Brokers by Type
Forex brokers offering the MT5 platform — what to expect for a trader taking the stance.
The MetaTrader 5 trading terminal is a creation of MetaQuotes company and was introduced in 2010. It was intended to replace MT4, but in reality, displacing its predecessor in the market proved challenging.
Dealers who do not execute trades externally hold MT4 in high regard. In 2022, it is still in demand among them, whereas MT5 is less common in their arsenal. Thus, encountering a complete scam using MetaTrader 5 for fraudulent purposes is much less likely.
What can a broker with MT5 offer?
- Executing trades on the interbank market.
- Enabling trading on regular exchanges, making the platform more versatile than MT4.
- Technically, MetaTrader 5 can be integrated with any broker through an API. The built-in MQL5 language assists in automating trading.
Forex brokers with MT5: Can they be trusted or should they be avoided?
Among brokers offering trading on the MetaTrader 5 platform, many are reliable. Four Russian forex dealers with a license from the Central Bank of Russia fall into this category:
- VTB 24 Forex.
- BCS Forex.
Reputable brokers from the UK, Australia, and the EU also offer trading with MT5. All of these brokers are closely regulated by government authorities.
MT5 brokers can be trustworthy, provided they possess a license safeguarding traders from non-market risks.
How to recognize scammers promoting online trading with MetaTrader 5?
Scammers offering trading on MetaTrader 5 online are often offshore brokers and dealers. They are often based in locations like Saint Vincent and the Grenadines, Bahamas, and Belize. These are where “kitchens” thrive, with excessive leverage allowing them to drain most traders’ positions.
Note: “Kitchens” manipulate quotes, such as inflating spreads to liquidate traders’ positions.
Target audience of Forex MT5 brokers: Who is the terminal designed for?
Brokers allowing trades on MetaTrader 5 cater to small and medium-sized traders, those who are not quite at the professional level. Institutional traders generally do not use such platforms.
The MetaTrader 5 program is flexible, relatively easy to learn, has a user-friendly interface, and even has a mobile version. However, it is less sophisticated compared to more professional paid platforms.
Therefore, traders do not need to spend money on MT5. The broker covers the licensing fee. The target audience for such brokers consists of small and medium-sized traders.
Binary options brokers with MT5: Scam or legitimacy?
Platforms solely offering binary options trading would not invest in a licensed MetaTrader 5 platform. They use it only when, in addition to bets on quote movement, they offer classic retail forex trading – opening and closing positions with derivatives.
In reality, trading binary options is often considered a scam, similar to betting on sports events. Genuine trading is seldom involved.
Binary options are banned in many countries worldwide, and for good reason. Manipulating the quotes on which bets are placed is easier than influencing outcomes in the world of sports. Scammers promoting binary options capitalize on this.
Can a broker with MT5 be trusted?
If a broker is licensed, offers fair service conditions, has a good reputation, and uses MT5 as one of its advantages, you can consider trading with them. MetaTrader 5 has numerous features, is free, and allows for the creation or use of trading robots for automated trading. However, if a broker only offers MT5 as a positive point while having other negative aspects, it’s best to avoid them as they might be fraudulent and not genuine about interbank execution or honest trading.