MetaQuotes Software recently changed its pricing model to make MT5 a more attractive option whilst stopping its MT4 support. MT4 brokers began offering MT5 in greater numbers, and I have conducted an in-depth review of MT5 brokers.
Since MT5 is the trading platform and not a broker, traders must carefully evaluate the trading conditions which will vary from providers to provider and this guide should help decide who can offer the best possible solution based on individual requirements. We also outline the MT5 core features, cover the differences between MT4 and MT5, and highlight the pros and cons of MT5.
- FXTM, Best all-around broker with high floating leverage and fast execution.
- Pepperstone, Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platform.
- FP Markets, ECN trading with leverage up to 1:500.
- Eightcap, Competitive pricing + excellent daily videos.
- BlackBull Markets, Best ECN trading environment, with scalping and hedging.
Best MetaTrader 5 Brokers Comparison
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Regulators | CMA, CySEC, FCA, FSC Mauritius, FSCA | ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB | ASIC, CMA, CySEC, FSCA | ASIC, CySEC, FCA, SCB | FMA, FSA |
Year Established | 2011 | 2010 | 2005 | 2009 | 2014 |
Execution Type(s) | ECN/STP, Market Maker | No Dealing Desk, NDD | ECN/STP | ECN/STP, Market Maker | ECN/STP, No Dealing Desk |
Minimum Deposit | |||||
Average Trading Cost EUR/USD | 0.1 pips | 1.1 pips | 1.2 pips | 1.0 pips | 1.3 pips |
Average Trading Cost GBP/USD | 0.2 pips | 1.4 pips | 1.4 pips | 1.2 pips | 2.0 pips |
Average Trading Cost Gold | $0.18 | $0.15 | $0.16 | $0.12 | $0.90 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, Proprietary platform | Other, MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Trading View+ | MetaTrader 4, MetaTrader 5, cTrader, Proprietary platform, Web-based | MetaTrader 4, MetaTrader 5, Trading View | MetaTrader 4, MetaTrader 5, cTrader, Trading View |
Islamic Account | |||||
Negative Balance Protection | N/A | N/A | |||
| Visit Website | Get Started Visit Website75-95% of traders on margin lose | Visit Website | Visit Website | Visit Website |
FXTM
In Summary Best all-around broker with high floating leverage and fast executionFXTM ranks amongst the most competitive MT5 brokers due to its ultra-competitive commission-based pricing environment. Traders in the FXTM Advantage account - which requires a $500 minimum deposit, get raw spreads from 0.0 pips, and pay a commission between $0.80 and $4.00 per 1.0 lot. Active traders benefit from an average execution time of 0.072 seconds and a price improvement where applicable, further enhancing the cost benefits.
Beginners can learn the basics of trading through access to high quality educational content and benefit from actionable trading signals. FXTM also developed its FXTM Trader app for mobile traders.
Pros & Cons
- Excellent commission-based Forex pricing environment and transparency
- Upgraded MT4/MT5 trading platforms plus proprietary mobile trading app
- Quality market research and educational content for beginner traders
- A highly regulated broker with a tier-1 license
- No cryptocurrencies and limited choice of commodities
Pepperstone
In Summary Great ECN execution on MT4/5, cTader, TradingView and Pepperstone proprietary platformI rank Pepperstone among the best MT5 Forex brokers as it upgrades MT5 with the 28-plugin Smart Trader Tools package and Autochartist. Traders can benefit from NDD order execution with an average execution speed of 30 milliseconds. Commission-based trading fees start from raw spreads of 0.0 pips for a commission of $7.00 per 1.0 standard round lot. A volume-based rebate program decreases final costs for active traders.
Copy traders can use the embedded MT5 copy trading service or third-party providers Signal Start, Copy Trading by Pepperstone and DupliTrade. Traders receive a well-balanced asset selection of 1,500+ CFD assets, including Forex, equities, cryptocurrencies, and ETFs.
Pros & Cons
- Excellent choice of trading platforms consisting of MT4/MT5, cTrader, TreadingView and Pepperstone Platform
- Market-leading MT4/MT5 upgrade package, Autochartist, and API trading
- Social trading support via Signal Start, MetaTrader Signals, Copy Trading by Pepperstone, DupliTrade
- Leverage of up to 1:400 depends on jurisdiction and superb trade execution
- Demo accounts have 60-day time limits
FP Markets
In Summary ECN trading with leverage up to 1:500FP Markets upgrades the out-of-the-box MT5 with twelve plugins, and the popular Autochartist and Trading Central. It creates a competitive trading environment for manual traders, making it one of the leading MT5 brokers. NDD order processing, no requotes, high leverage and deep liquidity ensure clients have an edge when it comes to execution. Algorithmic traders get VPS hosting for low-latency, 24/5 market access.
