MetaTrader 4: What is it – and how can it benefit traders?

It first appeared in 2005. Since then, Metatrader 4 (MT4) has grown to become one of the most widely used automated electronic trading platforms. What exactly is it – and how can its features make a positive difference to your trading activity? We give you the lowdown.

 

 

How MT4 works

MT4 is a trading platform developed by a company called MetaQuotes. Even if you haven’t heard of that particular company, you probably will if you discover some of the popular brokers out there (ETX Capital and Binary.com to name just two).

Most commonly used in conjunction with forex trading, MT4 can also be used to trade commodities and indices via spreads, CFDs and futures markets. It is used by many brokers on license and essentially consists of an interface to place and manage your trades. In addition, the platform includes a number of tools to put automated trading techniques in place – as well as to analyze prices and markets.

While some brokers offer a basic MT4 experience, many others (eg IG) can be enhanced with a custom set of extra tools. So MT4 is rather like an Android smartphone; its basic feel is the same regardless of model, although some manufacturers are more likely than others to pay their own attention to it.

Several brokers also offer MT4 as an alternative vehicle to trade alongside their own platform. There is a good commercial reason for this; because of its familiarity among merchants, it is a good way to attract new customers.

From a trader’s point of view, it may make sense to get to know the platform if you are going to switch between brokers. Its universality means that if you want to jump from one broker to another (to take advantage of better rates or wider trading options), assuming both platforms offer MT4 trading, you can make the switch without having to relearn experience.

The MT4 Platform

Although MT4 is available to download directly from MetaQuotes, it may make more sense to use the download from the broker you are considering (or using). This usually means that all free enhancements offered by the broker are ready and waiting for you.

MT4 Download

The MT4 download is available directly from www.metatrader4.com – but downloading a version directly from a broker may mean that additional features and compatibility are already built in.

Leading brokers with MT4 or MT5 integration:

 

Executing a trade

It is a simple process. For example, for a currency trade, you go to the New Order button on the platform bar, choose your currency pair, enter the size of your position, choose your buy and sell limits and stops – as well as your loss limits and profit targets.

Metatrader 4 auto trading used – EA

An Expert Advisor (or ‘EA’) is a program that you use on the trading platform to automatically take a certain action on your behalf if certain criteria are met. If you’re using an off-the-shelf EA, always make sure it’s from a reputable, trusted source. With MT4, it’s easy to create your own EA or save ready-made programs and run an EA by basically dragging it onto your interface. The core of the platform also allows you to test an EA and run it again in demo mode before risking your capital on it.

 

Making Sense of MT4 Indicators

From the point of view of the broker and the trader, MT4 is highly customizable. Brokers are free to add their own indicators to the platform menu at the top that is already there.

Traders simply go to that menu, choose which indicators they want to add to their own charts and how they want each indicator to be visualized in terms of line style and color.

In short, MT4 allows traders to control what information they trust – and how it is presented.

Why use Metatrader4? Other benefits:

The other reasons why MT4 has become a market standard are the following…

  • A large community of users –  if you have a technical query – or are looking for different perspectives on the best indicators to work in your trading activity, there is an international community of users that can help you. Whether you are a beginner trader – or perhaps an experienced trader looking to set up your own automated trading assistant, the MQL4 community site is worth a visit.
  • Charts you can rely on – the combined trading and charting capabilities of the platform mean that trading simultaneously while analyzing the markets becomes a simple process. You can trust that the current prices you are looking at are up to date.
  • Stable, secure and mobile –  under the hood, MT4 is a relatively simple platform. It’s not the type of system that will take its toll on whatever device you have installed. With simplicity comes stability; one of the reasons it is favored by brokers and traders is that it is unlikely to cut out, leaving you unable to react to important trading points. Additionally, there are stable and secure variants for Android, iOS (mac) and Linux.

Compare MetaTrader 4 with rivals

‘How comfortable am I with this particular platform?’

This is a key question to ask yourself when researching the market. Brokers have not built their interface around MT4, but it is not the only way to do things.

This shows that all brokers are by no means “the same” in the way information is presented.

So where next? Browse our up-to-date platform reviews – including a wide selection of brokers offering variants of the MT4 platform – to find the package that best suits your needs.