If you want to try Forex online, you need a solution to trade there. While there may be dozens of different types of trading options to choose from, the MetaTrader 4 or MT4 trading platform is the most well-known platform in the industry.
MT4 or MT5 are the key elements for the automated trading process. MT4 was launched in 2005 by MetaQuotes Software. Today, MetaTrader is the most widely accepted Forex trading service, available in the Forex industry.
If you, as a trader, want to implement MetaTrader 4 in your trading process, then you will need to find a broker for it. Today you will find out everything you need to know about it. Pros and cons of this powerful system, and also see how to choose the best MT4 broker. Let’s dig in!
What is MetaTrader 4: its history
It is a trading service accepted by online Forex trading platforms worldwide. The MT4 is often called a trading standard, and it is used by the majority of the Forex companies and brokers around the world.
This platform and its software consist of several key components for a user and a server. The client segment is a service that users can download and install onto their computers. The server option can be regulated and managed by the broker.
MT4 software is licensed to exchange brokers, and they provide it to their Forex traders. It also consists of these key features. The server can be controlled by the broker, and the client service is available for its clients. They can track prices and charts in real-time mode as well as place orders and control their profiles.
MetaTrader has the ability to support both pending and market orders. A pending order means that the operation will be completed only when the price of the tool gets a specific point.
Market orders have several types of executions, and here they are:
- Market execution. It is used in the case when the market price is used, not a price that is shown on the trading service;
- Instant execution. This type of trades are executed according to the price, available on the platform;
- Exchange execution. Trading orders are completed according to the current depth of the market;
- Request execution. A market order can be completed in 2 steps. A trader needs to request a quote. Then a system gives the trader a short period to make a decision if he or she wants to proceed to the second stage or not. It is the slowest type of execution, but it gives certainty in the price that a trader will have.
MetaTrader has several versions, available for its consumers:
- Client Terminal
- MetaTrader 4 Manager
- Mobile applications
Alas, most part of brokers gives an opportunity to use one version of the MT4 service only.
Why should I try MetaTrader 4?
We all can admit that MetaTrader is the industry standard and quite popular in the trading community, and it is the main reason why you should try it by yourself.
Although the trading platform can seem complicated, there are plenty of guidelines and videos, so you should get full coverage, and see its great potential. In fact, the popularity of the MT4 trading platform is a real-life testimony of the benefits that consumers can get from this service.
MetaTrader is a popular trading service
But what is the reason for the popularity of the MT4 trading platform? It can be attributed to a few causes:
It is easy to use
MetaTrader 4 has a well-designed, and user-friendly interface. So, you will be able to start trading quickly and watch the Forex market easily. MetaTrader is able to satisfy both the needs of novice users as well as guru Forex traders.
MetaTrader 4 “speaks” your language, not only English
This service supports a global community in the best way possible: it is adapted in different languages. So, there will be no need for a third-party app or site to use due to a language barrier.
Ability to manage it on the go
The MetaTrader 4 app lets you maintain complete trading control from your mobile phone, without compromising on functionality. Mobile traders will find three types of charts, 9 timeframes, 30 technical signals, market news, plus a chat box to interact with other traders.
For Android users, the MetaTrader 4 APK file is available to download from the Google Play Store. The MetaTrader 4 mobile app is also compatible with iPhones, iPads, and some Windows devices, including Windows Phone 8.1. ‘How to install’ guides and tutorials with download instructions can be found on the respective app stores.
Beginners and pro traders have a chance to try a demo profile. So, they can practice their trading skills and strategies without any fear of losing funds. You can try it as soon as you register here.
The MetaTrader 4 demo account is an excellent way to try trading before risking your funds. The functionality is very similar to that of a real live account, except you use virtual money. The login process is the same, you can still access historical data and indicators, plus copy trading is available through Signals. Expert Advisors can also be used on demo accounts.
When it comes to how to open a MetaTrader 4 demo account, simply select a demo from the new account options.
Advanced charting options
This trading platform is supplied with advanced charts. Traders can rely on them to help them make analyses. They have several technical indicators and can support different time periods. So, its users can track the market more accurately, and almost simultaneously. The charting package also comes with a wide range of technical indicators which traders can try by implementing in the chart.
The most defining feature of the Metatrader 4 MT4 trading platform is its ability to support automated trading through the use of expert advisors. It is the first popular Forex trading service with a built-in scripting language. It is called MQL4. EAs are basically software scripts that are written using the MQL 4 language that is integrated with the MT4 platform to execute trades automatically, based on the parameter established by the trader. It is mainly because of this feature that the Metatrader 4 MT4 became extremely popular among forex traders.
Using this scripting language, traders are able to make and launch their own expert advisors, which can be implemented in an automated or algorithmic trading process.
Built-in communication tool
The MetaTrader 4 also comes integrated with an advanced communication tool that lets forex brokers post messages to traders in real-time hence eliminating long email threads.
Low resources are needed
Unlike a flash-driven trading platform, the MetaTrader 4 trading platform is not heavy on computer resources hence causing minimum disruptions to one’s computer. Because the MT4 platform doesn’t hog all the computer resources, traders can respond better to changes in the market.
It is highly secured
The trading platform has a strong security system, supplied with 128-bit encryption. It is hard to crack the code, and it prevents data leakage. Due to the specification of Forex trading, safety is a key element for Forex brokers, and MetaTrader 4 meets their need to keep personal data and funds safe and secure.
Ability to customize it
It also has a customizable interface. MetaTrader 4 allows its traders to change the language and the trading screen.
Choosing an MT4 provider
As mentioned earlier, most top forex brokers in the industry offer the MT4 trading platform to their traders. So the key to selecting the best MT4 brokers to trade with then should be based on other factors such as customer support, max leverage, security as well as other value-added services which the broker is able to provide.
