Complete Guide to MetaTrader Trading Platforms
Forex traders have an option of which platform to use for trading. However, this depends on the forex broker’s choice, as not all trading platforms are provided by all brokers. In addition, certain brokers do not have full compatibility with other forex trading platforms, but provide access through a bridge, which is a piece of software that connects the system of a forex broker to the network. It can work effectively, but it can impact the management and execution of trade negatively if the bridge malfunctions or is late.
The trading platform MetaTrader 4 is very well known and can certainly be said to set the industry standard. Forex brokers offer trading either directly through the exchange or through an in-house connection to the market, though this could be at the cost of a slightly higher spread and/or commission. The MetaTrader 5 trading platform, also from MetaQuotes Software Corporation, is much less commonly offered. Let’s consider these two platforms.
The MetaTrader 4 is seen by most as the gold standard for FX trading platforms. There is a high likelihood that retail traders will run into a MetaTrader-driven trading platform offered by their brokers. Many of these trading platforms are designed by MetaQuotes for a broker known as a White Label. The newest addition is MT5, but as it offers all the features you need in a forex trading platform, many traders like the tried and tested MetaTrader 4.
Getting Started with MetaTrader 4
MetaTrader 4 is intuitive and user friendly. You can start by opening a demo account to test drive the system without making a deposit. You just need to provide a broker who uses MetaTrader Platforms, your personal details such as your name, and they’ll give you a login and password to open a demo account.
A demo account uses demo money and helps you to see how the platform operates without losing real capital. Do not be afraid to put several trades so you can understand how to conduct and organise your positions and display them.
You can configure the first page you see on launching the MetaTrader 4, as your default page. As an example, you may want to see forex quotes displayed along with a chart or diagram. A quote sheet is to the left. It gives you a list of items you can exchange over the MegaTrader 4 network.
You can double-click on any of the products on the quote sheet and an order page will be pulled up. Here you can see a tick chart diagram along with the asset you want to exchange. You can fill in your volume and put a stop loss, and take orders for profit. This helps you to set the risk management before even putting your trades.
Furthermore, on the upper left side you can have a 1-click trading box that allows you to position a trade instantly. Using market execution or pending order, you can position your exchange. You may also assess your trade volume. In the bid-offer ratio below, you buy on the offer (the blue) as a market taker and sell on the bid (the red).
MetaTrader 4 navigation is intuitive and built to give you quick access to all of the destinations of the platform. To see any page and show your positions, you can customise your homepage.
The demo account has a tab feature at the bottom left, opening up to the general tab, where you can see the key currency pairs charts. You may change that to see daily, weekly, or any time of intraday. You can build multiple tabs and provide the view you want to see.
There is a navigator above the tabs that let you see technical indicators, as well as professional advisors and documents. Technical indicators help you to carry out various assets for technical analysis. An expert advisor can be back-tested to understand the performance of an automatic trading signal. Scripts let you drive warnings and run automated business scenarios.
If you double-click indicators in the navigator row, you will be able to configure a multitude of technical indicators. The MACD (moving average convergence divergence) indicator is shown in the graph above, along with a custom input pop-up that you can use to adjust the regular MACD.
The number of units (days, weeks, months, etc.) can be modified as inputs along with the colours used to produce a MACD indicator. The MACD displays both the MACD line and the MACD histogram. The technological metrics are thousands. You can save your favourite indicators in a tab called ‘favourites’.
MetaTrader 4 provides access to its expert advisor. An expert advisor is a program that places trades after backtesting them. It will execute your trades automatically when you meet specific requirements. The demo account lets you select from a few different expert sample advisors. You can choose a moving expert advisor, an average crossover expert advisor or a MACD expert advisor.
For each of these advisors, you can pick the inputs you use, such as the number of days or hours you want in the signal calculation, as well as the risk control you want to use while trading. Risk management is the pillar of your business. The use of a demo account is highly recommended in combination with an expert advisor.
You can find a wide range of trading mechanisms inside the scripts section. It involves automatic trading, followed by exchange signals. There is also copy trading and basic metrics of risk-reward. Through reviews of these scripts on your demonstration page, you can assess if the trading output is in accordance with your objectives.
