Summary
MetaTrader 5 is a trading software created by MetaQuotes. The platform allows traders to place orders on CFD instruments, such as stocks, forex, options, futures and many more. It also provides several charting tools, multiple timeframes, and algorithmic trading. This article contains a detailed list of the best MT5 brokers. It also explores everything you need to know to compare MT5 brokers, including their fees, leverage, regulations, payment methods, and spreads.
What is MT5?
MetaTrader 5 (MT5) is a multi-asset trading application launched in 2010 as a proposed upgrade to the MetaTrader 4 (MT4) platform. MT5 allows brokers to offer their clients a wider range of assets and more advanced features. This platform supports an extensive range of instruments, including forex, indices, cryptocurrencies, bonds, stocks, and options.
Pros and Cons of Trading on MT5
Here are some of the pros and cons of trading on the MT5.
Pros
- Supports a Wide Range of Instruments.
- Provides an Economic Calendar.
- Supports Algorithmic Trading and Copy Trading.
- Offers more Technical Analytics Tools.
- Offers more Time Frames.
- Allows Traders to set Buy-Stop and Sell-Stop Limits.
Cons
- Not very Beginner-Friendly.
- Relatively Low Adoption among many Brokerage Companies.
What are MT5 Brokers?
MT5 brokers are financial service companies that allow clients to invest in various financial assets via the MetaTrader 5 trading platforms/app. Some of these companies offer proprietary desktop and mobile applications with the MT5 platform, while others only support MT5 for trading. The MT5 brokers list is very long and contains popular companies such as Pepperstone, ThinkMarkets, Admirals, AvaTrade, IC Markets, and ActivTrades. Each broker offers CFD instruments, including stocks, on their platforms. Unlike other brokers not compatible with MetaTrader, individuals who open an account with an MT5 broker can download the MT5 desktop or mobile app or use the web version for their trading activities. These companies usually have a server listed on the MetaTrader app. When clients connect to the server and enter their login details, they will have access to all the charting tools and features on MT5 for their trading activities.
Factors to Consider when Choosing an MT5 Broker
As part of our article on the best MT5 brokers, we outline some essential criteria users must consider before selecting a MetaTrader-compatible trading service.
Regulations
When choosing between MT5 brokers, you must conduct sufficient research to ensure that they are well-regulated by recognized bodies in the regions where they operate. Examples of popular regulatory organizations include the Financial Conduct Authority (FCA), the Australian Securities and Investment Commission, and the Cyprus Securities and Exchange Commission (CySEC). Brokers under these authorities are forced to comply with strict guidelines that guarantee transparency and protect their clients from fraud or price manipulation.
Fees and Commissions
There are many financial services companies available, each one offering several financial instruments to clients. However, as you sort through a list of MT5 brokers to select the best fit, you must consider their pricing plans. The best MT5 brokers are not just reliable and highly regulated. They also provide a broad selection of assets at an affordable price. Ensure you pick a trading service that offers lower commissions, spreads, and other trading and non-trading charges compared to its competitors without compromising customer service.
Execution Speed
Another factor to consider when you compare MT5 brokers is their order execution speed. Order execution speed is the duration between when you place an order and when it is executed. Most brokerage companies provide this information on their website, and the time can be as fast as a few milliseconds. Quick execution is crucial to avoid losses due to slippage.
Trading Instruments
Not all MT5 brokers offer the same number or range of financial assets. For example, you might find a broker that provides many types of assets, such as Forex, Cryptocurrencies, Stocks, Commodities, and Indices. However, they may only offer a few instruments under each asset class. On the other hand, some financial service providers may also have a limited number of assets. The best MT5 brokers usually list various asset classes with several options under each category.
Leverage
The amount of leverage a broker can offer depends on many factors, including their regulatory bodies. MT5 brokers that allow clients a very high leverage give them more exposure to the market. However, this can equally lead to severe losses as it is a double-edged sword. Depending on your risk appetite, you must choose a broker with sufficient leverage for margin trading on your account.
Spread
Spread refers to the difference between the bid and ask price of an asset. It is broadly considered one of the most essential trading fees. Depending on how they finance their operations, MT5 brokers can profit from the spreads on their listed financial assets. These spreads typically vary from broker to broker, with some companies offering spreads as low as 0 pips. Along with the other factors mentioned, it is vital to consider how broad or narrow their spreads are before you open an account with any trading company.
Trading Platforms
Many brokers that offer MT5 also have an exclusive trading platform for their clients. Regardless of whether the MT5 app is your primary option for trading, it is essential to check if your broker of choice has a well-designed proprietary app. Evaluate the user interface and charting tools and ensure that they are adequate. Also, confirm if these trading platforms are available on mobile and desktop.
Reputation
The best MT5 brokers have been around for a long time and have built an excellent reputation. A trading company’s reputation is a trustworthy indicator of its quality of service and reliability. You are less likely to be a victim of unscrupulous activities when you register an account and deposit funds with a popular and well regulated broker.
