MetaTrader 5

The Ultimate Beginner’s Guide

Trading Platforms – Overview

In order to perform trades, traders need access to trading platforms through which trades can either be opened and closed in addition to it providing traders with the ability to manage market positions through online brokers.

These trading platforms vary from broker to broker, and often a broker can offer traders up to several different types of platforms, depending on the trading needs of a particular trader.

 

Brokers offer trading platforms to traders at a discounted rate, but mostly free of charge, and in exchange, the trader is expected to maintain their funded account along with making a specified number of trades per month.

Why is it important for traders to choose the right trading platform?

A remarkably simple reason is that should a trader choose the wrong trading platform, it may lead to substantial losses that can be incurred over a short period of time.

When choosing a trading platform, it is imperative to take a look at several aspects of the trading platform, such as:

  • Personalisation
  • Analytical Concerns
  • Response Times, and
  • Mobile Compatibility amidst others

Personalisation

When opening the MetaTrader 4 application, the trader is presented with the following six separate segments:

The aesthetics pertaining to being able to customize the trading platform to suit the needs of the trader goes beyond just visual appeal but entails that a system which can be personalized provides traders with even greater efficiency.

The architecture of trading platforms will differ from one to the next and it is imperative for traders to seek a trading platform that will suit their needs and which they are comfortable in using.

Trading platforms should ensure that traders are provided with superior levels of flexibility which includes:

  • Provision of drawing-, and other tools on charts
  • The ability to view charts side by side for comparisons
  • Choice of assets
  • Ability to choose what data to show, and what to remove from charts
  • Different colour schemes so that data may be more clearly shown on charts, and several more

Analytical Concerns

The ability to conduct analysis is a critical role involved with the developing of a trading strategy that is successful. Markets tend to be quite confusing, especially to traders who are just beginning, as they change often and within a short period of time.

With keeping this specifically in mind, trading platforms’ offering should include, but is not limited to the following:

  • Pattern Recognition
  • Technical Indicators
  • Model-based Strategies
  • Automatic stop-loss algorithms, otherwise known as Expert Advisors (EAs) or algorithmic trading

These allow traders to focus on the larger picture instead of merely focussing on an individual trade.

Response Times

Fast execution is one of the most important things which can either ensure success or lead to inevitable failure due to executions that cannot be made quick enough.

Although various features set trading platforms apart, lag time is the most influential feature of any. Trading platforms must ensure that their response times are as minimal as technically possible.

Mobile Compatibility

This is one of the important deciding factors with regards to choosing a trading platform as more traders worldwide are using their smartphones or tablets to access important information online on a daily, if not hourly, basis.

Trading platforms have therefore had to adapt by developing and providing mobile-friendly software that closely resembles the offering of desktop software.

There is constant movement on different markets, and traders cannot afford to stay in front of a desktop all day to monitor these movements. Thus, trading platforms need to offer traders the opportunity to remotely access information any time of the day.

Algorithmic or automated trading

This is also known as high-frequency trading with the basic principle built on the advantage of speed. This type of trading is normally done by using robots to trade on the behalf according to a strict set of commands and perimeters set by the trader.

These commands and perimeters should be set in line with the strategy that the trader is using, and they have to be concise to ensure that executions are done accurately and at a high speed.

Why should traders choose MetaTrader 5?

What is it and who makes use of it?

MetaTrader 5 was developed by MetaQuotes and launched in 2010. MetaTrader 5 provides traders with the revolutionary factor of being able to trade in almost all financial markets which include Forex, Stock Exchanges along with Futures markets.

It has a rich functionality which has been designed to meet the needs of every trader, and also, possessing potential which is unlimited in further development and growth.

MetaTrader 5 is used by millions of traders and offered as a trading platform by various brokers, some of which include, but is not limited to:

  • com
  • IC Markets
  • Admiral Markets
  • XM, and
  • FxPro

Why are more brokers offering MetaTrader 5?

MetaTrader 5 was developed as the more superior version of MetaTrader 4. Where there are still the same functions provided by MetaTrader 5, which MetaTrader 4 offered, it comes jam-packed with a variety features in addition to that of MetaTrader 4.

MetaTrader 4 still has a lot more popularity and there are more brokers who offer MetaTrader 4 than MetaTrader 5, but due to support for MetaTrader 4 being cut off recently, more brokers are forced to make use of MetaTrader 5.

