MetaTrader 4 is one of the world’s leading CFD trading platforms. As such, it’s obvious that you can trade CFDs via MT4. However, there are still a few caveats.
In this article, we’ll go over what you need to do to trade CFDs on MetaTrader 4 and how you can access CFD trading services if you’re uninitiated.
MetaTrader 4 (MT4) – A platform, not a broker
The thing that may confuse people new to trading is the fact that MT4 is a trading software, not a service provider. In other words, you can’t simply download MetaTrader 4, open up the platform, and start trading CFDs.
To do that, you’ll need a service provider to connect you with CFD markets. These are known as online brokers, or more specifically, online forex & CFD brokers. To access trading services, you’ll need to access MetaTrader 4 with your broker’s account, which will let you interact with markets.
Another thing you’ll need to ensure is that your chosen broker has MetaTrader 4. It’s available here at T4Trade and it’s one of the most prominent platforms, so most brokers will let you access it. However, it’s wise to double-check just so that you don’t get locked out of using your preferred platform.
Trade CFDs on MT4 for free with demo accounts
There’s a way of trading CFDs on MetaTrader 4 for free, and you can do that via a demo account. Before you get ahead of yourself, this also means you can’t gain any money. These accounts are purely for learning the MT4 platform, inspecting the broker’s service, and practising your strategy.
A demo account is a service most brokers offer. It’s a trading account with virtual funds that serves to emulate actual market circumstances.
As such, it’s a way to trade without the pressure of losing your own money. It’s smart for newer traders to learn using demos since the combined stress of learning a platform and potential financial loss can easily overwhelm them otherwise.
However, as we mentioned, this is a brokerage service, not something inherent to MetaTrader 4. As such, you’ll also need to check if the forex broker offers it. It’s also likely that the broker will require you to sign up with some basic personal info and credentials.
Lastly, these accounts sometimes have constraints. They are either available for a set period or have a limited amount of funds (often both).
Since many online brokers offer these accounts, you can circumvent these limitations by simply finding another broker if the account for the first runs out. Unfortunately, this will mean you won’t have access to your past trading information every time you switch.
MT4 Web, MT4 Mobile
Here, we’ll make a small digression to introduce MetaTrader 4’s other versions. By default, most things you read will assume you’re using the terminal (the version you download on your computer). However, there are also two other options in MT4 Web and MT4 Mobile.
The terminal is, of course, the most optimised, but the other two have most of the same features. As a new trader, you’re unlikely to notice a functional difference at all. As such, if you intend to learn how to trade CFDs, these two are entirely viable options. You may simply choose the version you’re most likely to use.
Live accounts – real CFD trading on MetaTrader 4
We’ve covered demo accounts, which let you trade with virtual funds, so the sensible next step is to introduce real trading. However, before you do that, you’ll likely need to deal with some other things.
Firstly, you’ll need a live account from your broker. To get one, you’ll need to go through what’s known as a KYC (know your customer) check. This includes things like AML (anti-money laundering) and CTF (counter-terrorism financing) verification. It’s a part of the broker’s due diligence and is required to keep its community safe.
All the complex bits are on the broker’s end, but you’ll likely be required to give proof of identity and residency. This will require you to send pictures of documents such as government-issued ID or utility bills.
The other thing is that, if you want to trade for real, you’ll need real money. Each broker will have different conditions for depositing capital into your accounts. Different brokers will offer different methods, there might be a minimum amount (either per transaction or an account minimum), and you may see different processing times and fees.
It’s important to learn about all of this before depositing any money. Few feelings are as frustrating as difficulties getting money in and out of your account or getting less than you expected. Once you know what to expect, however, the process is fairly simple, you deposit money with your broker, wait, and the funds will appear in your trading account.
To recap, to trade CFDs on MetaTrader 4:
- You need to find an online broker.
- It needs to offer MT4.
- You’ll have to register with basic personal data and account credentials.
- Here, you may want to spend some time practising with a demo account.
- You’ll go through a KYC process which will require you to send pictures to prove your ID and residency.
- You’ll need to deposit money, at least as much as the broker requires for an account minimum (if applicable).
Note that, in CFD trading, finding the right option is much better than getting started quickly. We recommend taking more time and finding the right option rather than rushing into things.
What CFDs can you trade in MT4?
Now that you know how you can trade CFDs, you may want to know some more specifics about what you can trade. MetaTrader 4’s CFD selection covers nearly every prominent asset available in global markets. Its primary CFD categories are stocks, indices, and commodities.
Stock CFDs
Stock CFDs include shares from the world’s most popular companies. Trading shares as CFDs will prevent you from benefiting from dividends or becoming a majority shareholder. However, they also make top global assets much more accessible, and, in general, lower trading fees.
Some top stock CFDs you may see in MT4 are:
- Technology: Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT).
- Finance: JPMorgan Chase (JPM) and Goldman Sachs (GS).
- Consumer Goods: Coca-Cola (KO) and Procter & Gamble (PG).
Index (Indices) CFDs
Indices are baskets of stocks. Instead of trying to predict how a single company will move, you speculate on industry segments. These tend to swing less since, if a single company has a sudden windfall or steep drop, it won’t affect the price of the entire index that much.
The three major US indices are the most prominent ones:
- S&P 500: Tracks 500 major U.S. companies and represents the overall stock market.
- Dow Jones (DJIA): Follows 30 top U.S. companies and shows economic health.
- Nasdaq-100: A tech-focused index covering 100 significant companies.
Commodity CFDs
The last big group in MT4 is commodities. This asset class is comprised of everyday retail and industrial groups.
There are three major categories:
- Metals: Gold (XAU/USD) and Silver (XAG/USD).
- Energy: Crude Oil (WTI and Brent) and Natural Gas.
- Agricultural Products: Coffee, Soybeans, and Cocoa
Asset access, however, may differ from broker to broker. It’s important to check the exact list of trading instruments your future trading hub offers. If your brokerage doesn’t list it on the website, it’s likely that you can check the entire list in MT4 via a demo account.
Advancing your trading skills with MT4
Now you know that you can trade CFDs on MT4, but that’s far from the end of your development as a trader.
MetaTrader 4 is a very versatile platform, and it’s very beneficial for new traders who can increase learning by exploring its features.
We recommend researching its charting and indicator tools next, as they can significantly improve your market insight.
T4Trade – Your Go-To Platform for CFD Trading on MT4.
T4Trade takes pride in offering unparalleled access to MetaTrader 4 while leveraging our industry-leading trading services.
From a novice who is learning the ropes with demo accounts to a seasoned trader in search of favorable spreads and high-speed execution, our platform caters for every user.
With our extensive selection of CFDs on stocks, indices, and commodities, traders are provided with the essential tools, information, and insights required to make informed decisions in the markets.
Get on board with T4Trade today to enhance your CFD trading experience powered by MT4.
Disclaimer: This material is for general informational and educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.
