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Intro to MetaTrader

MetaTrader is a trading software that is most commonly used amongst forex traders as their trading platform. Posing similarly as a connecting channel between currency trading systems and your computer(mobile device), and MetaTrader is the link.

There are two versions of the MetaTrader platform:

1. MetaTrader4

2. MetaTrader5

MT4, released on July 1st,2005, is a simple and easy online trading platform, primarily reserved for the online retail forex market. MT5, released five years later on June 1st, 2010, however, is an all-in-one state of the art multi-asset trading platform.

Meanwhile, MetaTrader 4 platform is offered by most forex brokers, which is extremely popular. MetaTrader5 was designed to trade new markets, beyond forex, through a centralized exchanged, including stocks, commodities, futures, and options.

MT4 and MT5 have similar execution modes. Three execution modes: instant execution, execution on request and execution by market are available on MT4, though MT5 offers an addition in the form of ‘exchange execution’. In this mode, orders are sent to an external trading system (exchange).

In terms of pending orders – execution modes used to buy or sell a market at a predefined price in the future –MT4 has four order types available: buy stop, buy limit, sell limit and sell stop, while MT5 offers six. The additional two orders provided in this program are the buy/sell stop limit.

Here is a chart to compare MT4 and MT5:

MetaTrader layout introduction:

By default, the MetaTrader 4 platform layout is divided into 6 main components as follows:

1. Main Menu: a collection of all functions that can be performed inside the MT4 terminal: File; View; Insert; Charts; Tools; Window; Help.

2. Toolbars: Standard; Charts; Line Studies; Timeframes.

3. Market Watch Window: This window contains the symbol list. Commands of this window allow to control trade positions and charts.

4. Navigator Window: Open accounts, expert advisors, indicators, and scripts are grouped in the navigation window. The "Navigator" can help to control them promptly.

5. Chart Windows: 4 charts by default, each representing a different currency pair.

6. Terminal Window: Terminal is a multifunctional window intended for working with trade positions, news, account history, alerts, internal mail, and logs of the program and of expert advisors, as well. Moreover, the "Terminal" window allows to open and modify orders of different kinds and manage trade positions.

Figure 1: MT4 Interface

Which is better – MT4 or MT5 ?

This is trader dependent.

While MT5 certainly boasts a number of new features and may appeal to some traders, others may prefer the straightforward nature of MT4.

If you’re new to trading, or are simply interested in trading forex, MT4 is an obvious choice. If you’re more advanced and find use in the additional tools offered in MT5, nevertheless, this platform is certainly worth considering.