In addition to this gentle nudge towards making use of MetaTrader 5, MetaQuotes has provided equity brokers with the ability to offer software dedicated to stock exchange trading.

Where mostly only Forex brokers used the MetaTrader platform, most brokers who make MetaTrader 5 part of their offering can no provide traders with access to a wider variety of markets in which they can trade.

What makes MetaTrader 5 the better choice?

MetaTrader 5 was developed by MetaQuotes with the purpose of providing traders with the ability and the advantage to utilize the full benefits that MetaTrader itself has to offer across nearly all the financial markets around the world.

MetaTrader 5 does not only provide traders with the utilisation of graphs, tables and market indicators that come standard with MetaTrader, but MQL5 also provides programming language which is high-performance.

MQL5 allows traders to create their own technical indicators, similar to what MQL4 provided traders who used MQL4, but much more advanced.

With the use of the new and improved MQL5, traders who have more of a know-how when it comes to coding, can create their own Expert Advisors. These EAs serve an important role in the trading strategies of traders.

EAs are based on several key input calculations as determined by the trader according to their needs and trading strategy and with this, traders have access to market analysis and forecasts that are highly accurate.

What does MetaTrader 5 have to offer?

MetaTrader 5 is a multi-asset platform which offers a lot of the same features that MetaTrader 4 offers, but more advanced, with a variety of additional features all packed into a user-friendly application which is easy to set up and easy to use.

Flexibility

MetaTrader 5 is powerful and it delivers traders with Market Depth along with a system that provides for the separate accounting of both orders as well as trades. These systems include the traditional netting system along with the hedging option system.

In addition to this, MetaTrader 5 also offers four execution modes such as Instant, Request, Market and Exchange. With MetaTrader 5 all types of trade orders such as market, pending, stop orders and trailing stops are supported.

Professional Technical Analysis

MetaTrader 5 offers a concept which is all-encompassing with an advanced offering of impressive analytical tools. With MetaTrader 5, traders can have up to 100 charts open simultaneously, which consist of currency and stock quotes.

MetaTrader offers traders the choice to view between 21 different timeframes which allows access to not only a comprehensive, but also a detailed analysis of even the most minor price movements.

With more than 80 technical indicators along with analytical tools, traders are provided with a more detailed analysis of quote dynamics.

Traders are also not merely limited to the built-in tools that come standard with MetaTrader 5, but they are free to choose between thousands of indicators from the Code Base free of charge, or traders can purchase and even rent applications from the MetaTrader Market.

These applications consist of over 2500 algorithmic applications that are ready for use and traders can also order custom indicators provided by professional programmers by making use of the Freelance service.

Traders can also use MQL5 to create their own indicators to suit their trading needs to the full extent. These features do not only enhance the trader’s capabilities to perform analysis, but also to achieve detailed as well as accurate technical analysis pertaining to quotes.

Fundamental Analysis

There are two types of analysis, namely technical analysis, and fundamental analysis that traders can conduct with regards to market approach. Both of these can be utilized in both researching and forecasting future trends that may present themselves in stock prices.

Technical Analysis has two inputs namely the stock’s price along with its volume. Traders make use of stock charts which will enable them to identify patterns and trends that relate to what a stock could possibly do in the future.

Popular forms of technical analysis are moving averages, support along with resistance, trend lines as well as momentum-based indicators.

Fundamental analysis provides traders with the ability to evaluate securities through the measuring of the intrinsic value of a particular financial instrument. Through conducting a fundamental analysis, traders can forecast the price dynamics of these instruments.

The aim of this analysis is for traders to be able to constantly monitor both the open-source economic along with industrial indicators and MetaTrader 5 provides traders with original fundamental data to enable them to conduct this analysis.

MetaTrader 5 makes provision for news reports which originate from international news agencies which is delivered directly to the platform so that traders have instant and updated access to essential information at all times.

 

In addition, MetaTrader 5 also provides an economic calendar. With this calendar, traders have access to the macroeconomic indicators of several countries which then allows traders to analyse what the impact will be on a variety of financial instruments.

Trading Signals along with Copy Trading

Traders who simply do not have the time to trade manually or to analyse the markets can benefit greatly from this feature on MetaTrader 5. Traders have the option to choose from a variety of Signal Providers (who are successful traders) and subscribe to their signal.

