Image of a laptop and monitor displaying various trading platforms including MetaTrader and MT4 for analysis.

Table of Contents

MetaTrader 4 (MT4) is not a broker, but a trading platform. The software is available to download or access online through a CFDs or forex broker. While the platform is accessible online with or without a broker, you would have to register with a trusted CFD broker. And then access their version of MT4 to be able to deposit funds and trade effortlessly online.

Why sometimes MetaTrader 4 is mistaken for a broker?

Sometimes people may assume that MetaTrader 4 is a broker as they tend to hear the name a lot when it comes to trading. MT4 is also one of the most popular trading platforms. Traders often use video examples or articles to illustrate and discuss trading. So, it is possible that many users may come across it and think that is a broker.

What is a broker?

A CFD broker is a person or company that works on behalf of an investor/trader and a securities exchange. Since securities exchanges will only accept orders from individuals or firms. That are members of that exchange then an individual trader or investor has to use the services of an exchange member. Such service is offered by brokers and they are in turn rewarded in different ways. Which include commissions or fees or payment from the exchange itself.

What is MetaTrader 4?

MT4 is a multi-asset platform trading system for online retail forex traders. MetaQuotes Software designed and launched the platform in 2005. MT4 is preferred because of its simplicity, rich charting package, and algorithmic trading.

MetaTrader 4 key features

Here are some key features and aspects of MetaTrader 4:

  • User-Friendly Interface: MT4 is normally user-friendly and thus does not require much technical knowledge to operate it.
  • Advanced Charting Tools: The charts have myriad indicators and graphical objects available on the platform. The trader is able to monitor the activity of the graphic charts. And determine the changes in price for financial instruments.
  • Automated Trading (Expert Advisors): An EA is one of the best MT4 tools for algorithmic trading. Expert Advisors enable traders to create, optimise, and use automated trading systems.
  • Custom Indicators: MT4 enables traders to develop their own indicator based on their trading patterns. Thereby strengthening their capacity to read the markets.
  • Trading Signals: Traders can also provide trading signals which other traders can pay for. Trading signals can be used by traders to automatically copy the trade into their trading account.
  • Security: It employs effective encryption techniques to facilitate secure data transmissions between the client’s terminal and the broker’s servers. So that trading transactions and personal information are well protected.
Mobile forex trading on iPhone using Metatrader app, showcasing analysis tools and MT4 platform.
  • Comprehensive Analysis Tools: The platform also has technical analysis instruments. Such as different time frames, multi-charts, and a plethora of analytical objects.
  • Order Execution Types: MT4 provides several types of orders for traders such as Market Orders, Pending Orders, Stop Orders, and Trailing Stops.
  • Historical Data and Backtesting: Buyers can make use of past information used to test. Whether the strategy being adopted will enhance the overall performance.

MetaTrader 4 and VPS Hosting

If you are a more advanced trader or you’re running Expert Advisors, it is usually suggested to use a VPS (Virtual Private Server) which will allow you to run MT4 24/7.

There are many benefits of trading through a VPS if supported by MT4. Here are the key reasons why traders opt for VPS hosting with MT4:

1. 24/7 Trading

Continuous operation: VPS hosting supports your platform to operate continuously and that is a must if you are auto trading and your PC is not on.

Minimises downtime: One of the best things with the use of a VPS is the uptime- with a VPS, you are not likely to experience downtimes due to power surges, hardware trouble or a bad connection from your local computer.

2. Reduced Latency

Faster order execution: VPS servers are often located close to major financial hubs and forex brokers’ servers by cutting the latency time in the process and enhancing the speed of order execution.

Improved trading performance: Lower latency is especially important for HF trading because of its impact on money decisions that have to be made in milliseconds.

3. Enhanced Security

Isolated environment: VPS hosting is very safe and offers strong protection from malicious programs and viruses that may lead to hacking your trading account in your computer.

Regular backups: Most of the VPS providers out there provide backups of your trading data regularly and appropriate security measures for your business.

4. Reliability and Connectivity

Consistent Internet connection: VPS reduces the chances of disconnection that results from slow internet and which may interrupt your trading.

Reduces slippage: Stability and speed of connection also helps in preventing slippage as your trade can be executed at the target rates.

5. Accessibility and Flexibility

Remote access: A VPS hosting solution can be accessed through any computer or mobile device with the help of MT4.

