MetaTrader 5 (MT5) is a multi‑asset trading platform widely used by retail and professional traders to access forex, CFDs, stocks and futures. Created by MetaQuotes, MT5 packages charting, order execution, built‑in analysis tools, and an environment for automated trading into desktop, web and mobile applications. In practical terms, MT5 is the software that sits between you and a broker: it shows live prices, visualises charts, sends your trade instructions to the broker’s server, and stores your account history.
Below I explain what MT5 does, how it differs from the older MT4 platform, how traders typically use it in forex, and what to watch out for. This is educational information and not personalised advice; trading involves risk and you can lose money.
What MT5 offers: a practical overview
MT5 is designed as a single place to manage market analysis and trade execution. On a typical MT5 desktop screen you’ll see a Market Watch list of instruments, one or more price charts, and a Terminal panel that shows open positions, account history and alerts. The platform supports multiple execution modes, detailed reporting, and both technical and fundamental analysis tools. It also connects to a marketplace and community where you can buy or download indicators, Expert Advisors (automated strategies) and other add‑ons.
Traders use MT5 to do everyday tasks such as open a EUR/USD chart, add moving averages and RSI to spot signals, place a market or pending order, set stop‑loss and take‑profit levels, and monitor positions on a phone while away from the desk. Because MT5 is multi‑asset, you can have forex pairs and equity CFDs side‑by‑side in the same workspace.
Key features explained
MT5 brings several features that matter for forex trading. Many of these are practical improvements rather than radical changes.
Charts and analysis: MT5 supports many chart windows and a larger set of built‑in technical indicators and graphical objects than older platforms. It includes more timeframes, so you can view very short intraday frames as well as long‑term charts. This flexibility helps traders who combine multiple timeframes in their analysis.
Order types and market data: Beyond simple market orders, MT5 supports a range of pending orders and stop types (including stop‑limit variants). It also offers Depth of Market (Level II) view when the broker provides it, which shows available bid and offer volumes at different price levels and can be useful for short‑term traders and scalpers.
Automated trading and EAs: One of MT5’s most used features is its support for Expert Advisors (EAs). EAs are programs written in MQL5 that can scan prices, place trades, and manage positions automatically. MT5 also includes a strategy tester for backtesting EAs on historical data and can run multi‑currency tests faster because the tester is multi‑threaded.
Market and community: MT5 integrates with the MQL5 ecosystem where traders can buy or rent indicators and robots, access trading signals to copy other traders, and rent virtual hosting (VPS) to keep EAs running 24/7 without relying on a home computer.
Account and server tools: MT5 allows brokers to offer netting or hedging accounting, and traders may be able to transfer funds between accounts on the same server. The platform is free to download and use, but to trade live you must connect through a broker that provides MT5 servers.
How MT5 is used in a forex trade — a simple example
Imagine you want to trade EUR/USD after a breakout on the 1‑hour chart. You open MT5, load the EUR/USD chart, and add a 20‑period moving average and RSI. You see price break above a resistance level. From the chart you click “New Order,” select a market buy, enter a 0.1 lot size, set a stop‑loss below the broken resistance and a take‑profit two times the stop distance. MT5 sends the order to your broker and the position appears in the Terminal with current profit/loss. You can then attach a trailing stop or close part of the position manually. If you prefer automation, you might instead let an EA monitor such breakouts and execute the same routine automatically.
MT5 vs MT4 — the practical differences
MT4 remains popular, especially for straightforward forex strategies, but MT5 adds capabilities that appeal to multi‑asset traders and algo developers. Notable differences include a greater number of timeframes and built‑in indicators, a multi‑threaded strategy tester for faster backtests, the MQL5 programming environment (which is more modern and powerful than MQL4), and native market depth support. Some indicators and EAs written for MT4 need conversion to run on MT5, so switching platforms can require extra work if you rely on custom tools.
Which is “better” depends on needs: if your trading is simple manual forex trading, MT4 can still be sufficient; if you trade across asset classes, use advanced automated systems, or want deeper execution data, MT5 is often a better fit.
Getting started with MT5 — step by step
To try MT5 you can open a demo account with a broker that supports it. Install the desktop client or the mobile app, log in with the demo credentials, and explore charts and the Terminal. Practice placing market and pending orders and learn to set stop‑loss and take‑profit levels. If you plan to use automated strategies, test them first in the Strategy Tester and run them on a demo account or a rented VPS before using real money. Remember that platform behaviour (spreads, slippage, execution speed) can differ between brokers, so testing with your chosen broker matters.
Practical uses beyond manual trading
Many traders use MT5 for systematic work: developing an EA in MQL5, backtesting it across multiple pairs and timeframes, then deploying it on a VPS to run continuously. Others use the platform’s signals service to copy experienced traders, or use the Market to buy indicators they don’t want to code. Day traders and scalpers may rely on Market Depth and one‑click trading features to execute quickly.
Risks and caveats
MT5 itself is software; its reliability is high, but the safety and execution quality you experience depend on the broker’s infrastructure and the type of account you choose. Using EAs or copy trading does not guarantee profits: automated systems can amplify losses when market conditions change. Leverage commonly used in forex magnifies gains and losses, making risk management essential. Demo accounts are useful but may not reflect real execution or slippage under live conditions. Also, third‑party indicators and robots can contain bugs or misleading performance records—always backtest and monitor any automated tool you intend to run with real money. Finally, this article is educational and not personalised trading advice.
Key Takeaways
- MT5 is a free multi‑asset trading platform that combines charting, order execution, automated trading and a community marketplace into desktop, web and mobile apps.
- It adds more timeframes, indicators, order types, market depth and a multi‑threaded strategy tester compared with MT4, and uses the MQL5 language for EAs.
- You must use MT5 through a broker to trade live; practice first on a demo account and always test automated systems before risking real capital.
- Trading carries risk; platform features don’t remove the need for proper risk management and careful broker selection.
References
- https://www.babypips.com/forexpedia/mt5
- https://www.forexbrokers.com/guides/metatrader-5-brokers
- https://apps.apple.com/us/app/metatrader-5/id413251709
- https://www.avatrade.com/trading-platforms/metatrader-4/what-is-metatrader
- https://www.metatrader5.com/en/trading-platform
- https://www.avatrade.com/trading-platforms/metatrader-5/how-to-trade-with-metatrader-5
- https://www.defcofx.com/what-is-metatrader-5/
- https://www.oanda.com/eu-en/metatrader5