7 Great Reasons to Trade Stocks With Metatrader 5

Ashley Jessen - Chief Operating Officer

2024-02-14 15:12:39

The MetaTrader 5 platform is one of the world’s most popular trading platforms for retail investors, day traders and forex and CFD traders. For those who prefer a true multi-asset platform, MT5 has all the advantages a beginner or advanced trader could ask for.

The incredible growth in popularity is largely from those who love the flexibility of trading stocks and futures, forex trading and more from the one trading account.

Trading stocks and share CFDs can be exciting and potentially rewarding experience. Trading stocks on MetaTrader 5 has never been more accessible, and now you can trade stocks on the NYSE, ASX,Nasdaq, and many other global exchange markets.

This blog post will give you 7 reasons why traders prefer to use the MT5 trading platform.

If you love uptrending stocks, then this MT5 chart of NVIDIA will be sure to impress. NVIDIA shares rose 51% in only 28 trading days to start off 2025 with one of the most bullish trends we have seen.

Why trade stocks on the MetaTrader 5 trading platform?

Many traders use MT5 because of the full charting capabilities on offer which allows you to trade certain exchanges such as NYSE, ASX and Nasdaq markets. 

Here are seven great reasons why many traders like Metatrader 5 for stocks:

You can trade on multiple exchanges (such as NYSE, ASX and Nasdaq);

  1. It's a free trading platform built by Metaquotes Software Corp;
  2. The charting capabilities are excellent on both desktop and mobile trading;
  3. There is an easy to use, intuitive interface, with advanced ordering options;
  4. You can automate your trading strategies by creating Expert Advisors, and run them through the strategy tester;
  5. It is faster and more powerful than MT4 with an account type for new or pro traders; and
  6. The mobile app is ideal for both iPhone, iPad, Android and Windows systems.

Other markets you can trade on the MT5 CFD trading platform 

At ACY we have made it our mission to bring the largest number of stocks across the world's most actively traded exchanges.

For those who are after a true multiasset platform, to bring all your trading under one account, MT5 is the solution for you.

Here are the CFD asset classes you can trade on the MT5 platform:

Yes. You can even trade Crypto on MetaTrader 5, but you do not need a wallet. All trades are cash settled CFDs.

Types of trading available on MT5

Automated trading.

Automated trading is a form of algorithmic trading which uses pre-determined rules and indicators to trigger the automated execution of trades to buy and sell across the financial markets. If you have trading systems to generate your forex signals, then you should consider automating them to remove the emotion from your trading. 

Copy Trading.

Copy trading, sometimes referred to as social trading, is a way to trade stocks or forex through someone else's trades. You can choose from a variety of traders with different investment styles and risk levels, but the best part is you don't have to run complicated market analysis. 

This is because all the work has been done for you by an experienced trader who provides their full trading profile and historical trades. The only thing you need to worry about is picking your favorite trader and following their trades.

Algorithmic trading.

Those who use algorithmic trading tend to create their own automated strategies based on signals from technical indicators or pre-determined rules and then automatically execute trades when certain conditions have been met. This strategy can be used with MT5 for stocks, forex, commodities and indices. And one of the fastest growing areas right now is algo trading on the crypto markets, due to the volatility and trends over the last few years.

You can code your trading robots in using the MQL5 programming language. If coding is not your thing, then there are forums where you can tell a coder what you want in your trading system, and they will code it for you. Click here to listen to an interview with a successful algorithmic trader.

Using technical analysis on Metatrader 5 to trade stocks

If you love to day trade stocks, forex, Gold, indices or cryptocurrencies, then technical analysis is likely to be your preferred trading style.

Many traders like Metatrader 5 for stocks because of the excellent charting capabilities MT5 offers. In actual fact, both MT4 and MT5 give you access the full range of technical indicators.

But one of the advantages for the short-term trader using MT5 is the 21 trading timeframes. There are more indicators on MT5 vs the MT4 platform, so the active technical trader will nearly always favour MT5.

No matter if you are a swing trader, position trader, love the ichi-moku indicator or prefer to intraday scalp stocks futures or crypto, then MT5 is the perfect choice.