Traders benefit from a competitive commission-based pricing environment with spreads from 0.0 pips and a separate commission ticket fee of $6.00 per round lot. There are also an impressive 1,000+ tradable instruments across asset classes. MAM/PAMM accounts cater to traditional account management services, while beginners can benefit from quality research, actionable trading signals, and educational content. Copy traders can use the proprietary FP Markets Copy Trading solution, Myfxbook Autotrade, or the embedded MT5 copy trading services.
Pros & Cons
- Choice of trading platforms and auxiliary trading tools
- Very competitive cost structure and excellent asset selection
- Low minimum deposit requirement and leverage of up to 1:500
- Well-regulated and trustworthy
- Availability of Iress geographically restricted
Eightcap
In Summary Competitive pricing + excellent daily videosEightcap is one of the top MT5 brokers, it features artificial intelligence system Capitalise AI, enabling the automation of strategies in a code-free environment. This unique trading tool, MT5 and Cryptocrusher (a dedicated cryptocurrency solution), makes Eightcap a highly competitive multi-asset broker. The 800+ trading instruments include 250+ cryptocurrency CFDs, and the commission-based pricing environment sees spreads as low as 0.0 pips for a competitive commission of $7.00 per round lot.
The MAM/PAMM module is available for licensed account managers, and Eightcap connects to the TradingView community with 30M+ members. Offering traders’ access to countless trading ideas, strategies, and discussions. Other highlights include VPS hosting, high leverage, deep liquidity, and superb order execution statistics able to support demanding algorithmic traders. A lucrative partnership program caters to passive income seekers at Eightcap.
Pros & Cons
- Low minimum deposit and high leverage of up to 1:500
- Competitive cost structure
- Excellent technology infrastructure and seasoned management team
- Daily research and quality educational content
- Limited leverage in some areas
BlackBull Markets
In Summary Best ECN trading environment, with scalping and hedgingBlackBull Markets maintains a superb trading infrastructure and a huge 26,000 tradable instruments from its MT5 trading platform, placing it amongst the leading MT5 brokers. Demanding traders can get FIX API access, supporting third-party connections to the trading infrastructure and deep liquidity at BlackBull Markets. BlackBull Social, ZuluTrade, Myfxbook Autotrade, and embedded MT5 services support copy trading. Traders can connect to the active TradingView community with 30M+ traders and Autochartist upgrades MT5.
VPS hosting is available but requires the ECN Prime account which has a minimum deposit of $2,000. As far as trading costs go it is a competitive commission-based pricing environment with spreads from 0.1 pips for a commission ticket fee of $6.00 per 1.0 round lot. The ECN Standard account features reasonable spreads and commission-free costs without a minimum deposit requirement.
Pros & Cons
- ECN/NDD execution model with deep liquidity
- Institution-grade pricing for retail traders via proprietary price aggregation
- ZuluTrade and Myfxbook for social trading
- Leverage of up to 1:500
- Limited deposit options
Introduction to MetaTrader 5 and Its Significance in Trading
MT5, released in 2010, is a multi-asset trading platform, and InstaForex became the first broker to offer MT5 trading accounts. MT5 was supposed to succeed MetaTrader 4 (MT4), which MetaQuotes Software released in 2005. However, it failed to displace MT4, primarily due to the lack of backward compatibility. MetaQuotes Software spent 2013 and 2014 completely revising the MQL4 programming language to reach the level of MQL5. From build 600, MQL4 and MQL5 use the unified MetaEditor, which saw an increase in MT5 development but notably still trails MT4.
Some new entrants to the ultra-competitive brokerage market became exclusive MT5 brokers. Like MT4, MT5 fully supports algorithmic trading, which accounts for 80%+ of daily Forex trading volumes. MetaQuotes Software stopped supporting and updating MT4 to slowly force a switch to MT5, which could make MT5 the leading retail trading platform by the end of this decade.
What Is MetaTrader 5 (MT5)?
MT5 is a multi-asset trading platform, which, like MT4, fully supports algorithmic trading but includes upgrades and improvements over its predecessor. It also has an embedded copy trading platform. MT5 is available as a powerful desktop client, a lightweight web-based option, and a mobile app. MT5 has failed to displace MT4 and is a distant second choice to the older platform but more popular than the next popular platform choice, cTrader. Since MetaQuotes Software suspended MT4 support, MT5 is gaining ground and could become the leading algorithmic trading platform in the next five to ten years.
