MetaTrader 5 (MT5) is the latest incarnation of the popular MetaTrader platform developed by MetaQuotes Software for online trading. Released in 2010, MT5 builds on the success of the older MetaTrader 4 platform while adding more advanced features geared towards institutional investors.
Like its predecessor, MT5 allows traders to analyze financial markets, execute trade orders, and employ automated trading strategies. It includes advanced charting capabilities, algorithmic trading options, support for multiple asset classes, an built-in programming language for creating trading robots, and tools for analyzing and improving trading performance.
Brokers Offering MetaTrader 5
Major Forex Brokers
Many of the largest forex brokers and CFD providers have adopted MetaTrader 5 in addition to or as a replacement for MetaTrader 4. Major brokers offering MT5 include FXCM, FXDD, Alpari, FIBO Group, LQDFX, AXIORY Global, Vantage FX, ThinkMarkets, and more. These brokers allow traders to access currency exchange markets and CFDs on the MT5 platform.
Minor Forex Brokers
Additionally, smaller retail forex brokers have started adding MT5 to appeal to a wider range of traders. These include brokers like Turnkey Forex, ForexTL, EightCap, ACY Securities, Global Prime, and other specialty brokers targeting niche trader segments. Though their trading volumes are lower, they provide further choice for traders seeking brokers with MetaTrader 5 integration.
tokencurrency Brokers
With the rise of bitcoin and altcoins, an increasing number of MT5 brokers now offer trading access to major tokencurrency pairs. These include Excentral, XM, Windsor Brokers, ATFX, Fidectus, EagleFX, and FIBO Group. MT5’s support for CFD instruments allows brokers to provide tokencurrency trading without needing to handle the actual coins or tokens.
Features of MetaTrader 5
Advanced Charting
MT5 includes an upgraded charting package with multiple improvements for technical analysis. It supports up to 100 charts simultaneously compared to MT4’s limit of just 8 charts. The tick chart feature provides precise timing data, while the built-in Strategy Tester uses historical price data for backtesting expert advisors and custom indicators.
Algorithmic Trading
The MetaTrader 5 platform natively supports algorithmic and automated trading through a programming language called MQL5. Skilled traders can create, backtest, and implement custom Expert Advisors and technical indicators to automate their trading strategies. The toolkit includes machine learning libraries to help build smarter predictive algorithms. It is possible to additionally connect the mt5 download for pc to copy deals.
Support for Various Assets
While MT4 focused mainly on forex trading, MetaTrader 5 broadens support to other asset classes like equities, futures, options, bonds, and token currency pairs. This allows MT5 brokers to offer a diverse selection of tradable instruments catering to wider trader interests beyond just spot currency trading.
Advantages for Brokers
Customization Options
MetaTrader 5 offers customization options that allow brokers to add their branding and tailor default settings to closely match their service offerings. Brokers can enable or disable access to specific asset classes, tweak margin requirements, set spread levels and commissions, and adjust other parameters through the administrative dashboard.
Backtesting Capabilities
The built-in Strategy Tester in MT5 provides backtesting functionalities using historical data. This allows traders to evaluate the profitability of custom indicators and Expert Advisors. While beneficial for traders, the feature also indirectly benefits brokers by encouraging traders to test and improve their automated strategies.
Community Popularity
With over 7 million retail forex traders by some estimates, the MetaTrader platform enjoys massive popularity worldwide. By adopting such as widely used platform, brokers can tap into an established community and leverage existing third-party integrations rather than building trader support from scratch.
Disadvantages for Brokers
Initial Integration Complexity
Transitioning from alternative platforms to MetaTrader 5 poses some initial technology and operational challenges for brokers. Proprietary APIs must be set up to bridge account databases, pricing engines, liquidity pools, order management systems, risk management tools, and other backend infrastructure to ensure full compatibility and functionality.
Ongoing Support Costs
Brokers looking to provide the MetaTrader 5 platform to clients take on extra support burdens including trader education, technical troubleshooting, and customer service. Additionally, MetaQuotes charges brokers recurring license fees based on number of active users, accounts, and trade volumes which contributes to overhead.
The Future of MetaTrader 5
Expanded token currency Support
With retail interest growing for trading token currency assets, MetaQuotes is likely to enhance MT5’s built-in CFD offerings for additional digital tokens and blockchain-based instruments. This will allow MT5 brokers to stay relevant amid shifting trader demands. Custom tokencurrency data feeds may also be added to augment charting and strategy backtesting functionalities.
Mobile Trading Upgrades
While desktop trading remains dominant, mobile apps areseeing increasing adoption among active traders. MetaQuotes has committed to improving the responsiveness, usability, and feature set of the MetaTrader 5 mobile app for iOS and Android. Additional mobile support for MT5 via web browser is also on the roadmap.
Conclusion
In summary, MetaTrader 5 is gaining steady adoption among forex, CFD, and tokencurrency brokers seeking to appeal to a wide range of retail and institutional traders. Its advanced capabilities like customizable automation, machine learning, and multi-asset support provide compelling reasons for brokers to migrate from alternative platforms. Despite some drawbacks like technology integration hassles and recurring license fees, MT5 delivers advantages that generally outweigh the initial costs for brokers targeting serious traders. With continual improvements planned for emerging asset classes and mobile functionality, MetaTrader 5 remains well-positioned as a premier brokerage platform for years to come.