What you need to know to make the right investment choice

MT5 Stock Broker is a brokerage rating portal that serves as a useful source of information for individual, professional and corporate traders, helping them find the best MT5 stock brokers out there.
Judging by product range, pricing and customer experience, MT5 Stock Broker ranked AAATrade first among 3 top stock brokers. We tell you what you need to know, but the decision is yours.

1
AAATrade
Licensed EU investment firm and liquidity provider.

In the market for 7 years, AAATrade is a CySEC licensed and regulated prime brokerage headquartered in Cyprus. With a diverse product offering, AAATrade meets the demands of individual, professional and corporate traders and investors residing anywhere in Europe. With a minimum required deposit of USD/GBP/EUR 500, traders gain access to the broker’s MT5 trading environment which allows them to tap into multi-asset trading. Stocks, Shares, Equities, Treasury Bills, Bonds, ETFs, Indices, FX, CFDs, Futures, Commodities, Metals, and Energies make up the firm’s vast product range.

Providing direct connection to 80 leading exchanges around the world, AAATrade is one of the few MT5 brokers to offer real stocks and multi-asset portfolio management. Additionally, the brokerage offers a fair choice of educational materials and market analysis suitable for both novice and experienced traders.

Pricing

Average minimum deposit for a broker of its category. $0-$5 commission. 1:300 max. leverage.

Accounts

Novice, Experienced, Institutional & Professional account types for traders of all levels of expertise.

Execution

0 delay, ECN execution. Fair range of order types: Good Till Cancel, Limit, Stop, Pending. Netting.

Tools

Advanced indicators and charting tools, MAM & PAMM technology, daily technical analysis and news.

Overall:
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2
Plus500
Leading CFD, FX and ETF provider.

Plus500 is a leading provider of FX, CFD and ETF investing and one of the few brokers to offer a proprietary investment ecosystem (Pluss500CY). Founded in 2008 and listed on the London Stock Exchange, the company is headquartered in Israel and has offices in major financial hubs around the world, including Cyprus.

Compared to other market players, Plus500 offers a rather limited asset range of just a little above 2,000 securities, options and few ETFs traded across 50 markets. On the positive side, the onboarding process is quick and smooth. Its proprietary platform is easy to navigate. However, this is counterbalanced by the lack of standard indicators and fundamental research data.

Pricing

Low trading fees. Minimum deposit $100. Leverage: 1:5 – 1:30, floating per asset class.

Accounts

Retail, Professional and Demo account options. Swap-free accounts are also available.

Execution

STP execution backed by Stop Limit, Trailing Stop, Stop Loss and Guaranteed Stop order types.

Tools

Proprietary trading platform with analytical tools and advanced charts. No fundamental insights.

Overall:
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3
Pepperstone
Award-winning Australian broker.

Pepperstone is a well-regarded FX and CFD brokerage established in Melbourne, Australia in 2010. Reputed for its low-cost trading conditions, competitive spreads, 30ms execution, Pepperstone is a fully ECN broker offering over 150 instruments, 60 of which are shares. In January 2020, the company launched major stocks on its MT5 platform: Amazon, Tesla, Google, Apple, Coca Cola, McDonald’s, Walt Disney. Despite the new addition, it still cannot compete with ETF and Treasury providers.

Pepperstone also provides news and market analysis, which does not stack up well with that of AAATrade or Plus500. In addition, there is no balance protection for non-EU traders and no institutional focus.

Pricing

Low fees on FX and equity index CFDs. $200 minimum deposit. $7/lot round turn.

Accounts

Standard and Razor account types, including Demo options. Trading bonuses available.

Execution

STP, low-latency execution. Standard order types. Filling methods: Scalping, Hedging.

Tools

MT5, basic news flow, with little to no fundamental data. Mostly technical analysis.

What Is a Retail Trader?

Retail traders also often referred to as individual traders buy or sell securities for their personal accounts. Retail traders usually invest in futures, stocks, and bonds with no to very little access to IPOs. While they have the option to trade any number of shares they wish, retail traders tend to trade in round lots (100 shares). Individual traders are also more willing to invest in small-cap stocks that tend to have lower price points that allow them also to have a diversified portfolio.

What Is an Institutional Trader?

Institutional traders buy and sell securities on behalf of another group or institution. Institutional trading includes pension funds, exchange-traded funds, mutual fund family, and insurance companies. This type of trader has several advantages that retail traders don’t. For example, they have access to forwards, IPOs and swaps, they can negotiate trading fees, and are guaranteed the prices and execution. Finally, unlike retail traders, they trade in large volumes (blocks of 10 000).

Which days of the week trade?

Knowing which days to trade is important because there are certain days where the markets have more movement than others. This tends to be the middle of the week (Tuesday, Wednesday, Thursday). Trading during these days means more opportunities for traders as the markets are more volatile. Especially if you are trading during an overlap of two sessions or during the European session which is the busiest session. Friday evenings, Sundays, and during holidays are the worst times to trade as there is minimal movement.

When is the best time of the day to trade?

The best time to trade is during the London-New York overlap. During this time (roughly between 10 am-3 pm New York time) is when traders from the two largest financial capitals in the world are trading against each other.   Therefore this overlap creates a  peak time-frame for trading with large price movements that are a reflection of the news coming from U.S and Canada and of late news and trends coming from Europe.

