Investing in the FX market can often seem to be overwhelming especially for novice traders due to the technical advancements and high volatility factors that are associated with the industry. While several crucial aspects play a significant role in determining the success rate of trade, selecting the right platform surpasses all. Introduced in 2005 by MetaQuotes Software Corp, the MetaTrader 4 platform facilitates millions of traders in executing forex trading as well as other markets via CFDs. With several best MT4 brokers present in the market, the reason behind the rising popularity of this platform goes to the many benefits that it has to offer.
- Accessibility to market values and liquidity on a real-time basis
Traders can take the advantage of accessing live FX quotes through MT4 platforms and conduct a trade accordingly. The ‘Market Watch’ feature available on the platform allows users to access the range of securities or currencies that a trader chose to buy or sell through a broker, as well as live bid/ask quote, margin currency, security symbol, and more. Traders can also analyze the market activity instantly through the ‘Depth of Market’ option, where evaluating a currency pair can be done effectively by analyzing the number of orders for different prices.
This very information aids in reflecting the market sentiment in a more in-depth manner. Depending on the difference of the liquidity factor between the bid side and order side, the market trend can follow accordingly, which is beneficial for strategies like scalping.
- Provides greater flexibility through different trading orders
Certain aspects in forex trading such as variation in trading orders, different strategies for risk management, and other execution methods allow traders to follow a specific style and strategy as per their requirements. With MT4 investors get a greater sense of flexibility with multiple market orders, execution modes, and pending orders provided by the platform. In order to manage a healthy risk management strategy, this platform also allows multiple features to reduce downside risks. Options like stop-loss orders can minimize the risk of potential losses by closing a position if the market turns to the opposite direction of the prediction. Similarly, traders can also set a pre-determined level of gains for added vigilance on this platform.
- Various levels of different analytical techniques
The MT4 platform comes with a wide range of pre-established features that aid in analyzing the prices effectively. With more than thirty in-build indicators for technical analysis, MT4 offers MACD, OBV, RSI, and other instruments for analyzing possible trends and volume. This platform also allows traders to access multiple charts simultaneously where a single currency pair can be monitored in nine distinct timeframes. These charts are customizable where users can access several mathematical instruments and detailed analysis of charts to evaluate any complex price activity.
These very features help investors to predict movements in prices, place stop-loss levels, and determine proper timings of opening and closing a position. Apart from this, the platform also assists traders to set alerts for specific events and major releases that may influence the market.
- Comprehensive security and greater stability
Recognized as a highly stable and secured platform, MT4 uses an encrypted 129-bit key for any exchange of information between servers and user terminals. Traders can be assured of their privacy and security in terms of conducting any transaction in the presence of hidden IPs and RSA digital signatures. These features provided by MT4 also ensure that the accounts of their clients stay protected from any cyber-attacks or breaches.
The MT4 platform can also be accessed from tablets and smartphones, besides desktops which allows users with added flexibility.
- Algorithmic trading alternative for professionals
The MT4 platform is fully compatible to employ FX expert advisors for the algorithmic trading facility. With the help of automation, traders can get rid of the emotional factor when deciding along with other aspects to leverage market movements with minimal manual efforts. Traders can also create their unique EAs with the MQL4 IDE, backtest them and make necessary modifications for better performance.
Conclusion
The unique selling points of MetaTrader 4 lie in its high level of customization and adaptability. MT4 is preferred among novices and experienced traders alike, due to its extensive technical tools, user-friendly interfaces, instructional materials, and demo-testing capabilities.