Stepping into the global currency market and taking part in trading activities is no longer a complex task. In fact, the forex market is in the first position when it comes to trading volume and liquidity. This says a lot about the popularity and ease of forex trading. But the key reason behind the rise in the number of forex traders is the advancement in technology which led to the digital revolution and increase in the usage of the internet. The MetaTrader platforms like MT4 and MT5 have also contributed towards the expansion of the forex trading community as the powerful tools and features made the trading process easier and faster than ever.
In this article, you will get a complete overview of the MetaTrader 5 platform as it is a revolutionary tool in forex technical analysis with advanced functionality.
An Overview of the MetaTrader 5 Platform
The MT5 platform was launched in the year 2010 by the MetaQuotes corporation and it was really a game changer for anyone who relies on technical analysis for making trading decisions. The additional tools and features on the MT5 platform not only cater to forex traders but also make it a suitable platform for multi-asset trading. The sophisticated layout and innovative features offered by MT5 quickly made it an apt trading software for modern traders. MT5 is also available on iOS and Android devices, so traders can download trading app and trade on the go, hence making things a lot easier.
The MT5 platform is a complete package as it is loaded with both basic and advanced tools that a trader needs to execute their strategy with precision. Whether it is the options for customisation in analytical tools or order execution, the superior successor of the classic MT4 platform managed to surpass the expectations of users in every sense.
How does MT5 support in-depth Market Research?
The essence of technical analysis lies in in-depth market research as you anticipate the possible price movements based on the patterns in which the price fluctuations are happening and compare them with historical market data. The MT5 platform is designed to meet the expectations of expert analysts who want to use additional timeframes and advanced indicators to find ideal trading opportunities. Thus, it has all the tools and features that you look for in doing in-depth market research as a forex trader.
Automated Trading
Another feature that adds to the attractiveness of the MT5 platform is algorithmic trading. The use of algorithms and computer programs for trading automation has been a revolutionary aspect of modern forex trading. It is perfect for those who are unable to monitor the market for long hours or actively manage their trades due to time constraints or busy schedules. In automated trading, you get to use trading bots or EAs to analyse the market and place trades on your behalf.
The best thing about automated trading is that it removes the risk of manual errors or emotional bias in the trading process. There is a higher degree of accuracy and speed when the trades get executed by automated trading systems with little to no manual intervention. On MT5, you can develop your own EAs or use ready-made ones after trying them on the in-built strategy tester. This helps you to evaluate the performance of an EA or robot prior to risking real money for trading with it.
MT5 Market Depth Feature
The market depth feature of MT5 provides real-time data about the buy and sell orders that are placed at specific price levels. The market depth data is available for all trading instruments and this allows you to make informed trading decisions after considering the number of orders placed at different price points. If you see more buy orders being placed, then you can assume that the overall market sentiment is bullish and if there are more sell orders, then the market sentiment is bearish.
But you should also consider indicators like RSI or Bollinger Bands to see if the market is being overbought or oversold due to the strong market sentiment. In that case, you will have to place trades based on the potential reversal points. However, the market depth feature is very useful for identifying market sentiment.
MT5 for Diversification
Another benefit of trading on MT5 is that it is more suitable for diversification as you can not only trade forex but also other markets like stock, indices, commodities and crypto. MT4, which is a traditional platform can also be used for trading these markets but it is primarily used as a forex trading platform due to the limited tools and features. Still, it is a perfect starting point for beginners who prefer a simple layout and basic tools for trading. They can do a free download of the app and use it on their Windows computers, MacOS or smartphones without any issue.
Cloud Computing and VPS
MT5 also offers cloud computing which is a powerful feature that enhances your trading experience on the platform. With the help of VPS hosting services, traders can easily run their EAs 24/7 even if there is any issue with power or internet connectivity on their own systems or devices at the time of trading. This feature allows you to keep trading without any interruption even if you are unable to connect to the market directly.
Enhanced Charting Capabilities of MT5
We can’t go without talking about the enhanced charting capabilities of MT5 as you get 21 timeframes and a lot of options for customising the charts with added tools and features. You get to choose from 100 charts for trading different currency pairs or other trading instruments based on the market that you want to explore on the MT5 platform.
You get 3 different types of charts for technical analysis. This includes the standard Japanese candlestick charts along with bar charts and line charts. Candlestick charts are the best ones for a forex trader as they are more detailed and comprehensive, making it suitable for in-depth analysis of the market situation.
Better Order Execution
On MT5, you can place both market orders and pending orders based on your preference and for the pending orders, you get additional order types that are not available on the MT4 platform. MT5 also promises better order execution in comparison to the former version as it is more stable and faster in comparison.
Traders can select the execution mode that they want for their strategy and proceed with it. While choosing the execution mode, you should also consider the market conditions as liquidity and volatility can influence the speed with which orders are executed along with the price levels.
MT5 – Specific Indicators and Scripts
The MT5 platform offers 38 built-in indicators that you can apply to charts for detailed analysis. But besides the in-built indicators, MT5 users can also download and use custom indicators which they want. They just need to make sure that the indicator is compatible with MT5. Apart from this, you can also create trading scripts on MT5, which is used for automating the trading processes by using computer programs. These scripts can perform specific functions to make the trading process easier and more efficient.
MT5 Trading Community
Another perk of trading on MT5 is that it is not just a piece of software or trading platform but also has a vibrant community with lots of new, seasoned and professional traders along with developers that can help you in automating strategies or designing EAs. You can also subscribe to signal services of expert traders on the platform while also sharing information and interacting with like-minded traders.
This feature helps to create a sense of belonging and the growing community of MT5 users acts as a support system for both beginners and experienced traders. If you are already using MT5 or planning to join the platform, I highly suggest you join the MT5 community and connect with other MT5 users as it allows you to learn and grow together.
Global Recognition
Due to the enhanced security features and improved trading experience, MT5 has become a globally recognised trading software just like the popular MT4 platform. MT4 is still the most used forex trading platform among traders but MT5 is gaining a lot of traction among modern traders and brokers due to the upgraded tools and advanced functionality.
The platform is being offered by a number of brokers in 140+ countries and many traders have already switched to MT5 for a level up in their trading journey. Many more brokers will be integrating MT5 into their platforms due to the increase in demand and the platform has also won some prestigious industry awards for its valuable contribution.
Future Development Plans
Meta Quotes Corporation is committed to introducing the latest features for the betterment of the MT5 platform and users can expect more advanced features and tools to be added to the platform later on. The developers of MT5 are trying their best to meet the needs and requirements of modern traders who want to execute complex and sophisticated strategies on the platform.
The MT5 platform surely has a promising future and we can expect the platform to get more and more popular in the coming years. MT5 users can be sure about a seamless trading experience on the platform once they sign up with a supportive and reliable forex broker.
Bottom Line
With that, we have covered all the features of MT5 and why it is considered to be a revolutionary tool for technical analysts in the forex world. The wide range of options you get on the MT5 platform proves the fact that it offers a lot of flexibility with highly customizable tools and a user-friendly interface. However, it will take some time for a new user to learn about the tools and features of the platform and it would be ideal to start with a demo account for practical learning.
