Broker to Trading

MetaTrader 4 (MT4) is an online trading platform that supports trading where the trader plans and executes their own trades and trading where the trader uses online trading robots to execute trades on their behalf, in accordance with the instructions (or algorithms) with which they are programmed. Traders who only intend to execute their own strategies, without using robots, may wish to consider platforms that are designed for this purpose. However, a trader who wants to use MT4 to trade markets and to potentially use its automated trading features may wish to sign up with a broker that offers MT4.

MT4 is offered by a wide range of brokers, increasingly with its successor MetaTrader 5 (MT5). While MT5 is the successor to and has a number of enhancements on MT4; it has, in general, not replaced MT4 yet. However, some traders may wish to start with MT5, if only because of its improved features and the fact that its robots are written in a different programming language. If, nonetheless, the trader wants to use MT4, then they need to find a broker that offers this platform. In the table above is a range of regulated, well-established Forex brokers that offer MT4. As can be seen, some offer only MT4; others provide additional trading platforms.

One reason for using MT5 is that this platform can offer more markets to trade (this depends on the broker, though). Forex brokers do not tend to offer more than around 200+ markets on MT4, while at some brokers, MT5 can provide 1000+ markets to trade. These markets include Forex pairs but will typically also have a wide range of Stocks CFDs to trade as well. However, Stocks CFDs can also be offered on MT4, albeit in smaller numbers. Forex traders may be interested more in Forex and perhaps precious metals, and all these brokers provide these markets.

The trader can start on MT4 and use its analysis tools to help them plan, execute, and manage a trade. MT4 offers tools on its platform, such as technical indicators and graphical objects. However, a feature of MT4 and a reason for using this platform is that behind it is an extensive online network of developers who produce additional features for this platform. The core products are additional technical indicators and EAs.

EAs are the online trading robots used by MT4. EAs are written in a programming language called MQL4 (MT5 uses MQL5). The trader can download EAs (whose full name is Expert Advisors) written by other traders. They can modify EAs or even program them. A trader may wish to develop strategies by trading on their own behalf and then automate those that are successful.

However, trading automation is not a method that is necessarily more successful than executing trades without using robots. Automated strategies can rather be seen as a tool to make use of features of the Forex market, including that it operates continuously during the week. This means that the trader may want to trade at a time not convenient for them. Thus, an automated strategy (EA) can trade for them. Traders may have developed shorter-term strategies, taking advantage of market events or the behaviour of Forex pairs, for example. They may find that while they can implement them, it becomes tiring to do so. Thus, they can code them in EAs and let them execute their trades for them.

The potential disadvantage of EAs is that the trader is not in control of their trades in the way they should be when executing them. Thus, EAs can produce rapid losses in the trader's account, even if it eventually returns positive (which it may not). This is known as drawdown and is a feature of automated trading.

When trading on their own behalf, a trader may avoid drawdown by ending a trade. This is a quandary of trading: should the trader have, in fact, stuck with the trade, as Forex is a complex market and can reverse itself and work out a move as expected by the trader, despite moves in the opposite direction? Robots have the capacity to take this out of the trader's concern, but with the issue that they can, in fact, produce losses while doing so, which may or may not be overcome. For these and other reasons, EAs can be seen as a tool to tackle Forex, in addition to other techniques. With MT4, the trader has the capacity to apply a wide range of tools to Forex.

Best Forex Broker For MT4

The pick for the "Best Forex Broker for MT4" is IC Markets. This is because IC Markets, like other Forex brokers, began offering MT4 and expanded its offering over time. So it has long experience with this multi-function platform.

Supporting MT4 Forex trading, IC Markets offers a Standard account with no commission charge and spreads from 0.8 pips; a Raw Spread account with MetaTrader commission charges of $3.5 per lot per side and spreads from 0 pips; a Raw Pro account with spreads from 0 and commission charges from $1.5 per lot per side; and a Raw Pro+ account with spreads from 0 pips and a commission charge of $1 per lot per side. As can be seen, some of these accounts offer lower commission charges. The figure of 0 pips is the low for Forex markets with high liquidity, such as EUR/USD; however, the average spread for EUR/USD is also low, at 0.1 pips.

The Standard and Raw Spread accounts have no minimum deposit requirement, but the Raw Pro account has a minimum deposit of $5,000, and the Raw Pro+ account has a minimum deposit of $100,000. So in its account structure, IC Markets supports Forex traders from those who want flexibility in their deposit and still access competitive commission charges to those who want to deposit larger sums and access low commission charges. The Standard account is sometimes described as a more entry-level account or for traders who trade on longer terms and who may not need spreads from 0 (plus a fixed commission charge).

When traders scalp or trade at higher frequencies, they may want the assurance of fixed commission charges and the potential for very low variable spreads. IC Markets offers low-latency order transmission, allowing for styles requiring very fast order execution. It utilizes Equinix NY4 for co-location with institutions so that orders can be routed at high speed. This is important for higher-frequency strategies but can also be convenient for traders who trade at lower frequencies, knowing that their order can be fulfilled rapidly.

As we have seen, MT4 itself supports this wide range of Forex trading, so IC Markets goes a step further and offers account structures that can be seen as accommodating these different styles. Broadly speaking, IC Markets can be seen as suited for active day traders and scalpers but can also support traders who are exploring Forex. The trader can create an MT4 demo account to try out this platform without risking real money.