Metatrader 4 is the most popular OTC Forex trading platform. According to statistics, this platform is offered to traders by about 78% of brokers, and half of them have MT4 as the only terminal available to traders. Less often, along with MT4, MT5, cTrader are offered. Author’s platforms are even rarer – Libertex, Rumus, RTrader, etc. From this review trader will learn:
- What is the MT4 platform and what is the secret of its popularity.
- Advantages and disadvantages of the platform.
- What technical analysis tools are available in MT4.
- How to install indicators and trading advisors in the platform. step by step algorithm.
- How to open trades in MT4.
What is MetaTrader 4
Metatrader 4 is an information and trading software complex of the international company MetaQuotes, founded in 2000 and currently has offices in Russia, China, Japan, Australia, Cyprus, etc. The platform belongs to the category of proprietary – MetaQuotes reserves the ownership of the software and provides it to brokers exclusively on a lease or White Label basis, taking on the responsibility of maintaining the software and updating it.
The MT4 complex consists of several components, which can be conditionally divided into two main groups – server and client blocks. Server block – software installed on the broker’s server, used to process user requests, a proxy server, etc. The part that a trader downloads and installs on his computer is called the client part (MetaTrader 4 Client Terminal).
The history of the platform:
2000 – the appearance of the first platform FX Charts. The over-the-counter market at that time was in the initial stage of development and the existing products were not distinguished by high functionality and speed of data processing. FX Charts stood out for its functionality and optimal price, which helped win the competition.
2001-2003 – launch of the MT and MT3 platforms, which became the prototype of the universal MT4 platform. In MT3, the ability to trade futures was added and the capabilities of the MQL language were expanded. The MT2 index was skipped by the developers.
2005 – launch of the MT4 platform, in which literally everything was redesigned from the platform architecture to the new MQL4 language. The platform opened the possibility of algorithmic trading to private traders, which at that time was available only on rare professional platforms.
2010 – launch of the MT5 platform. A cloud data processing model was introduced into the platform, which accelerated the speed of testing and data transfer, and the ability to trade on exchange markets was added.
To date, MetaQuotes continues to support only two versions of terminals – MT4 and MT5. Both platforms are available in any format: desktop and browser versions, mobile versions for iOS and Android. The developer periodically updates – builds, the version of which, subject to automatic updates, can be viewed in the platform itself.
Advantages and disadvantages of MT4
MT4 is considered the best platform for beginner traders. In terms of the number of technical analysis indicators, it is inferior to cTrader and Rumus terminals. But unlike them, MT4 has a simpler language that allows trader to create custom instruments. Many functions of MT4 are duplicated. For example, trader can open an order using the toolbar icon, the Tools menu, and the right mouse button. And it is also made for beginners who can choose their comfortable platform management model.
Pros of MT4
Advantages of the Metatrader 4 trading platform:
- Versatility and ease of use. MT4 is one of the most convenient and functional platforms, for the analysis of the functionality of which on an intuitive level (“poke method”), several hours are enough. It is not oversaturated with tools, but at the same time they are enough for a full-fledged analysis.
- Language. The platform is built on the MQL4 language, which is considered one of the relatively simple ones.
- Community of traders. MetaQuotes has its own website – the traders’ portal, which unites the entire trading community working with MT4/MT5 – MQL5.com. There is everything from analytics to forum discussion. The most useful sections for traders are reviews of custom indicators / scripts / advisors with installation files. And a freelance exchange where trader can order the writing/improvement of an indicator, an adviser from programmers.
- social trading. MT4 provides the function of copying signals from any trader in the community, regardless of which broker the signal provider has. MetaQuotes acts as an independent regulator – to be included in the list of providers, trader must meet a number of strict requirements. Therefore, “fake” accounts are rarely found in the list of traders. Minus – a fixed monthly fee for signals, regardless of their performance.
Algorithmic trading. The platform supports trading with trading advisors, which can be added in the same way as indicators. Provided that they are written in the MQL4 language. Trader can use programs of the System Creator class – the Expert Advisors generated in the software are suitable for MT4 and do not require knowledge of the code.
Test module. The platform has a built-in tester for manual and algorithmic strategies. The history of quotes is loaded into the platform, test parameters are set in the tester, and the launch is in progress. At the end of testing, a backtest with trading statistics and an equity chart is uploaded. Although the tester does not take into account the floating change in the spread and other market factors, it allows trader to get a general idea of the strategy. If the results are negative, then the strategy cannot be unambiguously launched on a real account.
