Why Getting a Reputable Broker and MetaTrader 4 (MT4) Are Needed in Forex Trading
What is MetaTrader 4? Is it a broker or a trading platform? MT4 is a third-party platform connecting brokers and Forex traders. It is the longest-running and one of the most popular Forex trading platforms in the market to date. But for traders who want to have their own trading platform, they can create a customized one according to their preference.
MetaTrader was created by MetaQuotes Software Corp and developed two popular trading platforms, the MetaTrader 4 and MetaTrader 5. MetaTrader is considered the most used trading platform among retail Forex traders globally.
How to Get a Forex Broker That Can Provide a MetaTrader Platform
When picking a forex broker, it is important to know first whether they support the MetaTrader software as it is your preferred trading platform. But there’s nothing much to worry about because it’s really hard to find a broker that doesn’t offer MetaTrader, thanks to its popularity. Pick a broker that offers competitive pricing, quality market research, and good trading tools.
After deciding a broker that allows you to use MetaTrader 4, they will send you a link to download the software or you can get it free from the MetaTrader website. After that, open the software and add funds into the brokerage account. You can now start trading in the Forex market and Contracts for Difference as well. Another thing for beginners, ensure that your broker offers a demo account where you can practice trading without taking on risks and losses. Usually, these demo accounts are funded with virtual cash and you can spend it just like when you trade in the live market, minus the risks associated with trading.
MetaTrader 4 vs. MetaTrader 5 – The Difference
MetaTrader 4 was released to the public prior to MetaTrader 5. One can say that MetaTrader 5 is the upgraded version of the software, when in fact, it is not. MetaTrader 5 targets a wider market than MetaTrader 4 which only focuses on Forex trading and CFD trading.
If MetaTrader 4 is great for beginners, MetaTrader 5 is for traders who are looking for a much bigger picture. MT5 supports many advanced features and stock trading. It also allows cloud storage to conduct backtesting and run trading strategies.
MetaTrader 4 and the Automated Trading Systems
Fortunately, to those traders who cannot keep up with the face-moving environment of Forex trading, they can utilize the expert advisors (EA) because MT4 supports it. Since the Forex market is open 24 hours a day, 7 days a week, using an expert advisor offers great convenience. Expert advisors, also known as Forex robots, are the ones who carry out a trade-in place of the human trader. It does not entirely work on its own, its decisions are based on the trader’s preference and data that’s been input on it.
Moreover, using EA means that the emotional factor is removed from trading. When you trade, you tend to get too emotional whenever you win or lose. You either feel greed to win more after a string of wins or fear thinking that you might lose your hard-earned money. But with a trading robot, it automatically carries out a set of instructions based on your preference.