With hundreds of millions in development on 25,000+ MT4 custom indicators, templates, and algorithmic trading solutions, over twice the amount for MT5, existing traders, including asset managers, saw no reason to redevelop, repurchase or reinvest in MT5. It changed with build 600, which started to boost MT5, but it has a long way to go, given the time-tested and versatile MT4 trading infrastructure.
Notable MT5 upgrades and improvements over MT4
- Tooltips, next to trade execution buttons, display the number of units, showing traders the value of the trade
- Market depth information in the terminal window
- Expanded time frames to 21
- Trade volumes are now displayed alongside the asset price of new positions.
- More technical indicators
- Traders can convert EAs and indicators built with MQL4 for use with MT5
- New statistical functions in the Standard Library.
- Advanced settings in the strategy tester.
- The MT5 mobile app chat function to engage with other members of the MT5 community
How to Use the MT5 Platform Effectively
Traders can use the MT5 powerful desktop client, a lightweight web-based option, and a mobile app.
Below are my tips on using the MT5 platform effectively.
Desktop Trading Platform
- Download and familiarize yourself with the out-of-the-box version
- Consider the third-party trading tools, including Capitalise AI for code-free algorithmic trading, Autochartist and Trading Central for beginner research and actionable trading recommendations
- Evaluate signal providers from the embedded MT5 copy trading service or third-party sources like ZuluTrade, Myfxbook Autotrade, DupliTrade, and Signal Start in a demo account
- Browse custom indicators and templates or create your own
- Code your trading strategy into an EA and use VPS hosting to trade Forex 24/5
Mobile App
- Install the mobile app and learn its functions
- Use the mobile app if you plan on managing your portfolio via third-party signal providers
- Get up-to-date information and breaking news while on the go
- Do not use your mobile app to analyze markets and place trades manually
Web-based Platform
- Log into your MT5 trading platform from any device
- Manage your portfolios
- Analyze markets and execute manual trading strategies
- Avoid crowded spaces and shared computers
Choosing the Best MT5 Broker: Key Factors to Consider
Before traders open an account with an MT5 broker, they should consider the facts below to ensure they open the appropriate trading account and use the best MT5 version.
Who Is MT5 Best For?
MT5 is slowly gaining ground on MT4 and could become the industry-leading trading platform by the end of this decade.
As a multi-asset trading platform, the MT5 choice of trading instruments depends on the MT5 broker. It usually includes Forex, commodities, indices, and equities but can also feature cryptocurrencies, physical stocks, ETFs, options, futures, bonds, and synthetic assets.
MT5 is suitable for beginners, seasoned traders, algorithmic traders, copy traders, and asset managers, as the MT5 trading infrastructure mirrors MT4 and supports API trading and extensive upgrades and modifications.
Pros and Cons for Each MT5 Version
MT5 Platform | Pros | Cons | Best For |
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Desktop |
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Web-based |
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| Casual traders who use multiple devices |
Mobile app |
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| Copy traders |
MT5 Trader Types, Instruments, and Suitability
Beginners | Seasoned Traders | Algorithmic Traders | Copy Traders | Asset Managers | |
|---|---|---|---|---|---|
Forex | Yes | Yes | Yes | Yes | Yes |
Commodities | No | Yes | Yes | Yes | Yes |
Indices | Yes | Yes | Yes | Yes | Yes |
Equity CFDs | No | Yes | Yes | Yes | Yes |
Cryptocurrencies | No | Yes | Yes | Yes | Yes |
Physical Stocks | No | Yes | Yes | No | Yes |
ETFs | Yes | Yes | Yes | Yes | Yes |
Options | No | Yes | Yes | No | Yes |
Futures | No | Yes | Yes | No | Yes |
Bonds | No | Yes | Yes | No | Yes |
Synthetic Assets | No | Yes | Yes | No | Yes |
Ensuring Safety: How to Find a Reliable MT5 Broker
I always recommend trading with a regulated broker and avoiding unregulated brokers irrelevant to their offer. I advise traders to pick an MT5 broker with 10+ years of operational experience and a clean regulatory track record. Traders can check the regulator’s database and check if the broker has a history of misconduct and fines. The best Forex broker for MetaTrader 5 depends on individual preferences and requirements.
Understanding Fees: What to Expect from an MT5 Broker
Traders will pay frequent trading fees and less frequent non-trading fees. Trading fees determine the competitiveness of the trading environment and reveal which strategies a broker actively supports and discourages passively. Trading fees are the most defining aspect of a broker, as they directly impact profitability.