MT4 wins due to its functionality, the ability to add custom instruments and extended support in the form of its own MQL5 portal. MT4 is one of the few platforms that has a built-in strategy tester. And although the accuracy of its results leaves much to be desired, it is still better than nothing.
Cons of MT4
Disadvantages of the Metatrader 4 trading platform:
Forex orientation. The platform is not intended for stock exchange trading. It does not have a full-fledged Depth of Market with market volumes, there are no corresponding order types, etc.
Bugs. Mistakes that developers are in no hurry to fix. For example:
Another bug – in the tester on scrolling the speed between the marks “31” and “32”. And these bugs continue to occur, despite the updates.
Inconvenient scaling of charts. In this regard, MT4 is inferior to the independent TradingView service.
Risks of intervention by the broker. MT4 is a software package in which the platform is only one of the client parts. The hardware part of the MetaTrader 4 Data Center is under the complete control of the broker, which can artificially correct the charts displayed by the trader, delay the execution of orders, etc. with its help. For example, the Sleep Time function allows trader to delay the automatic execution of a trader’s orders. Limit trader profit from positive slippage does not allow a trader to profit from positive slippage.
Manipulation techniques are mainly used by B-Book brokers, but the problem is that it is difficult for a trader to prove the fact that a broker interfered in trading. However, there are examples when such manipulations were revealed by the British regulator FCA, for which a fine of about $17 million was imposed.
They are divided into the following subgroups:
Trendy. Indicators that signal the beginning / end of a trend and, in some cases, showing its strength. Here are the Moving Averages, Moving Envelopes, Bollinger Bands channel indicator, etc.
Oscillators. Auxiliary indicators that show whether the market is overbought or oversold and, accordingly, predicts a price reversal. Combinations of oscillators can be used as the basis for trading systems. Examples are stochastic, MACD, RSI, CCI.
Volumes. There are four indicators in this group. They are rarely used, since there are no volumes in Forex in pure access. Bill Williams. Author’s indicators of one of the best teachers of technical analysis.
Custom. Added indicators will appear here after restarting the platform. If the one added via the data catalog is not displayed in this list, then either its code does not correspond to the MQL4 language, or there is a critical error in the code. Trader can add any number of indicators. Trader can delete them from the Indicators folder – after restarting the platform, they will disappear from it.
Why is MT4 considered the most popular platform?
Metatrader 4 has several key benefits:
- Simple functionality and interface. The platform is understandable for novice traders. The main functions are duplicated in different menus.
- Optimal functionality. The platform is not overloaded with additional tools. Novice traders rarely use specific pending orders or indicators. MT4 has everything trader need, and the rest can be added, provided that the embedded software is written in MQL4.
- Ongoing developer support. MetaQuotes pursues an effective marketing policy. The cost of renting and White Label of the platform is one of the lowest in comparison with other terminals for brokers. The developer constantly adds updates (new builds of the platform) – a competitive advantage in comparison with other platforms.
MetaQuotes was able to offer a universal functional platform when there were practically no competitors in this market. Demand from traders has become the reason that most brokers began to offer MT4. And this has further increased the number of traders using the terminal.
What are the functionalities and tools of MT4?
Functionality of MT4:
- Technical tools: 30 indicators, 31 graphical instruments, 9 timeframes, 4 types of pending orders.
- Trading: the platform is designed for trading CFDs on any type of assets, including cryptocurrencies, without using market volume analysis tools (VWAP, Depth of Market, horizontal and vertical volumes).
- Support for algorithmic trading. The platform allows trader to trade with several advisors at the same time. There is a built-in strategy tester.
- Additional features: setting up alerts, social trading.
The platform supports uploading the history of asset quotes of a trader’s broker for any period in accordance with the capabilities of the broker.
Where to download MT4 to start Forex trading?
Trader can download MT4 only from the broker trader are going to work with in the future. Each broker has its own terms of partnership with MetaQuotes and its own “chips”. Brokers can add their own unique add-ons to MT4 (for example, MT4 Supreme), so trader cannot download the platform from the site of one broker and connect an account of another broker to it. When adding an open account to MT4, trader specify the server address and from the available options, trader can select the server address of only the broker whose MT4 platform trader downloaded.
What are the functionalities of the mobile version of MT4?
Compared to the desktop version, the functionality of the mobile version of MT4 has been significantly reduced. It provides only basic functions: viewing charts, opening/closing deals, basic indicators without the ability to install custom instruments and algorithmic trading, alerts. The mobile version is more suitable for those who are temporarily on the road – to view quotes and close previously opened transactions on alerts.