If you are a new forex trader, then you have to choose the trading software that you will be using regularly. It is much more than a piece of software, as you will be using it to access the market and implement all your trading decisions. That is why we refer to trading software as trading platforms since they are more like an essential workspace for traders. When it comes to forex trading platforms, you get many options, and MetaTrader 5 has emerged as a popular choice among modern traders. In this article, I will be sharing some valuable insights about the advanced successor of MT4, along with top reasons to choose MT5 as a new forex trader.
Table of Contents
Reasons To Download MT5 – Key features
- A Wide Array of Tools and Indicators
The first and foremost thing that you need to look for while choosing a trading platform is its functionality and flexibility. This functionality and flexibility come from the tools that are attached to the software. A platform with limited tools and features will also limit your options, and you will have to settle for less, which can often make you less competent as a trader because trading tools are somewhat essential for enhancing your skills. Thus, MT5 has made sure to add a wide array of tools and indicators, allowing its users to thrive in trading.
On the MT5 trading app, you will get 100 highly customizable charts, 21 time-frames to choose from, 38 technical indicators, and the option to add custom indicators, 39 graphical objects, and 80 analytical objects. You can tailor the charts per your needs and preferences by using the four-scale settings and choosing a suitable display style from the 17 available options. You can see that it is a perfect platform for technical analysts with all these features.
- Algo Trading:
Technology and automation play a key role in the trading process. In the past, traders preferred to do things manually, but later on, they realized the shortcomings and challenges of manual trading, which urged them to look for easier alternatives. A lot of research and innovations took place to find a feasible solution to ordinary traders’ problems, and the idea of trading automation was put to the test. The usage of algorithms and AI was exceptionally effective in the world of trading, and thus, automated trading became a norm for many.
MetaTrader 5 can be an ideal option for those who are keen to explore the possibilities of algorithmic trading using EAs or trading bots. MT5 is way more advanced and powerful than its predecessor when it comes to algo trading. It is faster and capable of processing vast volumes of complex data in a simplified manner, enabling us to develop, test, and run automated trading systems with minimal effort. You can also use the backtesting and optimization features on MT5, as they allow you to assess the viability of your EAs or auto-trading systems.
- Additional Order Types:
If you have tried trading on MT4, you will be aware of the 4 types of orders that you can place on the classic platform. You can either place a market order where the buying or selling happens at the current market price or place a pending order. Market orders are set for immediate execution, and your profits or losses depend on real-time prices. On the other hand, pending orders allow you to choose a price at which you want to buy or sell the instrument, and that order will only be executed once the specified price is reached. The pending order can either be a stop order or a limit order. There are only 4 types of pending orders on MT4: buy stop, sell stop, buy limit, and sell limit.
But MT5 gives you 2 more pending order types: buy stop limit and sell stop limit. The stop-limit order is a special order type that combines the features of both stop and limit orders, allowing the trader to limit losses and maximize profits in any situation. This type of order gives the trader more flexibility and control, but they are not set for guaranteed execution and may go unfilled if the conditions are not met.
- Multi-asset platform:
Although it is possible to trade multiple asset classes on MT4, MT5 is superior and better. MT4 is primarily focused on forex trading; hence, most of its tools and features are designed to meet the requirements of currency traders. But MT5 is more diverse and dynamic, with a lot of versatile tools and features that support trading multiple markets, including forex, stocks, commodities, indices, futures, cryptocurrencies, and more. The trading conditions you get for each market depend on the broker you choose.
Suppose you are looking to get specific trading conditions like avoiding swap or rollover fee applications on overnight positions. In that case, you need to look for brokers offering such features through Forex swap free or Islamic accounts. Such an option was added to promote inclusivity in the trading community as Muslim traders were unable to freely engage in forex trading due to the interest rate application, making it haram as per Sharia law. So, you will be able to trade multiple assets and diversify your portfolio by choosing an MT5 broker offering multiple trading instruments.
- Mobile Trading:
Being a trader, you may expect yourself to sit in front of a computer all the time. But it is not possible in a practical sense, and you might be worried about missing out on trading opportunities or being unable to manage your trade positions while you are away from the screen. That is why a mobile trading app is a must these days, and MT5 is available in mobile app versions on both the Play Store and the App Store. You can easily download the app on both iOS and Android devices.
The MT5 app is very user-friendly and provides the same customizable charting tools and features for trading on the go. You just need a smartphone and a stable internet connection, and you will be able to trade from anywhere and anytime. Your trading experience will be similar to what you get on the desktop version of MT5, making the MT5 app a popular choice among busy traders.
Drawbacks of Metatrader 5
We have discussed all the reasons why you need to download MT5 as a modern trader. However, it is important to know the drawbacks of MT5 as no software can be 100% perfect. So, let’s have a look at the shortcomings of MetaTrader 5 to make an informed choice.
- Cannot use indicators or EAs coded with MQL4 Programming Language:
One drawback of MT5 is that the programming language used is different from MT4. MT4 uses the MQL4 programming language, while MT5’s programming language is MQL5, which is more advanced and can be used to develop complex programs or algorithms. Hence, the EAs or custom indicators that you develop for MT4 using the MQL4 language will not be supported on the MT5 platform. You can either try finding MT5 versions of these EAs and indicators or will have to recode them in MQL5 language to make them compatible with MT5.
- Can look complicated:
As I mentioned before, MT5 is very advanced and offers a lot of additional tools and features that can make it look complicated for beginners. We think of MT5 as an updated version of MT4 that is more basic and simple. MT5 is designed to support multi-asset trading; thus, there are a lot of advanced tools and features to explore. It is possible to master all these with enough practice, but some traders may feel intimidated when they see the screen loaded with a ton of tools that are not being used.
Downloading and Installing MetaTrader 5
You can download MetaTrader 5 from your broker’s website or the official site of MT5. You need to make sure that the chosen broker supports MT5, as you will have to get the login credentials from the broker to activate your MT5 trading account. You can download it on Windows, MAC, iOS and Android systems/devices.
To install MT5 on Windows:
- Download mt5setup.exe from the broker’s site.
- Follow Windows guidelines to install.
- Save the file and click “Done.”
- Find the desktop shortcut to open.
To install MT5 on Mac:
- Download the latest MT5 from the broker.
- Locate the program folder and copy the file.
- Double-click to install.
- Accept security requests.
- Input data as admin.
- Start trading post-installation.
Conclusion
Now you know the reasons to choose MT5 as a new trader, its drawbacks, and the installation process. Downloading the software is pretty simple, and you can get into trading right away. However, I will recommend beginners trade on a demo account first for learning purposes.