MetaTrader 5 (MT5) had a rough start as it could not fully replace the MT4 platform. Instead, the majority of traders still prefer older platforms because of their robustness and capabilities which are extremely difficult to beat. Despite this, MT5’s popularity is on the rise among Forex traders. Forex trading volume is enormous as trillions of dollars are traded each day, easily dwarfing any other financial markets. Let’s expand upon MetaTrader 5 FX trading statistics and find its trading volume transacted daily.
Overview Of Global FX Trading Volume
The daily turnover of Forex volume is around 7.5 trillion dollars which is a huge amount. The money traded in Forex currency markets dwarfs all other financial instruments such as Stock markets, commodities, cryptos, and so on. Forex markets are traded 24 hours for 5 days which makes it very accessible. It is divided into different trading sessions such as London, New York, Sydney, and Tokyo. London and New York sessions and their overlap offer the highest liquidity, while Sydney and Tokyo provide less turnover.
However, Japan or Tokyo accounts for 30% of retail FX volume which is a serious amount and can not be underestimated. MetaTrader 5 is super popular among Japanese retail traders just like in other countries as the platform offers super advanced tools in a user-friendly interface, is free, and offers a free demo account. Electronic trading is enormously popular in Forex markets and supports these high transaction volumes. If you want to get the most out of Forex sessions, the overlap between London and New York offers higher volatility, followed by Tokoy with Sydney being less liquid than others.
MT5 – A Leading Platform For FX Trading
MT5 has many features like multi-asset trading, diverse charting tools, and support for custom indicators and EAs. EAs or Expert Advisors are especially popular among Forex traders as they allow traders to automate trading strategies or get notifications when predetermined events happen. The platform has a global reach and is adopted by a majority of F brokers, making it the number one platform for traders. MT5 offers plenty of timeframes, and order types, has built-in tools such as Fibonacci, and offers fast trade execution, which is important for scalpers. Since its introduction to the retail FX market, the volume transacted by MT5 has been rising significantly. The company behind MetaTrader 5, MetaQuotes announced in 2021 that for the first time in history, the number of MT5 users surpassed MT4, but we should take this information with a grain of salt as the company did not provide exact stats behind these claims.
Analyzing The Trading Volume Generated By MT5 Traders
The platform is popular among FX retail traders and let’s calculate a theoretical amount of money traded using MT5 in FX. The daily trading volume is approximately 7.5 trillion dollars. Retail traders account for 5.5% of this total volume, making it around 412 billion dollars daily.
MetaTrader 5 owns a significant share of the retail FX trading market, because of its advanced features and user-friendly interface. Let’s assume 30-50% of retail traders use MT5 in their FX trading, the platform could potentially amount to 123 to 206 billion dollars in daily trading volume, which is a staggering amount. This number is an estimate for retail traders alone.
Conclusion
MetaTrader 5 or MT5 has already established itself as one of the most popular and widely used retail FX trading platforms. The reasons behind this massive success include advanced features such as custom indicators, automated trading systems support (EAs), diverse chart analysis tools, plenty of order types, and more. As a result, the platform controls a significant portion of retail FX trading volume. Because of the decentralized nature of Forex markets, it is difficult to estimate the exact training volume conducted through various platforms. Theoretical estimates suggest there could be between 123 and 206 billion dollars traded by retail FX traders per day using MT5. This number is a serious result for a trading platform that was not very popular in the beginning. With its growing popularity, the platform might account for even higher trading volumes in the future.