There are many different software platforms which enjoy a fair amount of attention throughout the online investment community. However, most will agree that the most famous franchise is associated with MetaTrader software. First introduced in 2002 and offered to the public as MetaTrader 4 in 2004, these packages have become a mainstay within the world of digital trading.
However, updates are bound to occur from time to time. These are needed to address changing market conditions, to include newer asset classes and to provide an even more streamlined user experience (UX). MetaTrader 5 is a perfect example and this iteration has enjoyed a significant amount of publicity since it was released in 2010. What are some of its primary features and how does this system differ from MetaTrader 4? Both novices and experienced investors alike should appreciate the information that we have compiled.
The Basics
In principle, MetaTrader 5 (MT5) shares many of the same features in common with its predecessor. It is primarily concerned with three important goals:
- To seamlessly execute trade.
- To provide real-time market quotes
- To offer clients a host of user-friendly analytical tools.
As multiple indices and underlying asset classes can be accessed through a single platform, MT5 also eliminates the need to download different software bundles.
A More Intuitive Interface
Many experts have argued that the most impressive advantage of MT5 when compared to MetaTrader 4 involves how its user interface (UI) has been designed. It is extremely easy to navigate and there are plenty of tools engineered for those with little trading experience.
There are also more customisation options that can be accessed with a single click. Examples include changing font sizes, modifying background colours and adapting the virtual workspace according to personal preferences. While these might not necessarily affect the fundamental aspects of trading, they still offer a more flexible edge and customers will be pleased with what is in store.
Technical Utilities Galore
One of the major selling points of MetaTrader 4 involved its advanced technical utilities. The creators of MT5 have certainly taken this observation into account, as users can now leverage even more options with a single click. MT5 boasts more than 80 technical indicators alongside a total of 21 timeframes (both ideal when analysing historical data or tracking longitudinal movements). The good news is that these utilities can be added or removed when warranted. This helps to eliminate any on-screen clutter and once again, to expedite the overall trading process. Of course, traditional options including access to real-time market data and late-breaking news are likewise included as standard.
Automated and Algorithmic Trading
Many online investment platforms have begun to embrace the notion of automated trading with the help of advanced algorithms and the growing presence of artificial intelligence (AI). MT5 is certainly no different in this case. Interestingly enough, the system itself is updated on a regular basis so that users can keep one step ahead of the latest trends.
MT5 also uses a unique system of bots commonly referred to as Expert Advisors (EAs). These will provide targeted advice in accordance with personal investing parameters. The “smart” nature of MT5 likewise offers the unique ability to “back-test”. Back-testing involves executing theoretical trades during previous market conditions in order to learn whether or not these approaches would have worked. Back-testing is an excellent way to further hone one’s investing approach.
Above and Beyond Forex Trading
It needs to be mentioned that MetaTrader 4 was primarily designed to support Forex trading. While MT5 certainly accepts these positions, it has been engineered to recognise many other types of non-Forex CFDs (contracts for difference). These include:
- Bonds
- Index-based trading
- Shares
- Metals
- Commodities
Note that like MetaTrader 4, the MT5 platform can also be used as a cryptocurrency trading bundle.
The Final Verdict
Both of these trading platforms offer excellent features and qualities that are simply not pleasant in more generic alternatives. MT5 is particularly respected for its back-testing capabilities as well as its scalable nature.
Those who are already familiar with MetaTrader 4 should therefore be quite impressed with what MT5 has in store. As it is possible to open an MT5 demo account, traders can also learn about the finer points before committing to a paid subscription plan.
