Broker to Trading

MetaTrader 4 (MT4) is an online trading platform which 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 which 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 which 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 which offers this platform. In the table above are a range of regulated well established Forex brokers which 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 however are interested 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. Or they can modify EAs to even program them. A trader may wish to develop strategies by trading on their own behalf and then automate those which are successful.

However trading automation is not a method which is necessarily more successful than executing trades without using robots. Automated strategies rather can 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 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 Broker For MT4

The pick of these brokers is FOREX.com. FOREX.com is a major MT4 broker (the largest MT4 broker in the world based on active MetaTrader servers per broker, April 2019) and supports traders who plan and execute their own trades and traders who want to use EAs.

However one of the reasons this broker is picked is that it offers a range of trading platform built around Forex trading. The trader may switch to another platform and trade Forex there and then when they want switch back to MT4. These platforms include its user friendly Web Trader and its Advanced Trading Platform (which is also relatively user friendly). These platforms do not support full automation so when the trader wants to use EAs they can execute them on MT4.

Traders who want to trade even when disconnected from the broker can rent a VPS (Virtual Private Server). However for traders who maintain a minimum of $5000 in their account and execute at least 10 round trip mini lots or equivalent per calendar month, FOREX.com offers free VPS hosting, T&Cs apply. So for Forex traders, there is variety in the platforms they can use to apply different techniques to this complex market.