For example, if the internet services in your area are unstable or unreliable and you wish to run EAs, you might want to consider forex brokers that offer VPS services as part of the products and service offerings. This helps you to minimize the chance of downtime due to your unstable internet connection.
Let’s take a look at key features that you should take into consideration before choosing an MT4 provider. Here they are.
Do not forget that the protection of your funds, by and large, rests on your shoulders. So, you should not overlook the security of MT4 brokers and of trading accounts. If it is possible, please, take some extra steps to level up security.
Be very mindful of the fact that the companies have full access to all information. So, they have to assure the safety of your account information.
Great customer support
Forex, as well as cryptocurrency trading, is available 24/7. So customer support should be available at any time. Also, consider whether it’s easy to contact them. A quick answer from a company can give you an idea of the type of customer service they provide and average wait times.
Check out if the service supports a global community in the best way possible and is it ready to help you, regardless of which language you speak.
FAQ is more than a user support
It is not obligatory but it is a great plus if the MT4 provider has not only live support but also its FAQ, also known as a help section. Frequently Asked Questions is an organized collection of valuable information that traders ask about the market, tools, trades, accounts, and the app. Definitely, it is a go-to destination, and FAQ has the most overlooked pages.
It is a useful way to prepare yourself for trading. So, open and see the information that other customers often ask in advance.
Check out reviews
And last but not least, you should pay close attention to reviews as well as to the reaction of the trading community.
Be wary of these though. Unless the information comes from a credible source, you’re likely to find fake reviews, both positive and negative. Look up what customers are saying, but maintain objectivity. Lots of false information gets published with no credible reference.
How to open a MetaTrader 4 account?
Getting started on MetaTrader 4 is straightforward. You can download a zip file with the trading platform from the MetaQuotes website free of charge. You can also download the platform from an online broker when you register for a demo account or a real profile.
MetaTrader 4 works on macOS and Linux. The software is also compatible with Windows 7, 8, and 10 on 32-bit and 64-bit processors. You can trade directly through a web browser on your MacBook or Chromebook as an alternative.
Setting it up
Once you’ve downloaded the free trading platform, register for a new account and sign in with your login credentials. You can then personalize the MetaTrader 4 platform, from chart set-ups to choosing between the light and dark mode.
Details of trading costs, commissions, and spreads are normally highlighted when you sign up. Some new users are surprised to see swap fees charged against their account each day. For those asking ‘what is a swap?’, it’s interest charged or received at the end of each trading day, based on your position.
Head to the terminal to view your account balance and margin levels. If you don’t have enough funds to meet a leverage requirement, a ‘not enough money’ error will appear when you place a trade.
When it comes to how to deposit and withdraw funds, simply select ‘deposit’ or ‘withdraw’ from your account area. Then choose from the payment options available.
Payment charges vary between brokers, but there is normally a free option. Deposit and withdrawal payment times depend on the broker and method selected.
Pros and Cons of MetaTrader
No trading software in the world is perfect and each is bound to have its own strengths and weaknesses. The same goes for the MT4 trading platform. While MetaTrader 4 has numerous pros, it also comes with its own cons. Let’s see them below:
- It is easy to use
- Trading tools are free
- Supported by a wide range of third party services
- Widely accepted by a wide range of brokers around the globe
- Great variety of options
- Ability to implement Expert Advisors (EA)
- A big number of guidelines and a strong community to get assistance.
- Timeframes, available in the charts, cannot be customized
- MQL4 language has bugs
- This language can be applicable for related programs only
- It cannot be implemented in high-frequency trading operations
Comparing MetaTrader 4 and MetaTrader 5 (MT4 and MT5)
MetaTrader 4 came out in 2005, offering a straightforward trading platform, predominantly for online forex trading. The aim of the MetaTrader 5 system, released in 2010, was to give traders a powerful and comprehensive multi-asset platform. How then, do they both compare and what are the differences?
Analysis of MT4 and MT5
Both MetaTrader 4 and 5 allow for customization, mobile trading, and automated trading. However, when it comes to analysis, the Metatrader 5 platform has 38 technical indicators while the MetaTrader 4 server has 30, although both contain popular EMA, b-clock, and zigzag indicators. The MetaTrader 5 platform offers 21 timeframes vs MT4’s nine. Additionally, the MetaTrader 5 software has more drawing tools than its predecessor, including a more advanced Elliott Wave indicator. Overall, MetaTrader 5 wins on analytics.
When it comes to automated trading, both are excellent choices. But key differences are that MQL5 is thought to be easier to use than MQL4 and MQL4 works on an order system while MQL5 follows a positional system.
In terms of trading and orders, both offer similar execution models. But when it comes to pending orders, MetaTrader 4 has four order types to MetaTrader 5’s six. Both MetaTrader 4 and MetaTrader 5 traders can use MultiTerminal to manage multiple trading accounts.
MetaTrader 4 vs MetaTrader 5: what should I choose?
So, should you use MetaTrader 4 or MetaTrader 5 (MT4 and MT5)? It is up to you, but you should try MetaTrader 4 first. Traders wanting additional, more sophisticated tools may prefer the MetaTrader 5 platform. Overall though, the MetaTrader 4 system will meet the needs of most traders and remains the most popular choice.
Choosing the best MT4 provider on Finarm.com
We all know that it is quite difficult to find the most suitable MetaTrader 4 or MetaTrader 5 provider (MT4, MT5). And we have a solution that will definitely help you. Finarm is a universal aggregator to find the most suitable MetaTrader 4 or MetaTrader 5 broker (MT4, MT5) among top services.
In addition, you can get full guidance and review of the trading platform right here. Open and try by yourself on Finarm.com!