MetaTrader 4

MetaTrader 4 (MT4) is an online trading platform best-known for speculating on the forex market. Available for download on Mac, Windows, and mobile apps, it’s offered by most brokers in 2020. Here we’ll explain how to trade on the MetaTrader 4 system, as well as running through expert advisors (EAs), demo accounts, tutorials, and support.

MetaTrader 4 Brokers

Review

Forex.com boast a global reputation. Regulated in the UK, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.

Forex.com boast a global reputation. Regulated in the UK, US and Canada they offer a huge range of markets, not just forex, and offer very tight spreads and a cutting edge platform.

Review

NinjaTrader offer Traders Futures and Forex trading. Use Auto-trade algorithmic strategies and configure your own trading platform, and trade at the lowest costs.

NinjaTrader offer Traders Futures and Forex trading. Use Auto-trade algorithmic strategies and configure your own trading platform, and trade at the lowest costs.

Review

Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets

Zulutrade provide multiple automation and copy trading options across forex, indices, stocks, cryptocurrency and commodities markets

History

MetaQuotes Software, the developers behind MetaTrader 4, released the platform in 2002. It’s since undergone a number of iterations, with the 2005 version giving it real traction in the online trading community. It’s now so popular brokers offer the platform as an alternative to their proprietary software.

Today the MetaTrader 4 platform isn’t just popular among forex traders. The software is used for trading futures, CFDs, stocks, commodities, and cryptocurrencies, including Bitcoin (BTC) and Ripple (XRP).

How To Open A MetaTrader 4 Account

Getting started on MetaTrader 4 is straightforward. You can download a zip file with the platform from the MetaQuotes website free-of-charge. You can also download the platform from an online broker when you register for a real or demo account.

System Requirements

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. Alternatively, you can trade directly through a web browser on your MacBook or Chromebook, for example.

Setting Up

Once you’ve downloaded the free platform, register for a new account and sign in with your login credentials. You can then personalise 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.

How To Trade

We’ve looked at how to create a MT4 account, but how do you use the platform to trade?

The Basics

To make a trade, select ‘tools’ and then ‘new order’. This will take you to the order window. Alternatively, use the keyboard shortcut F9. The order window can appear intimidating, but the components are straightforward:

• Symbol – Here you can choose between markets, for example, forex, gold, or stock indices, such as the S&P 500
• Volume – Decide on your trade size – how many lots or CFDs do you want to trade? Note, 1 lot is equal to 100,000 units of the base currency
• Type – Choose ‘instant execution’ to place a trade as soon as you hit ‘buy’ or ‘sell’. Alternatively, opt for ‘pending order’ to select the point at which a trade is opened
• Stop-loss – This risk management tool will limit the size of losses, automatically tracking pips and closing out trades when they reach a set level
• Take-profit – This does the same for profits, meaning trades are automatically exited when profits hit a certain point
• Comment – Here you can leave trade commentary, which you may want to add to your trading journal, for example
• Slippage – You can limit slippage through the ‘deviation’ setting

Monitoring & Closing Positions

Head to the MetaTrader 4 terminal by selecting ‘view’ and then ‘terminal’. Now click ‘trade’. From here, you can exit a position by selecting the ‘x’ to the right of the profit column. You can also modify stops and limits by right-clicking on the position or pending order you’d like to change, and selecting ‘modify’.

Charts

To draw on charts, select the object you’d like from the toolbar and click on the chart. To amend the timeframe on a price chart, right-click on the chart and hit ‘timeframe’. You can then choose from the drop-down menu:

• M1 (1 minute)
• M5 (5 minute)
• M10 (10 minute)
• M15 (15 minute)
• M30 (30 minute)
• H1 (1 hour)
• H4 (4 hour)
• D1 (1 day)
• MN (1 month)

Note, you are not limited to the 9 standard timeframes. Custom timeframes, for example, 2 minutes and 8 hours, can also be added.

Indicators & Add-ons

On top of the 30 built-in technical indicators, there are thousands of additional chart indicators that can be downloaded from MetaTrader’s Code Base and Market. The Elliot Wave indicator, Bollinger Bands, and pivot points are just a few examples.

