Why Serious Traders Are Switching to Deriv MT5 (And You Should Too)

If you’re still trading on basic platforms, you’re leaving serious money on the table. The difference between amateur and professional trading often comes down to one thing: the tools you’re using.

MetaTrader 5 isn’t just another platform—it’s the institutional standard that powers millions of professional traders worldwide. Combined with Deriv’s execution and pricing, you get a setup that rivals what hedge funds use.

This guide breaks down everything serious traders need to know about Deriv MT5, from advanced execution strategies to algorithmic trading capabilities that can transform your results.

What Makes MT5 Different (And Why It Matters)

Most traders start on simple platforms, but there’s a ceiling to what you can achieve without professional-grade tools.

The MT5 advantage:

• 21 timeframes vs 9 on MT4 (better precision)
• Level II pricing shows institutional order flow
• Built-in economic calendar with real-time updates
• Strategy tester for backtesting systems with years of data
• MQL5 programming for custom indicators and automation
• 6 pending order types vs 4 on MT4
• Multi-currency testing for portfolio strategies

Think of it this way: MT4 is like trading with a calculator, MT5 is like having a Bloomberg terminal.

Why Deriv MT5 Beats Other Brokers

Not all MT5 brokers are created equal. Here’s what separates Deriv:

Execution That Actually Matters

• Raw spreads from 0.0 pips on majors
• Sub-50ms execution speeds on average
• No dealing desk interference (true STP/ECN)
• Zero requotes on market orders
• Deep liquidity pool from tier-1 providers

Account Flexibility

Deriv offers specialized accounts for different strategies:

Financial STP: Raw spreads + commission model for scalpers Standard: No commission, slightly wider spreads for swing traders Synthetic Indices: 24/7 trading on proprietary instruments Up to 1:1000 leverage (depending on jurisdiction)

The Cost Advantage

• No deposit fees on major methods
• No withdrawal fees for most options
• No inactivity fees ever
• No minimum deposit (though $500+ recommended for proper position sizing)

Open your Deriv MT5 account here and you’ll have access to institutional-grade execution within minutes.

Getting Set Up (The Smart Way)

Here’s the professional approach to MT5 setup:

Step 1: Account Creation

Click here to start, then:

• Choose Financial STP for best spreads (if you’re serious)
• Select appropriate leverage (1:100 to 1:500 for most strategies)
• Pick your base currency (match your funding source)

Pro move: Create multiple sub-accounts—one for manual trading, one for EA testing, one for different strategies.

Step 2: Platform Installation

Desktop (recommended for serious trading):

• Download MT5 from Deriv’s platform page
• Install and log in with your credentials
• Much faster than web terminal for active trading

Mobile:

• Download “MetaTrader 5” app
• Search for “Deriv” in broker list
• Perfect for monitoring positions on the go

Step 3: Workspace Optimization

First-time setup that saves hours later:

1. Create multi-chart layout: Monthly/Daily/4H/1H all visible
2. Add essential indicators: ATR, RSI, MACD, Bollinger Bands
3. Save templates for each strategy type
4. Configure hotkeys for faster execution
5. Enable one-click trading (if experienced)

Professional Tools Most Traders Don’t Use

These MT5 features separate amateurs from pros:

Market Depth (Level II Pricing)

This shows you the actual order book—where institutions have their buy and sell orders stacked.

How to use it:

• Open Market Depth window (View → Market Depth)
• Large volume at a price level = strong support/resistance
• Sudden volume changes = institutional activity
• Execute trades directly from depth window

Real application: If you see 50+ lots at 1.1000 on EUR/USD, that’s where big money is positioned. Price will likely bounce from there.

Advanced Order Types

MT5 has six pending order types most traders ignore:

Buy/Sell Stop Limit: The secret weapon for news trading. Sets a stop for entry but limits your fill price—no getting slipped 20 pips on NFP releases.

Example: EUR/USD at 1.1000, NFP coming up. You expect a breakout above 1.1020:

• Set Buy Stop at 1.1020
• Set Limit at 1.1025
• If price spikes to 1.1030, you still get filled at 1.1025 max

Strategy Tester

The most underutilized tool on MT5. You can backtest any strategy or EA against years of historical data.

What pros do:

• Test strategies across 3-5 years minimum
• Run optimizations to find best parameters
• Use genetic algorithms for faster optimization
• Generate Monte Carlo analysis for risk assessment

Quality benchmarks:

• Profit factor above 1.5
• Max drawdown under 30%
• Win rate above 45% for trend strategies
• Tested across multiple pairs and timeframes

Strategies That Work on MT5

Let’s skip the basics and focus on what actually makes money:

1. Order Block Retest Strategy

Based on institutional positioning (smart money concepts):

Setup:

1. Switch to 4H chart
2. Identify strong impulsive moves
3. Mark the last candle before the move (order block)
4. Wait for price to retrace to this zone
5. Enter on 15M rejection candle
6. Stop loss 20 pips beyond order block
7. Target 1:3 risk-reward minimum

