What is MT4 (MetaTrader 4) and How to Use It?

In the trading realm, MetaTrader 4 (MT4) has gained substantial popularity over recent years, thanks to its user-friendly nature and a wealth of features. However, seasoned traders accustomed to MT4 might ponder whether MT4 surpasses MT5.

This article takes an in-depth journey through MT4, dissecting its characteristics, features, available account types, download process, key differences between MT4 and MT5, and much more. We also bring forward recent insights and present the pros and cons of both platforms.

What is MetaTrader 4 (MT4)?

MetaTrader 4, developed by MetaQuotes Software in 2005, originally served as a forex trading platform. However, it has since become a favorite among traders worldwide due to its versatility, ease of use, and myriad features. MT4 allows users to trade through various brokers and access multiple financial markets, conduct advanced technical analyses, and execute automated trading strategies.

MT4’s primary strength lies in its simplicity. The platform demands minimal technical know-how, making it accessible to traders of all experience levels. It operates efficiently with limited resources and offers powerful graphical capabilities alongside a wide array of indicators. Traders with basic knowledge of MetaQuotes programming language can even create custom indicators or automated trading systems tailored to their needs.

With over a million users worldwide, MT4’s popularity underscores how many traders rely on this software for their trading endeavors.

Key Characteristics of MetaTrader 4

MetaTrader 4 boasts several attributes that have cemented its status as one of the world’s most widely used trading platforms. Here are a few highlights:

1. User-Friendly Interface: MT4 offers a straightforward interface equipped with customizable tools for technical analysis and charting to match traders’ preferences.
2. Diverse Order Types: Supports various execution modes, including instant and pending orders.
3. Advanced Technical Analysis: Allows traders to tailor charts, enabling a deeper analysis of market trends.
4. Automated Trading: Using MetaQuotes Language 4, traders can create automated trading systems, even backtesting their effectiveness.
5. Customer Support: Integrated with an internal email system, MT4 enables traders to communicate with brokers and access the platform’s help section.
6. Free to Use: The platform is entirely free.
7. Enhanced Security: With secure, encrypted connections, MT4 safeguards personal and financial data.

Assets Tradable with MetaTrader 4

MetaTrader 4’s compatibility with numerous brokers provides access to a wide range of tradable assets. Here are some common options:

1. Forex: Currency pairs such as EUR/USD, GBP/USD, USD/JPY, among others.
2. Stocks: Shares from global companies, including Apple, Google, Amazon, etc.
3. Indices: Popular market indices like the S&P 500, Dow Jones, NASDAQ, FTSE 100, and more.
4. Commodities: Resources like gold, oil, natural gas, silver, etc.
5. ETFs & ETCs: Assets that mimic the behavior of other assets, including indices, commodities, and investment funds.

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Types of MetaTrader 4 Accounts

Let’s explore the four primary types of accounts available with MetaTrader 4:

Demo Account

A MetaTrader 4 demo account provides a simulated environment where traders can practice with virtual funds without risking real capital. This account type is ideal for beginners aiming to get familiar with the platform and test strategies risk-free.

Advantages include:

1. Learning tools
2. Risk-free trading
3. Full functionality, mirroring a real account
4. Accessibility

Standard Account

This basic account grants access to numerous financial instruments. Generally, it may feature either fixed or variable spreads depending on the broker and may require a minimum deposit. Some benefits include:

1. Market analysis tools
2. Use of expert advisors
3. Smartphone trading
4. Trading signals

How to Download MetaTrader 4 for Free in 5 Steps

Here’s a simple five-step guide to downloading MetaTrader 4 for free:

1. Choose a Broker: Select one of the three recommended brokers (integrated with MT4) that best suits your needs.
2. Register: Sign up on the broker’s website and open a trading account.
3. Download: After registering, navigate to the download section on the broker’s site and choose the MetaTrader 4 download option.
4. Install: Run the installation file and follow the instructions to complete the setup on your device.
5. Log in: Open MetaTrader 4 and log in using the account credentials provided by your broker. You’re now ready to start trading!

