As the trading market experienced its boom with the internet so did big and small investors. Over the years Forex trading traditions has changed by shifting from allowing big investors to contribute along with providing chance to new comers and amateurs. Automated trading software allows the investors to place their trades automatically as they are available. These tools help people earn profit and work their way into the forex industry by working consistently. MT4 or MetaTrader 4 is one such platform.
Built by MetaQuotes in 2002, MetaTrader software is helping brokers and traders in trading currency, futures, contracts, options and many more trade categories. MT4 is actually an electronic platform that brokers run their software on. It is independent of any broker and they use it to package their own versions of electronic trading systems. The MT4 is famous for its potentially diverse technical analysis and its ability to run Forex Robots and Expert Advisors. It is independent of the place a trader or investor is using it as it has option to set different currencies for trading.
Traders can use the MT4 platform in three forms:
MT4 Client Terminal: This needs to be installed on the personal computer. Traders can use it to view and analyze the market and enter trades. A demo or live account with a broker needs to be opened in order to trade effectively. It is available as a freeware.
MT4 for Mobile and Smartphone: These versions are specific to cell phones and PDA in order to trade through these sources. Unlike the MT4 client terminal these are not available for free.
MT4 Multi Terminal: This version allows traders to trade using more than one account at the same time. It is meant for money managers and high end traders.
Why traders and investors use MT4
The Forex trading world is full of complex and tricky situations where it becomes difficult to make a decision. Electronic tools like MT4 help in overcoming such situations by providing an actual picture of the market. Forex trading is all about speculative market so it is important to understand the details. A few reasons that traders and investor use the MT4 platform for trading purpose include the following:
- MT4 puts up a complete picture of the market situation to have better knowledge and make informed decisions.
- MT4 shows all investments and profits in formats that are easy to comprehend and allows traders and investors depict their standing position in the market.
- MT4 allows charting and analysis techniques to know the potential of investment. The market can be analyzed in order to place a trading order. These charting and analysis tools are available on the MT4 and do not need to be acquired independently.
- Apart from analysis MT4 also allows communication via posting news, market trends and other types of messages by brokers. This eliminates the need to be in touch with investors through emails or phone calls.
- MT4 automates trading by generating trading signals that allows traders to place trades based on specified factors automatically.
- MT4 platform allows developing trading software that companies may require in order to use their own tools for analysis and automatic trading. These software can be generated using the MQL or the MetaQuotes language with suitable functionality for trading procedures.
Significance of MT4
MT4 is a highly sophisticated charting tool for traders and institutional fund managers. It has an extensive range of technical oscillators and indicators. The MT4 technology allows automation by defining user strategy and using the MQL to create the Expert Advisor which assists the traders and investors to initiate well calculated trading operations.
Many broker firms use the MT4 platform for their client side. Companies like ONADA, SVSFX and EdsForex use the MT4 platform for traders to place their orders and trade several different currency pairs. These tools may be the same but vary on price feed and spread on currency from broker to broker.
MT4 is a potential tool for beginners and experts. It is available with extension software programs that can be downloaded and installed on the client terminal to increase the trading platform functionality. These programs can be built in as well and are popularly known as MT4 indicators.