FXTM – What is MT5?
MetaTrader5, better known as MT5, is the successor to MT4, the ground-breaking electronic trading platform known for its charting package and automated trading possibilities.
MT5 is said to take this to the next level, featuring new and improved characteristics, while offering an extended range of instruments, which include equity CFDs, futures and ETFs.
You can now trade multiple instruments over a more professional and sophisticated system, across different asset classes.
Why trade on MT5?
For both new and professional traders, MT5 provides the best features of MT4:
- Automated trading to systematically execute orders with pre-determined rules, using the MQL programming language of MT4
- Real-time, intuitive charting package with an impressive array of basic indicators and analysis tools
- Mobile trading on a customisable interface which allows you to follow global markets anytime and anywhere
MT5 also includes more powerful elements with upgraded technology.
The key features of MT5 include:
Range of markets
Whereas MT4 was originally made for forex traders, its successor gives you the ability to take positions in multiple asset classes covering both centralised and non-centralised financial markets. These are traded through CFDs – so you can trade in individual stocks, stock indices and commodities, as well as currencies.
This gives you the potential benefits of strategic asset allocation by diversifying risk across several different assets, depending on current market volatility.
MT5 offers a variety of pending orders which are used to buy or sell an instrument at a predefined price in the future. These are a buy stop, buy limit, sell stop and sell limit, plus the buy stop limit and sell stop limit. These last two orders are additional to MT4’s current offering – click here to check out some charts which illustrate these types of orders.
MT5 also works on a ‘first In, first out’ principle of netting open positions in the same contract, so traders’ positions will be consolidated.
Automated trading language
Whilst using similar programming language to MT4, MQL5 is more efficient and easier to use. You can write and alter scripts by sending trade requests using just one function. You can also test strategies much faster.
It’s important to remember that systems coded with MQL4 are not compatible with MQL5 programs. The other key difference is in the trading system setup – MQL5 is used for developing a positional system, whereas MQL4 develops trading programs based on the order system.
Interactive charts are a key characteristic of both platforms, but MT5 has even more features – for more advanced technical analysis and general market insight.
These include 12 additional timeframes and eight more technical indicators, including more Fibonacci studies and Elliot Wave drawing tools. Another great addition is the economic calendar which helps alert traders to high-impact live economic news.
MT5 also provides market depth which allows you to view bids, and offers below- current-market prices.
Which is better – MT4 OR MT5?
The answer to this question really comes down to each individual trader. If you are starting out, MT4 is tried and tested, easy to use and more straightforward in nature. After all, it’s still the most popular forex trading platform in the world.
For a more detailed look at MT4, visit the FXTM page here.
MT5, on the other hand, is more versatile, offering access to stock and commodities exchanges. It has a host of more advanced features and complies with US regulation.
Learn more by checking out FXTM’s infographic and to see what might be the best platform for you.