One platform that appears to be becoming popular among prop company traders is MetaTrader 5, or MT5 as most traders call it. You’ve most likely used or heard of MT4 if you’ve been trading for a while. For years, it has been the standard. However, things are changing, and more prop companies are moving to MT5. And honestly? It’s very logical.
The goal of MT5 is to give traders more tools, flexibility, and speed. It is not merely a minor improvement over MT4. MT5 can completely transform the game for funded traders at prop firms, where timing and accuracy are crucial.
Let’s examine the reasons for MT5’s popularity in the prop trading industry and why, if you haven’t already, you might want to give it some serious thought.
Speed Is Everything in Prop Trading — MT5 Delivers
Prop trading is quite stressful. Since you are handling the company’s capital, you are not playing with your own money and that comes with expectations. Companies want to trade quickly, accurately and profitably. The issue? Any type of delay, including lag or slippage, can negatively impact your bottom line more quickly than you can say “spread widening.”
MT5 was designed to be fast. It completes orders far more quickly than MT4 does. In prop trading, this might involve catching the intended entry rather than chasing the price. Whether you are swinging, scalping, or day trading, MT5’s execution speed keeps you one step ahead of the competition.
More Order Types = More Flexibility
There aren’t many kinds of orders in MT4. You only need the fundamentals: market, limit and stop. MT5 significantly increases your options.
With MT5, you get:
Buy Stop Limit
Sell Stop Limit
These aren’t only gaudy accessories. You can use them to establish deals that only go into effect when specific criteria are met, such as “Only buy if price first drops to X, and then rises back to Y.” Prop firm traders who have complicated techniques and strict risk parameters may find this to be invaluable. It provides you with an additional level of control over your transactions.
Multi-Asset Capability — Not Just Forex Anymore
The multi-asset nature of MT5 is another significant advantage. Although many prop traders focus on forex, several companies now provide exposure to equities, commodities, indices and even cryptocurrency.
You may use MT5 to manage all those assets from a single platform. There is no need to log in to several dashboards or move between terminals. MT5 is your best bet if your prop firm allows you to access multiple markets. That is significant for traders who wish to protect their positions across various asset classes or diversify their tactics.
Built-In Economic Calendar — No More Tab-Hopping
You know how it feels to be in the middle of a deal and realize that a big news event is about to happen? Yes, that is the type of situation where your session might go anyway.
One of the most revolutionary features of MT5 is its integrated economic calendar. You don’t have to switch between tabs or continuously examine websites owned by third parties. Your terminal displays previous data, forthcoming occurrences and their anticipated effects.
Prop traders save time and store everything in one location, especially if they trade news or need to avoid high-impact times. The key is efficiency and MT5 excels at that.
Depth of Market (DOM) — Insight Like Never Before
How a casual trader reads the order book is one of the key differences between them and pros. A feature of MT5 is Depth of Market (DOM), which displays the stacking of buy and sell orders. This is gold for prop firm scalpers and high-frequency traders.
It allows you to see the current order flow, possible levels of support and resistance and liquidity up close. The pressure is literally visible where it is growing. It’s like x-ray vision for traders, and MT5 makes it user-friendly and accessible.
Custom Timeframes and Advanced Charting
The typical timeframes, such as 1M, 5M, 15M, 1H, etc., are stuck in MT4. However, what if you require a middle ground for your strategy? MT5 opens a whole new world of chart analysis by allowing you to choose periods.
The charting features in MT5 are also a significant improvement. You receive improved graphical items, more indicators for MT5 and more fluid performance. MT5 allows you the freedom to work your edge, regardless of whether you are a price action junkie or an indicator-heavy trader. Additionally, trading for a prop firm need as much advantage as possible.
Backtesting That Doesn’t Suck
Everyone has experienced backtesting a strategy in MT4 and seen the terminal delay through each tick as if it were in the Stone Age.
MT5 uses real tick data and multi-threaded backtesting to address that. As a result, you may test ideas much more quickly and obtain realistic. This is a huge improvement for algo traders and those who work with expert advisers or EAs.
Backtesting your ideas fast and effectively keeps you ahead of the curve, even if you’re more of a discretionary trader. This is especially important in a prop company environment where competition is strong.
Hedging and Netting: The Best of Both Worlds
You may require multiple position accounting techniques depending on your trading style and the regulations of your company. MT5 allows for both netting and hedging.
Hedging makes it possible to open several positions in the same asset in several directions, which is quite useful for handling complicated scenarios.
Netting, which is frequently necessary when trading futures or specific indices, aggregates your trades into a single position.
Prop traders can modify their strategies according to the instruments and regulations of their funded accounts because they may switch between the two with more ease.