MetaTrader 4 is one of the most robust and powerful trading platforms available. To test drive MetaTrader 4, you can open a demonstration account, and decide if it’s right for you. You can set up several pages to display your portfolio, charts, and quotes. From the quote sheet you can execute trades, or enter an order directly.
In addition to building an expert guide, there is a navigator you can use to add indicators. The platform lets you control hundreds of indicators. You can also get your indicator programmed. MetaTrader 4 also enables you to analyse a variety of scripts enabling you to copy the trades of other investors or set up a signal that has been checked by others using MetaTrader 4 to transact. This is one of the most commonly used trading systems and is often seen as the global benchmark for retail forex traders.
The Full Guide to Trading Using MetaTrader 5 (MT5)
Now that you have determined that day trading is the right trading style for you, you need to be sure that you transact in the best trading climate. What you need is a robust, secure, and swift trading platform such as the MetaTrader 5 (MT5).
A day trader’s aim is to benefit from intraday trend changes on different financial assets with trading positions open from a few minutes to a couple of hours – so timing is critical!
Being a good day trader, therefore, needs a powerful trading platform with advanced trading functions – statistical, technological, as well as fundamental analytical tools to evaluate better entry and exit points and achieve more accurate timing.
How to Begin Trading Using MetaTrader 5 (MT5)
Day traders like to use the MT5 platform because it’s “the easiest, most powerful and most cost-effective trading platform in the world”, enabling them to trade under the best trading terms.
You can open a demo account on MT5 after a few easy steps with reputable and stable brokers, enabling you to explore the trading platform and unique features of it. When you’re on the website, you’ll see all the main elements of the simple and user-friendly interface to make your everyday business routine simple.
From the main menu bar, all commands are available, including the following tabs: file, insert, display, option, charts, and support. Such functions help you settle your charts with indicators, other analytical tools, and a range of platform settings to create your own customised trade environment.
You will find numerous built-in toolbars below the main menu, which will replicate some of the commands and functions that you will find in the main menu. The toolbars can be adjusted, allowing you to adjust the time frames of the chart, and the forms of the chart (bar chart, line chart, candle chart, etc.).
You can also see the Market Watch section on the left of the table, which displays prices of selected financial assets such as EUR/USD, GBP/USD, gold, and crude oil. This section can also provide additional information, such as financial contract specifics and requirements, as well as trading options with single clicks.
Below your chart(s), you can find a toolbox section where you can track and change the evolution of your open trading positions, as well as your pending trading orders as appropriate (stop-loss, take-profit, limit rates, etc.). This versatile window can also be used to access other information, such as news, alerts, account history, expert journals, and much more, that can be useful for your company.
Simple, right? Many think so too.
As you can see, the MT5 app is very easy to use and offers all the trading tools and knowledge required to start trading the markets. Inside a single highly customisable and versatile user interface, there are various menus and toolbars, as well as service windows that will simplify your trade.
Want to try out your first order? It’s easy! Simply follow these steps.
1) When your financial instrument has been picked, right-click on it in the Market Watch window.
2) Click “New Order”.
3) Then pick the sort of order you want to execute: a pending order, or an instant or market order.
You need to determine the volume (size of your position), the rate of your stop-loss and take-profit if you choose an instant order.
Then, depending on your desired scenario click on “Sell” or “Buy”, and your order will be processed at the next price available.
If you choose a pending order, you will decide the type of order you wish to place (Buy Stop/Sell Stop Limit, Buy/Sell Limit, Buy/Sell Stop), the price at which you wish to place your order, the size of your position (volume), and the level of your stop-loss and take-profit.
Then, press “Place”.
This will appear at the bottom of your screen once your order has been executed.
Are you into Copy-trading or Automated-trading ?
No problem! MT5 has all the functionalities you need!
MT5 has been defined as a “multi-asset platform providing exceptional trading opportunities and advanced analytical tools, as well as allowing the use of automated trading (trading robots) and copy trading”.
