MT5 Forex Brokers

For years, the MetaTrader 4 trading platform gave forex traders unprecedented control over trading strategies. They could even use automated trading systems to maximize their profits. However, this revolutionary trading platform was replaced by a better, more holistic version, the Metatrader 5.

Capitalizing on the success of the MT4 trading platform, MetaQuotes Software sought to address the limitations of MT4 and duplicate its success by introducing the Metatrader 5 (MT5) trading software in 2010.

After its release, most traders thought that MT5 would be an upgrade of MT4. This was, however, not the case. In truth, the MT5 trading platform was developed to cater to the needs of other types of end-users. Those previously left out by the MT4 trading platform.

That being said, both platforms share an abundance of similarities, as well as a few differences. We will get into that later in the article, but first, let’s address the elephant in the room.

What is MetaTrader 5?

MT5 was released in 2010, five years after the release of MT4. Due to the number sequence in the platform’s names, coupled with the fact that their graphic user interface (GUI) looks and feels somewhat similar, there is a common misconception that MT5 is an improved version of MT4, designed to do the same job better.

That is not true. Although they are both trading platforms and back-testing machines, MT5 is designed to do the things that MT4 couldn’t. Essentially, MT5 was aimed at an entirely different market.

Unlike MT4, which was designed to cater to forex traders, MT5 caters to other trade markets like stocks and commodities. This is due to its ability to plug into a centralized trading exchange.

Forex is a decentralized market characterized by many players providing liquidity into the market at slightly different prices.

Stocks and commodities, on the other hand, are traded mainly as futures contracts. They must be traded through a centralized network before ownership can change hands legally.

When MetaQuotes Software was developing MT5, they must have foreseen a boom in the stocks and commodities trade and, therefore, designed a platform that could cater to the needs of the rising market.

Difference between MT4 and MT5 Trading Platforms

We’ve covered the first major difference, but there are still some significant differences worth mentioning.

1. The “No Hedging Rule” Compliance

The MT5 trading platform complies with the USA’s “no hedging rule.” The rule states that all clients of forex brokers in the USA must deal on a FIFO (first-in, first-out) basis. This means that if a trader goes long on one lot of USD/JPY, then goes long an additional lot of USD/JPY; the first trade must be closed before the second one.

MT4 logs every trade individually and allows traders to manage individual positions separately, thus not complying with the no hedging rule. MT5, on the other hand, aggregates all positions automatically. Simply put, MT4 can deal with hedging, while MT5 cannot.

Although this is preferable for most forex traders residing in the USA, since they are hindered from hedging, many traders worldwide see the inability to effect hedging operations as an unnecessary handicap, thus prompting them to use the MT4 platform.

2. The user interface

MetaTrader 4 has a straightforward and easy-to-use user interface. This makes it the most popular choice for most beginner forex traders. It also allows you to customize the interface to suit your trading needs.

Metatrader 5, on the other hand, has a more complex user interface. It also comes with additional services and options, some of which are a bit too complex for beginner forex traders.

3. Timeframes

With MT4, you only get nine types of timeframes. The lowest timeframe is one minute, and the highest timeframe is one month. MT5, on the other hand, offers you up to 21 timeframes that range from one minute to a year. This comes in handy when you want to do a thorough analysis of the market.

4. Pending Orders

One of MT5’s best features is the numerous types of pending orders. They include: sell limit, buy limit, sell stop, buy stop, sell stop limit and buy stop limit. This feature allows you to sit and observe different charts at the same time.

You can, therefore, use the feature to execute trades at the positions you desire while missing fewer trades.

MT4 offers four types of pending orders. They include: sell limit, buy limit, buy stop and sell stop.

5. Indicators

MT5 comes equipped with 38 built-in indicators. MT4, on the other hand, comes loaded with 30 built-in indicators, 700 paid indicators, and 2000 free custom indicators. This makes MT4 especially popular among both beginner and expert forex traders.

6. Internal Funds Transfer

This is one of the most exciting features of the MT5 trading platform. It allows you to transfer funds from one trading platform to another internally, i.e., within the platform itself. On the downside, the MT4 does not come equipped with this tool.

7. Drawing Tools

MT4 comes loaded with 31 drawing tools, including Fibonacci tools and Eliot drawing tools. MT5 comes with a total of 44 drawing tools.

8. Programing Language

MT4 uses MetaTrader Language 4 (MTL4), which is mainly used to develop trading platforms based on the order system.

MT5 uses MetaTrader Language 5 (MTL5), which is primarily used for implementing a positional system.

In terms of usability and user-friendliness, MT4 is better since traders can write and alter scripts easily, thus making it more efficient than MT5.

9. Market Depth

The market depth feature shows you the number of sell and open buy orders for a currency or security at different prices.

Metatrader 4 does not support the market depth option. On the other hand, MT5 comes loaded with an in-built market depth function that bids and offers financial securities at varying processes.

10. Types of Assets (Financial) that can be traded

MT4 only allows you to trade on the forex market instead of MT5, which allows you to trade on futures like stock, CFDs, forex, and other financial instruments.