Using Fundamental analysis to trade stocks on MT5

Metatrader 5 provides several tools for those using fundamental analysis to generate their buy and sell decisions when trading stocks.

Those who trade stocks on MT5 tend to focus on the critical financial ratios that get reported during the respective stock market reporting season.

While many like to combine both fundamental and technical analysis on stocks to trade the markets, hard core fundamentalists will focus on the following financial ratios:

  1. P/E ratio (price to earnings ratio)
  2. ROE Ratio (return on equity ratio)
  3. Debt/Equity ratio
  4. Profit margins
  5. ROE Ratio (return on equity ratio)

And for those who are more advanced, you may like to use CFDs to hedge an existing share portfolio. Trading CFDs for hedging your positions on multiple stock exchanges is another popular option.

Leverage available when trading stock CFDs

When trading share CFDs, which are a derivative, your leverage will vary depending on the market and in which country you are in. 

If you are based in Australia, your maximum leverage for share CFDs is 5 to 1. If you are based outside Australia, you can access up to 25 to 1 leverage for share and ETF CFDs.

This means you can control a lot more stock with the same amount of capital compared to other forex brokers.

Next steps

When it comes to online trading, the ability to access a wide range of trading tools and to access more global markets than your traditional stock brokers, MT5 is an excellent trading platform.

If you are starting out, then a demo account might be a great first step. But if you have been trading foreign exchange exclusively and have missed out on some of the incredible gains across the blue chip stocks, then now is a great time to download Metatrader 5 and access our low spreads.

You have the choice between our Standard Account or our ProZero MT5 accounts.

Frequently Asked Questions

1. Can I trade Forex and index CFDs on MT5?

Yes, MetaTrader 5 (MT5) supports trading in Forex, index CFDs, stocks, commodities, and cryptocurrencies. MT5 provides a more versatile trading platform compared to MT4, with advanced financial trading functions. MT5 allows you to trade more financial instruments than MT4.

2. What are the main differences between MT4 and MT5?

The main differences between MT4 and MT5 include the range of markets accessible (with MT5 offering access to stock exchanges for direct share CFD trading), the depth of market display, economic calendar integration, and the number of technical indicators and graphical objects available. MT5 also supports more timeframes, has an improved strategy tester for EAs (Expert Advisors), and allows for more pending order types.

3. How do I access stocks on MetaTrader 5?

To access stocks on MetaTrader 5, open an account today with ACY and get immediate access. Once your account is set up, you can log in to the MT5 platform, navigate to the 'Market Watch' window, right-click, and select 'Show All' to display the available stock instruments. You can then add individual share CFDs to your watch list and start trading by opening and managing positions through the platform.

4. Is it possible to use automated trading strategies on MT5 for stocks?

Yes, MetaTrader 5 supports the use of automated trading strategies through Expert Advisors (EAs). These can be applied to stock trading as well as the Forex market and other instruments. MT5's advanced back-testing environment, algorithmic trading capabilities, and the MQL5 programming language allow traders to develop, simulate, and deploy complex trading robots and technical indicators tailored to their trading style and requirements.

5. Can I trade stocks on MT4?

No, MetaTrader 4 (MT4) is primarily designed for Forex trading. To access over 2200 share CFDs simply open a MetaTrader 5 (MT5) account with ACY today.

6. Can I use MT5 for Copy Trading?

Yes, MetaTrader 5 (MT5) supports copy trading, which allows traders to automatically copy the trades of other successful traders. 

7. What stock exchanges can I trade share CFDs on using MetaTrader 5?

With MetaTrader 5, you can trade share CFDs from a variety of global stock exchanges. At ACY, you can trade CFDs on the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE), Australian Stock Exchange (ASX), the Tokyo Stock Exchange (TSE), and the Hong Kong Exchange (HKES) among others. This is one of the widest selections of available stocks to trade for a MT5 Forex broker.

Author

Ashley Jessen is the author of CFDs Made Simple and Chief Operating Officer at ACY Securities. Jessen started in the industry in the year 2000, has educated thousands of traders globally, and has been instrumental in the growth of many of the world's largest CFD & FX companies.

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