MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are popular electronic trading platforms used by traders in the forex and CFD markets.
MT4 was released in 2005 by MetaQuotes Software, and it quickly became a standard in the forex trading industry due to its user-friendly interface and advanced charting tools. It supports algorithmic trading through the use of Expert Advisors (EAs), which are automated trading strategies that traders can create and customise using the MQL4 programming language.
MT5, released in 2010, is the successor to MT4 and offers several new features, including more advanced charting tools, improved back testing capabilities, and support for trading in additional asset classes such as stocks and futures. It also has a more advanced programming language, MQL5, which allows for more complex and sophisticated EAs.
Both MT4 and MT5 offer a wide range of technical analysis tools, customizable charts, and indicators. They also have a built-in news feed and economic calendar to help traders stay up-to-date on market events.
Traders can use MT4 and MT5 on desktop computers, as well as on mobile devices through their respective apps. These platforms are widely used by both beginner and experienced traders for their reliability, speed, and useful features.
Here are some benefits of using MetaTrader 4 and MetaTrader 5:
User-friendly interface: Both MT4 and MT5 have a user-friendly interface that makes it easy for traders to navigate and use the platform.
Advanced charting tools: Both platforms offer advanced charting tools, including customizable charts, indicators, and drawing tools, which can help traders analyse the market and make informed trading decisions.
Automated trading: Both platforms support algorithmic trading through the use of Expert Advisors (EAs), which allow traders to automate their trading strategies.
Back testing: Both platforms have a built-in back testing function that allows traders to test their trading strategies on historical data.
Multiple asset classes: MT5 supports trading in additional asset classes, including stocks and futures, making it a more versatile platform for traders.
Mobile trading: Both MT4 and MT5 have mobile apps that allow traders to trade on-the-go, making it more convenient and accessible.
Market analysis: Both platforms have a built-in news feed and economic calendar that provides traders with the latest market news and economic events, helping them stay informed about market conditions.
Multi-language support: Both platforms support multiple languages, making them accessible to traders around the world.
Security: Both MT4 and MT5 have high levels of security, including encryption and two-factor authentication, which help protect traders’ accounts and transactions.
Overall, MT4 and MT5 offer a comprehensive range of features and tools that can help traders analyse the market and make informed trading decisions.
A step-by-step guide on how to use MetaTrader 4 (MT4) and MetaTrader 5 (MT5)
Familiarise yourself with the interface: Both MT4 and MT5 have a user-friendly interface, but it’s important to take some time to explore and familiarize yourself with the various functions and tools available. You can find tutorials and guides online to help you get started.
Analyse the market: To analyse the market, go to the “Market Watch” window and select the instrument you want to trade. You can then view the price chart, add indicators, and use other technical analysis tools to help you make informed trading decisions.
Place an order: To place an order, right-click on the instrument in the “Market Watch” window and select “New Order”. Choose the type of order you want to place (e.g., market, limit, stop loss) and fill in the necessary details, such as the volume and price level.
Monitor your trades: Once you have placed an order, you can monitor its progress in the “Trade” tab. You can also modify or close the order from this tab.
Use Expert Advisors (EAs): Both MT4 and MT5 support EAs, which are automated trading strategies that can help you trade more efficiently. To use an EA, go to the “Navigator” window, select “Expert Advisors”, and drag and drop the EA onto the chart.
Back test your strategies: To test your trading strategies, you can use the built-in back testing function in both MT4 and MT5. To do this, go to the “Strategy Tester” window and select the EA you want to test. You can then run the test on historical data and analyse the results.
Stay informed: Both platforms have a built-in news feed and economic calendar that provide the latest market news and economic events. Stay informed about market conditions to make informed trading decisions.
By following these steps, you can start using MT4 and MT5 to trade in the forex and CFD markets. However, it’s important to note that trading involves risk, and it’s essential to develop a solid trading strategy and risk management plan before investing real money.