Online trading, as a primary or additional income, requires proper preparation, skill development, and the right tools in order to spot reliable new setups Traders Can Use in the market. Although most of these fall on the trader’s shoulders, trading infrastructure plays a major role here, and in particular the trading platforms.
Among the solutions currently favored by retail traders, MetaTrader 5 ranks very high. When compared to its predecessor, MetaTrader 4, it comes with much more benefits since now traders are not eyeing just the FX market, but also stocks, commodities, and bonds.
Improvements enabled with MT5
Even though in terms of interface, MT4 and MT5 share a lot in common, improvements are provided on various fronts, some of which will be described below.
- More order types – the number of pending order types has been enhanced and now traders can place buy stop limit and sell stop limit. That was not the case with MT4, where there were 4 such order types available. MT5 provided added features so traders can enter the market at an optimal price, even when they can’t monitor valuations.
- MQL5 – both an advantage but also a drawback, MQL5 is the programming language used in MT5 for building expert advisors. It is more efficient and easier to use, and also trading operations are done by sending trade requests using just one function. On the negative side, traders wanting to make an upgrade from MT4 to MT5 will find it inconvenient that they can’t export EAs. That is the case because MQL5 is a completely different programming language.
- Technical analysis tools -38 technical indicators, 44 analytical objects, 21 timeframes, and the usage of an unlimited number of charts ensure that when using MT5, traders can expand their market analysis regime.
- Market depth – another feature is the Depth of Market (DoM), showing bids and offers for financial instruments at varying prices, depending on volumes. Using this tool, traders can see potential demand or supply at valuations that are above or below the spot price.
- Economic calendar – to ensure access to macro-economic events and economic news, MT5 also integrates an economic calendar. Each time a new indicator is released, traders can see the figures inside the platform, without having to monitor a web-based calendar.
- Other benefits – multiple order fill policies, netting, detailed trading reports, multi-threaded strategy tester, and an embedded MQL5 community chart are all tools and features available with MetaTrader 5.
Current conditions in the financial markets
For more than a decade, retail CFD traders have been using MT4, but as their needs expanded, MT5 came naturally as a solution. Stocks are back on the rise and the Dow Jones recently reached a new record, bonds are under pressure due to inflation figures, and commodities are very volatile due to supply bottlenecks.
Such complex conditions in the financial markets make it imperative for traders to use trading tools such as those currently integrated into MT5. They can combine technical and fundamental analysis, use correlation among assets, and spot accurate trade opportunities.