Trading Instruments Available on MT5 Brokers
As explained earlier, MT5 brokers offer a more comprehensive range of instruments than their counterparts who only support the MT4 platform. Some assets you can trade on MT5 include stocks, forex, commodities, indices, cryptocurrencies, and ETFs.
Stocks
MT5 brokers allow their clients to participate in the stock market. These financial investment companies offer access to popular exchanges in various countries, such as NASDAQ, the New York Stock Exchange (NYSE), Euronext Paris, Borsa Italiana, and the London Stock Exchange (LSE). On MT5, traders can place orders on shares from established companies, including Google, Meta, Tesla, Apple, and Amazon.
Forex
Forex is one of the assets offered by MT4 and MT5 brokers. The best forex brokers for MT5 provide users with numerous currency pairs, including major, minor, and exotic pairs. For example, IC Markets lists EUR/USD, AUD/CHF, GBP/USD, and over 60 other currencies on its MT5 platform.
Commodities
Traders can find Brent Crude Oil, Cocoa, Coffee, Wheat, Sugar, and other commodities on the MT5 platform. Many MT5 brokers list several commodities, and clients can trade any of these items on the MetaTrader web, desktop, or mobile application.
Indices
In addition to all the assets already listed, the best MT5 brokers provide indices such as NASDAQ100, S&P500, Nikkei 225, and CAC 40. For instance, IC Markets, Admiral Markets, and ActivTrades offer traders 23+, 40+, and 25+ indices, respectively.
Cryptos
Cryptocurrencies are not very common among most brokers. However, the MetaTrader 5 platform supports crypto trading, and some MT5 brokers offer this asset. Examples of investment companies that provide crypto instruments include Admiral Markets and ThinkMarkets.
ETFs
Like stocks, MT5 brokers also permit traders to place orders on exchange-traded funds (ETFs). Clients with live accounts with these brokers will have access to ETFs such as the iShares 20+ Year Treasury Bond ETF, iShares Russell 2000 ETF, and SPDR S&P Regional Banking ETF.
MT5 Trading Platforms
The MT5 software runs on all desktop operating systems, including Mac, Windows, and Linux. It is also available on the Android and iOS mobile OS. Traders required to access their broker’s service via this platform can do so via the MetaTrader web application or download the MT5 desktop or mobile application. After opening a trading account with their preferred service, clients can visit www.metatrader5.com to get started with their preferred option. Below, we discuss some features of the MT5 desktop platform and mobile application.
MT5 Desktop Platform
The MT5 desktop platform can be downloaded on the software company’s website. It offers premium features and exceptional charting tools for technical analysis. Furthermore, unlike the mobile version, this application allows users to view multiple charts in one window. Here, as part of our review of the best MT5 brokers, we outline a few of the functionalities of this platform.
User Interface
MT5 on desktop can be considered slightly complex, especially for traders more familiar with the MT4 version. Despite this, the user interface is straightforward and has a short learning curve, even for first-time users. The tabs and buttons are self-explanatory, and navigation between charts and timeframes is easy.
Design
Upon opening the MT5 app on the desktop, traders will see various sections, including market watch, calendar, history, news, mailbox, and charts. They can also view up to four charts on a single screen and use multiple indicators.
Economic Calendar
The economic calendar is one of the features on MT5 that is not available in its previous version. From the toolbox section, clients of MT5 brokers will have access to news on upcoming events that can potentially shape price action.
Notifications
Notifications inform traders when a predetermined event, for example, the close of a trade, has occurred. MT5 users on desktop will often be alerted when specific activities that require prompt action happen on their account.
Indicators
MT5 brokers offer their clients 38 in-built indicators. These include Simple Moving Averages, Bollinger bands, Oscillators, Fibonacci retracement, and MACD. However, in addition to these options, users can download and install custom indicators on the MT5 app.
MT5 App
Clients of MT5 brokers who wish to download this application on their mobile devices can do so by visiting www.metatrader5.com or going directly to their device’s app store. MetaTrader 5 is available to Android and iOS users and provides a convenient way for traders to monitor the financial markets and place orders. Below, we cover some of the features offered on the MT5 mobile app.
User Interface
Although the MT5 desktop application’s more expansive view makes for a better trading experience, the mobile version performs strongly. Depending on a trader’s device, they will experience little or no lags while scrolling through charts and can quickly begin trading all assets offered by their broker.
Design
MT5 for mobile is built for quick and easy navigation. Each of the five tabs (Quotes, Charts, Trade, History, and Settings) is displayed at the bottom of the screen and can be accessed with a single click. Furthermore, the color scheme is excellent, and clients can easily read the fonts.
Indicators
Like MT5 for desktop, this mobile application provides 38 built-in indicators for technical analysis. Traders who use brokers offering MetaTrader 5 can plan their market approach and make better-informed decisions by relying on the advanced charting tools offered on the MT5 mobile app.
Search
With the search feature, traders can quickly find their preferred instrument. Rather than scroll through a long list of financial assets, clients can type in the instrument they are looking for and place an order within seconds.
Fees and Commissions on MT5 Brokers
Individuals trading on the MT5 platform will be required to pay specific fees. These fees depend on the broker and can be categorized into trading and non-trading costs. Some MT5 brokers have excessive costs, while others are relatively affordable. However, these are some fees you may incur when trading with an MT5 broker.
