MetaTrader 4 (MT4) For Forex traders | Top Pros And Cons
MetaTrader 4 (MT4) offers a user-friendly interface, comprehensive resources for learning, built-in indicators, demo accounts for practice, and even copy trading features.
In today’s complex Forex trading scenario, MetaTrader 4 stands as a great resource for Forex traders, offering a wealth of tools and features. In this article, the experts at TU will look into the core advantages and limitations of the MT4 trading platform. Further, they will also delve into its trading bots, indicators, and copy trading features, offering valuable insights for traders in the Forex market and beyond.
Do you want to start trading Forex? Open an account on Roboforex!What is MetaTrader4?
MetaTrader 4, often referred to as MT4, stands as a sophisticated trading platform renowned for its capacity to empower users in crafting and automating intricate trading strategies. Owned and developed by MetaQuotes Software, this platform offers a diverse array of market indicators to aid traders in their decision-making processes. While particularly well-suited for contracts for differences and foreign exchange (Forex) trading, MT4 extends its utility to various financial markets. An important distinction that sets MetaTrader 4 apart from its predecessors is its integration of trading robots, known as Expert Advisors, facilitating automated trading. The platform features the MQL4 IDE (Integrated Development Environment), enabling users to craft trading robots and technical indicators.
Debuting in 2005, MetaTrader 4 has emerged as a leading choice among traders. Its popularity has surged over time, thanks to its exceptional customization options and automation capabilities. Novice traders can benefit from MT4's comprehensive demo account, enabling skill development without financial risk. The platform further caters to beginners with features like copy trading and automated Expert Advisor applications.
For seasoned traders, MT4 offers advanced analytics and charting capabilities, empowering them with in-depth market insights. Furthermore, traders can make use of the proprietary MQL4 programming language to create personalized trading indicators. If you want to know what Metatrader Backtest is, read the Trader Union article
👍 MT4 pros
• Ease of deployment – MT4 offers a hassle-free setup process, simplifying the onboarding for traders.
• Lightweight platform – MT4 is designed to run smoothly without burdening your computer's resources, ensuring a seamless trading experience.
• User-friendly interface – For beginners, MT4 features an intuitive design that facilitates ease of use.
• Cross-platform compatibility – MT4 extends its accessibility to various operating systems, including Linux, Mac, Windows, iOS, and Android, providing flexibility for traders on different devices.
• Automated trading – MT4 empowers traders with automated trading capabilities. By leveraging MetaQuote's proprietary MQL4 language, users can program trading strategies and create custom indicators.
• Security – With a robust security framework, MT4 offers a safe trading environment. It connects users with licensed brokers through its trusted third-party platform.
👎 MT4 cons
• Limited historical data – MT4's historical data for backtesting purposes is somewhat limited, potentially constraining traders seeking extensive historical insights.
• Execution speed – MT4's execution speed may not be suitable for high-frequency trading strategies, as it may lag in processing rapid trades.
• Limited automated trading on web platform – While MT4 excels in automated trading, its web-based platform lacks support for automated trading, limiting its functionality for traders who prefer web-based access.
Key tools and platforms
Following are the key tools and platforms offered by MT4:
Mobile accessibility
MetaTrader 4 offers a mobile platform that provides traders with full control over their accounts, enabling them to access their trading accounts anytime and anywhere. Additionally, it includes a free chat feature for communication with fellow traders.
Automated trading with Expert Advisors (EAs)
MT4 introduces automated trading through specialized trading robots known as Expert Advisors (EAs). EAs can analyze market quotes and execute trades based on predefined algorithms.
Code base for EAs
Traders can access a library called Code Base, offering a collection of free EAs, technical indicators, and scripts. These EAs can be downloaded at no cost or purchased and rented from the online store known as the Market. Moreover, traders have the option to order custom EAs from professional MetaTrader freelance developers.
TradingSignals for copy trading
MT4 presents TradingSignals, a feature enabling copy trading. Successful traders can offer their trading signals for free or at a reasonable fee, allowing others to follow their trades. These signals are accessible in the Signals tab within the trading platform and on the company's website, simplifying the process of selecting signal providers and copying their trades directly from the platform.
Real-time news updates
The platform includes a news feed delivering real-time updates on significant market events, breaking news, and economic indicators. This feature keeps traders well-informed about the latest developments that could impact financial markets, including political events, economic data releases, and central bank announcements.
Market impact assessment
In addition to news updates, the news feed often provides assessments of the potential impact of specific news events on financial markets, assisting traders in making informed decisions.