So, day traders who want to automate their trading strategies, or who like to copy trading strategies from the most active traders around the world, may also use this all-in-one platform to trade the currency, stock and futures markets.
Day Trading Using MT5
As you have seen, MT5 is a great trading platform for day traders looking to take their trading to the next level. Before you start using it, be sure to understand fully how it operates and how your MT5 trading environment can be tailored to enhance your trading experience.
MetaTrader 4 vs MetaTrader 5
The MT4 platform is mobile. By saying that, we’re not only referring to trading on the PC, but also on smartphones and tablets. Three different formats of MT4 are available: web, tablet, and browser. Both smartphone (iOS, Android) and MetaTrader Webtrader application platforms are optimised for desktops.
If you open an order on your screen, you can conveniently use the mobile version for Android/iOS devices to handle it from your phone. All data are shown correctly. The key thing with the web and the mobile app is that you’re independent of your time and location. You can always check the account at any time, or opt to close an order, and from any device connected to the Internet.
MetaQuotes Tech Corp has introduced several different forex and CFD instrument trading features. MT4 provides various trading and analytical tools, as well as additional skilled trading services. One of the main strengths of MT4 is algorithmic trading. Algorithmic trading is trading using trading systems that are automated.
Expert Advisors (EA) trade on an algorithm that is already predetermined. The MQL4 IDE is incorporated into the framework which allows you to build a personal advisor or robot. Most new traders aren’t familiar with MQL4 but can still use the ‘MetaTrader Market’ built-in app store and the ‘Code Base’ free library. You’ll find everything you may need for efficient trading there: a number of different technical indicators, texts, and EAs.
In MT4 the information exchange between you, the terminal, and the servers on the network is encrypted with 128-bit keys. The framework also supports an improved RSA-based security scheme – an asymmetric algorithm for encryption.
As you are probably aware, the industry is moving gradually but steadily towards MetaTrader 5 (MT5). The future of retail trading is likely MT5. Let’s find out what is so special about the updated platform!
● Hedging allowed
● Commerce integration
● Fundamental calendar integrated
● No FIFO rule
● Enhanced charting and time frames
● Multiple market order functionality
● Exclusive first-class indicators
● MT5 Supreme Edition plug-in integration
The Benefits of MT5
One of the key advantages of the MT5 platform is that traders are not limited to use built-in analytical tools, such as MT5 charts, graphs and indicators. Traders are able to build their own technical indicators thanks to MQL5, an object-oriented and a high-performance programming language.
The coding is much simpler than MQ4, so traders can even build Expert Advisors (EA) or trading robots. Trading robots (EAs) will execute various trading strategies automatically, based on a variety of different inputs. In this way, traders would be able to access very detailed market research and forecasts.
Starting with the Beta Build 1281, MT5 has enabled hedging that could only be done with MT4. In comparison to the traditional netting scheme, hedging allows traders to do several trades, sometimes in the opposite direction of the same symbol. Now, with the institutional platform, MT5 traders may use the netting model to trade exchange instruments and hedge for currency trading.
MT5 also provides improved capabilities for order management (e.g. placing orders using several deals, including partial fills). If a trader has an open position at a symbol and executes a new deal, a new position would open. That is the main concept behind the hedging framework for MT5. The trader can set rates of Stop-Loss and Take-Off, and see the amount of profit for each position.
Bear in mind that MT5 is a multimarket platform, which means you are able to trade in both centralised and non-centralised markets.
Data MT5 enables traders to access data exchanged in real volume, and not just tick volume data. The number of the ticks corresponds to the number of price changes that took place during the bar. You really don’t know the exact number (contracts, or lots) that were traded with MT4.
Tick History Download
In MT5, tick history can be accessed from your broker and viewed. In MT4, you can only manually save tick data, which includes many limitations. You’ve got to get your app switched on 24 hours a day and yet you’re never going to have all the ticks. In MT4, you can never know what the price or cluster was that was the most traded in the selected range.
You have to make an estimate using only M1 bars, which is a big downside compared to the broker’s true tick history, particularly if you’re doing backtesting. Why does it matter? It matters because many traders use tools such as ‘Delta Volume’, ‘Market Profile’, and other tools (i.e. real POC/VWAP/Profile levels).
