What is MetaTrader 5?

MetaTrader 4 (released 2005) remains widely used despite MT5 being the official successor. Key differences:

Asset coverage: MT4 was forex-focused; MT5 adds native support for stocks, CFDs, futures, and centralised exchanges. For pure forex trading, the difference is minimal; for traders wanting to operate across asset classes from one platform, MT5 is the practical choice.

Order types: MT5 supports more order types including pending stop-limit orders, partial-fill handling, and FIFO accounting (required in some US-regulated jurisdictions). MT4's order model is simpler and adequate for most retail forex strategies.

Backtesting: MT5's Strategy Tester is substantially more powerful than MT4's. Multi-thread CPU optimisation makes large parameter sweeps feasible; tick data quality is higher; multi-currency testing works correctly. EA developers strongly prefer MT5 for testing.

Programming: MQL4 (MT4) and MQL5 (MT5) are similar but not identical. MQL5 is object-oriented (C++-style) with cleaner architecture; MQL4 is procedural (C-style). EAs typically need to be ported between the two languages, not just compiled to a different target.

Ecosystem: MQL5 Marketplace integration is much stronger in MT5. Signal copy services, code reviews, and product distribution are integrated into the MT5 terminal. MT4 has a similar ecosystem but with less integration depth.

Charting and analysis: MT5 ships with 80+ built-in technical indicators (moving averages, RSI, MACD, Bollinger Bands, etc.), 38 chart objects (trend lines, Fibonacci tools, channels), and multiple chart types (candlestick, OHLC, line). Custom indicators and chart objects can be developed in MQL5. Multi-timeframe analysis is standard with up to 21 timeframes from M1 through MN.

Expert Advisor support: any EA compiled to .ex5 binary can be attached to a chart with one click. EA settings (input parameters) are exposed in a dialog; presets can be saved as .set files for reuse across charts. EAs run continuously while MT5 is open, reacting to each new price tick on their chart's symbol.

Trading: market, limit, stop, and stop-limit orders with optional take-profit, stop-loss, expiration, and fill policy parameters. One-click trading via the Trading panel. Partial closes supported natively. Position-level vs ticket-level accounting depending on broker configuration.

Strategy Tester: backtest EAs on historical data with detailed result reports (P&L curves, drawdown analysis, trade-by-trade lists). Optimisation runs sweep parameter ranges to find configurations that performed well historically. Walk-forward testing supports robust validation.

Cloud features: VPS rental (the MetaQuotes Virtual Hosting service) for $10-$15/month with one-click migration. Signal copy service for following verified traders. Marketplace integration for purchasing EAs and indicators.

The path from zero to running a first EA in MT5:

Step 1: Download MetaTrader 5 from the MetaQuotes website or from your broker's download link. Brokers often distribute branded MT5 builds with their own server pre-configured. The free download includes everything — no licensing required.

Step 2: Open a demo account at any forex broker. Most brokers offer free unlimited demo accounts with simulated capital. Connect MT5 to the demo using the broker's MT5 server credentials.

Step 3: Explore charting and order entry on demo. Place a few manual trades to understand the order panel, position management, and journal logs. Familiarise yourself with the navigator panel (where EAs, indicators, and scripts live).

Step 4: Acquire an EA — from MQL5 Marketplace (free or paid), from a vendor's direct download, or by developing your own in MetaEditor. Copy the .ex5 file to MQL5/Experts/ folder in your MT5 data directory.

Step 5: Attach the EA to a chart, configure input parameters, and enable AutoTrading (the F12 button or 'AutoTrading' button in the top toolbar). The EA begins operating on each new price tick.

Step 6: Monitor via the Experts tab and Journal tab. The Experts tab shows EA-generated log messages; Journal shows platform-level events. Build operational familiarity before moving to live capital.

Forgetting to enable AutoTrading: the F12 toggle controls whether EAs are allowed to place trades. EAs run silently without trading if AutoTrading is off. Many 'EA not working' issues are this toggle.

Symbol mismatch: brokers name the same instrument differently. 'EURUSD' at one broker, 'EURUSD.r' at another, 'EURUSDpro' at a third. EAs that hardcode symbol names break across brokers. Use the chart's symbol (_Symbol) where possible.

Magic number conflicts: when running multiple EAs on one account, each must use a unique magic number identifier. Conflicts cause EAs to modify or close each other's positions. Document magic-number assignments centrally.

VPS time zone confusion: MT5 server time is broker-defined (often GMT+2 or GMT+3 with DST). Local time, server time, and UTC must be reconciled correctly for time-of-day strategy logic. Session-open EAs particularly affected.

Optimisation overfitting: the Strategy Tester's optimisation feature is powerful enough to overfit any parameter set. A 'best' parameter combination from in-sample optimisation rarely produces equivalent live results. Walk-forward optimisation is the disciplined alternative.