When a trader subscribes to a signal, all the trades from that particular provider are automatically reproduced onto the trader’s account. There are both free and paid signals which are available for both demo and live accounts.

Before subscribing to a trading signal, traders need to ensure that they evaluate the parameters of the signal to ensure that it is in line with their preferred risk level along with profitability.

Mobile Trading

This is one of the best features, amidst others, that trading platforms can provide traders as it allows them the freedom to trade from their mobile devices at any time and from anywhere in the world.

MetaTrader 5 is available for download for devices that use either Android or iOS operating systems from either OS’ relevant store; Android’s Google Play or iOS’ Apple Store.

With the mobile apps, traders have access to Forex, stocks and futures which can be traded from the palm of the trader’s hand. In addition, traders can also keep up to date with market movements, news, and more.

With the mobile application, traders also have access to the two position accounting systems as with the desktop version of the trading platform. Traders can also conduct technical analysis by using indicators and analytical objects that are built-in on the app.

Traders also have access to their trading accounts and through the mobile application, they can monitor their trade history along with being able to buy and sell currencies and exchange securities in a hassle-free and fast way.

Algorithmic Trading

This is one of the strongest, and more imperative, features that a trading platform ought to have and with MetaTrader 5, the possibilities are advanced and endless.

MetaTrader 5 makes provision for the use of trading robots, or EAs, to operate without the trader having to participate. EAs have the ability to both analyse quotes and perform trading operations by following an underlying algorithm.

Traders have access to MQL5 programming language, which provides a development environment to traders for the creation and optimization of their own custom robots.

In addition, Traders can make use of heavy calculations to provide them with the most accurate technical analysis along with forecasting.

Traders who are unable to create their own EAs, can download applications from the extensive and comprehensive Code Base, rent or buy from the Market, or order custom applications which have been designed by professionals via the Freelance service.

The MetaTrader Market

The market provides traders with access to thousands of EAs along with technical indicators provided on the Market of Trading Apps, which comes built into the MetaTrader 5 trading platform.

There is a trial version featured with each application which allows traders to test it out first before they pay for the full version and applications which have been purchased can be used immediately.

 

The Market can be accessed during any time of the day, any day of the week and traders can choose from a variety of popular payment methods. The necessary security is also in place when purchasing from the Market, so traders and their information is protected.

Virtual Hosting, or VPS

This allows MetaTrader 5 to keep running even when the trader’s desktop is turned off. By utilizing the VPS, traders can virtualize the platform by running on a remote server and trades performed by EAs along with signal subscriptions are executed without any delay.

Trade Reports

With MetaTrader 4, traders have the ability to produce trade reports that show individual trades pertaining to closed transactions, open trades along with working orders and an all-encompassing account summary.

How to traders gain access to MetaTrader 5?

Traders who would like to use MetaTrader 5 as their trading platform will have to select a broker that supports the use of this platform as the trading platform cannot be used without an existing account with a broker.

Traders who have not yet registered with a broker, will have to conduct research into which brokers offer MetaTrader 5 and from there they will need to register either a demo account, or a live account with that specific broker to gain access to MetaTrader 5.

MetaTrader 5 can either be used on the Web by desktops that support Windows, Mac or Linux software, or the desktop software can be downloaded from the MetaTrader 5 website, here.

In addition, the mobile applications for Android smartphones and tablets, and iOS for iPhones and iPads can be downloaded either from Google Play or the Apple Store.

Conclusion and Writer’s Opinion

MetaTrader 4 is the brainchild of MetaQuotes and although Metatrader 5 has not yet gained so much in popularity due to MetaTrader 4 still being widely available and offered by more brokers, more traders are moving over to MetaTrader 5.

MetaTrader 5 has a lot more to offer than not only MetaTrader 4, but various other platforms as well when one has to compare each to the offering that MetaTrader 5 provides.

Although Forex brokers in the United States mainly only support MetaTrader 4, brokers that are based in Europe, Australia, and other locations support both Metatrader 4 and MetaTrader 5.

More brokers, however, are only making provision for MetaTrader 5 in addition to their own proprietary in-house trading platforms as one of MetaTrader 5’s strongest features are access to trade in more financial instruments than just Forex.

MetaTrader 5 still features a lot of the same principles and features that are also included in MetaTrader 4, so it will be an easy transitioning for traders who want to start making use of MetaTrader 5 and its variety of new features to fulfil various trading needs.