What MetaTrader 5 is
MT5 is the successor platform to MT4 from the same vendor (MetaQuotes Software Corp.), released in 2010. The visible interface is similar enough that an MT4 user adapts quickly; the underlying architecture, scripting language, and capabilities differ substantially.
Beyond MT4's forex-and-CFD scope, MT5 adds native support for exchange-cleared instruments: stocks, futures, options, and bonds where the broker provides them. The broker chooses which asset classes to enable; some brokers run MT5 forex-only despite the platform's broader capabilities. Level 2 market depth (Depth of Market, DOM) is available on instruments where the broker has the underlying order book data — typically stocks, futures, and some indices.
MT5 introduces the netting position model alongside MT4's hedging model. In netting mode, the account holds one position per symbol — opening a sell while already long results in the long position being reduced or reversed. In hedging mode (the MT4 default), the account holds separate positions per direction — opening a sell while already long produces a second, independent position. The mode is broker-set by region: ESMA-regulated brokers in the EU and UK typically use hedging mode; US-regulated brokers and most stock brokers use netting.
How MT5 handles margin, pip values, and position models
Margin display, lot conventions, and pip value calculation work identically to MT4: lots in 0.01 increments standard, margin shown in the Trade tab, pip values inferred from contract specifications. The same Leverage caps apply (broker-set, ESMA-bound for EU/UK retail).
The position model affects how trades aggregate. In netting mode: a 1.0 lot long EUR/USD followed by a 0.5 lot sell EUR/USD produces a 0.5 lot net long position, not two separate positions. The cost basis on the remaining 0.5 lot is averaged from the original entry. In hedging mode: the same sequence produces two separate positions, the long 1.0 lot and the short 0.5 lot, each with its own entry price, P&L, and margin requirement (calculated as the larger of the two for hedged exposure on the same symbol).
Worked example in netting mode: open 1.0 lot long EUR/USD at 1.0850. Margin held = $3,617. Open 0.5 lot short EUR/USD at 1.0860 — netted to 0.5 lot long at average cost basis of approximately 1.0840. Margin held now: $1,808. Free margin freed up by $1,809.
Worked example in hedging mode (same trade sequence): two positions held separately. Long 1.0 lot at 1.0850 and short 0.5 lot at 1.0860 are both open. Margin held for hedged exposure: depends on broker — some charge margin only on the larger leg ($3,617), some charge full margin on both ($3,617 + $1,808 = $5,425). The broker's terms specify the calculation.
Placing, modifying, and closing orders
Order entry mirrors MT4: F9 or right-click chart → New Order. The dialog accepts the same fields plus stop-limit variants — Buy Stop Limit and Sell Stop Limit are MT5-only Order types that combine triggering (stop) with execution-price control (limit).
MT5's Depth of Market panel shows the available bid and ask sizes at each price level for instruments where the broker provides Level 2 data. Trading directly from the DOM is supported — clicking on a price level submits an order at that level. For forex, DOM is only useful when the broker actually has aggregated bank-level depth; many forex brokers show synthetic depth that approximates rather than reproduces interbank order book.
Position modification and closing follow the same right-click pattern as MT4. The netting model interacts with closing: closing a position in netting mode reduces or reverses the net; in hedging mode it closes only the specific selected position.
Strategy Tester improvements over MT4 are significant. MT5 supports multi-currency backtesting (an EA that trades multiple instruments runs against historical data on all of them simultaneously) and tick-data backtesting at finer granularity. EA development in MQL5 is closer to standard C++ than MQL4 — easier for developers from other languages but requires rewriting MT4 EAs.
Broker variations on MT5
Not every MT4 broker offers MT5; the broker must license MT5 separately and configure their internal systems for the additional asset classes if they intend to offer them. Some brokers offer both with feature parity for forex-only traders.
Asset class breadth varies enormously by broker. A broker focused on retail FX may offer MT5 with the same forex-and-CFDs scope as their MT4 platform, with no actual stocks or futures. A broker with multi-market clearing relationships may offer hundreds of stocks, futures across major exchanges, and options. The MT5 client looks the same; the available symbols differ.
Position model is a configuration the broker chooses per-account. ESMA brokers typically default to hedging for forex CFDs; futures-clearing brokers default to netting for the futures product set. Some brokers run separate MT5 servers for hedging-mode accounts and netting-mode accounts.
DOM availability depends on the broker's data feed. Brokers with direct exchange or bank-level depth provide real Level 2; brokers that synthesise depth from limited sources show indicative levels only. The trader cannot tell from the platform alone — the broker's terms specify the data source.
Common mistakes on MT5
Hedging vs netting confusion when migrating from MT4. A trader accustomed to opening counter-positions to hedge an existing trade discovers in netting mode that the second order reduces or closes the first instead of creating a second leg. The opposite confusion also occurs: traders new to MT5 may expect netting and find their account in hedging mode (or vice versa) depending on broker default.
EA migration friction: an MT4 EA pasted into MT5 will not compile. MQL4 and MQL5 are different enough that ports require deliberate work — function signatures change, position management calls differ, and the new event model changes how EAs respond to ticks. Trading-system marketplaces like MQL5.com sometimes offer paired versions; some EAs exist on MT4 only.
Broker subset of features: a trader who buys MT5 expecting full multi-asset access discovers the broker only enables forex and a handful of indices. The platform's capability ≠ the broker's offering. Verify symbol availability before committing to a broker for a specific asset class need.
Same one-click and slippage issues as MT4: the New Order dialog shares the same risk profile. One-Click Trading toggle defaults to on for many brokers; stop-losses execute as market orders at trigger and slip in fast markets.
Reporting differences: MT5 offers more detailed account history and customisable reports than MT4. Traders who export MT4 history for tax or analysis purposes may need to relearn export procedures on MT5. The data is richer; the export format is different.