How to Open a
To trade effectively, you need the support of a trading platform that is fast, user-friendly, easy to access, highly secure, and loaded with features. The MetaTrader 5 (MT5) platform is exactly that - plus more. This multi-functional platform is ideal for trading a variety of asset classes and features an array of advanced tools. It is the latest platform from MetaQuotes who also designed the predecessor, namely MetaTrader 4 (MT4).
MT5 is a state-of-the-art trading platform that is designed to suit traders of all levels. The tools available assist beginners in learning about the forex market and how contracts for difference are used to trade financial instruments such as currency pairs. For seasoned professionals, the platform allows for technical analysis using features such as EAs that assist with deciding and executing trades.
The layout and user interface of MT5 are similar to the popular MetaTrader 4 (MT4) trading platform, which makes it easy for traders to make a seamless transition. Being the latest platform, MT5 is faster and more efficient while providing a wider range of trading tools. Prior to looking at the process of opening an MT5 trading account, it is useful to know what you can trade on the platform and why it is so popular for trading forex.
What Can Be Traded
on MetaTrader 5?
Backed by a reliable and robust platform, traders can set out on their journey to identify trading opportunities in a range of assets like forex, metals (e.g. gold and silver), commodities (like crude oil), indices (like Nikkei 225, Euro50 and S&P500) and cryptocurrencies (Bitcoin, Ripple, Ethereum and Litecoin). It is also possible to trade different financial instruments on MT5, including highly leveraged CFD instruments that enable traders to find opportunities in both rising and falling markets.
What are the Key
Features Offered by
the MT5 Platform?
With MT5, you gain access to a wide variety of technical analysis tools, highly interactive charting capabilities, automated trading systems, forex signals and copy trading functionalities.
The best part is the ease of access that MT5 offers. It can be downloaded for free and accessed on the device of your choice. You can access the web version of the platform directly via a browser or access the software on your PC (Windows, MacOS or Linux). There are also mobile versions of the trading platform. They are available for download in Google Play and the App Store for respective Android and iOS devices.
The platform is highly user-friendly and easy to navigate, allowing you to access trading functions from a single menu. Users can customise the toolbar in order to quickly implement your most commonly used commands. This is a very useful feature for traders with defined trading strategies.
This advanced platform offers high-level security. Data transfers are compressed and encrypted using 128-bit keys. Additionally, it supports RSA digital signatures.
MT5 offers automated trading robots like EAs that can be downloaded free of cost to help you improve analysis and execution, while relieving you of the burden of constantly looking at the markets and your trades.
For better risk management, this platform offers buy and sell stop orders and a trailing stop function.
MetaTrader gives you a Depth of Market (DOM) display and a choice of several built-in technical indicators. Additionally, MT5 enables you to develop your own custom indicators using custom mathematical tools for performing specific analytical operations on the basis of a predefined set of conditions. You can program an application (as script) for performing any function on the MT5 platform. For instance, you can run a script to close all pending orders or even remove all indicators from a chart.
MT5 offers a plethora of technical capabilities, with more than 80 technical indicators, 44 analytical objects, 21 timeframes, and an unlimited number of charts. It allows one-click trading, sending your trading orders directly from the chart where you have performed your technical analysis to identify entry and exit points.
Using the MT5 platform via a regulated forex broker will allow you to trade forex and other financial instruments in the best possible trading environment. That includes easy access to real-time market news and alerts along with a built-in economic calendar to make informed decisions. From Australia to the United Kingdom and beyond, there is no need to go searching for market news. It is all on hand.
What are the Main
MT4 and MT5?
While MetaTrader 5 is the latest version of the platform, it is not an upgrade to the highly popular MetaTrader 4 offering. Common questions that are often asked include why switch from MT4 to MT5 and how to choose between these two state-of-the-art platforms?
The interface of both is practically the same. This was a deliberate ploy from MetaTrader so that traders can make a hassle-free transition. Both platforms are fast, reliable, offer a range of free EAs and have multi-charting and back-testing capabilities. Here is how they are different:
The MT4 platform was designed with a focus on forex trading, while MT5 is suitable for trading in forex, commodities, indices, stocks CFDs, futures, bonds, options and more. MT5 is designed to cover both centralised and decentralised financial markets. While MT4 supports around 250 financial instruments, MT5 has more than 1,000 assets.
