What is MT4 (MetaTrader 4)? Meaning and Usage in Forex

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What is MT4 (MetaTrader 4)? Meaning and Usage in Forex

Jun 20, 2024

What is MT4?

MetaTrader 4 (MT4) is a leading electronic trading platform, initially tailored for retail foreign exchange (Forex) trading. However, MT4 is versatile and is also largely used beyond Forex, accommodating trading in various financial markets such as commodities, stocks, indices and cryptocurrencies. MT4 is developed by MetaQuotes Software, a leading developer in the financial technology sector, known for its innovative input to online trading platforms.

MT4 is known for its user-friendly interface, advanced charting tools, and robust technical analysis indicators, becoming the platform of choice for both beginner and professional traders. MT4 is also recognized for its strong security measures and reliability, executing trades with high speed and precision.  

How to Use MetaTrader4?

Using MetaTrader4 is quite simple and straightforward. The platform is easy to use and enables traders to effortlessly navigate, using various features and functions. Besides, MT4 provides advanced charting tools, including multiple timeframes, various chart types, and analytical tools and support for algorithmic trading. To begin using MT4 start by downloading the MetaTrader 4 either from the official website or through the broker of your choice. The steps that come after are as follows:

  • Open a trading account with a broker that supports MT4: There are many brokers that support MT4. It is essential to choose one with tight regulation and good standing in the market.
  • Login, using the credentials provided by the broker: Logging in with the credentials provided by your broker ensures secure access to your trading account.
  • Explore the MT4 interface: Understanding the interface simplifies platform navigation. Traders can swiftly locate the tools and features they require, enhancing their trading efficiency.
  • Open a position: After completing the initial step of opening an MT4 account, you will probably wonder what the next step is. Start with placing a trade. For this it is necessary to go to the 'Tools' section and select 'New Order'. The order window might first seem confusing with all its components, but it is only a matter of time before getting the hang of it. Generally, you will need to choose from the drop-down list: Symbol, Volume, Stop Loss, Take Profit, and Type – Instant Execution or Pending order.  

  • Managing and Closing Your Positions and Pending Orders: For successful trading it is crucial to effectively manage and close your positions and pending orders. In the 'Terminal' window of the MT4 trading platform, it is easy to see and follow all open trades and pending orders, learn about their status and performance.  
  • Adjusting Stops and Limits for Open Positions: Adjusting stops or limits on the open positions is easy to do by clicking on the 'Terminal' window and going to the 'Trade' tab. After making modifications the changes should be confirmed by the “Modify” button.  
  • Price alerts: Setting up price alerts is another important step in trading on MT4 platform. Price alerts are important for successful trading as they enable traders to track the market even during periods of inactivity. This prevents from overlooking significant price shifts or potential trading opportunities.

  • Explore Your Trade History: Reviewing your trade history is important as analyzing your past trades, it is easy to identify patterns, trends, strengths, and weaknesses in the trading strategy. This insight helps to improve your trading approach and eliminate previous mistakes.

How to Use MT4 on Mobile?

Downloading MT4 on your mobile device is easy and allows you to trade efficiently anytime and anywhere. Here’s how to get started and make the most out of the MT4 mobile app:

  • To get started, the first step is to download the app on the mobile.
  • To get most of the trades a stable internet connection is essential.  
  • To log in on mobile traders need to use their account credentials or create a new account.  

The MT4 mobile app has a rather simplified interface, enabling traders to navigate easily. However, the drawback is the smaller screen size that might be a little challenging when analyzing charts. MT4 supports essential trading functions on its mobile app, such as placing orders, viewing charts, and accessing account information. Setting up price alerts and notifications are very helpful to follow the market movements without constantly monitoring the app. Compared to the desktop version, traders can access fewer technical indicators on mobile.  

Along with the ease and comfort of trading MT4 on mobile app, there are also slight technical inconveniences, like battery issues, as using live charts might drain the battery very quickly.

Why Use Meta Trader4?

MetaTrader 4 is free and easily accessible, requiring minimal system resources for swift execution. MT4 provides traders with essential features such as Stop Loss, Take Profit, and Pending orders. Additionally, it offers versatile trading options, supporting both manual and automated strategies for trading flexibility and success.  

MT4 offers several advantages, one of which is its ability to enable trading directly on charts, providing investors with quick access to trades through various orders. Additionally, MT4 allows traders to develop robot trading systems. This automated approach is beneficial for traders as it provides trading signals when specific conditions are met or executes predetermined orders automatically as defined by investors.  

