MetaTrader 4 Program Explanation

Forex Market and Currency Trading

The decentralized nature of the Forex market has led to a unique trading style that is somewhat different from other financial markets. In this topic, we will discuss the Forex trading platform, which is the window through which traders monitor currency pair prices, follow them, analyze them, and execute trades.

The Forex trading platform we will focus on is MetaTrader 4 (MT4), the most popular and widely used platform among Forex traders. It is offered by almost all Forex brokers worldwide.

Historical Overview
In 2002, a group of technical developers at MetaQuotes Software launched the Forex trading platform MetaTrader 4 (MT4). At the time, it was a basic version of the one currently in use. Initially, it did not gain much popularity among brokerage trading platforms, and the first version went through several technical iterations before the 2005 release, which began to spread and establish itself among the trading community. It became widely adopted as a replacement for brokers' proprietary platforms.

The MT4 program provided an effective and integrated trading environment, despite its simplicity, which was one of the key factors behind its widespread use. As financial markets evolved and brokers expanded, the use of MT4 was no longer limited to Forex trading only but also extended to futures contracts, CFDs, stocks, commodities like gold, silver, oil, and cryptocurrencies like Bitcoin, Ripple, and Ethereum. With the advent of smartphones, the platform became available on Android and iOS, further increasing its user base.

Even after MetaQuotes discontinued support for MT4 in hopes of encouraging clients to switch to the newer MetaTrader 5 (MT5) platform over 10 years ago, Forex and financial market traders continue to rely on MT4, despite the additional features and support available on MT5. This is largely because MT4 users had developed automated trading systems and indicators based on its programming language, MQL4, which is incompatible with MQL5, the language supported by MT5.

Features of MetaTrader 4

MetaTrader 4 offers several important features that helped it gain popularity initially and maintain its user base even in the face of the newer MT5. Here are some of its key features:

Interface
One of the major advantages of MetaTrader 4 is its simple interface (also referred to as an intuitive interface). Most traders can use it without the need for a detailed explanation, rarely facing issues when opening positions, checking market prices, or adjusting indicators and charts. It also offers a high degree of control and customization.
Charts
When MT4 first appeared, it was among a group of brokerage trading platforms that offered charts for displaying prices, but with a primary focus on execution. These charts lacked graphical tools and customization options, making it difficult for traders to analyze. However, MT4 stood out by offering an integrated charting system with a wide range of graphical tools, easy to use and customize, making it a competitive advantage both at the time and still today.
Automated Trading Solutions
Automated trading systems, or programming scripts that generate Forex trading signals, are very popular among both beginner and advanced traders in the Forex and CFD markets. MT4 provides an ideal environment for creating, customizing, testing, and automating such trading systems, enabling direct market execution.

Disadvantages of MetaTrader 4

While MT4 has been extremely popular, it does have some limitations that prevent it from being the strongest platform among trading programs in financial markets. It may have been dominant among free platforms and beginner traders in the Forex market, but professional or advanced traders may find some shortcomings. The main disadvantages are as follows:

Incomplete Historical Data for Testing
The historical data available for testing is sometimes incomplete or insufficient.
Execution Speed
Although acceptable, MT4's execution speed may not be fast enough for intensive and rapid execution.
Web Platform
The web-based platform, or browser-based trading program, does not support automated trading.
Limited Timeframe Customization in Charts
The charts in MT4 do not allow for custom timeframes beyond the default ones.

How to Download and Install MetaTrader 4

You can download the MT4 program from the Forex broker's website you are using.

Once the program is downloaded, follow these steps to install it:
st, in the welcome window, click Next to proceed to the next step.
- Then, agree to the program's terms and click Next.
- Allow the program to complete the installation and click Finish once done.
Upon launching the program, enter your account details and click Login:
- Login: Your username provided when you opened your demo account.
- Password: Your password.
After logging in, the main program window will appear.

MetaTrader 4 Interface Explanation

Watch the following video for a detailed explanation of the components of the MetaTrader 4 Forex trading platform interface:

Drawing and Analytical Tools Menu Explanation

This video explains the drawing and technical analysis tool menus for charts in MetaTrader 4:

How to Add Indicators
Click the + sign next to "Indicators" to view the complete list of technical indicators available in MT4. For a guide on how to add indicators, watch the following video:

General Features:

Add a chart
Profile management – Add, Edit, Delete
Open the currency pairs data list
Open the detailed currency data list
Open the technical indicators list
Open the auxiliary data list
Strategy tester
New trade
Program wizard
Automated trading

Chart Types and Controls:

Bar chart
Candlestick chart
Line chart
Zoom in
Zoom out
Arrange charts
Go to end of chart
Scroll chart slightly to the left
Add a technical indicator to the chart
Change timeframes
Change program theme/template

Drawing Tools:

Use the cursor icon
Selection tool
Draw vertical line
Draw horizontal line
Draw trendline
Draw price channel
Fibonacci levels
Add text label
Add sticker
Draw Fibonacci projections
Add arrows and signals to the chart

Timeframes:

1-minute timeframe
5-minute timeframe
15-minute timeframe (Quarter hour)
30-minute timeframe (Half hour)
1-hour timeframe
4-hour timeframe
Daily timeframe
Weekly timeframe
Monthly timeframe

Trading Data and Auxiliary Menus

Trade: Displays open trade data, available and reserved margin data.
Exposure: Shows the risk percentage of each currency in your trades.
Account History: Displays all operations and transactions.
News: Shows news provided by the broker.
Alerts: Displays alerts.
Mailbox: Displays private messages sent from the broker.
Markets: An online store to buy and download Forex books, programs, and trading experts.
Signal: Displays trading signal providers and their performance.
Code Base: Shows programmed tools and indicators.
Experts: Displays data for automated traders.
Journal: Shows all account activities.

Customizing and Changing Chart Templates

To enlarge a chart to full screen, click Maximize at the top-right of the chart window.

To change chart templates, click Template from the top menu, then select any template from the dropdown menu. To change chart colors and modify templates, watch this video:
Video on Changing Chart Templates

How to Trade and Open Forex Orders on MetaTrader 4

In the following video, you will find a tutorial on how to trade Forex and open orders via MetaTrader 4:
Video Tutorial on Opening Orders

To open a position:

Right-click on one of the currency pairs from the market data list and select Chart Window.
Right-click anywhere on the chart and choose Trading then New Order, or press F9.

Fill in the required fields, such as the number of contracts, stop loss, take profit, and order type, and click Buy or Sell.

Using MetaTrader 4 on Mobile

You can also trade and follow your positions via mobile. There is an Android and iOS app available. For more information, check out the following videos:
Android App
iOS App