Spreads
Spreads are the most common fee incurred by clients. Spreads available to clients vary based on several factors, including their account type. Furthermore, some financial investment companies offer fixed spreads, while others provide variable spreads. This figure is often stated on the broker’s website.
Commissions
Commissions are a fixed fee that is charged on each trade. Usually, an MT5 broker may charge different commissions to clients depending on the asset being traded. Also, like spreads, the amount incurred as a commission can be based on the trader’s account type.
Swap Fees
Swap fees are also known as rollover rates, and MT5 brokers charge them at the end of every trading day to traders who hold positions through the night.
Currency Conversion Fee
Currency conversion costs are incurred when traders deposit or place trades in a currency denomination that varies from their account base currency.
Inactivity Fee
Most MT5 brokers charge clients a small fee if their live accounts are unused for a specific period. The exact amount and eligibility for this charge varies from broker to broker.
Deposit and Withdrawal Fee
Deposit and withdrawal fees are fixed amounts traders incur each time they fund or retrieve money from their live accounts. Not all MT5 brokers demand a fee for deposits and withdrawals. Furthermore, in some cases, this fee will depend on the payment method used.
Payments Methods Available on MT5 Brokers
Many MT5 brokers list various funding options, including credit cards, debit cards, bank wire, Skrill, Neteller, POLi, crypto, Google Pay, and Apple Pay. However, not all funding methods provided by these companies are available in every region. Each of these payment methods also has varying transaction times. For example, while eWallet deposits may reflect almost instantly, bank transfers typically take at least 24 hours to reflect in a trader’s account.
MT5 Brokers Regulation
Regulation is a vital aspect of any MT5 broker’s operations. Numerous organizations monitor the operations of financial investment companies across various countries. Nevertheless, these organizations have different reputations in terms of their overall credibility. A license from one or multiple tier-1 regulatory bodies is generally seen as a positive signal and is a common feature of the best MT5 brokers. Some of these tier-1 organizations include the Australian Securities and Investment Commission (ASIC), the Financial Conduct Authority (FCA), the Japanese Financial Services Authority (JFSA), and the Cyprus Securities Exchange Commission (CySEC). While many MT5 brokers are regulated by less credible regulatory bodies, clients who open an account with these companies are at higher risk for fraud.
MT5 Vs MT4
MT5 was released five years after MT4 and advertised as a faster and more efficient trading platform for users. Each application has its strengths and weaknesses, and traders can opt for either, depending on their unique needs. MT4 was initially created predominantly for forex trading. Therefore, its charting tools and features are not as robust as those of the MT5 app. MT5 provides 38 built-in indicators compared to the 30 available on MT4. It also displays 21 timeframes, while its predecessor only offers 9. However, one of the most significant differences between both versions of MetaTrader is that MT5 gives traders access to more instruments in every asset class, including forex, stocks, options, and crypto. In addition, the in-built economic calendar feature is only available on MT5.
Despite the glaring differences between these applications, they share some similarities. First, both apps have a similar user interface. Furthermore, they support hedging and algorithmic trading.
Are MT5 Brokers Safe?
While there are many reliable MT5 brokers, you must also beware of fraudulent companies. The safety of an MT5 broker depends on several factors, including regulation, financial procedures, and availability of insurance. MT5 brokers that are considered trustworthy are usually regulated by a reputable organization. Furthermore, they have strict guidelines protecting client funds, such as incorporating segregated accounts. In addition, some companies provide insurance coverage on their listed financial assets and negative account balance protection.
What Reddit and Quora Say About MT5 Trading Platform & App
Here, we offer insights into what clients are saying about MT5 brokers on popular web platforms like Reddit and Quora.
Reddit
Most Reddit users have similar opinions about the advantages of opting for an MT5 broker. They believe that although trading with MT4 is more straightforward, the MT5 platform’s support for more advanced charting capabilities makes it an excellent choice for individuals with some trading experience. Several Redditors also mentioned that MT5 brokers are valuable for traders who wish to incorporate automated trading with bots. They claim that the platform provides faster back-testing with cloud software. Overall, the general sentiment for MT5 brokers on this forum is very positive.
Quora
Like Reddit, Quora users also have wonderful things to say about the MT5 platform. However, many accounts expressed concerns over what they believed to be an increased layer of complexity with the trading app. Also, some traders complained about glitches, especially when using the available MT5 charting tools. Despite this, most comments on Quora praise MT5 brokers for their fast execution and low spreads.
Bottom Line
In this article, we explored the features of the best MT5 brokers. We also discussed some factors to consider before selecting an MT5 broker and highlighted the differences between the MT5 platform and its predecessor, MT4. Trading with an MT5 broker provides access to multiple trading instruments such as forex, cryptocurrencies, stocks, bonds, and options. Many companies support MT5, including AvaTrade, ThinkMarkets, IC Markets, and Pepperstone. All these companies allow traders to participate in the financial markets via their desktop or mobile devices.