These steps may vary slightly depending on your chosen broker, but this guide should give you an overall idea of how to download MetaTrader 4 for free.

How to Use the MetaTrader 4 Platform

Market Watch

Market Watch is an MT4 tool that displays a list of tradable financial instruments, providing real-time data on bid and ask prices, spreads, and other relevant details. Traders can customize this list to closely monitor selected instruments.

Explorer

Located below Market Watch by default, this section contains several accessible tabs:

1. Accounts: Shows demo and real accounts, allowing access to the desired one.
2. Indicators: Features standard indicators commonly used on MT4, like RSI, Stochastic, and MACD.
3. Custom Indicators: Lists all installed indicators besides the default ones.
4. Scripts: Contains programs for repetitive actions like opening and closing trading positions, forming the backbone of Expert Advisors and trading strategies.

Automated Trading Strategies (MQL4)

This feature allows traders to develop, test, and apply automated trading strategies using the MQL4 programming language. Traders can code their own systems or use pre-programmed expert advisors (EAs) to execute trades automatically based on predefined rules and conditions.

Technical Analysis Tools

MT4 provides a variety of technical analysis tools to aid traders in making informed decisions. These tools include numerous indicators and graphical objects, such as moving averages, oscillators, Bollinger bands, and more. Users can adjust these indicators’ parameters and use drawing tools for analyzing chart patterns, thus enhancing their technical analysis capabilities.

Terminal

The Terminal is MT4’s central hub, where traders can monitor open positions, pending orders, transaction history, account balance, and other essential information. It allows traders to manage transactions, modify existing orders, and track performance and account status in real time.

Advanced Functions of MetaTrader 4

Here are some of the platform’s advanced features:

1. Chart Customization: Customize charts with preferred indicators, timeframes, and styles.
2. Automated Trading System: Develop and test systems through Expert Advisors and Strategy Tester, which allows backtesting of strategies based on past performance.

While these features may be advanced, managing them isn’t overly complex. However, prior experience with similar platforms or simulators would be beneficial.

For this purpose, MetaTrader 4 offers a demo platform option, allowing users to practice these features in a simulated environment with virtual funds.

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MetaTrader 4 Platform Compatibility

MetaTrader 4 is accessible on Mac or Windows desktop/laptop computers and on mobile devices.

MetaTrader 4 for Mac or Windows (PC)

The MetaTrader 4 platform is available for both Mac and Windows operating systems, allowing users of either system to access the platform.

Regardless of whether you use a Windows or Mac PC, you can download MetaTrader 4 from the chosen broker’s website and follow the installation instructions to begin trading.

MetaTrader 4 Mobile Application

In addition to desktop versions, MT4 offers a mobile app for iOS and Android devices. The mobile app enables traders to engage with the financial markets and access their MT4 accounts on smartphones or tablets, providing greater flexibility and accessibility.

The MT4 mobile app offers most of the desktop version’s features, including technical analysis, transaction execution, position management, notifications, and real-time data access—all from the convenience of a mobile device.

Differences Between MetaTrader 4 and MetaTrader 5

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are two trading platforms developed by MetaQuotes Software. Though they share similarities, there are significant differences. Here are some distinctive features to consider:

1. Market Depth: MT5 offers market depth functionality with real-time order flow and liquidity. MT4 lacks this feature.
2. Order Types: MT5 provides a broader range of order types, including stop limit orders and others not found in MT4.
3. Testing Mode: MT5 supports multi-currency strategy testing simultaneously, while MT4 only tests one currency pair at a time.
4. Programming Language: MT5 utilizes MQL5, a more advanced programming language than MT4’s MQL4, offering greater flexibility for automated strategies.
5. Hedging Options: MT4 supports hedging, allowing traders to open opposing positions on the same instrument, while MT5 does not support this feature.

Choosing between MT4 and MT5 depends on individual trader preferences and requirements. While MT5 has more advanced features, MT4 remains popular due to its compatibility, broker support, and large user community.

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