What is MetaTrader 5 (MT5)? Detailed Guide

MetaTrader 5 (MT5) is one of the most popular trading platforms in the world. It is used by forex, stock, and crypto traders. Many traders start with MetaTrader 4 (MT4), but MT5 is a big upgrade. It has more tools, better charts, and faster execution.

If you are new to trading, you might wonder, “What is MetaTrader 5?” or “How to use MetaTrader 5?” This guide will explain everything you need to know. We’ll cover how MT5 works, its features, and how to use it to trade successfully.

Why is MT5 Better Than MT4?

MT5 is an improved version of MT4. It has extra features that make trading easier and more advanced.

Differences Between MT4 and MT5

MT5 gives traders more flexibility. It has extra timeframes, more indicators, and better market data.

Key Features of MetaTrader 5

MT5 has many useful features that make it powerful for traders. Here are some of the most important ones:

Multi-Asset Trading

MT5 is not just for forex. You can trade stocks, commodities, cryptocurrencies, and indices. This makes it great for traders who want to trade different assets in one place.

Advanced Charting Tools

MT5 has 21 timeframes, compared to 9 on MT4. This helps traders analyze short-term and long-term trends. It also has more technical indicators, like:

• RSI (Relative Strength Index) – Shows overbought and oversold conditions.
• MACD (Moving Average Convergence Divergence) – Helps spot trend changes.
• Moving Averages – Used to follow trends and find entries.

Automated Trading with Expert Advisors (EAs)

Traders can use Expert Advisors (EAs) to automate their trading. EAs are programs that trade for you based on set rules. You can install EAs or build your own.

Market Depth and Order Types

MT5 has a Market Depth feature. This shows how much buying and selling is happening at different price levels. MT5 also has 6 types of orders, including:

• Market Orders – Buy or sell instantly.
• Pending Orders – Set a trade to open at a specific price.

These features help traders make smarter decisions.

How to Use MetaTrader 5

Many beginners ask, “How to use MetaTrader 5?“ Here is a step-by-step guide to help you get started.

Step 1: Download and Install MT5

1. Go to your broker’s website and download MT5.
2. Install it on your computer or mobile device.
3. Open the app and log in with your broker’s details.

Step 2: Open a Trading Account

1. Choose a broker that supports MT5, like Defcofx.
2. Register an account and verify your identity.
3. Log in to your trading account on MT5.

Step 3: Set Up Your Charts

1. Click on “Market Watch“ to see available trading pairs.
2. Select a currency pair or asset and open a chart.
3. Use indicators like RSI or MACD to analyze the market.

Step 4: Place a Trade

1. Click “New Order” to open a trade.
2. Choose the trade size and type (market or pending).
3. Set a stop-loss and take-profit to manage risk.
4. Click “Buy” or “Sell” to execute the trade.

MT5 is simple to use once you understand the basics.

MetaTrader 5 Requirements for Beginners

Before you start trading on MT5, check if your device meets the system requirements.

Minimum System Requirements for MT5

Most computers and phones can run MT5 easily. Beginners should also have a demo account before trading with real money.

Trading Information MT5: Tips for Success

To trade well on MT5, follow these simple tips:

Start with a Demo Account

Before risking real money, practice on a demo account. This helps you learn how MT5 works without losing money.

Use a Trading Plan

A good plan includes:

• Your entry and exit strategy
• Risk management rules
• What assets you will trade

Set Stop-Loss and Take-Profit

Never trade without a stop loss. This helps you avoid big losses if the market moves against you.

Combine Indicators for Better Analysis

Use tools like Moving Averages + RSI to confirm trade signals.

Choose a Good Broker

A good broker makes trading easier. Defcofx offers:

• High leverage (1:2000) for flexible trading.
• Low spreads from 0.3 pips to keep costs low.
• Fast withdrawals in just 4 business hours.
• A 40% welcome bonus for new traders.

With the right broker, trading on MetaTrader 5 becomes much smoother.

How to Customize MetaTrader 5 for Better Trading

One of the best things about MetaTrader 5 (MT5) is that you can customize it to fit your trading style. Many traders ask, “How to use MetaTrader 5” in a way that makes trading easier and faster. Here are some ways to personalize your MT5 setup:

Change Chart Colors and Layout

• Click on “Charts” > “Properties” to change the background, candlestick colors, and grid settings.
• Use dark mode or a simple color scheme to make charts easier to read.

Set Up One-Click Trading

• Right-click on the chart and enable “One-Click Trading” for faster order execution.
• This allows you to buy or sell with just one button, reducing delay.

Save Custom Templates

• Once you’ve set up a perfect chart, save it as a template to use on different pairs.
• Click “Charts” > “Template” > “Save Template” to save your settings.