Third-party add-ons allow traders to start programming the MetaTrader 4 platform to suit their trading style. Stealth Orders and Alarm Manager are two popular examples. Stealth Orders anonymises trades while Alarm Manager provides a window to coordinate alerts and notifications. You can also use Java API to build extensions onto the MetaTrader 4 platform.

Learning how to trade off the MetaTrader 4 platform can feel daunting to start with, but the trick is practice. For further day trading guidance, including strategies, see here.

Expert Advisors

One of the main draws of the MetaTrader 4 platform is its automated trading functionality. Robots, also known as Expert Advisors (EAs), analyse FX price quotes, for example, and take positions based on pre-determined algorithms.

Trading bots with guides can be downloaded for free from Code Base. Alternatively, they can be rented or bought from the Market, or freelance developers. Tech-savvy traders can also build robots on the MetaTrader 4 platform with integration through Raspberry Pi 3 and Python. Virtual hosting through MetaTrader 4 VPS also lets you run trading bots 24/7.

Mobile Apps

The MetaTrader 4 app lets you maintain complete trading control from your phone, without compromising on functionality. Mobile traders will find three types of charts, 9 timeframes, 30 technical indicators, market news, plus a chat box to interact with other traders.

For Android users, the MT4 APK file is available to download from the Google Play Store. The MT4 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.

Demo Accounts

The MetaTrader 4 demo account is an excellent way to try trading the XAU/USD pair, for example, before risking real money. 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 demo from the new account options.

Support

For problems using MetaTrader 4, customer support is available. The Help section is a good place to start if you want the basics explained, including keyboard shortcuts. For specific questions or if you want to speak to a manager, head to the Contact Us page.

Online PDFs and training courses that users have put together are also helpful. In fact, the MetaTrader 4 online community is extensive. You’ll find help on everything from trailing stops and negative balance protection to tips on how to make money on your account during weekend trading hours. The online community is also a good place to go for advice on the plugins you must have.

Head to the Technical Support Centre for help with any of the following:

• The platform keeps saying ‘invalid account’
• Cannot place new orders / no trade option
• The platform keeps freezing and crashing – not working, loading, updating or responding

Note, glitches or problems with the platform going down can be a result of outdated software. In the platform, you can check to see if it’s waiting for an update to be installed. Alternatively, if your laptop has frozen, a trusty old restart can often solve the issue.

MetaTrader 4 vs MetaTrader 5

MetaTrader 4 came out in 2005, offering a straightforward platform, predominately 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

Both MetaTrader 4 and 5 allow for customisation, mobile trading, and automated trading. However, when it comes to analysis, the MT5 system has 38 technical indicators while the MT4 server has 30, although both contain popular EMA, b-clock and zigzag indicators. The MT5 platform offers 21 timeframes vs MT4’s nine. Additionally, the MT5 software has more drawing tools than its predecessor, including a more advanced Elliot Wave indicator. Overall, MetaTrader 5 wins on analytics.

Automated Trading

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.

Trading Orders

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 MT4 and MT5 traders can use MultiTerminal to manage multiple trading accounts.

Verdict

So should you use MetaTrader 4 or 5? For beginners or those primarily interested in forex, MetaTrader 4 is the obvious choice. Traders wanting additional, 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.

Brokers That Offer MetaTrader 4

As our brokers list below shows, most large legitimate providers offer MetaTrader 4, particularly in established forex markets, such as the UK, USA and Europe.

• Admiral Markets
• Trading 212
• IC Markets
• ZuluTrade
• AvaTrade
• 24option
• Oanda
• FXCM
• FxPro
• XTB
• XM
• IG

Note, reviews do flag that some brokers offer wider spreads on MetaTrader 4 than on their primary platform.

For further guidance on choosing day trading brokers, see here.

Final Word

MetaTrader 4 is the most popular online retail trading platform. The software is accessible via a download or through a web browser. It promises a wealth of tools to assist technical analysis while making automated trading readily accessible. It’s unsurprising then that MetaTrader 4 regularly tops user reviews, meeting the needs of both the beginner and advanced trader.

FAQ