Forex trading is a form of trading where traders trade in currencies in place of stocks or other commodities. The forex trading market has many advantages over the stock market. It has better flexibility with no limits set on investment amounts and almost no regulations on the market. The forex market has great accessibility, with its 24×7 working timings and new technologies like the MT4 trading platform making investing a simple job rather than a complicated ordeal.
What is MetaTrader 4?
MetaTrader 4 or MT4 is a digital trading platform widely used by foreign-exchange traders. It was first developed by MetaQuotes in the year 2005 and has undergone a lot of upgrades and optimizations since.
How does it work?
The Meta trader software is licensed to brokers, who then distribute it to their clients. The software contains two essential components, the server component and the client component. brokers control the server component and the client is given access to their software, where they can control and choose the different trades or transactions they want to make. The client component has now been upgraded extensively and is very comprehensive and informative for the users. Live charts, trends and other useful data are represented comprehensively by the software. MT4 is a Microsoft Windows-based software with automation abilities. Currently, the application has been ported to Android, IOS and windows only but, many brokers have come up with custom variants for MacOS, making the software available in almost all popular electronic devices.
Advantages of MT4
As mentioned, the software engine is portable to almost all popular smart devices. With modern internet advances, the software can now also be used simultaneously on multiple devices from the cloud-based frameworks.
Even though the MT4 platform is primarily used in the FX market, it can adapt and function successfully in other markets as well. The range of options includes forex, commodities, marketing indices, CFDs and many more. These options are only limited by the brokers.
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The user interface of the trading platform is very user friendly. The software supports trading strategies of all complexities from the beginner level to an advanced experience level. Many users are attracted to the platform because of its simplicity. MT4 is packed with many handy features like automatic triggers which help stop loss and take the profit as soon as possible. This helps the trader to avoid most negative markets and lock onto their profits as fast as possible. There are pending and stop orders which are used for delayed execution of commands. This makes the overall trading experience convenient and flexible.
The demo mode is where new traders can practice before they use real money in the market. The virtual trading mode helps beginner traders understand the concept of trading before they start for real.
As mentioned before, the platform has a large arsenal of analytical tools to help traders make the right decisions. Many technical indicators and new market news help traders make the right strategies both for long term and short-term investments. The availability of tools like copy trading is one of the primary reasons for the widespread popularity of the platform.
So should you use it?
The MT4 trading platform is probably one of the easiest ways of trading. It is a universal trading tool suitable for both aspiring or beginner traders and proficient experienced traders.