Markets: EUR/USD, GBP/USD during London/NY session Win rate: 65-70% when executed properly Why it works: You’re trading where institutions have positions

2. Supply/Demand Scalping

High-frequency strategy for active traders:

Setup:

1. 5M or 15M timeframe
2. Mark fresh supply/demand zones (strong impulsive moves away)
3. Enter on first touch of zone
4. Tight stop loss (10-15 pips)
5. Target 1:2 minimum, move to breakeven at 1:1

Markets: EUR/USD, GBP/JPY during high liquidity Win rate: 55-60% but excellent RR Edge: Fresh zones have highest probability

3. Breakout System with Volume

Captures explosive moves when price breaks consolidation:

Setup:

1. Identify clear consolidation (triangle, rectangle, channel)
2. Place Buy Stop 5 pips above resistance
3. Place Sell Stop 5 pips below support
4. Use Stop Limit orders to control slippage
5. Confirm with volume spike
6. Target distance of consolidation range

Markets: All majors, especially during news Win rate: 50-55% but often 1:3+ RR Best timing: Major news releases, session opens

4. Synthetic Index Range Trading

Deriv’s unique advantage—24/7 trading on consistent volatility:

Setup (Volatility 75):

1. Identify clear range boundaries
2. Buy at support, sell at resistance
3. 5-10 point stop loss
4. Target opposite boundary
5. Exit immediately on range break

Why this works:

• No external news interference
• Consistent volatility patterns
• Trades around the clock
• Perfect for automation

Win rate: 65-75% in established ranges

Risk Management That Professionals Use

This is what keeps accounts alive:

Position Sizing Formula

Position Size = (Account Risk $ / Stop Loss Pips) / Pip Value

Example: $10,000 account, 1% risk, 50-pip stop, EUR/USD

• Risk = $100
• Position = ($100 / 50) / $10 = 0.2 lots

The 2% Maximum Rule

Never risk more than 2% per trade. This lets you survive 50 consecutive losses (which won’t happen with a good strategy).

Portfolio Heat

Track total open risk across all positions:

• Maximum combined risk: 6-8%
• Four open trades = max 1.5-2% each
• Correlated pairs count as one exposure

Correlation awareness:

• EUR/USD and GBP/USD move together (don’t double up)
• EUR/USD and USD/CHF move opposite
• Use MT5’s correlation indicators

Drawdown Thresholds

Set these rules and follow them religiously:

• 5% drawdown: Review recent trades, identify mistakes
• 10% drawdown: Cut position sizes in half
• 15% drawdown: Stop trading, completely reassess strategy

Essential Indicators (The Ones That Matter)

Stop cluttering your charts. These seven are all you need:

1. ATR (Average True Range)

• Purpose: Set logical stop losses
• Settings: 14-period
• Usage: Stop loss = 1.5-2x ATR

2. RSI (Relative Strength Index)

• Purpose: Overbought/oversold + divergences
• Settings: 14-period, 30/70 levels
• Usage: Divergences signal reversals

3. Moving Averages (20/50/200)

• Purpose: Trend identification
• Usage: Trade in direction of 200 MA

4. MACD

• Purpose: Momentum and trend strength
• Settings: 12, 26, 9
• Usage: Crossovers + divergences

5. Bollinger Bands

• Purpose: Volatility measurement
• Settings: 20-period, 2 SD
• Usage: Extremes signal mean reversion or continuation

6. Volume Profile (custom)

• Purpose: High-volume price levels
• Usage: Major nodes = strong S/R

7. Order Blocks (custom indicator from MQL5 market)

• Purpose: Institutional positioning
• Usage: Enter on retests

Algorithmic Trading with Expert Advisors

Taking your trading to 24/7 automation:

When EAs Make Sense

Good use cases:

• Running proven mechanical strategies
• Trading multiple pairs simultaneously
• Capturing opportunities while you sleep
• Removing emotional decision-making

Bad use cases:

• Buying random EAs without testing
• “Set and forget” mentality
• Over-optimized systems (curve fitting)

How to Evaluate Any EA

Before risking real money:

Backtesting requirements:

• Minimum 3 years of data
• Profit factor > 1.5
• Max drawdown < 30%
• Win rate > 45%
• Test on multiple symbols
• Realistic spreads and commissions

Forward testing:

• Run on demo for 3 months minimum
• Monitor weekly performance
• Compare to backtest results
• Look for consistency

VPS Hosting (Necessary for Serious Algo Trading)

If you’re running EAs, you need a VPS:

Why:

• Runs 24/7 without your computer
• Zero downtime from internet issues
• Lower latency = better fills
• Trades execute even during power outages

Cost: $15-30/month from Deriv’s VPS partners

Mobile Trading for Professionals

MT5 mobile apps have full functionality, but use them smartly:

Best practices:

• Use for monitoring, not primary execution
• Set alerts instead of watching charts
• Pre-set entries with pending orders
• Larger stops to account for less precise mobile charting
• Reduced position sizes (fat-finger risk)

When mobile makes sense:

• Managing existing positions
• Emergency trade adjustments
• Setting alerts for key levels
• Checking on EA performance

Advanced Chart Setup

Professional workspace configuration:

Multi-Timeframe Layout

Set up four charts simultaneously:

• Top left: Daily (key levels and structure)
• Top right: 4H (trade setup identification)
• Bottom left: 1H (entry refinement)
• Bottom right: 15M (execution timeframe)

Save this as a template for instant loading.