Trading Fees
- Spreads (the difference between the bid and the ask price, which should not exceed 0.7 pips per lot for major currency pairs in a commission-free pricing environment or raw spreads from 0.0 pips in commission-based alternatives)
- Commissions (if applicable, charged per transaction, should not exceed $7.00 per 1.0 standard round lot for Forex or 0.10% for equities)
- Swap rates (charged on leveraged overnight positions)
- Currency conversion fees (currency conversion fees apply each time a broker exchanges one currency for another, including trading. For example, traders buy a Euro-denominated asset in a US Dollar base account)
Non-trading Fees
- Deposit fees (when traders make a deposit, competitive brokers do not charge internal deposit fees)
- Withdrawal fees (when traders request a withdrawal, competitive brokers do not charge internal withdrawal fees)
- Inactivity fees (when traders are inactive for a certain period, competitive brokers do not charge inactivity fees)
- Currency conversion fees (when the account base currency and the withdrawal currency differ)
Selecting the Right Forex Brokerage Account for MT5
MT5 brokers offer various Forex brokerage account types.
Traders should consider the pros and cons of trading with each type to identify the MT5 account that can best meet their requirements.
Account Type | Pros | Cons | Best For |
STP - Client orders are routed directly to liquidity providers |
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ECN - Client orders are matched to prices from several anonymous liquidity providers |
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Dealing desk - Clients trade with the broker’s order book, with the broker the direct counterparty |
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DMA - Clients trade directly with the interbank market participants |
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Here is my verdict:
- Traders should avoid dealing desks, as they have higher fees
- STP is an execution protocol that is present at ECN and DMA brokers
- ECN is ideal for algorithmic traders
- DMA is best for high-volume traders
MT5 Demo Account
MT5 demo accounts allow beginners to test MT5, but they must consider its limitations as an educational tool, like the lack of exposure to trading psychology. Many traders face immediate live portfolio losses after profitable demo trading due to the relationship between trading psychology and how it influences trading.
Seasoned traders can evaluate trading conditions, test new strategies, and tweak existing ones. Algorithmic traders can bug-fix and test their trading solutions, while copy traders can evaluate trading signal providers.
Deciding on Leverage Levels in MT5 Trading
Leverage is a ratio, with the industry standard for major currency pairs at 1:500, meaning that for $1, traders can transact $500. Traders often increase the lot size without adjusting their risk management, which causes heavy losses. Risk management defines your maximum loss. For example, if you have a $5,000 portfolio and set a maximum acceptable loss of 2% or $100, leverage of 1:1 or 1:unlimited does not alter the 2%.
Therefore, traders must understand the risk management-leverage relationship and comprehend the impact of lot sizes on risk management. Once traders understand both concepts, they can safely trade with the maximum available leverage.
Evaluating MT5 Offerings: Essential Features, Pros and Cons
Despite varying requirements among Forex traders, the best MT5 Forex brokers share similarities in their core trading environment to maintain a competitive edge.
Features of Competitive MT5 Forex Brokers
- Regulation - A clean regulatory record exceeding 10+ years.
- Low trading fees - Low Forex trading fees, with the EUR/USD not exceeding costs of $7.00 per 1.0 standard round lot or 1.0 pips.
- Trading platforms - MT4 or MT5, as they support algorithmic and copy trading and include a user-friendly mobile app.
- Asset diversity - A balanced asset selection for increased trading opportunities and profit potential.
- Deposits/Withdrawals - No internal transaction fees and low minimum requirements with a choice of e-wallets and preferably cryptocurrency deposits and withdrawals.
Traders should also consider the pros and cons of MT5 before downloading it.
The Pros of MT5
- Algorithmic trading platform
- Embedded copy trading service
- VPS hosting for 24/5 low-latency Forex trading
- API trading for advanced algorithmic traders
- 10,000+ custom indicators, templates, and EAs
- Connectivity to third-party trading tools
The Cons of MT5
- Availability is limited compared to MT4
Conclusion: Making an Informed Decision on MT5 Brokers
MT5 is the up-and-coming trading platform set to displace MT4 slowly. It caters to all trading requirements, and the out-of-the-box solution is identical for all traders. Brokers that use MT5 create a difference in the competitiveness of the trading environment via trading fees and account types. Traders should avoid dealing desks and trade with ECN/STP brokers for MT5. Trading fees are the most defining aspect of a broker, as they directly impact profitability. Therefore, traders should evaluate them before opening an account with Forex brokers that offer MT5 while avoiding unregulated brokers at all costs.
