Pros and Cons of the MT5 Trading Platform in Funded Trading 

If you have ever traded for a prop firm or are considering doing so, it’s likely that you have encountered MetaTrader 5 (also known as MT5). It is among the most talked-about trading platforms. And regardless of whether people are praising its advanced features or complaining about its peculiarities, one thing is certain: MT5 is widely used in sponsored trading circles.  

So, is MT5 truly what it seems to be? Or is it just another flashy platform that appears impressive on paper but fails when put under pressure to perform?  

Let’s examine the pros, cons, and everything in between of MT5 use in a prop company setting. 

What’s MT5 All About? 

Before going into the advantages and disadvantages, let’s clarify one point. MT5 is essentially a completely different beast than MT4, not simply an improvement. A dedicated base still exists for MetaTrader 4 (MT4), but MT5 was designed to offer more: more markets, more data, and greater flexibility. In addition to FX, it is now utilized for equities, commodities, indices, futures, and more.  

When it comes to prop firms, where precision, speed, and performance may make or break your account, MT5 provides some very useful tools. However, does it meet all the requirements? 

The Pros: Why Funded Traders Love MT5 

Multi-Asset Capability 

Let’s start with a major one. Unlike MT4, MT5 isn’t simply for FX. If your prop firm offers a multi-asset challenge, such as stocks, forex, indices, or even cryptocurrency, MT5 manages everything in one place.  

There’s no need to switch between platforms or open five tabs to view what’s happening in various marketplaces. Everything is fine there. That is an important victory for a funded trader attempting to take advantage of opportunities in various asset classes. 

Depth of Market (DOM) 

This feature completely changes the game for high-frequency traders and scalpers. The depth of market panel in MT5 displays the order book in real time, which essentially indicates the amount of buying and selling interest at various price points.  

You may identify liquidity spots and prevent slippage in prop trading, where entries and exits must be extremely accurate, by using this data. Not only is it convenient, but it can also protect your account when there are unexpected news releases. 

Speed and Execution 

MT5’s architecture is faster than MT4’s. It feels snappier overall, with orders processing more quickly and indicators loading more quickly. In a prop trading arrangement, milliseconds might matter, particularly during scalping or during news releases.  

Many prop companies use demo environments with real-time market data to route trades. Unless you are on a live funded account, live markets do not actually execute, but you still need your platform to act like the real thing. MT5 is effective in that regard. 

Built-In Economic Calendar 

In fact, MT5 has an integrated economic calendar. Although it may seem insignificant, having that feature on your platform is really helpful when managing transactions and attempting to avoid getting caught in the whirlwind of an NFP release.  

No more switching between tabs to check Investing.com or Forex Factory. You can find it in your terminal, complete with color coding. 

Advanced Charting and Indicators 

The advanced charting features of MT5 are one of its unique selling points. There are 21 periods in total, compared to MT4’s nine. This allows for more in-depth investigation.  

Do you want to perform a rapid top-down analysis from M1 to monthly? MT5, has you covered. Additionally, the built-in indicator list is longer, has improved graphics depiction and has easier navigation.  

Additionally, the Strategy Tester for backtesting is far superior to the MT4 version—more on that later. 

The Cons: Where MT5 Can Trip You Up 

Now for the less enjoyable parts. Although MT5 isn’t flawless, traders, particularly those who use prop firms, have a tendency to complain about a few items. 

Not All Prop Firms Support It 

It may surprise you to learn that many prop firms continue to use MT4 despite MT5 being more recent and powerful. Why? The fact that MT4 is lighter and simpler to integrate, customer preferences, or legacy systems.  

Therefore, before using MT5, confirm that the prop firm supports it. There is nothing more frustrating than mastering a platform only to discover that you are unable to use it. 

Learning Curve 

To be honest, at first, MT5 may seem a little daunting. There are many things to process, including more tools, panels, and timelines.  

It may take some time to adjust to the layout and the additional capabilities if you are coming from MT4 or a less complex platform. In an atmosphere where quick decisions are essential, that learning curve may be a bit of a challenge. 

Limited Compatibility with MT4 Tools 

Unfortunately, if you have previously invested in MT4 custom indicators or Expert Advisors (EAs), they are incompatible with MT5. MT5 uses a new programming language (MQL5) than MQL4.  

Thus, you are essentially beginning from zero unless you’re prepared to rebuild your code or hire someone to do it. 

Heavier on System Resources 

Since MT5 is a more recent platform, your machine will need to meet higher requirements. It doesn’t use a lot of resources but if you’re running a lot of charts, indicators for MT5, and scripts, you may notice some slowness, especially on older computers.  

Make sure your VPS has enough power to operate MT5 smoothly if you are utilizing one, as many successful traders do.