How to Trade with MetaTrader 5

How to trade with MT5

What is MT5?

MetaTrader 5 (MT5) is the newest platform from MetaQuotes, coming after the hugely popular MetaTrader 4 (MT4). While MT4 was optimised for forex trading, MT5 is functionally intended to accommodate more asset classes. MT5 is now the ideal multi-asset platform for the modern trader that seeks to enhance their trading experience using a choice of powerful and effective, new features as well as handy trading tools and resources. AvaTrade offers the powerful MT5 to its traders, allowing them to trade multiple assets, such as CFD’s on forex, stocks, commodities, indices, futures, energies and cryptocurrencies, with flexible leverage as well as no re-quotes, no price rejections and zero slippages.

A core benefit of the MetaTrader 5 platform is that you can trade from anywhere and at any time from the comfort of your smartphone and tablet. This is as a result of the Web platform, which enables a trader to trade their assets of choice from any web browser and any device. In addition, the MT5 platform offers trading robots, trading signals and copy trading, and all the available tools and features can be used from a single powerful trading platform.

How to Use MetaTrader 5

After we understood what MT5 is, we can move forward to the interesting part which the process of trading with MetaTrader5. Here is what to do in order to experience the full power of the AvaTrade MetaTrader 5:

  • Education
  • Download and install
  • Place your order

1. Using MT5 Features for Education

As mentioned above, MetaTrader 5 is packed with numerous features and trading resources, which are designed to enhance your trading activities. It is important to learn about all the features and their applicability to ensure that you are well equipped to take advantage of the full power of the platform. From the available 7 asset class types, numerous trading tools, indicators and graphical objects, to 6 different order types, multiple automated strategies and market depth, you will only be able to fully exploit the raw power of the MT5 platform if you actually take time to educate yourself on all the available functionalities of this intuitive platform. AvaTrade also has numerous educational materials specifically on the MT5 trading platform that are accessible for free in our ‘Education’ section. Be sure to take advantage of the informative and friendly eBooks and videos that explain in detail how to trade financial assets online efficiently.

2. How to Download and Install MT5

Here are the minimum system requirements for using AvaTrade MT5 on your PC:

  • Windows 7 Operating System or higher (64-bit system recommended)
  • Pentium 4/Athlon 64 processor or higher (All modern CPUs should be able to support this)
  • If you intend to be a heavy user (For instance, opening multiple charts and utilising multiple EAs), you could consider more powerful hardware options

Follow the steps below to download and install AvaTrade MT5 on your PC:

  • Click on AvaTrade MetaTrader 5 download link
  • Run the ava5setup.exe file
  • Enter your real account login information
  • You can open a new demo account directly from the platform too
  • Begin trading

3. How to Trade with MT5

If you have already logged into your AvaTrade MT5, it is now time to speculate on the prices of your favourite asset.

There are several ways to place an order on MT5:

  • Click on Tools on the Menu bar. Then select ‘New Order’
  • On the Market Watch window, double click on the asset you wish to trade (you can also right-click on your desired asset and then select ‘New order’)
  • Right-click on the Trade tab on the lower terminal and select ‘New Order’
  • Press F9 for one-click trading on the chart of your favourite asset

When any of the above options is applied, the ‘Order Screen’ will pop up. The screen will have a tick chart on its left side and customisable order details on the right. The tick chart displays the bid and ask prices, and thus, the real-time spreads (the difference between the bid and ask prices).

The order details on the right are:

  • Symbol
    This is the asset you wish to trade, such as the EURUSD currency pair.
  • Order Type
    You can choose between Market Execution and Pending Execution order types.
  • Volume
    This is the quantity (in lot sizes) that you wish to trade, of the selected underlying asset. On a standard account, 1 lot size is the equivalent of 100,000 units, which typically means that a 1 pip movement will be about 10 US dollars (USD) on most assets.
  • Stop Loss and Take Profit
    You will be able to attach stop loss and take profit orders on all your trades. Stop loss orders help curb your maximum loss when the asset price moves against you, while take profit orders allow you to book profits when the asset price moves in your favour.
  • Comment
    You can add any notes regarding any trade in the comment section. This is ideal for traders that document their trading activities.

MetaTrader 5 – Order Types

As mentioned above, you can trade your favourite assets using 2 order types: Market order and Pending order.

  • A market order is an order to buy or sell an asset at the current price. The order will be executed in real-time.
  • On the other hand, a pending order is an order to buy or sell an asset at a certain price in the future.

The AvaTrade MT5 platform has 6 pending order types as follows:

  • Buy Stop
    An order to buy an asset at a higher price than the current price, in anticipation that when that price is achieved, the trend will continue higher.
  • Sell Stop –
    An order to sell an asset at a lower price than the current price, in anticipation that when that price is achieved, the trend will continue lower.
  • Buy Limit
    An order to buy an asset at a lower price than the current price, in anticipation that the asset price will turn higher after having achieved a certain price.
  • Sell Limit
    An order to sell an asset at a higher price than the current price, in anticipation that the asset price will turn lower after having achieved a certain price.
  • Buy Stop Limit
    A combination of buy stop and buy limit orders designed to eliminate slippages. You set a buy stop limit at a price above the current asset price, and when achieved, a buy limit order will be placed.
  • Sell Stop Limit
    A combination of sell stop and sell limit orders designed to eliminate slippages. You set a sell stop limit at a price below the current price, and when achieved, a sell limit order will be placed.

If you apply stop loss and take profit orders, your trade positions will be automatically closed when they are triggered. You can also manually close the positions at any time.