Here are some of the most notable advantages MT4 platform is known for:

  • Advanced charting tools
  • Intuitive and easy-to use interface
  • Security measures
  • Ease to customize
  • Availability on mobile devices
  • Real-time access to market prices
  • Availability of Expert Advisors

MT4 Brokers

Any brokerage firm offering the MetaTrader 4 (MT4) trading software is known as an MT4 broker. To provide MT4 to clients, forex brokers are required to acquire a license from the software developer. Yet not all brokers offering MT4 are properly regulated. To ensure a secure trading environment it is essential to give your preference to brokers with tight regulations.

MT4 Trade Execution

Experience swift and precise trade execution on MT4, effortlessly entering and exiting positions in financial markets. The user-friendly command window simplifies trade management as it is easy to comprehend. With a single click it is possible to determine and manage the trades.

MT4 also offers a range of powerful tools that are beneficial for trades. One such tool is Stop Loss, which automatically closes an order when the market moves against the trader's position, thereby helping to limit potential losses and manage risk effectively.

Take Profit is another invaluable tool provided by MT4. It allows traders to set a specific price level at which they want to close a trade to secure profits. When the market reaches this predefined take profit level, the trade is automatically closed, enabling traders to save their gains effectively.

MT4 Order Types

MT4 offers traders a variety of order types, facilitating the implementation of trading strategies with accuracy and effectiveness.

Market Order: Executed instantly at the current market price, market order is used to buy or sell an asset without delay.

Pending Orders: Pending orders are instructions that enable traders to predefine entry or exit points in advance, triggering trade execution only when certain predefined conditions are met. Four main Pending Order types are recognized:

  • Buy Limit: A buy limit order is positioned beneath the prevailing market price and anticipates price decline before initiating a long position.
  • Sell Limit: A sell limit order is positioned higher than the prevailing market price and anticipates a rise in price before initiating a short position.
  • Buy Stop: A buy stop order is placed above the current market price and anticipates a breakout above a certain level to enter a long position.
  • Sell Stop: A sell stop order is set below the current market price and anticipates a breakdown below a certain level to enter a short position.

MT4 Expert Advisors

Trading is easier, when traders start their journey with Expert Advisors (EAs) in MT4; powerful tools designed to execute trades automatically. The EAs for MT4 are the automated trading programs coded in MQL4 (MetaQuotes Language 4). These EAs automatically place trades in accordance with a set of predefined rules and algorithms, running without any intervention from the trader. These are heavily used in the Forex market and across various financial markets to automatically implement trading strategies.  

Taking control of your trading journey with Expert Advisors (EAs) on MT4 is easy. There are two options to explore: either purchase from the MetaTrader4 market or create your own. If you are ready to build your own trading robot then start by developing, programming, and compiling it using the MQL4 coding language on the MQL MetaEditor.

MT4 with KCM Trade

KCM Trade helps traders to elevate their trading experience by providing robust support to traders through the MT4 platform.  KCM Trade offers a comprehensive suite of tools and features to enhance trading experience. With MT4, traders can access a wide range of financial instruments, enabling diversified trading strategies. KCM Trade ensures seamless connectivity and lightning-fast execution, allowing traders to capitalize on market opportunities swiftly.  

Additionally, the platform offers advanced charting capabilities, technical analysis tools, and customizable indicators, empowering traders to conduct in-depth market analysis and make informed trading decisions. KCM Trade's MT4 platform also supports automated trading through Expert Advisors (EAs), enabling traders to automate their trading strategies and execute trades based on predefined parameters.

MetaTrader4 Alternatives

There are several alternatives to MetaTrader 4 (MT4) available in the market, catering to different preferences and trading styles. Among the most sought-after alternatives are MT5, cTrader, NinjaTrader, and TradingView.  

MetaTrader 5 (MT5) is developed by the same company as MT4. It is a more advanced and upgraded version of MT4 that offers additional features, including more advanced trading tools, improved execution speeds, and support for more asset classes. In other words, MT5 offers a range of features and improvements over MT4 that make the platform preferable.  

Besides MT5, there are alternative trading platforms that users prefer, based on their specific trading needs.  cTrader is one of the popular alternatives known for its user-friendly interface, advanced charting tools, and comprehensive order management tools.  

NinjaTrader is also known in the market for its powerful analysis tools, great customization options, and support for automated trading strategies. Among other alternatives TradingView enjoys quite popularity in the market, standing out for its social networking features and web-based platform. Each platform has its unique strengths and caters to different trader preferences and needs.