How to trade with MetaTrader 5: The basics of trading on a market
Trading stocks, bonds, ETFs, futures contracts — whatever your trading preference might be, there’s a tool out there that’s right for you. MetaTrader 5, or MT5 as it’s commonly known, is perfect for traders because it has everything they need to trade efficiently.
MetaTrader 5 is an EA-free trading platform designed specifically for forex and CFD trading. The MT5 interface is intuitive and easy to use, while still offering all the features advanced traders look for when conducting their trades. This makes the MT5 platform ideal for beginners as well as experienced traders looking to expand their trading horizons. In this MetaTrader 5 tutorial, we will explore the basics of trading on a market and how you can get started.
MetaTrader 5 basics
The MetaTrader 5 platform is a digital trading platform for individuals, institutions, and corporations. It offers many advanced trading features that enable you to easily execute trades and analyse your results:
- Trading account. All traders must start by opening a trading account. This is the account where you will store the funds that are used to carry out trades. It doesn’t matter if you only have small amounts of money to trade, you will always need a trading account to keep your funds safe.
- Trading account provider. There are many trading account providers out there, but most of them offer the same basic features. The difference between one provider and another lies in the support, trading features, and account fees.
- Trading instruments. Once you have an account, the next thing to do is to choose your trading instruments.
- Trading strategies. The final step is to choose a trading strategy for your account.
How to open a trading account
Before you can start trading, you will need to open a trading account. There are several advantages to opening a trading account at MT5 rather than building a strategy and trading account yourself.
- Dedicated account manager. The main reason to open a trading account with a forex MetaTrader5 platform is the dedicated account manager. The manager is there to assist you with all aspects of your trading, from helping you choose a trading platform and trading account to providing technical and trading support.
- Liquid funds. When you open a trading account directly with a platform, you typically can hold other people’s trading account funds. This is known as “liquid funds.”
- Deposit/withdrawal limits. MT platforms typically have higher deposit and withdrawal limits than online brokers or online forex trading platforms. This means greater flexibility when trading.
How to set up a trading strategy in MT5
Once you have your trading account and trading platform set up, the next thing to do is to set up a trading strategy. It is essential to note that different strategies are suited to different trading styles, but all strategies will require you to pick instruments to trade.
- Create a trading strategy. Before you start trading, you will need to set up a trading strategy. They are specifically designed trading rules that govern how your trading account is used and adjusted according to the trading results of the strategy.
- Pick a strategy. Once you have a trading strategy set up, you can then begin trading. Each strategy has a specific trading frequency and trading pair.
Where to trade in MT5?
Once you have your trading account and trading strategy set up, the next thing to do is to choose where to trade. There are many different places you can trade, such as a forex broker/platform, online broker, or online trading platform.
- Online brokers and online forex trading platforms. They offer several advantages over forex brokers/platforms. One of the main advantages of online brokers and forex trading platforms is their access to a wider range of trading instruments, charting, and tools. This can help you better monitor and analyse your trading results.
- Offline brokers and dealers. They are typically only open during set hours and days of the week. This can make it challenging to trade during weekends or on days when work or school is closed.
Virtual trading platforms give you the power to trade stocks, futures, ETFs, and other securities from your computer or mobile device. The virtual trading market has grown exponentially over the past few years, but it still has a long way to go. MetaTrader 5 (MT5) is one of the most popular virtual trading platforms available today. As such, it’s also one of the best places to learn how to trade with a market if you want to increase your trading profits in the long term.
You now know the basics of how to trade on a market and what is involved in setting up a forex trading account. If you would like to begin trading forex, know that the MetaTrader 5 platform is perfect for forex traders.