MetaTrader 4 (MT4), is a globally known trading platform which is created by MetaQuotes in 2005. It is Globally utilized for forex trading. Along with this, it is also flexible enough for handling trading in indices and commodities through CFDs.
MT4 forex trading platform is popular and favored by traders for two main reasons. Firstly, it allows tailoring in it. Traders can easily tailor it according to their needs and personal preferences. Secondly, Algorithms can be used to automate trading that executes trades based on predetermined criteria.
Traders use MetaTrader 4 for monitoring real-time currency prices, manage orders, and perform technical and fundamental analyses. Meanwhile, most of the trusted forex brokers use this platform for the expansion of their business.
The vast selection of currency pairs and indicators is MetaTrader 4’s strength. It’s customer-friendly, and it is easier for beginners to trade on it because of customizable charts that help to identify breakout patterns.
How to use MetaTrader 4 trading platform?
MT4 can be used in the following steps:
Step 1: Create an Account by Using your Profile
Begin the process by visiting the website of your broker. Sign up for your new account there.
You have to mention your country, email address, or phone number. After that create a password.
You will receive a verification code through email or phone, after submission of your details. Enter the code in the correct space to complete your registration.
Step 2: Make a Deposit
After setting your account up and logging in, go to the ‘Finance’ section. Select the preferred method for making the deposit. The funds will appear in your account depending on the payment processor you use.
Step 3: Download and Install MetaTrader
Go to the ‘MetaTrader’ section and press on ‘Download terminal’ to get the software.
Step 4: Log into your Account
On the completion of the download, use the installation program and open the MetaTrader terminal. You will have to write the broker’s server information along with your login and password to access your trading account.
You can change the default language to other options that better suit you using a drop-down menu located in this same place, and that will display different languages depending on your geographical area.
Step 5: Select the Asset and Open its Graph
First off, go to ‘View’ on the main toolbar or click the Market Watch icon. You may also press Ctrl+M as a shortcut.
A list of symbols will show up. Right-click the window and click Show All to view all Symbols. You can be selective and add only specific instruments to Market Watch via the ‘Symbols’ drop-down.
To bring up a currency pair (or any other kind of asset) on your price chart, just left-click the pair. After selecting it, click on the mouse button drag it to the chart area, and then release it.
Step 6: Open a Trade
To place a trade, click ‘New Order’ in the main menu or press this button on the toolbar.
This will open the order window with which you can manage your trade positions.
Step 7: Place Stop Loss and Take Profit
Click on the trade window and select your stop loss or take profit, this is done using the contextual menu (or for immediate order activation by double-clicking next to the open position). There you can type your preferred Stop Loss and Take Profit levels.
Step 8: Close a Trade
Closing a position can be done in two ways: automatically or manually.
Tell the robot to close when Take Profit is reached.
On the other hand, you can close your trade manually by entering again into this right-click menu or double-clicking on the position and hitting Close. There you have it, your trade is over.
Key Features of MetaTrader 4
The Key Features of MT4 forex trading platform are as follows:
1. Trading Houses
You can automate your trades as a trader and you might not need to intervene in the markets daily. MT4 expert advisors (EAs) allow you to automate systematic trading.
You can create your own EAs and technical indicators tailored to meet the needs of trading strategies. The Strategy Tester is one of the best features in MetaTrader 4 forex trading, simply because you can use it to back-test and optimize a trading strategy. It allows you to find out if your forex strategies are going to make profits.
2. Access to Real-Time Market Prices and Liquidity
With MetaTrader 4, you gain immediate access to all Forex quotes and can thus make trades instantly. Easily readable information about specific currency pairs like spread, margin percentage, contract size and buy or sell orders.
Market Trend — If the bid price of a particular currency pair falls below the sell price, it is considered to be bullish with increased demand causing you to buy more in that specific currency. We hope with this you will be able to have a more clearly defined, still in real power of indicator validity level when using the RSI very short term for scalping and don’t get over-distracted by potential divergence signals except for moments before terminal price turn points.
3. Depth of Price Analysis Tools
MT4 also comes with many types of built-in charts and technical indicators that provide various price analysis tools. With over 30 indicators, such as top volume and trend tools — as well as unlimited coin charts that can be examined at the same time—the platform can deliver a robust market analysis.
Currency pairs can be customized to view in nine different timeframes, ranging from minutes up to monthly intervals. MetaTrader 4 provides comprehensive charting features which include price analysis, drawing objects as well as mathematical tools for analyzing prices.
You can use custom charts to pinpoint support and resistance levels, make price change predictions, or enter/exit the market as well as profit protection (stop-loss).
4. Multiple Orders — Better flexibility
With MT4, you can also handle two market orders and four pending orders; at any given time this system has three different trade execution modes. Being one hundred percent automated MT4 is a great solution for those traders who don’t want to be trading full time, and with it once again the ability offered by consistent strategies.
5. Minimizes Slippage
Slippage is the difference in price at which a market order or stop-loss order was executed from its initial set, mostly seen during high volatility periods of markets leading to losses. But because of the super-fast execution feature and transaction stability in MT4, it reduces this chance significantly to make delivery more accurate.
6. Alert Function
This stand-alone kind of makes a notification to the trader if there is any sort of significant change in price within different financial markets. Volatile changes in prices may lead to a loss if there are major events that take place across national or global economies. MetaTrader 4 will do the work for you, sending emails and/or mobile notifications about every price change that might affect your positions.
7. Automated And Algorithmic Trading
Expert Advisors (EA) feature — It allows automatic and algorithmic trading on MT4. EAs have an in-built programming language that enables traders to come up with their strategies and automatically execute them, thus making trading more efficient and personalized.
Pros and Cons of MetaTrader 4
Pros
- The design of the MT4 Forex trading platform is lightweight and user-friendly. This makes it easy to set up and have a smooth trading experience.
- MetaTrader 4 is best for novice traders because of its straightforward and intuitive interface. It works seamlessly across different operating systems.
- Automated trading is supported by the MT4 forex platform. It enables users to program their trading strategies and design custom indicators.
- It has tight security measures to protect the trading space and uses a 3rd party system through which users are connected with licensed brokers.
- For brokers implementing MT 4 has benefits of its own in that they can individually profile customers using CRM solutions to consolidate and accurate marketing campaigns.
- You get a demo account on MetaTrader 4, this replicates the real environment but you will experience trading with virtual money so good for newbies.
Cons
- There is a restriction on the past data available on MT4 for backtesting. This is the cause of limitations for traders who need complete information for their analysis.
- The speed of the MetaTrader 4 might not be speedy enough for high-frequency trading strategies. Moreover, automated trading is not supported in this platform’s web-based interface. This can be a drawback for traders who prefer using the web for their trading activities.
Conclusion
There’s always some level of risk in Investing. It is important to research properly and choose a reliable and trustable platform. MetaTrader 4 trading platform has a good reputation in the trading world because of its features like, intuitive design, and compatibility with various devices. These features make it an appropriate option for both beginners and expert traders.