North American Trading Session

This market opens at 8:00 am EST, and it includes all trading activity from the U.S., the South American countries, Canada and Mexico. However, this session centres on one financial centre- New York city hence why it is often referred to as the New York Session. New York's timezone allows it to overlap with the London session (roughly between 10 am -3 pm GMT) but not with the Asian markets which close much earlier. Which means that liquidity and volatility will decrease once the European markets close.

European Trading Session

Even though there are many financial centres in Europe, this session revolves around London, whose strategic location allows it to overlap with both the Asian and North America market hours. Typically, European hours run from 7 a.m. to 4 p.m. GMT. Because of the overlap with two other sessions, the London session enjoys the largest chunk of forex transactions, high liquidity, and potentially lower transaction costs. However, this also means that it is the most volatile session.

Asian Trading Session

The Asian session (also referred to as the Tokyo session) is led by the opening of the markets in Tokyo at 12:00 a.m. GMT (full market hours are 11 p.m. to 8 a.m. GMT).  The Asian session includes Australia, New Zealand, and Russia and two other Asian major financial centres Singapore and Hong Kong, which now have higher trading volumes (forex) than Japan. The main Tokyo market participants are central banks and commercial companies who deal in exports.

What are the peak forex trading sessions?

Although the Forex Market is open 24 hours a day, it isn’t active the entire day. Therefore, instead of trading 24hrs a day, traders choose to trade during peak trading sessions which are the European, North American, and Asian sessions. Which are also commonly called the London, New York and Tokyo sessions or the “forex 3-session system.” The actual open and close times will vary in each geographical area as they are based on local business hours.

What Are Trading Indicators

In the currency markets, indicators can be important to enhance the clarity of the clues that could potentially be identified from the charts. Very basically, indicators help traders predict the direction of an underlying asset by measuring features such as momentum, patterns, trends and other factors. Some of the most commonly used indicators include the following Stochastic, Parabolic Stop and Reversal, Relative Strength Index, Moving Averages, Moving Average Convergence Divergence, Bollinger Bands.

Support and Resistance

Support and Resistance lines are used by Technical Analysts to determine which direction the price of an asset will take and to trade accordingly. A support line is the level on which a falling trend is more likely to bounce back up while a resistance line is the level on which a rising trend is more likely to bounce back down. If a support or a resistance line breaks, the price is expected to keep moving until it meets another support or resistance line.

What Is Swing Trading?

Swing trading is another form of trading strategy like scalping. This technique focuses on trends- swing traders will use technical analysis and charts to identify market trends that they use to inform them how to continue. For example, if a stock is following an uptrend, they go long, and they go short if the trend is on a decline. This typically happens over a period of few days, weeks, or months as they require the historical data to proceed.

What Is Scalping?

Scalping is a trading strategy that is defined by the high volume of trades made over short periods of time, such as a few seconds or minutes. Scalpers specifically employ limited exposure to the market to minimize risk as this prevents financial news from affecting prices. However, the downside to this is that the gains/profits of each trade will also be minimal. That is why scalpers will make up to hundreds of trades per day as it allows them to build profit.

What Is Intraday Trading?

Intraday is a term used within the financial world, which essentially means "within the day." More specifically, this term is used to describe the trading of securities during regular market hours. Intraday securities include exchange-traded funds (ETFs) and stocks. Intraday price movements are the most important for day traders who make numerous trades over the trading season by taking advantage of short-term price movements. Especially since these traders close all their positions at market closing.

Trading with Delivery Stocks

Delivery based trading is when traders buy shares but keep them for long periods of time (up to a few months) instead of selling them on the same trading day as Intraday traders do. With delivery stocks, there is no limit to how long the shares can stay in your Demat account (they get stored here after the purchase). This style of trading is advantageous for traders because it gives them the ability to wait until the market conditions are perfect before selling.

How Does the Stock Exchange Work?

When businesses want to raise capital, they will often sell shares which shareowners can later resell for profit if they wish too. The stock exchange provides a place for them to do that by creating a secondary market and removing the need for shareholders to find buyers themselves. The stock exchange mimics an auction where traders place bids depending on how well they think a company will perform. When they think a company will do poorly, they will bid down and vice versa.

What Is a Stockbroker?

Stockbrokers (also known as investment advisors) are professional traders who sell and buy shares from the stock market (ex. New York Stock Exchange) on behalf of their clients. Stockbrokers typically work for brokerage firms, and they are responsible for handling numerous transactions for several institutional and individual clients. In exchange for their services, stockbrokers will typically get paid by charging a commission on every trade, but this usually changes according to the employer

Have Your Say...Let us know what you think.

Name: J.O.
Country: Estonia
Rank: rank
Message: I gained my confidence as a trader with AAATrade! I started trading last year with them and I’m still trading, I wouldn’t change them for another broker.
Name: Carine M.
Country: France
Rank: rank
Message: I wasn’t so much into trading until I came across AAATrade. I’ve had a good experience with them so far in every respect. They are trustworthy.
Name: Ross B.
Country: Sweden
Rank: rank
Message: Pepperstone and Plus500 are good, but AAATrade is better. They offer far more assets than the other two brokers. Their execution is also better.
Name: Chris T.
Country: Luxembourg
Rank: rank
Message: Good account choice for all preferences. Plus, unlike other brokerages, AAATrade also offers good crypto to fiat exchange rates and instant transfers.
Name: Tania B.
Country: Denmark
Rank: rank
Message: Don’t know much about trading, but AAATrade has a good range of educational materials and video tutorials. Also, they charge no commission on the Novice account. Currently trading on the demo until I get familiarized with the platform and all, I’ll start trading live soon. Fabulous support!
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