If you know the prop trading world then chances are you’ve heard about MetaTrader 5 or MT5 for short. It’s basically the bread and butter for many funded traders out there. From charting to execution to automation, MT5 has become the best platform in the prop firm space. But knowing MT5 exists and knowing how to actually set it up for serious prop trading are two very different things.
So, whether you're just starting your journey with a funded account or looking to optimize your existing setup, this guide’s for you. So let’s discuss step by step.
Why MT5 for Prop Trading?
Most prop firms that offer forex or CFD challenges and funded accounts choose MT5 over MT4 these days. MT5 is faster, supports more order types, handles more symbols, and has a better strategy tester. It's built for multi-asset trading which is great if your prop firm lets you trade commodities, indices, or stocks along with forex.
So if you’re serious about growing as a prop trader then getting comfortable with MT5 isn’t optional—it’s essential.
Step 1: Getting the Right Version of MT5
Most prop firms have their own branded version of MT5. You’ll usually find a MT5 download link on their dashboard or in your welcome email. Always go with that one. Why? Because it’s already configured to connect to their servers, and in many cases, includes proprietary tools, templates, or settings that you’ll need during the challenge or evaluation.
Pro Tip: Installing the wrong version might mean you can’t log in or won’t see your challenge account—even if you’re using the right credentials. Save yourself the headache and grab the firm-specific MT5.
Step 2: Installation and First-Time Launch
If you’ve downloaded the installer then go ahead and run it like any regular program. MT5 doesn’t need anything fancy during install. Once it’s up and running, you’ll be prompted to either log in or open a new account.
This is where you’ll want to click File > Login to Trade Account and input the login details your prop firm gave you. That’ll include:
- Login ID
- Password
- Server Name (double-check this—prop firms often have demo and live servers with similar names)
If everything’s good then you’ll hear that satisfying ding noise and see price charts start to update.
Step 3: Setting Up the Workspace
Here’s how to make it prop-trader-ready:
Clean Up the Charts
Close all the default charts. Right-click each one and hit “Close.” They’re just cluttering things up right now.
Open the Symbols You’ll Actually Trade
Go to View > Symbols or press Ctrl+U. Find your favorites—EUR/USD, XAU/USD, US30, whatever your firm allows—and click “Show.”
Then right-click in the Market Watch window and select “Show All” to make sure you can see everything.
Customize Your Chart Style
Right-click on a chart > Properties. Here’s where you make it yours:
- Switch to candlesticks
- Change the color scheme (many traders prefer a black background with green and red candles)
- Remove gridlines if you find them distracting
Once you’ve customized a chart the way you like, save it as a template by right-clicking and choosing Template > Save Template. Now you can apply that style across all your charts in one click.
Step 4: Add Essential Indicators and Tools
Built-in Indicators You’ll Use Often:
- Moving Averages (MA) – For trend direction and crossover strategies
- RSI (Relative Strength Index) – To gauge overbought/oversold conditions
- MACD – A nice combo of trend and momentum
- ATR (Average True Range) – For sizing your stop loss more intelligently
To add any of these, go to Insert > Indicators and pick what you need. You can also drag them from the Navigator pane.
Tip: Don’t overload your charts. Start simple, get profitable, then tweak.
Step 5: Setting Up One-Click Trading
Speed matters—especially if you're scalping or day trading in a prop firm challenge. MT5’s One-Click Trading is a lifesaver.
To enable it:
- Open a chart
- Click the tiny triangle in the top left corner of the chart window
- Accept the terms
- You’ll now see a small panel with Buy/Sell buttons and lot size
That’s it. Now you can open trades fast without filling out the full order form every time.
Step 6: Configure Risk Settings
Prop firms are obsessed with risk and they should be. Blow your daily or max drawdown, and you’re done. So let’s set MT5 up to keep you inside the lines.
Here's how:
Set Default Lot Size
Right-click on a chart > One-Click Trading Settings. Adjust the default lot size to match your risk management plan.
Use Scripts or EAs for Risk Control
Some traders use scripts to automatically calculate lot sizes based on stop-loss distance and % risk per trade. You can either code your own or download free ones from trusted sources.
Alerts for Drawdown or Trade Limits
MT5 lets you set alerts for price levels, but some prop traders use journal monitoring tools or plug-ins to track equity levels. If your firm allows custom tools, these can be life savers.