Cross-platform compatibility: The service of VPS hosting provides the opportunity to run the MT4 on operating systems that do not support it by default (on Mac or Linux).

6. Resource Optimisation

Dedicated resources: A VPS is a product that offers dedicated resources (CPU, RAM storage, etc.) specifically to the trading activities that require high performance of the MT4 trading platform.

Handles multiple platforms: Traders using multiple MT4 or equivalent trading platforms will most likely find that such a service will help manage resources on their local machine without crashing it.

7. Professional Trading Environment

Improved uptime: VPS hosting companies usually offer guarantee high uptime rates – if not 99. 9% and higher – and it satisfies the need of having the trading platform work in an ongoing basis.

Scalability: If your trading needs start to increase then it is pretty easy to upgrade your VPS setup for more demanding strategies or additional trading accounts.

MetaTrader 4 analysis for forex trading on laptop and mobile, screenshot.

MetaTrader 4 Brokers

Many brokers who do not have their own trading platforms tend to fully depend on third-party applications such as MetaTrader to link their clients to the markets. Some Forex brokers do pay a ‘licence’ fee for the use of MT4 which depends on the number of users they have as well as the ‘add-ons’ and ‘white label’ options they incorporate.

The price of a MetaQuotes licence can reach $100,000 and this depends on the number of users they have and the type of deal the brokers have licensed with MetaQuotes.

MT4 and MT5

MetaTrader 4 remains the most widely used platform with many traders, new and old preferring to use the MT4 instead of the MT5.

MT5 features not present in MT4

The MT5 is an enhanced version of MT4 and well known for its additional features and futuristic upgrades. Here are some of the key features of MT5 that are not present in MT4:

1. Expanded market access:

MT5 provides trading in forex, stock, futures, options, commodities, and more.

2. Improved order management

Additional order types: MT5 has more order types when compared to MT4 like the Buy Stop Limit and Sell Stop Limit orders.

Depth of Market (DOM): Another useful feature is the Depth of Market function which lets traders to see market liquidity and place orders directly on the order book. This function is absent from MT4.

3. Charting and analysis from the experts

More timeframes: MT5 has more timeframes (21) compared to the 9 in MT4 and this is why it provides a more detailed analysis.

Extended technical indicators: The technical analysis capabilities of MT5 are superior as it has more technical indicators and graphical objects to survey of the market.

4. Economic Calendar integration

Built-in Economic Calendar: The economic calendar is one of the features of MT5 where traders receive real time updates on important events which directly affect the markets.

5. Enhanced trading functions

Partial order filling policies: There are numerous options in MT5 for partial order filling which are more customisable than in MT4.

Hedging and Netting: MT5 is better than MT4 in the sense that MT4 only supports the hedging account type.

A person engaging in forex trading on a laptop and smartphone, using Metatrader (MT4) for analysis.

6. Sophisticated analytical tools

MQL5 programming language: The programming language that is used in MT5 is known as MQL5 and it is more sophisticated and efficient when compared to the MQL4 because of the object-oriented nature of the language and support for a more complex trading algorithm as well as custom indicator programming.

Strategy tester: The MT5 platform has the following characteristics of the strategy tester: multi-threaded optimisations and ability to test trading robots on several currencies at the same time.

7. Improved user interface

More functional user interface: MT5 is much more advanced and functional with a better user-friendly interface and additional settings.

Market depth window: The Depth of Market window in MT5 is more useful than its predecessor as it shows more information about liquidity and pending orders.

8. Fundamental analysis tools

News Feed Integration: MT5 comes with a news feed service that keeps the trader updated on the latest market news.

9. Improved results and effectiveness

64-Bit architecture: MT5 is based on the 64-bit architecture that helps to boost the operation of the platform.

Optimised for multi-core processors: For its part, MT5 utilises multi core processors and needs less power than its previous MT4.

10. New community and market enhancements

Integrated marketplace

The marketplace in MT5 is an official store where traders buy or rent EAs, indicators, and other tools right from the trading platform.

Social trading and indicators

MT5 also offers trading indicators from copy trading for traders to copy the trades of successful traders.

Whether you go for the MT4 or MT5 trading platforms, you will still need to choose your CFD broker first. Do you research and find a forex broker who offers the trading platform you prefer and has all the tools and education you may need to trade successfully.

Penafian: This material is for general informational and educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.

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