Written by Anthony Merrow from ForexTime on behalf of MT5.
In South Africa, online forms of trading are on the rise. The country is the continental leader with the biggest daily volume. The pandemic has boosted interest in remote tools like the almighty MetaTrader 5 platform or its previous version. This powerful environment has all you need to make money in the largest financial markets. Discover its key features below.
1. A Multi-Asset Environment
MetaTrader 5 is your one-stop-shop for trading across markets. The platform is perfect for users who want to create diverse portfolios. Limit your risks and boost potential profits by engaging the following instruments:
- currency pairs (major, minor, and exotic);
- spot metals (gold and silver);
- stocks of the largest US corporations like Facebook or Amazon;
- CFDs on stocks;
- CFDs on commodities like crude oil or wheat;
- CFDs on market indices;
- CFDs on cryptocurrencies like Bitcoin or Ethereum;
The range of assets allows direct and indirect ways to benefit from shares. On the one hand, you may purchase stocks with a Stocks Account from Forextime. On the other hand, you may capitalise on their prices indirectly through affordable derivatives (CFDs).
All instruments may be traded on margin. The broker will lend a portion of funds to reinforce your purchasing power. As a result, you may be able to trade $10 000 worth of currencies when there is just $100 in your account. The ratio varies depending on the policy of your provider. For example, it is the most limited for stocks (1:2). Meanwhile, some currency accounts provide leverage of 1:100.
2. Fundamental and Technical Features
When traders conduct analysis, they may focus on different aspects. These depend on the nature of each market. First, there is a range of fundamentals.
Suppose your sphere is Forex trading. You should track changes in economics and politics of the countries whose currencies you buy and sell. For example, falling oil prices depreciate the currencies of exporting nations. Higher interest rates attract more foreign capital, so the local systems get a boost.
Overall, there are a plethora of factors to bear in mind. MT5 summarises the most important announcements for your convenience. Its economic calendar is an invaluable tool for any fundamental trader.
Meanwhile, other users expect a range of adjustable charts. Technical analysts examine price patterns. Common trajectories like the Morning Star or the Hammer show them where the price is likely to go next. The premise is that nothing is random in the market. Any movements are regular or cyclical. To see them, you need to focus on different segments of the chart.
MetaTrader 5 has a stunning number of timeframes — 21. In comparison, there are only nine in MetaTrader 4. Traders may also choose a visualisation format for extra information, such as tick volume, OHLC, last price, etc.
3. Flexible Order System
Market Depth allows you to get prices closest to the market. Trades and orders are registered differently. The latter are registered based on the netting method or the hedging system. All types of orders are supported, and they may be executed in four different ways:
- Market, and
- Exchange execution.
Users limit their risk by setting the Stop Loss triggers. When a particular price is reached, their trades are executed automatically. There is also a changeable trigger — the trailing stop. It moves along with the asset’s market price, allowing a higher profit.
4. Copy Trading Features
Users of MetaTrader 5 may connect to experts who make decisions for them. Known as copy trading, this service is offered by global brokers in South Africa. The logic is simple: you choose a strategy manager, the company connects you, and all of their decisions are replicated in your account. Meanwhile, you retain control of your finances with a right to cancel separate trades or the connection altogether.
For beginners, it is a popular way to learn and see popular strategies in practice. Their experienced peers also delegate. They save time and continue trading when they cannot do a thorough analysis themselves.
5. Algorithmic Trading
MetaQuotes Software has developed a plethora of robots. The platform comes with a set of free EAs (Expert Advisors), and you can always buy or rent more. At the moment, there are over 1 700 options on the official market.
The software may work on your behalf, analysing the market and placing trades according to preset parameters. The system will receive trading signals and execute positions while you sleep. However, EAs are not infallible, so they must be used with caution.
All in One
MT5 is one of the most advanced and versatile systems for online raiders. It supports all popular instruments and more. With a regulated broker, you can explore its features for free — just open a demo account and start learning!