How to Use MetaTrader 5 on Mobile

MT5 is available on Android and iOS, so you can trade anywhere. Many traders prefer mobile trading because it gives them flexibility.

How to Download MT5 Mobile

• Go to the Google Play Store or Apple App Store and search for MetaTrader 5.
• Install the app and log in with your broker credentials.

Placing Trades on MT5 Mobile

• Click “Quotes” to see all available markets.
• Tap on a trading pair and select “Trade” to open a position.
• Adjust the lot size, stop-loss, and take-profit before confirming.

Using Indicators on Mobile

• Go to “Charts” and tap the “+” sign to add indicators like RSI, MACD, or Moving Averages.
• Zoom in and out to analyze trends better.

MT5 mobile is great for checking trades on the go, but it’s best to do deep market analysis on a desktop.

How to Automate Trades with MetaTrader 5 Expert Advisors (EAs)

If you don’t want to trade manually, MT5 allows automated trading through Expert Advisors (EAs). These are bots that trade for you based on preset rules.

How to Install an EA on MT5

1. Download an EA from the MetaTrader Market or a trusted website.
2. Open MT5 and go to “File” > “Open Data Folder” > “MQL5” > “Experts”.
3. Paste the EA file and restart MT5.

Running an EA

1. Go to “Navigator”, find your EA, and drag it onto a chart.
2. Enable “AutoTrading” at the top.
3. Adjust EA settings, such as risk level and trade size.

Risks of Using EAs

• EAs can work well, but they need regular monitoring.
• Avoid using high-risk settings, as automated trades can lead to large losses if not managed.

MetaTrader 5 Trading Information: Understanding Order Types

When trading on MT5, you need to know how to place different orders. Trading information MT5 includes several order types that help traders manage risk and take profits at the right time.

Market Orders

• Market Buy – Buy at the current price.
• Market Sell – Sell at the current price.

Pending Orders

• Buy Limit – Buy at a lower price than the current market price.
• Sell Limit – Sell at a higher price than the current market price.
• Buy Stop – Buy when price rises to a certain level.
• Sell Stop – Sell when price drops to a certain level.

Stop-Loss and Take-Profit

• Stop-Loss (SL) – Automatically closes a trade to prevent big losses.
• Take-Profit (TP) – Closes a trade at a set price to lock in profits.

Knowing how to use these orders correctly is key to successful trading.

Best Trading Strategies for MT5 Beginners

Many traders ask, “How to use MetaTrader 5 for profitable trades?” Here are three simple strategies that work well for beginners.

Moving Average Crossover Strategy

• Add a 50-period moving average and a 200-period moving average to your chart.
• When the 50 MA crosses above the 200 MA, it’s a buy signal.
• When the 50 MA crosses below the 200 MA, it’s a sell signal.

Support and Resistance Strategy

• Draw horizontal lines at key support and resistance levels.
• Buy near support and sell near resistance.
• Use stop-loss below support and take-profit before resistance.

RSI Overbought & Oversold Strategy

• Add the Relative Strength Index (RSI) to your chart.
• If RSI goes above 70, the market is overbought – look for sell trades.
• If RSI goes below 30, the market is oversold – look for buy trades.

These strategies are easy to learn and can help new traders build confidence in the market.

How to Backtest Strategies on MetaTrader 5

Before risking real money, traders should test their strategies. Backtesting allows traders to see how a strategy would have worked in the past using historical data. MT5 has a built-in Strategy Tester that makes this easy.

What is Backtesting?

Backtesting is when you apply a trading strategy to past price movements. This helps traders see if their plan works before trading live markets.

How to Backtest a Strategy on MT5

1. Open MT5 and go to “View” > “Strategy Tester”.
2. Select an Expert Advisor (EA) or Indicator to test.
3. Choose the trading pair and timeframe for testing.
4. Set the initial deposit amount to match your real account size.
5. Click “Start” and let the test run.

How to Read Backtesting Results

• Win Rate (%) – How often trades were profitable.
• Drawdown (%) – The biggest loss from peak to lowest point.
• Profit Factor – A ratio showing total profit vs. total loss.

Why is Backtesting Important?

• Helps avoid bad strategies before risking real money.
• Gives traders confidence in their entry and exit rules.
• Identifies weak points in a strategy that need adjusting.

How to Use MetaTrader 5 Copy Trading

Some traders don’t want to trade manually. MT5 Copy Trading lets users follow professional traders and copy their trades automatically.

What is Copy Trading?

Copy trading allows beginners to mimic the trades of experienced traders. When a pro trader opens a position, it automatically executes on your account.

How to Start Copy Trading on MT5

1. Open MT5 and go to “Signals” in the Navigator window.
2. Browse different traders and check their performance, win rate, and risk level.
3. Click “Subscribe” to the trader you want to follow.
4. Adjust risk settings to match your account size.
5. Let the system copy trades automatically.

