The family of MetaTrader trading platforms includes the famous MetaTrader 4 and also perhaps its lesser known sibling MetaTrader 5. MT 5 was published in 2010, which is roughly around 5 years after its predecessor had been published. It is thought to be an update on its previous version.
As such it offers more functionalities for more financial markets and does not solely focus on the Foreign exchange market. It has useful tools for markets such as the stock market and also the commodities market. And of course similar to MetaTrader 4, MT5 is also available for free to download. Although your broker will provide it to you easily.
MetaTrader 5 is offered in various ways on various devices, including a web-based version, mobile version for Android and iOS, and of course a desktop version for different operating systems.
The sheer popularity of MetaTrader 5 can be seen in the fact that it is offered in tens of different languages. In this article we want to provide an extensive review of this trading platform.
What Is the MetaTrader 5 Trading Platform?
As we mentioned above, MetaTrader 5 is one of the most prominent trading platforms. It is different from a broker, in that the broker is the firm or company that connects you with the market, and the trading platform, in this case MetaTrader 5, is only the software that allows you to trade.
Each trading platform offers a varying degree of financial instruments to trade. Using MetaTrader 5, traders are able to trade instruments across markets such as the stock markets, futures, commodities, contract for difference, options, and of course foreign currencies.
It is an update that has been released in order to be a more advanced version of MetaTrader 4. As such it offers improved functionalities and features compared to MT4.
In the following sections we will discuss the major features of MetaTrader 5 that distinguish it from other platforms and we will also discuss how this platform is different from MetaTrader 4.
What Is the Main Purpose of MetaTrader 5?
It is true that this trading platform is a more advanced update that has been published for its previous version. But this doesn’t mean it is designed to be used only by advanced traders as well.
Similar to its older sibling, MetaTrader 5 is designed in such a way that it can be implemented by both experienced and amateur traders alike. But of course its improved features make it more desirable for traders who want to use more powerful and diverse tools while trading.
For this reason, MetaTrader 5 is more suitable for traders who are looking to trade fast and with a high frequency. This of course includes first and foremost day traders.
These traders require a trading platform that is totally dependable under pressure and also works smoothly and quickly to meet the high speed trading demands of day traders.
What Are the Main Features of MetaTrader 5?
The main features of MetaTrader 5 might require a long list to name one by one. Here, we are going to mention the most important and top features of this trading platform:
- MetaTrader 5 offers quite advanced market analysis tools. To carry out cutting-edge analysis of the market, MT5 provides 38 technical analysis indicators in addition to 39 graphical indicators. With the help of all these analysis indicators, traders are able to obtain a more accurate picture of the upcoming price movements and thus are able to predict the market with higher accuracy.
- A specific feature that has been added to MetaTrader 5 is called Market Depth. This unique feature provides extra data to traders. These include data pertaining to market trading volume, market liquidity, and an overview of all the orders (both buy and sell) that are available for an instrument across the market. In this way, you will have better opportunities and you will also be able to make more informed decisions with regard to opening a position.
- Another advanced tool that is offered by MetaTrader 5 is concerning fundamental analysis. Of course, as you know in fundamental analysis, traders need to track the economic factors that might impact the value or price of an asset or trading pair. This can be quite impactful, especially for the forex market.
Device Compatibility of MT5
The compatibility of any trading platform can be discussed from two perspectives. First, how many brokers support the trading platform. And second, across how many devices you can install and use this platform.
As far as brokers are concerned, MetaTrader 5 is supported by numerous brokers, because similar to its rather more well-known namesake, it is also widely implemented.
And with regard to device compatibility, MetaTrader 5 has a web version in addition to its more practical desktop version, which is offered for all well-known operating systems.
For traders who want to have access to the market around the clock, it also has a mobile version for both popular operating systems.
Advantages of MetaTrader 5
MetaTrader 5 has many advantages that distinguish it from many other trading platforms. The following is our pick from the bunch:
- Because of its advanced functionalities, MetaTrader 5 is an ideal choice for traders who have more expertise and have been in the market for a longer time. This includes traders who trade at a higher frequency, such as day traders.
- Despite its quite advanced functionalities, the interface of MetaTrader 5 has been designed and developed so that anyone would be able to easily navigate through its various parts.
- Compared to its predecessor, MetaTrader 5 offers a higher number of technical indicators and also a higher number of timeframes to traders. Thus providing a better chance of more precise analysis.
- The trading platform comes with an economic calendar which is quite useful for tracking important economic new events that can be used in fundamental analysis.
Disadvantages of MetaTrader 5
Since MetaTrader 5 is the updated version of MT4, it has been able to improve upon many of the shortcomings that were witnessed in the previous platform. However, there is still something that can be counted as constraints of the platform.
Precisely because MetaTrader 5 has many advanced features, it might not be the most ideal choice for more novice traders. This is kind of a double edged sword. Because on the one hand it is more suitable for advanced traders. But at the same time, these added functionalities make it more difficult for other users.
Difference Between MT4 and MT5
The main differences between the two trading platforms are in the features and functionalities that they offer.
MetaTrader 5 offers more timeframes, more indicators, and more graphical indicators compared to MetaTrader 4, thus enabling more advanced tools for market analysis. There are also minor changes and improvements that can be seen across the board with MetaTrader 5.
Another major difference between the two trading platforms is in the programming language that is used to develop them. While MetaTrader 4 has been developed with MQL4, MetaTrader 5 is written with the help of an also advanced language called MQL5.
MetaTrader 5 is the updated version of the famous MetaTrader 4. As a result, it offers more improved and advanced functionalities to traders, in addition to a higher number of analysis tools that make this trading platform a more ideal choice for advanced traders.