Trade Any Time and From Anywhere

The AvaTrade MT5 platform also has a web version which is accessible on both mobile and desktop browsers. There is also a downloadable mobile MT5 App platform that is compatible with both Android and iOS mobile devices. This provides the convenience and flexibility to trade from anywhere. Plus, you can also log in across the different platforms using single login credentials.

Market Analysis with MetaTrader 5

  • Technical Analysis with MetaTrader 5

Technical analysis is an important facet of trading financial assets online. The essence of technical analysis is to identify potential price patterns that have a probability of playing out in the future. MT5 provides a great environment for technical analysts to perform extensive price analysis on a massive range of assets. There are 38 technical indicators, 44 graphical objects, 21 timeframes, as well as the ability to add unlimited charts on your trading space.

Indicators are mathematical tools that help traders understand price action better. Indicators are applied automatically on MT5 charts, and for your convenience, they have been classified into various groups that denote their application. These groups include:

  • Trend
  • Oscillators
  • Volume
  • Bill William’s tools
  • and Custom indicators.

On the other hand, graphical objects are applied manually and include tools, such as geometric shapes, channels, Gann tools, Fibonacci and Elliot tools. There is also the option to add your own custom tools on the MT5 platform.

Fundamental Analysis on MT5

Aside from technical analysis, there is also fundamental analysis which is the study of how various economic, social and political factors impact demand and supply forces of any underlying asset. Performing real-time fundamental analysis is now easier than ever on the MetaTrader 5 platform. There are inbuilt tools that can be accessed directly from the platform, and these include Financial News and an Economic Calendar.

  • Financial News streams major economic and political news from international news agencies, and it also makes available the various global newsletters with excerpts relevant to different tradable financial assets.
  • As for the Economic Calendar, traders can track the forecasts and real-time releases of major economic and political events that are likely to have an immediate impact on financial assets.

MetaTrader 5 for mobile also has a tab for news as well as a separate Tradays (forex economic calendar) integration. The mobile Economic Calendar version is available in 9 different languages, and it supports alerts so that traders can be notified on their preferred fundamental events which they wish to track.

MQL5 Community

MQL5 is the native programming language for developing trading robots, technical indicators, scripts, and function libraries on the MT5 platform. But there is also the MQL5 community that can offer all MT5 users various trading services. You can access the community directly from your trading platform, and you will be able to interact with fellow traders. You will also be able to download, rent or purchase various trading applications, as well as order an experienced programmer to code your strategy or you can even develop your own custom trading tools and strategies. In the MQL5 marketplace, traders can also acquire VPS (Virtual Private Server) services that will allow them to use automated strategies round the clock without any interruptions, even when their trading devices are switched off.

MetaTrader 5 – The Benefits of Trading with AvaTrade

AvaTrade is an award-winning and regulated broker which provides traders with all the tools, services and features required to fulfil one’s full trading potential.

  • Regulation
    AvaTrade is a regulated broker, giving traders peace of mind that they are partnering with a broker that operates within the guidelines as set out by recognised, international regulatory bodies.
  • Intuitive Trading Platforms
    AvaTrade provides its traders with access to a wide choice of top-quality and powerful trading platforms including the highly popular MT4 and MT5 trading platforms, the DupliTrade social trading system, the AvaTrade app, as well as AvaOptions, the exclusive Vanilla Options app.
  • A Choice of Trading Instruments
    Traders at AvaTrade can access a choice of trading instruments including cryptocurrencies, stocks, commodities, indices, forex pairs, bonds and ETFs. With API Trading, ZuluTrade and DupliTrade, traders can also engage in automated trading. AvaTrade is also one of the few brokerage companies to offer Vanilla Options.
  • Safety and Security
    Safety and Security – At AvaTrade, all clients’ funds are held in a segregated account. Plus, each account has negative balance protection to ensure that a trader’s account never goes below zero.
  • Secure Payment Options
    For payments, AvaTrade provides access to a wide variety of secure deposit methods, which include credit cards, wire transfer, WebMoney, Dinpay, Boleto and FasaPay.
  • Comprehensive Educational Resources
    AvaTrade provides its traders with access to a wide choice of educational materials including videos, eBooks, webinars, articles and blog
  • Professional and Responsive Customer Support
    You can contact the multilingual AvaTrade customer support as well as gain access to a dedicated account manager.

Trade with MetaTrader 5 main FAQs

  • Can you trade stocks on MetaTrader 5?

    Not only does MetaTrader 5 facilitate trading currencies, it also allows for stock trading. And AvaTrade has hundreds of top listed shares available to trade as CFDs on MetaTrader 5. The broad selection of analysis tools and detailed order types makes the MT5 platform ideal for stock traders of all types. You can even set up automated trading of stocks, which can be very useful in capturing breakout moves, or trading range-bound stocks. MetaTrader 5 is the state-of-the-art trading platform that’s perfect for trading all asset types, including stocks.

  • Is MetaTrader 5 better than MetaTrader 4?

    You would think that since it is the newest version of the MetaTrader platform that MetaTrader 5 would be superior to MetaTrader 4. And yet there are more traders out there still using MetaTrader 4. That’s because the two are actually geared towards different kinds of trading. MetaTrader 4 was created for forex trading, and it excels at that market. MetaTrader 5 was created as a multi-asset trading platform, and it is typically better when trading in assets other than currencies. It has more order types and more indicators, and allows for the detailed analysis of any type of asset.

  • How much does MetaTrader 5 cost?

    One of the benefits of using MetaTrader 5 as your trading platform is that it is free to use. With our demo account you can download it and begin analysing assets immediately. Many traders are very surprised by this since MetaTrader 5 provides so much value to traders. We don’t believe you should have to pay for the tools you need to trade though. We’re making trading easily available to everyone, and one part of that mission includes offering MetaTrader 5 for free to anyone who wants or needs it.