Pros and Cons of Copy Trading

Pros

• Great for beginners who don’t know how to trade.
• Saves time since trades are placed automatically.
• Can learn by watching how pro traders trade.

Cons

• If the trader you follow loses money, so do you.
• Some signal providers take high risks for fast profits.
• Subscription fees may apply for premium signals.

Copy trading is best for beginners who want to learn while earning. However, always check the trader’s history and strategy before subscribing.

How to Set Up a VPS for 24/7 MetaTrader 5 Trading

Some traders want to keep their trading platform running 24/7 without interruptions. This is especially useful for Expert Advisors (EAs) or Copy Trading. A VPS (Virtual Private Server) helps with that.

What is a VPS?

A VPS is a remote computer that runs your MT5 platform even when your home computer is off.

Why Use a VPS for MT5?

• Keeps trades running 24/7, even if your internet goes down.
• Faster execution speeds, reducing slippage.
• Secure environment for automated trading and copy trading.

How to Set Up a VPS for MT5

1. Choose a VPS provider (like MetaTrader’s built-in service or a third-party option).
2. Install MT5 on the VPS.
3. Log in to your broker account (such as Defcofx).
4. Run EAs or copy trading services to automate trading.

VPS Pricing & Costs

VPS services range from $10 to $50 per month, depending on speed and reliability.

Traders using automated strategies or high-frequency trading should consider using a VPS to avoid downtime and missed trades.

Understanding Market Depth in MetaTrader 5

MT5 has a special tool called Market Depth that shows traders how many buy and sell orders exist at different price levels.

What is Market Depth?

Market depth, also known as Level II data, shows real-time supply and demand at different price points.

How to Use Market Depth in MT5

1. Open MT5 and right-click on a trading pair.
2. Click “Market Depth” to see live order flow.
3. Look at the buy and sell orders stacked at different price levels.

Why is Market Depth Important?

• It helps traders see where large buyers and sellers are positioned.
• Identifies support and resistance zones based on large orders.
• Useful for scalping and short-term trading.

Example of Market Depth in Action

• If huge buy orders appear at a specific price, it may act as strong support.
• If sell orders pile up at a level, it may act as strong resistance.

Market depth helps traders make better entry and exit decisions based on real-time order flow.

How to Manage Risk When Trading on MetaTrader 5

No matter how good your strategy is, risk management is the most important part of trading.

Why is Risk Management Important?

• Protects your trading capital from big losses.
• It helps control emotions and prevents revenge trading.
• Keeps traders in the game for the long run.

Top Risk Management Tips for MT5 Traders

Risk Only 1-2% of Your Account Per Trade

• If your balance is $1,000, never risk more than $10-$20 per trade.

Use Stop-Loss on Every Trade

• Always place a stop-loss to protect against big market moves.

Use Leverage Wisely

• Brokers like Defcofx offer high leverage (1:2000), but that doesn’t mean you should overtrade.
• Keep leverage low if you’re a beginner to avoid blowing your account.

Avoid Trading During High-Impact News

• Economic events can cause huge price swings.
• Check the forex news calendar before placing trades.

Keep a Trading Journal

• Write down your trades, including why you entered and exited.
• Review your mistakes and improve your strategy.

Common MT5 Problems and Solutions

Problem 1: MT5 Won’t Connect to the Server

• Solution: Check your internet connection or log in again.

Problem 2: Trade Not Executing

• Solution: Make sure you have enough balance and check if the market is open.

Problem 3: Indicators Not Showing

• Solution: Reinstall or update MT5 to fix missing files.

Conclusion

So, what is MetaTrader 5? It is a powerful trading platform used for forex, stocks, and crypto. It has better charts, more tools, and automated trading compared to MT4. Beginners can learn quickly, and experienced traders can use its advanced features.

If you are looking for a fast, low-cost trading experience, try Defcofx. They offer:

• High leverage up to 1:2000
• No commissions or swap fees
• Low spreads from 0.3 pips
• Fast withdrawals in just 4 business hours

FAQs

What is MetaTrader 5 used for?

MT5 is used for forex, stocks, commodities, and crypto trading.

How to use MetaTrader 5 as a beginner?

Beginners should start with a demo account, practice placing trades, and learn how indicators work.

What are the MetaTrader 5 requirements for beginners?

A basic laptop, desktop, or smartphone with an internet connection is enough to run MT5.

Is MT5 better than MT4?

Yes! MT5 has more indicators, timeframes, and better order execution than MT4.

Why should I trade MT5 with Defcofx?

Defcofx offers low spreads, fast execution, and high leverage, making it a great choice for MT5 traders.

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