform offers the option of adopting hedging strategies, allowing for the synchronised opening of several positions, largely to reduce risk. This is a regularly used function by Forex traders.
Pros of MT5
- MT5 has an array of powerful analytical trading tools including 38 technical indicators, enabling the simultaneous display of up to 100 currencies and stock quotes charts. Twenty-one different timeframes are available which permits in-depth analysis of smaller price fluctuations (price developments). Furthermore, 80 technical analysis and analytical tools are also available, including graphical objects.
- MT 5 includes integrated tools for performing full fundamental analysis, including an economic calendar. The site provides direct access to financial news from leading worldwide news organizations.
- Market Depth (or Depth of Market [DOM]) is another key advantage of MT5, a display offering active Bids and Offers in the market. importantly to note that DOM has two modes: exchange and over-the-counter. The former features real-time prices from an exchange (exchange fed). The latter is broker-fed prices.
- Like MT4, MT5 users are not limited to built-in tools. Many free tools are available also to purchase from programmers. If you have coding experience, you can create your own personalised tools.
- Netting and hedging options are supported with MT5.
- Four order executing operations are available: ‘Instant’, ‘Request’, ‘Market’ and ‘Exchange’ execution. In addition, various types of trade orders are supported on the platform: ‘Market’, ‘Pending’, ‘Stop Orders’ and ‘Trailing Stop Orders’.
- Algorithmic Trading (copy trading) is among the most unique capabilities of your MT5, run through specialised software, referred to as ‘Trading Robots’ (Expert Advisors). MT5 has an integrated development environment that enables traders to quickly and easily construct and improve their trading strategy using robots. With the powerful MQL5 programming language; traders can assess quotes and execute trades based on the underlying algorithm. If you are not a programmer, you can choose from numerous pre-configured trading programs. The institutional multi-asset MT5 platform includes all necessary components for fully functional and versatile trading operations. The platform features a flexible trading system, allowing for in-depth technical and fundamental analysis, and a capable MQL5 development environment, a multi-currency tester and notification functionality. MT5 and MT4 uses different programming language code—MT5 uses MQL5 for programming but prohibits the export of MQL4 programs. If you’re using MetaTrader 4 (MT4) and wish to transition, you’ll need to effectively learn a new language and rewrite all your code.
- Mobile trading. MT5 mobile platform enables traders to trade Forex, stocks, and futures anytime and from any location. MT5 for iOS, iPhone, and Android enables you to be updated about financial markets and perform trade operations 24 hours a day. The MT5 trading platform’s extensive capability now fits in your pocket. MT5 Mobile provides various trading orders and facilities (netting and hedging). The mobile app offers professional technical analysis through a built-in set of indicators and analytical items. With MT5 Mobile, you can quickly check your transaction history, buy and sell currencies (along with other financial instruments), and swap assets with a single click.
Cons of MT5
- Some of the advanced tools may be intimidating for beginner traders with limited trading experience.
- Another point to note is that these languages lack backward compatibility, which means that programs created for MT4 will not operate on MT5. This could be a constraint for investors.
- MT5 is applicable to a greater range of financial instruments, including Forex, CFDs (contract for differences), stocks, futures and also cryptos trading. As a result, it includes a wider choice of features that may not apply to all traders.
- MT4 is still the preferred choice for most brokerage companies offering Forex and CFD trading.
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Sign up for a free demo account to test MT5 for yourself: https://www.fpmarkets.com/.