Strategy Templates

Create separate templates for:

• Scalping (clean price action, minimal indicators)
• Day trading (momentum indicators, volume)
• Swing trading (trend indicators, higher timeframes)
• Order block trading (custom indicators)

Hotkeys for Speed

Configure keyboard shortcuts:

• F9: Quick order window
• Custom: One-key buy/sell (advanced users only)
• Alt+T: Terminal window
• Saves 2-3 seconds per trade (adds up over thousands of trades)

Common Mistakes That Cost Money

Avoid these expensive errors:

1. Over-leveraging Using max leverage because it’s available. Professionals rarely exceed 1:100 even when 1:1000 is offered.

2. Ignoring correlation Taking five EUR pairs thinking it’s diversification. It’s not—you’re 5x exposed to EUR.

3. No trading journal Flying blind without data. Track every trade to identify patterns in your performance.

4. Changing strategies mid-drawdown Abandoning a good strategy during normal variance. Give systems time to prove themselves.

5. Trading illiquid hours Asian session on EUR/USD = wider spreads and false breakouts. Trade when your pairs are actually moving.

The Professional Trading Routine

What successful traders actually do daily:

Pre-market (30 minutes before):

• Check economic calendar for high-impact news
• Review overnight price action
• Identify key levels on higher timeframes
• Plan potential trades

During trading session:

• Execute only planned setups
• Monitor positions
• Trail stops on winners
• Journal each trade immediately

Post-market:

• Review all trades objectively
• Update trading journal with lessons
• Identify what worked and what didn’t
• Prepare for tomorrow

Withdrawal Strategy (Keep Your Profits)

Making money is one thing. Keeping it is another:

The 50/30/20 Rule

When you hit profit targets:

• 50%: Withdraw to bank (secure your gains)
• 30%: Keep in account for compounding
• 20%: Diversify to other investments

Regular Schedule

Don’t let profits sit forever:

• Weekly: For full-time traders with consistent income
• Monthly: For part-time traders
• Quarterly: For position traders

Psychology tip: Regular withdrawals prevent the “give it all back” syndrome that kills accounts.

Trading Psychology (The Real Edge)

Technical analysis is easy. Managing your mind is hard.

Essential Traits

Patience: Most of the time, the best trade is no trade Discipline: Follow your plan even when it’s uncomfortable Emotional control: No revenge trading, no euphoric over-trading Continuous learning: Markets evolve, you must too

Dealing With Losses

Every professional loses. The difference is the response:

After a losing trade:

1. Take a 15-minute break (walk, coffee, anything)
2. Review if the trade followed your rules
3. If yes, it’s normal variance—move on
4. If no, identify the rule broken and recommit

After a losing streak:

1. Cut position sizes in half immediately
2. Consider demo trading until confidence returns
3. Review your strategy—is the edge still there?
4. Seek feedback from other traders

Scaling Your Trading Business

Once consistently profitable:

Phase 1 (Months 1-6): Prove consistency

• 6+ months profitable
• Max 15% drawdown
• Minimum 5% average monthly return

Phase 2 (Year 1-2): Increase capital

• Compound instead of withdrawing
• Add capital from other income
• Scale position sizes proportionally

Phase 3 (Year 2-3): Diversification

• Multiple strategies
• Multiple asset classes
• Profitable EAs deployed
• Consider prop firm funding

Phase 4 (Year 3+): Business operations

• Register as professional entity (tax benefits)
• Build proprietary systems
• Potential to manage others’ capital

Why Serious Traders Choose Deriv MT5

After trading with multiple brokers, here’s why Deriv stands out:

Execution quality: No dealing desk games, genuine STP/ECN Cost structure: Raw spreads from 0.0 pips on STP accounts Platform reliability: 99.9%+ uptime, rarely goes down Regulation: Multiple licenses, segregated funds, negative balance protection Withdrawal speed: Fast processing, no excuses or delays Support: Responsive when you actually need help

For serious traders, these aren’t nice-to-haves—they’re essential.

Ready to Trade Like a Professional?

If you’re serious about trading, you need serious tools. MT5 isn’t just a platform upgrade—it’s the difference between amateur and professional trading.

The question isn’t whether you should switch to MT5. It’s why you haven’t already.

Open your Deriv MT5 account now and start trading with institutional-grade tools. Setup takes less than 5 minutes, and you’ll have access to everything covered in this guide.

The market doesn’t wait. Neither should you.

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Risk Warning: CFD and forex trading involves significant risk of loss. Leverage amplifies both profits and losses. Only trade with capital you can afford to lose. Professional trading requires extensive education, practice, and risk management. Past performance does not guarantee future results.

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Questions about MT5 or need help with your setup? Drop a comment below.