MetaTrader 5 (MT5) continues to be a trending platform for trading CFDs on Forex pairs since it has been developed by a reputable company (MetaQuotes) and many high-profile brokerages are covering it. As of late, volatility in the currency space spiked following the latest FED meeting, and most of the popular USD-denominated pairs started to post large intra-day swings. In such a challenging environment, an optimized trading platform is required and MT5 could be one of the best options.
Main features
Professional technical analysis is one of the main features of MetaTrader 5 since the platform allows for up to 100 charts open at any given moment, 21 time frames, 80 built-in technical indicators, as well as analytical objects for a more detailed technical analysis. On top of that, more indicators can be downloaded, purchased, or ordered, using the Code Base or the market of applications.
Alt-text: MetaTrader 5 platform features
Fundamental analysis is also a part of traders’ daily work and an MT5 download will provide access to an economic calendar instantly updated when new indicators are released. The news feed section is a place where people can find some of the latest highlights that have the potential to impact FX valuations.
Multi-device compatibility is granted, considering MT5 can be used on desktop, laptop, or mobile devices, available in downloadable versions as well as browser-based.
Differences between MT4 and MT5
Despite numerous similarities between MT4 and MT5, the latter is more optimized since it has been developed recently. Traders have access to market depth (DOM – depth of market), which means they can see where bids and offers are priced across markets.
If MT4 was designed to be a platform for CFD trading alone, in the case of MT5, it has turned into a multi-asset solution, facilitating access to a broader range of tradable assets, all via a single account.
At the same time, MetaTrader 5 comes in hand with a more generous pack of built-in indicators and trading tools, allowing traders more freedom in terms of what strategies they can apply.
Advantages and disadvantages
On the positive side, MetaTrader 5 turns out to be a feature-rich platform, offering different execution modes, a broad range of indicators, MQL5 indicators, enhanced security, and encryption.
However, some disadvantages also need to be mentioned. In MT5, hedging is disabled. All expert advisors that were written with MQL4 will have to be coded again with MQL5 if traders want to use them on MT5. That happens because the platform is not based on MT4, but has been coded from scratch.
Why traders are choosing MT5?
Although transitioning from MT4 to MT5 might be a little challenging for traders using EAs, MetaTrader 5 proves to be a platform that’s in line with the present demands of retail traders. Stock markets are extremely active, as well as other asset classes, and this platform can provide enough resources to trade across the financial industry. Ultimately, most of the popular brokerages continue to trust the platform, meaning this is one of the best options for retail CFD traders.
Watch this space for updates in the Technology category on Running Wolf’s Rant.
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