MT5 Forex Brokers – The Successor To The Highly Popular MT4 Trading Platform
MetaQuotes has released a successor to the highly popular and widely adopted MT4 trading platform in the form of the MT5. The MT5, or the Meta Trader 5, was launched during the year 2010, but over the past few years, the trading terminal has not quite managed to match the potential or gain the popularity enjoyed by its more successful predecessor. The MT5 platform has several new evolutionary features as well as a few limitations that have contributed significantly towards the lackluster performance in the market.
Several Forex brokers in the industry provide the MT5 along with MT4 and other trading platforms, but the attrition rate is quite high. Unlike the MT4, the MT5 has been facing the heat from both traders as well as brokers due to the weak demand and a relatively lower trader satisfaction, which forces traders to remove MT5 from their platform portfolio. Retail traders choose the MT4 over the MT5 for a diverse variety of reasons, but the MT5 is still a robust trading platform that allows traders to tackle the market with a new set of tools that can provide unprecedented access to the global financial markets.
The Advantages of MT5 & The Overall Improvements To The Trading Interface
The MT5 sees a host of new added features and trading functionalities that are designed to offer better control to the trader. The MT5 now has over 80 different tools for technical analysis along with a broad range of charting options, including a selection of the various timeframes according to a trader’s preferences. The MT5 has added several combinations for the minutes and the hourly time frames while the daily, weekly and yearly remain the same.
Although the MT4 provided traders with access to financial assets other than Forex currency pairs, the MT5 has incorporated a wide range of assets including commodities, shares, equities, indices, and other CFDs as its core financial assets. Of course, it is up to the MT5 Forex brokers to decide whether they would like to offer the entire list of financial assets to their clients, as some brokers may choose to limit the number of financial assets due to licensing or other business reasons.
MetaQuotes has also introduced two more types of pending orders and two additional stop orders from the existing MT4 setup, taking the total tally to 8 different types of orders. The MT5 offers more freedom regarding trading flexibility, which enables traders to step away from their desk and not be worried about entering the market at the right time.
MT5 has a built-in Economic calendar that provides an up-to-date live stream of all economic events. The economic calendar contains all information related to the nature of the news, its impact on the market, the market consensus, and a small history of previous numbers. The MT5 also supports a new strategy tester tool that is guaranteed to trump the MT4 backtesting tool. MT5 strategy tester has a lot of different functionalities that allow traders to test their strategy on both historical as well as live market data.
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MT5 Features That Attracted Criticism
MT5 has a few features that have alienated existing MT4 users, especially a global pool of retail traders that are not satisfied with the US rules on Forex trading. For instance, the MT5 platform was designed according to the CFTC’s rule on Forex trading, which prevents traders from hedging on the same currency pair. The MT5 terminal also imposes the FIFO rule, which prevents traders from opening multiple positions on a single currency pair. FIFO rule states that all positions must be liquidated according to the order they were opened, which prevents traders from entering the market at different strike prices. The MT5 automatically consolidates all positions on a single currency pair into a single order, which essentially satisfies the FIFO and no-hedging rules.
The MT4 gained immense popularity due to the ability of the platform to respond to EAs and the relative ease with which programmers can code programs for creating EA bots, indicators, as well as carry out platform customizations with no difficulty whatsoever. MQL4 programming also enabled developers to customize all aspects of the bots and even allowed traders to create a better marketplace through the open-source MQL4 community.
However, with the MT5 update, previous MQL4 programs were rendered ineffective as MT5 requires programmers to adopt the new MQL5 protocol. The new system necessitates programmers to rewrite the entire EA or indicator program to be able to work on the MetaTrader 5, which created a significant backlash in the community. Since writing a program from scratch involves an enormous amount of time and resources, traders and programmers usually found it easier to continue trading on the MT4 without making the switch to the MT5. The MT4 also has a massive community of programmers that can provide immediate support, while the MT5 has several restrictions which hinder programmers from receiving timely support for their issues. The problem was further compounded by MetaQuotes firm stand on the MQL5 protocol, as the company was not willing to budge to the requirements of their existing community of developers to enable all MQL4 programs to be carried over to the MQL5 platform.
The MT5 is known to be highly resource-intensive, as it can take up more system resources than the MT4 terminal. The MT4 is relatively faster and more trader-oriented than the MT5, which prevents the MT5 from offering an excellent trading environment to attract the modern retail traders. Together with an incompatible programming platform, MT5 had fewer takers than all the other trading platforms in the market combined.
Should I Go For MT5 Forex Brokers?
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The choice of MT5 is of course, dependent on individual trader requirements. If a trader is not comfortable with the restrictions on trading imposed by the CFTC, MT4 sounds like a good option for trading. However, traders will find the new features and improved interface of the MT5 to provide better control over the market than the traditional MetaTrader platforms. It might take some time for the programming community to adhere to the new MQL5 programming systems, but eventually, the MQL5 community should expand to a significant level to provide community support and access to EAs and indicators that are currently only available with the MT4 platform.
New traders should also be able to reap the benefits of the MT5 platform, as they can get familiar with the CFTC rules on trading without having to convert their trading style. Therefore, new traders will find the MT5 to be better in all aspects when compared to the MT4, as the MT5 has several innovative features and an all new programming interface for creating a trading environment that is suited to their trading personality.