You need a boat or a bridge when you want to cross a river. Similarly, you need a trading software when you want to trade online and through your personal computer. Indeed, a trading software or platform is a bridge that connects your computer to the currency market. You can have access to the currency market through a trading platform that you install on your computer. And, Metatrader 4 is the most famous trading platform that you can download and install on your computer for free.
What Is MetaTrader Exactly?
Metatrader is a trading software or platform. It is the most famous trading platform specially among Forex traders. It supports a complete price charting system and all the tools you need to analyze the price charts and locate the chart patterns and buying and selling opportunities that are known as trade setups. There are two main versions of MetaTrader: MetaTrader 4 or MT4 and MetaTrader 5 or MT5
There are two versions of Metatrader:
- MetaTrader 4 or MT4 which is very popular and well-known.
- MetaTrader 5 or MT5 created by the same company (MetaQuotes Software Corp). MT5 supports more features compared to MT4.
To trade Forex, MetaTrader 4 or MT4 is more than enough. To use this platform, first you have to install it on your computer.
MetaTrader has a lot of features and abilities. You can open the price charts and follow the markets price fluctuations and analyze the charts. You can plot trendlines on the charts, analyze the charts and locate the trade setups. You can have candlestick, bar and line charts. It also supports Heikin Ashi candlesticks, and you can add Renko chart indicator to it to use Renko charts as well.
You can place orders and set stop loss and target. You can set trailing stop loss and pending orders. You can follow the news.
Even you can use some special programs named Expert Advisor or EA to do some jobs automatically. You can use some small software named scripts that can be added to MetaTrader. They can also do some special jobs and save a lot of time for you (read this and this).
MetaTrader is a light software that doesn’t overload your computer and doesn’t make your computer slow. You can run multiple instances of MetaTrader on the same computer and login to the same account through all of them.
You can easily download several years of historical data for each currency pair, CFD and… from MetaQuotes Software Corp severs for free. You can use this feature to back-test your trading strategies.
Another good feature of MetaTrader is that it creates detailed reports from the positions you take.
In general, although MetaTrader is not a 100% perfect trading platform and still there are some features that have to be added to it, it is so user-friendly and easy to use and it is a perfect trading platform specially for the novice traders.