Introduction To MetaTrader4
How to download MT4 and how to install MT4 and links to setting up demo account MT4 and links to setting up real account MT4.
When you open a demo or live account with an online Forex broker, you will need to use a trading platform in order to execute trades with that broker.
A trading platform is a piece of software that provides a mechanism for the trade execution and, almost always, includes additional tools to facilitate technical analysis, such as Japanese Candlestick charts with indicators.
Many brokers offer a choice of different platforms for their clients to use. Almost without exception, every retail broker offers the use of the Metatrader 4 platform. It is useful to have some knowledge about what this platform is and how it works. This lesson will provide an introduction to Metatrader and show how it can be downloaded and installed for free.
Metatrader 4 / Metatrader 5
Two Metatrader platforms are widely used and easily available: Metatrader 4 and Metatrader 5. Both of these are available as free, standalone software for the user to download and install on their own computer or device. The Metatrader platforms are provided by MetaQuotes Software Corp.
The Metatrader 5 platform is the newer release. However, the retail Forex community has mostly continued using the MT4 platform, so we will focus on Metatrader 4.
Forex MT4: Downloading and Installing
Brokers offering accounts compatible with Metatrader 4 usually offer download links where a demo or live account can be opened and a customized platform downloaded and installed, making the process a little easier.
You can download Metatrader 4 for your laptop or PC here or here. Installation instructions can be found at the link destinations.
Primary Functions of Metatrader 4
Once a demo or live account is up and running the tick-by tick price changes in that broker’s price feeds can be displayed and analysed within the Metatrader 4 platform. The primary uses of Metatrader 4 are:
- Trade Execution
- Display of live Forex charts that show price changes tick by tick
- Provision of analytical charting tools including all the major indicators, allowing technical analysis by the user of both live and historical Forex charts
- Provision of news and alerts that can be customized by the trader
- Display of current open trades and closed historical trades
- “Auto-trading” by “expert advisors”
- Tool for the creation of customized indicators and “expert advisors”
- Back testing trading strategies with historical data
Advantages / Disadvantages of Metatrader 4
Your broker will probably offer you the choice of using either Metatrader 4 or at least one other trading platform. Often, the alternative to Metatrader 4 is a proprietary browser-based platform. You should consider the advantages and disadvantages of choosing Metatrader 4 over any likely alternatives.
- The MT4 forex broker platform usually runs more quickly and has less glitches than browser-based alternatives.
- Metatrader is compatible with most retail Forex brokers, and therefore can be used to run multiple accounts. Most brokers are MT4 Forex brokers. Should you wish to switch brokers, you can probably use it with your new broker, so you would not need to learn how to use a new platform.
- There is a Metatrader online community that offers help and support to Metatrader users.
- As Metatrader 4 is so popular, a very wide range of customized indicators and expert advisors is available, to perform almost every type of trading strategy and technical analysis imaginable.
- Metatrader offers a wide range of MT4 charts for viewing price movements and live tick prices in different configurations.
- Metatrader 4 is available for use as a platform with many MT4 spread betting providers and true ECN brokerages, some of which do offer ECN broker MT4.
- Metatrader 4 is widely considered to be very intuitive and easy to use.
- Metatrader 4 is available for smartphones.
- Many brokers offer MT4 demo accounts, allowing aspiring traders risk-free practice under real market conditions.
- Some brokers impose slightly wider spreads on Metatrader 4 than they offer on trades executed through their proprietary platform.
In the next lesson, we will present a user’s guide to Metatrader 4.