Best Metatrader 5 Forex Brokers

1. RoboForex

Roboforex is a CFD and forex trading broker. With RoboForex, you get access to a wide variety of instruments in several markets like indices, currencies, and commodities.

To open a live account with RoboForex, you need a minimum deposit of $10. If you are a beginner trader, you can also take advantage of their free demo account that gives you a chance to practice and familiarize yourself with the platform before you begin trading with real money.

Like most brokers, RoboForex takes a commission from the spread. Compared to other brokers, their spreads are slightly higher, so it will cost you a bit more to trade with them. On the upside, despite the high spreads, it comes loaded with lots of benefits.

For starters, RoboForex comes loaded with over 34 instruments to trade, including 32 currency pairs. It also offers both MetaTrader options (MT4 and MT5). It also offers the cTrader platform that was developed for traders looking for an STP/ECN solution.

It allows you to execute a minimum trade of 0.01 Lots and a maximum trade of 100 lots when it comes to trading. It also supports a wide range of languages, including English, Chinese, Italian, Arabic, Spanish, Ukrainian, Thai, and Russian.

To open a RoboForex trading account, you’ll need a scanned color copy of your ID, passport, or driver’s license and a scanned copy of your utility bills dating back three months. You’ll also be required to answer a few questions to confirm your level of trading experience. All in all, it takes about ten minutes to open a RoboForex trading account.

Pros

• Segregates client funds
• It has a minimum deposit of $10
• Regulated by IFSC Belize
• Can trade on MetaTrader 4, MetaTrader 5 and cTrader.
• Offers 24/7 customer support

Cons

• Not FCA regulated
• Limited range of instruments

2. Go Markets

Go Markets is an ASIC-regulated broker with over a decade of experience. Go Markets has grown to become a leading broker with a client base from over 150 countries in its decade of operation.

To open a live trading account with Go Markets, you’ll need a minimum deposit of $1. You’ll also need a scanned color copy of your ID, passport, or drivers’ license and a scanned copy of your utility bills dating back three months.

Go markets take a fee from the spread, which is also very reasonable compared to other brokers. They also offer different instruments to trade, including 50 currencies.

Like our previous pick, Go Markets also allows you to trade with MT4 and MT5 trading platforms. They also offer mobile trading apps for android and IOS.

When it comes to executing trades, it doesn’t get easier than this. Go Markets offer both ECN and STP execution. The minimum and maximum trading requirements vary depending on the trader and instruments.

Go market has 24/ customer support that supports various languages, including English, French, Arabic, Chinese, and Spanish.

Pros

• Used by over 10,000 traders around the world
• Has a minimum deposit of $1
• Regulated by the ASIC
• Clients’ fund segregation.
• Ultra-fast trading executions

Cons

• Limited range of instruments
• Not FCA regulated
• The demo account expires after 30 days

3. IC Markets

Operating since 2007, IC markets is an Australian-based, ACIC regulated ECN forex broker. It offers lots of trading instruments in several markets like currencies and commodities.

IC Markets prides itself as one of the preferred brokers for automated traders. Over two-thirds of its 500,000 daily trades are made in its New York and London data centers from automated trading systems.

To facilitate the lowest latency and fast trade executions, they have a fiber-optic network that connects its ECN to its liquidity providers.

IC Markets offer various trading tools, including depth of market (DoM), ladder trading, inbuilt spread monitoring, automated close of trades, and much more. They also offer both android and IOS apps that are optimized to provide a seamless trading experience.

To open a live trading account with IC Markets, you’ll need a minimum deposit of $200, along with scanned copies of your identity cards and utility bills.

Compared to other brokers, IC Markets has relatively high spreads (0.1 pips). You will, therefore, expect to spend a little more than you’d expect when trading with them.

Despite the high spreads, they offer an abundance of benefits, including over 60 currency pairs. They also offer both Metatrader options and a cTrader option for traders looking for STP/ECN solutions.

In terms of trade executions, IC Markets allows you to execute a minimum trade of 0.01 lots. But, their most endearing quality is the fact that they have no requites. This means that you don’t have to worry about slippage.

Pros

• Segregates client funds
• Regulated by ASIC
• Minimum deposit of $200
• 24/7 customer support
• Available on desktop, web, and mobile

Cons

• Beginner traders might get overwhelmed by the number of platforms and markets to choose from.
• Not FCA Regulated

Conclusion

We’ve come a long way since MT4 was released. Back then, only forex traders had the opportunity to utilize this incredible platform. Now, even feature traders have a chance with the MT5 trading platform.

In the article, we have discussed everything you need to know about both platforms to know which one to use according to your trading needs. We have also cited all the differences between the two, so you clearly understand each.

If you had issues selecting the best MT5 trading broker, we hope to solve your issue with our review of three of the best MT5 forex brokers. All the brokers on our list support MT4 and MT5 trading platforms, so we’ve got you covered no matter what kind of trader you are. Good luck and invest safely.