The MT5 platform provides access to more chart timeframes than MT4. While the latter has 9 timeframes, MT5 has 21! There are 7 hourly charts, 11 types of minute charts as well as daily, weekly, and monthly charts.
While MT4 has four types of pending orders - buy stop, buy limit, sell stop, and sell limit, the MT5 platform has six types of pending orders with buy stop-limit and sell stop-limit the two to be added. Additionally, MT5 supports partial order filling policies.
The MT5 expert advisors (EAs) are much more powerful than those offered on MT4. Remote optimisation is offered on MT5, which also allows concurrent back-testing for multiple pairs.
MQL4, which is the programming language for MT4, needs multiple functions to perform every trading operation, while MQL5, the programming language for MT5, is much more efficient and easier to use. The language of MT5 works well in the MT4 platform, but the language of MT4 is not compatible with MT5.
While MT5 allows both hedging (on-demand / request) as well as netting, MT4 permits only hedging. It is possible to transfer funds between accounts on the MT5 platform, but not on the MT4 platform. MT5 displays the DOM (Depth of Market) data, which is not shown in MT4. DOM data is a graphical representation of all bids and offers for a financial asset. All you need to do is click on the ALT+B buttons, and you can view the depth of markets.
The MetaTrader 5 platform comes with an integrated economic calendar, so traders can view the schedules of economic data releases, the figures of the previous release, and the market expectation for each. While both MT4 and MT5 have email integration, the latter supports emails with attachments.
Another unique tool available on the MT5 platform is the investor password. This allows someone other than the account holder to log in to an MT5 account for the purpose of viewing trading activities and histories. This is a useful tool for those who are seeking independent advice on their trading strategies and behaviour.
Finally, MT5 comes with technical support, which was missing in the MT4 platform.
What are the
Steps in Opening a
Opening a MetaTrader 5 account is very simple and the interface is
very user friendly.
However, to prevent errors, you may follow these steps:
How to Expand the
Pool of Expert Advisors
MetaTrader 5 offers you access to a variety of cutting-edge tools to help you perform technical analysis and trading operations. These include a range of indicators and expert advisors (EAs), which are free of cost and can easily be integrated with the charts. However, as you trade, you may feel the need for custom indicators or EAs. There are several paid indicators and EAs available at the MT5 marketplace. If you do not wish to spend on these, there is also the option of downloading the MetaTrader Special Edition (MTSE) plugin, which provides you with a number of other indicators and trading tools for no additional cost. The MTSE is a custom plugin for the MetaTrader 5 platform and integrates seamlessly with it, enabling you to increase your pool of indicators and EAs.
What to Consider
Before Opening a
When you enter the world of live trading on MT5, you will be using your money to place trades. While there are attractive opportunities to trade profitably, there are also certain risks. So, before committing real money for live trading on MT5, here are a few things to keep in mind:
Practice on a Demo Account
Beginners can learn the nuances of trading with a demo account without worrying about real capital being involved. The demo account also serves as an ideal tool for experienced traders to test new strategies or enter a new asset class. This account is also useful for back-testing strategies to determine what can be improved by going ahead.
Another critical reason for using a demo account is to develop the discipline required to keep emotions in check and continue sticking to your strategy whether the market begins moving in your favour or against you. Both fear and greed can be devastating for a trader.
Don’t Forget Risk Management
Make sure to use risk management strategies, whether you are a novice or experienced trader. A few winning trades can boost confidence and make traders complacent. This can lead to traders having too many open positions, not applying stop losses and take profit orders with each trade, or not monitoring the news to know about market moving events. It is essential to remember that there is a high level of risk associated with these financial services and any risk warnings should not be ignored.
Broker Support for MT5
Since MetaTrader 5 has a host of advanced features and functionalities, you may seek help from a broker to understand the platform better. Check out the services offered by your broker to ensure that prompt support is provided.
Choose the Platform Correctly
For this, it is important to understand the differences between MT4 and MT5. Gaining a good understanding of the platform will help you easily navigate the various advanced tools, charts, timeframes, and indicators offered by MT5. The broker may also offer other platforms. You can check these out too.
MetaTrader 5 is a multi-functional platform that offers many benefits. It is super easy to download MT5 on different devices and sync them. However, before you begin trading on this platform, check the trading environment provided by the broker, like spreads, market depth and speed of order executions. These will help you take the maximum advantage of each trade and avoid risks resulting from slippage and delays in fund withdrawals.
Source - database | Page ID - 19549