MetaTrader 5 (MT5) is a more advanced and versatile trading platform compared to its predecessor, MetaTrader 4 (MT4). While MT4 is primarily focused on forex trading, MT5 supports multiple asset classes, including stocks, commodities, and indices. It also offers enhanced order types, superior charting tools, and faster execution speeds. This guide will walk you through the key features of MT5 and how to use them effectively.
1. Downloading and Installing MT5
To start using MT5, follow these steps:
- Download MT5 from your broker’s website.
- Install the platform by following the setup instructions.
- Login to Your Trading Account with the credentials provided by your broker.
- Familiarize Yourself with the Interface – MT5 has a modernized layout but retains key features from MT4.
Once installed, you’ll have access to live price charts, trading tools, and order execution features.
2. Key Differences Between MT4 and MT5
1. More Order Types
MT5 introduces two additional order types compared to MT4:
- Buy Stop Limit – Combines a stop order and limit order, allowing more precise control over trade entries.
- Sell Stop Limit – Works similarly but for short positions.
2. More Timeframes for Better Analysis
- MT5 offers 21 timeframes, compared to 9 in MT4, giving traders more granular insights into market trends.
3. Integrated Economic Calendar
- MT5 comes with a built-in economic calendar that displays key financial events and news, helping traders anticipate market movements.
4. Multi-Asset Trading
- Unlike MT4, which focuses primarily on forex, MT5 supports stocks, commodities, futures, and indices, making it suitable for diversified traders.
5. Advanced Strategy Tester
- The MT5 Strategy Tester is more powerful than in MT4, allowing traders to backtest multi-currency strategies with more precision.
3. Navigating the MT5 Interface
The MT5 interface is similar to MT4 but with some enhancements:
- Market Watch – Displays real-time quotes for multiple assets.
- Navigator – Provides access to accounts, indicators, and trading robots.
- Chart Window – Offers enhanced customization with more timeframes and drawing tools.
- Toolbox (formerly Terminal Window in MT4) – Displays trade history, alerts, and market news.
- Depth of Market (DOM) – Provides real-time order book data, useful for scalpers and day traders.
4. Placing a Trade in MT5
Step 1: Open a New Trade
- Click on “New Order” in the toolbar.
- Choose the financial instrument (forex, stocks, or commodities).
- Select the order type (Market Order, Limit Order, Stop Order, or Stop Limit Order).
- Set your trade size (lot size).
- Define Stop-Loss and Take-Profit Levels.
- Click “Buy” or “Sell” to execute the trade.
5. Advanced Charting and Technical Analysis
MT5 offers enhanced charting features:
- More Built-in Indicators – Over 38 technical indicators compared to 30 in MT4.
- More Timeframes – Allows analysis from 1-minute to 1-month charts.
- Customizable Chart Layouts – Drag and arrange multiple charts for better workflow.
- Depth of Market (DOM) – Helps traders see market liquidity and order flow.
6. Using Automated Trading with MT5
MT5 supports automated trading through trading robots (Expert Advisors – EAs):
- Uses MQL5, a more advanced programming language than MQL4.
- Improved Strategy Tester allows faster backtesting of automated strategies.
- Access to the MetaTrader Market for downloading EAs and scripts.
Traders who use algorithmic trading will find MT5 superior to MT4 due to these enhancements.
7. Managing Open Trades
- Modify Orders – Adjust Stop-Loss, Take-Profit, and trade size easily.
- Close a Trade – Right-click on an open trade and select “Close Order.”
- Check Trade History – Analyze past trades and performance metrics in the Toolbox window.
Conclusion
MetaTrader 5 (MT5) is a powerful, multi-asset trading platform with enhanced features, better execution speeds, and more order types. While MT4 remains popular for forex traders, MT5 is ideal for those who want access to more markets and advanced tools.
Next, we will explore How to Open a Live Trading Account with a Forex Broker – a step-by-step guide to getting started with real money trading.