Multiple Tools in the MT5 Supreme Edition
Simple Order Ladder Trading
Simple Order Ladder Trading allows for rapid opening and managing of positions with unparalleled accuracy. By using a new order ladder, traders are able to access both pending and market orders. The order risk and reward will be measured on the fly, and is easy to set up.
For example, you can simply click on the blue ladder at the desired price to open a pending purchase order, push the mouse up for take-profit and down for stop-loss. To open a market order, just hold the ‘Shift’ button on your keyboard and hover your mouse over the ladder.
Expanded Mini Terminal with Multiple Features
You can extend the Mini Terminal to a fully loaded control panel for your entire account with a simple click of a button with the MT5SE plug-in. In this way, you will be able more quickly to open and manage orders and collect valuable details about your selected trading symbol.
MetaTrader 4 and MetaTrader 5 comparison
The MT5 is quicker than the MT4. It will not slow down your platform. It’s a fully-fledged 64-bit, multi-threaded platform, while MT4 is a mono-threaded, 32-bit platform, with 2 GB (or 4 GB memory limit if you’re using it on a 64-bit OS). MT5, being the newest software update, runs excellently on 64-bit operating systems, while MT4 is suitable for a 32-bit operating system.
To install the program you will need the setup execution script. It is important to remember that MT5 is also able to run on the 32-bit operating systems. When it comes to running MT4 on 64-bit systems, however, you’ll find it doesn’t work as quickly as on 32-bit. It’s not always the case, but it won’t work efficiently if you use MT4 on a VPS server with multiple CPU cores.
MT4 and MT5 have different servers built-up. MT4 only has one dedicated server which is constrained in its connection with other servers. On the other hand, MT5, deploys jobs to other servers and they work together, have cohesion, and are able to achieve hardware efficiency, as well as boost performance due to the various servers that interact and function together, contributing to resource optimisation.
MT5 uses four primary servers: the access server, the trading server, the history server, and the backup server. This contrasts with MT4 which only uses one server engine. Reports which you can pull from the MT4 are only available in HTML format on the MT4 platform. The reports, however, are available in both the HTML and Open XML table formats in MT5.
MT4 is still quick and straightforward. It has about 30 indicators built into it and 33 analytical objects. It allows two types of market orders, four types of pending orders, two separate execution modes, two stop commands, and a trailing stop feature. Navigating around it is always simple and many traders just love to use it.
The MT5 has 38 indicators built into it. It provides a separate economic calendar tab with features such as “news events”, “schedule”, “impacts”, “forecast”, “previous”, and more. It offers 6 types of pending orders, access to DOM (Depth of Market), and timing details, as well as exchange sales. The number of analytical items helping to define the market patterns of the financial instrument is limited to 31 on MT4, but 44 on MT5.
Those objects can detect cycles and levels of support/resistance, create channels, and more. In the log data, we can see a difference too. On MT5, log files are compressed automatically while this is not the case with MT4. On MT5, as compressed zipped files are available on the MT5 platform, you can obtain codes from the code base, and store them on your local drive.
MT5 allows partial orders, if, for example, the maximum volume of a trade is reached and the trade is not filled in, traders can select ‘partial editing’ to allow the leftover volume to be cancelled.
The industry is going forward, developing, and leaning toward MT5. The emphasis is moving towards MT5 according to MetaQuotes.
No, but several MT4 trading platform brokers also offer the MT5 trading platform and will encourage you to switch.
MT4 is designed to trade forex alone, but MT5 can trade, in addition to forex, a broader variety of assets such as commodities, stocks, indices, and futures. Some brokers, however, do sell non-forex instruments trading through MT4.
After more than a decade, MT4 remains the most successful forex trading platform in the world and is provided by almost every forex broker in the world, and that speaks volumes.
You can access a platform demo that includes a live price feed directly from MetaTrader without having to use a broker to deposit any funds. Nearly every forex broker also provides a free MetaTrader trial account for a period of at least one month, and sometimes longer.