New order management
MT4 offers a New Order tool that simplifies order management by providing a dedicated window for managing orders efficiently.
History center
The History Center tool allows traders to effectively manage their historical data by accessing a dedicated window for handling historical trading data.
Global variables
Traders can manage global variables through this tool, which includes a window for efficient management.
Smart trader tools
MetaTrader 4 also offers Smart Trader Tools, a suite of advanced trading utilities designed to help traders maximize their trading potential. This collection includes tools like Alarm Manager, Correlation Matrix, and more, providing traders with expert-like functionalities to enhance their trading experience.
Read also: TradingView vs. MT4: A Comprehensive Comparison in the TU article.
Charting
MetaTrader 4 (MT4) boasts an array of charting features designed to help traders in analyzing market dynamics and enhancing their decision-making processes. Experts have provided a brief overview of MT4’s charting functionalities as follows.
Chart variety
MT4 supports three types of charts, namely broken line charts, bar sequence charts, and Japanese Candlesticks. This diversity allows traders to choose the chart type that best suits their analytical preferences. It has 30 built-in indicators and 23 analytical objects to choose from.
Appearance customization
Traders can personalize the appearance and properties of individual charts within the terminal. This customization can be effortlessly executed through the "Charts Properties" menu command, the chart's context menu command of the same name, or by simply pressing F8. This feature grants traders the flexibility to tailor their charts to meet their specific needs.
Trading directly on charts
MT4's user-friendly interface facilitates trading operations directly from the symbol's chart using the one-click trading function. This streamlines the trading process and enhances efficiency.
Technical analysis tools
MT4 equips traders with a useful selection of built-in indicators and graphical tools. These resources aid traders in dissecting market trends, identifying potential entry and exit points, and making informed trading decisions.
Trendline drawing
To pinpoint trend directions and key support or resistance levels, traders can easily draw trendlines on charts using the "Draw" trendline tool. This feature simplifies the process of visualizing trend patterns.
Customizable timeframes
MT4 offers traders the flexibility to view charts in various timeframes. This feature is important for traders seeking to gain insights into market movements over different time intervals, catering to diverse trading strategies and objectives.
Analytics
MetaTrader 4 (MT4) also equips traders with powerful analytics tools to stay well-informed and make strategic trading decisions. Following are the key features offered in MT4's analytics segment.
Economic calendar
MT4's news feed regularly incorporates an economic calendar, offering a schedule of upcoming economic events and indicators. This feature helps traders to plan their trading activities around significant events and anticipate potential market fluctuations.
Integration with trading activities
MT4 seamlessly integrates the news feed with other essential trading features, including charts and trading terminals. Traders can access news updates alongside their trading activities, facilitating well-informed decision-making based on the latest market insights.
Financial alerts and tools
MT4's platform offers traders access to real-time financial alerts and tools. These resources provide updates on market events, news from prominent financial institutions, interest rate decisions, and geopolitical developments, ensuring that traders are up-to-date with the latest market dynamics.
News and quote integration
For seamless transmission of quotes and news, MT4 offers a simple plugin or gateway. This functionality connects the platform with renowned quotes and news providers like IB Times, Trading Central, Dow Jones, Claws and Horns, MNI, and Bloomberg. Traders can access a lot of financial information to inform their trading strategies.
Customization and filtering
The news feed within MT4 provides customization options, enabling traders to filter news based on their preferred markets, instruments, or news sources. This approach ensures that traders receive relevant and timely updates.
Object anchors
Traders can strategically place object anchors at any position between chart bars. When switching between different timeframes, the object's control points retain their precise positioning. This feature enhances chart analysis and object placement for effective trading strategies.
MT4 indicators
MetaTrader 4 (MT4) also provides traders with a comprehensive suite of built-in indicators to enhance their trading analysis. Here's a breakdown of some of the key indicators available in MT4:
Moving Averages
Moving averages are crucial for understanding market trends. Traders can use these moving averages to identify trend directions and potential entry or exit points. For example, when a moving average crosses above the price, it signals a bullish trend, and vice versa.
Parabolic SAR (Stop and Reverse)
The Parabolic SAR is a trend indicator designed to detect potential trend reversals in currency pairs. It visually presents points below or above the price chart, and traders often use it to gauge market trends. When SAR points are below the price, it indicates an uptrend, and when above, it signifies a downtrend. This indicator is useful for setting stop-orders and trading decisions.
Average Directional Movement Index (ADX)
The ADX helps determine existing trends' strength and whether a significant trend is in place. Traders can analyze the ADX, along with directional lines (-DI and +DI), to identify potential entry and exit points. A rising ADX indicates a strengthening trend, while a falling ADX suggests weakening or ranging markets.
