There was a time when one would have to be physically present at a stock exchange or talk to a broker to invest in the stock market. Those days are gone for good because now you can trade stocks anywhere, anytime. The digital revolution that has been shaking the world in the past few years has also affected the financial market. In this article, we’ll talk about MetaTrader 5 and how you can trade stocks with it on the go.
What’s MetaTrader 5?
MetaTrader 5 is a software developed by MetaQuotes, a leading B2B developer in the global FinTech industry since 2000. The first MetaTrader was released in 2005 and has received updates and upgrades since. The software was created using MetaQuotes Language (MQL).
The MetaTrader 5 was released in 2010, and it’s based on MQL5. It gives you access to various financial markets such as Forex, futures markets, stock, and crypto exchanges. This software is available for PCs and mobile devices, and web versions are also available.
How To Create An Account
You can create a new MetaTrader 5 account using your easyMarkets profile. Indeed, you’ll only be able to download the MT5 software after creating an easyMarkets account. Once you create your account, you can use your login details to access the platform. You’ll need to make a deposit into your MT5 account before you start trading.
easyMarkets is the first web-based trading platform in the world. It was launched in 2001 in response to some key developments in the online trading industry. For instance, it introduced credit card payments when there was the problem of bank transfers taking too long to complete.
The company became famous for providing advantages like free guaranteed stop loss, Freeze Rate, InsideViewer, and, most importantly, its dealCancellation tool. easyMarket is also the first platform to ensure its customers that their losses will never surpass their investments. In a market plagued by scandals, easyMarkets provides transparency and reliability.
A Quick Guide to Forex Trading
Forex is the abbreviation for Foreign Exchange, and it’s mainly about exchanging different currencies. The exchange rate oscillates according to the supply and demand. Currencies are traded around the clock, from Monday to Friday, in the foreign exchange market. This market has no physical exchanges, and all transactions are OTC (over the counter), contrasting with transactions involving stocks.
Forex can be traded in three different markets: the spot market, the forward market, and the futures market. In the first case, the swaps are based on real-time rates. The prices in the forward market are agreed upon for a specific currency date and amount. The futures market works similarly, but the operations are done on an exchange instead of privately.
Forex Trading and Crypto Exchange
Crypto exchange and Forex have a lot in common. For instance, both are governed by demand and supply and can be traded in the spot, forward, and futures markets. Also, both operations are OTC but can be done via brokerage and exchanges. However, while the forex market involves central banks (which are there to stabilise their currencies), crypto traders plan their investments based on the ups and downs of that currency.
Understanding Stock Exchange
The stock market is based on exchanges like Nasdaq and the New York Stock Exchange. Stocks are listed there, where buyers and sellers trade their shares. Similarly to Forex, prices are based on the current or expected supply and demand. Often, individual traders are represented by brokers, who make the transactions on behalf of their clients. Nowadays, those are usually online brokers.
You can follow the stock market fluctuations via market indexes such as the Nasdaq, S&P 500, and Dow Jones Industrial Average. These indexes can also help you measure your performance and see how your investments have been doing. The keyword for avoiding heavy losses in the forex stock exchange is diversification. Instead of investing in a single currency or stock, you should spread your budget over a varied portfolio.
How MetaTrader 5 Can Help
Forex is the very nature of MT5’s business, but you can also use it for the stock exchange. This software also supports automated trading via the free applications that come with it. It offers more technical indicators and graphical objects than its previous version, MT4. If you already have experience with stock trading, you’ll see trading stocks there is pretty much the same as other instruments.
You can start by clicking “New Order” and picking a stock to trade from the list. There, you’ll define the settings and choose between buying and selling. This software also provides automatic trading, called “algorithmic trading.” This tool executes pre-programmed orders based on market conditions, and helps you stay on track with your strategy, even during troubled times.
The Power is in Your Hands
Digital tools like the MT5 bring the financial world closer to the casual investor. It provides real-time information about your investments and several tools for tracking and automated response. With these tools, you can trade Forex, stocks, metals, commodities, indices, and cryptocurrencies. There is the mobile app which is available for download for both iOS and Android devices.