Meta Trader 4: Forex Trading MBA Series

Meta Trader 4 – MT4 one of the most popular trading platforms

Meta Trader 4, MT4, as it is commonly known, is currently one of the most popular trading platforms for Foreign Exchange Market (Forex), CFD (Contract For Difference ) and Futures Markets. MT4 has a strong base community that based in word of mouth and viral networks has achieved a considerable reach, specially among the Forex Trading retails users.

Meta Trader 4 is an electronic system, that allows traders to place their orders for financial products over a network with a financial intermediary, including both back-office components and front-end terminals, making it a stand alone, complete software package for anyone wanting to start their own brokerage business.

metatrader-4MetaTrader 4 is now one of the most successful ways to trade forex and an entire industry is build up on it. This trading platform was developed by MetaQuotes Software company and released in 2005. Previously developed and released in a number of versions starting in 2002, the MetaTrader software is licensed to most of the biggest global foreign exchange (Forex) brokers who provide the software to their clients.

MetaTrader 4 has a massive adoption due to its open components and customization features. The success of this software lays on the basis of MetraTrader being both a client and server component. The server component is run by the broker and the client software is provided to the brokers customers, which use it to see live streaming prices, charts and to place orders as well as manage their account.

MetaTrader 4 was developed as a Forex trading terminal before being remanufactured to become a multi-market trading platform due to an increase in the number of traders operating in various financial markets. This up-to-date and user-friendly platform requisite features made of MetaTrader 4 platform one of the most successful trading platforms used in financial markets

MetaTrader 4 user-friendly platform allows traders to manage their transactions while on the move through its mobile trading function. It also has the automated trading option, which means users can automate their trading strategies and create their own adaptive “Expert Advisors”. Expert Advisor is a configurable multi-system, which is capable of automatically (according to predetermined indicators) choosing the best trade strategy for the real market, on the basis of profitability of virtual trades.meta-trader-structure-copy2

MT4 provides its users with technical analysis, charting and expert advice that allows them to develop their own trading strategies. Its automated system, examining price, volumes and open interest (for futures markets) provides a complete analysis of  the price movement on the markets. The technical indicators provided by MT4 simplify mathematical calculations used to provide forecasts for the price changes.

MetaTrader 4 and algorithmic trading

MetaTrader’s popularity largely stems from its support of algorithmic trading. The software developed for Algorithmic trading is a proprietary scripting language, MQL4, which enables traders to develop Expert Advisors, custom indicators and scripts.

Expert Advisers play a big part in the success of MetaTrader 4 algorithmic trading. This trading system utilizes advanced mathematical models for making transaction decisions in the financial markets. The strict rules built into the model attempt to determine the optimal time for an order to be placed that will cause the least amount of impact on a currency or stock’s price. Large blocks of shares, or of currencies are usually purchased by dividing the large share, forex block into smaller lots and allowing the complex algorithms to decide when the smaller blocks are to be purchased.

Algorithmic Trading has been used by big banks and brokers and with the advent of MT4, MetaTrader 4 and its process, was suddenly democratized and offered to retail traders. This is part of the general success and wide user adhesion of MT4 and its growing community.

MetraTrader4 Components:

  • MetaTrader 4 Client Terminal:
  • MetaTrader 4 Mobile;
  • MetaTrader 4 Server;
  • MetaTrader 4 Administrator;
  • MetaTrader 4 Manager;
  • MetaTrader 4 Data Center;

Considered one of the most reliable and safe platforms on the market MT4 system provides backup and restoration options and it is considered to be a good choice for all traders. Also part of its success is the fact that small traders can follow advise from other traders in communities such as ZuluTrade, that are pushing auto trade curated groups and communities of traders following both algorithmic trading and other traders.

MetaTrader 4 Resources and some useful websites to use:

MetaTrader 4 can be downloaded at no charge directly from the MetaQuotes web site or through hundreds of online forex trading brokers. Most of the top forex brokers offer MT4 solutions and have adapted the platform due to their strong user base and success. A list of MT4 Brokers can be found on 100brokers website and it displays a world variety of players and a growing partly underground industry that somehow has significant share of trading worldwide and it is still growing.

Related articles:

How to Trade Forex Using Metatrader 4

The History of Metatrader