Bollinger Bands
Bollinger Bands consist of statistically calculated bands around a short-term moving average, reflecting two standard deviations on each side. These bands expand or contract based on market volatility, making them sensitive to recent price actions. Traders typically use Bollinger Bands in conjunction with other indicators to detect trend reversals or potential breakout opportunities.
Stochastic Oscillator
The Stochastic Oscillator compares a security's high and low closing prices within a specific timeframe. It offers insights into overbought and oversold market conditions. Traders observe the stochastic oscillator's reading to identify potential trend reversal points. When K is lower than D, it may signal a selling opportunity, and when K is higher than D, it suggests a buying opportunity.
Relative Strength Index (RSI)
The RSI measures the average number of positive price changes relative to negative changes. It helps identify trends, their strength, and potential trend changes. RSI is often used alongside other technical indicators to reduce false signals. It's a valuable tool for traders looking to gauge market momentum and potential reversals.
Can I install indicators in MT4 mobile?
Yes, you can install indicators in MT4 mobile. To do this, go to the chart of your chosen symbol and tap the "+" icon. Then, select "Indicators" and choose the indicator you wish to add.
How do I set indicators on MT4?
Setting indicators on MT4 involves the following steps:
Locate and copy the MT4 custom indicator file on your computer.
Open the data folder in MT4.
Access the MQL4 file and navigate to the indicators folder.
Paste the indicator files into this folder.
Restart MT4.
Open MT4 again, find the Navigator panel, and select "Custom Indicators”.
Double-click on the indicator to add it to the chart.
Can I add new indicators to MT4?
Yes, does MT4 offer the flexibility of adding new indicators. So effectively, you can choose from the built-in indicators or create custom ones by modifying, adding, or altering the default indicator codes according to your trading preferences.
How to trade on MT4?
Log in
After installing MT4 and setting up your trading account, log in to the platform using your account credentials.
Select a financial instrument
MT4 offers a variety of financial instruments, including Forex, stocks, indices, and commodities. Choose the one you want to trade.
Place an order
Once you've identified a trading opportunity, click the "New Order" button. Here, you can select your financial instrument, specify the volume, and choose the order type.
Monitor your trade
Keep track of your trade on the "Trade" tab. You can also set stop-loss and take-profit levels to manage your risk.
Close your trade
When you're ready to exit your trade, simply click the "Close" button in the "Trade" tab.
You can also find out information about Place Stop Loss And Take Profit On MT4
MT4 bots
MetaTrader 4 is well-regarded for its robust automated trading capabilities. It empowers traders with the ability to craft and implement their trading strategies through Expert Advisors (EAs). These EAs are automated trading systems crafted using the MQL4 programming language. EAs function by executing trades based on predefined rules and conditions, offering traders the advantages of automated and systematic trading.
MT4 is designed to support algorithmic trading, enabling traders to create, test, and apply Expert Advisors and technical indicators. The integrated MetaEditor is a dedicated tool for developing trading strategies in MQL4, complete with a debugger. This editor handles the compilation process as well. Following compilation, the application seamlessly transfers to MetaTrader 4 for testing or optimization in the Strategy Tester, yet another component of the MQL4 IDE.
Within MT4 also lies a free source code library of robots and indicators. This library is directly accessible from the platform, offering a selection of over 2,000 indicators, 950 trading robots, and 300+ scripts. These scripts are small applications that can automate various analytical trading functions, simplifying your trading activities.
Do note that while there are numerous free Forex robots available for download, traders should exercise caution when working with them.
Can traders add new bots in MT4?
Yes, traders have the flexibility to add new bots in MT4. This can be accomplished by downloading the desired bot file from reputable sources, like the MetaTrader Market, and then installing it within MT4. Additionally, traders can craft their own Forex bots using the MQL4 programming language, thereby enabling them to develop customized trading robots.
Are bots free or paid in MT4?
In MT4, bots come in both free and paid variants. While there are numerous free Forex robots readily available for download, traders should exercise caution when engaging with them.
MetaTrader 4 copy trading
MetaTrader 4 (MT4) copy trading simplifies the process of trading financial instruments by allowing users to automatically mimic the trading signals of other successful traders within their own MetaTrader 4 accounts.
Trading Signals within MetaTrader 4 enable users to replicate the trading actions of other traders in real-time. Many accomplished traders make their Forex trades accessible to the public, either at no cost or for a reasonable fee, essentially becoming signal providers.
Traders can explore an array of over 3,200 free and commercial signals on the website and within the Signals section of their platform. To enhance convenience, signal providers are ranked based on their trading performance, with the most successful ones prominently featured at the top of the list.
Is MetaTrader 4 free?
Yes, MetaTrader 4 is available for free download directly from the website. Upon your initial launch, you'll have the opportunity to set up a complimentary demo account, allowing you to explore and test all the functionalities of this trading platform. Moreover, a broker may offer MT4 for free to their clients, although they might adjust their spreads to account for the use of either the MetaTrader 4 standard account or the MetaTrader 4 Pro account.
MetaTrader 4 generates revenue by selling software licenses to brokers, who, in turn, offer the platform to their clients for opening live accounts. To open a live account, you'll need to select a brokerage and submit an application. Once your application is approved by the brokerage, you'll receive a user ID and password, granting you access to the platform with your own funds. The specific fee structure will be determined by the brokerage you choose, covering aspects like trading costs, account fees, and other associated charges.
Is MT4 good for beginners?
MetaTrader 4 (MT4) is renowned for its beginner-friendly features. Let's explore why MT4 can be an excellent choice for novice traders:
User-friendly interface
MT4 has a straightforward interface, making it exceptionally easy for beginners to navigate and use effectively.
Comprehensive learning resources
To aid beginners, a wealth of resources is available, including video tutorials, step-by-step guides, and online courses, ensuring that users can quickly grasp the platform's functionalities.
Built-in indicators
MT4 includes a range of built-in indicators and graphical tools. These tools are invaluable for beginners as they assist in analyzing market trends, empowering them to make well-informed trading decisions.
Demo account
MT4 offers a free demo account, providing beginners with a risk-free environment to practice trading and familiarize themselves with the platform without using real money.
Copy trading
MT4 introduces the concept of copy trading, allowing beginners to automatically replicate the trading activities of successful traders, making it easier for them to get started and learn from experts.
Customer support
Finally, MetaTrader 4 offers a comprehensive support system to assist its users. On the MT4 website, you'll find a dedicated webpage that covers a wide range of help topics. These topics include guidance on getting started, configuring client terminal settings, using the user interface, chart analysis, trading techniques, auto trading, available tools, informative articles, utilizing signals, market insights, and virtual hosting.
For brokerages interested in purchasing the MetaTrader 4 software, they can reach out to MetaQuote's offices located in various countries, including Cyprus, China, Singapore, Pakistan, and Thailand. Additionally, brokerages that provide the platform often offer their own support services to assist users.
Best MT4 brokers
RoboForex – Best Overall
RoboForex utilizes MetaTrader 4 and MetaTrader 5, two of the most well-known and effective trading platforms.
The MT4 platform offers three types of order execution, basic graphic analysis tools, and fifty technical indicators. In addition, users have the option of developing their own artificial intelligence (AI) traders.
You can use RoboForex's cTrader platform if you want something different from MetaTrader, since it caters to experienced traders who prefer unconventional instruments as well as quick order execution. cTrader comes with rare order types, 54 indicators, 14 timeframes, and Level II pricing for experienced traders.
R StocksTrader is another platform available for advanced traders. All through one single account, this multi-terminal web platform offers features like an "advanced" watchlist.
RoboForex MT4 ReviewXM Group - Best MT4 Broker for Both Beginner and Experienced Traders
A total of more than 1000 financial instruments are available for trading on the MT4 and MT5 platforms with XM group, including forex currency pairs and CFDs.
Over 55 pairs are available for forex trading, including USD, GBP, EUR, and JPY.
There are different spreads depending on the type of account you open. You can open a Micro Account, Standard Account, or XM Zero Account. All accounts have a minimum spread of 0.1 pips, and a major pair such as EUR/USD has an average spread of 0.1 pips.
There are no hidden fees or commissions at XM. Therefore, commissions are only given to XM Zero accounts. All transfer fees are covered by XM, and same-day withdrawals are guaranteed.
XM MT4 ReviewFAQs
Can MT4 be trusted?
Yes, MetaTrader 4 (MT4) is a trusted and widely used trading platform in the financial industry.
Is MetaTrader 4 legal in the USA?
Yes, MT4 is legal in the USA, but it's essential to use it with a U.S.-regulated broker.
Is MT 4 good for beginners?
Yes, MT4 is considered good for beginners due to its user-friendly interface, educational resources, and demo account availability.
What is the advantage of MT4?
The advantages of MT4 include a user-friendly interface, extensive charting tools, automated trading capabilities, and a vast library of custom indicators and expert advisors.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.