As a new trader, you’re presented with a lot of choices, and choosing between platforms is one of them. The wealth of options and information can feel suffocating, especially since you haven’t built your knowledge foundation yet. That’s why, today, we’ll be introducing MetaTrader 4 (MT4) and discussing whether it’s a good platform for beginners to start out with.
MetaTrader 4 (MT4) is an online trading platform released in 2005 by MetaQuotes. It quickly reached cult status and today, it has become one of, if not the most widely-spread trading platforms for forex and CFDs. So, without further delay, let’s start exploring.
Why even learn MetaTrader 4 (MT4)?
A good question to start with is why you’d even bother with MT4. We’ll put the features aside for now and give you a very simple answer; you’ll encounter it almost everywhere. Nine times out of ten, if you find an CFD online broker, it’ll have MetaTrader 4 available. Often, it’ll be the only platform on the service.
As such, learning MT4 means that, almost whichever broker you choose, you’ll be able to sit down, download the platform, and get started. It may not sound like much, but changing brokers can be a long and strenuous process, so eliminating part of it is meaningful.
Along a similar line, MetaTrader 4 shares baseline features with most other platforms. Figuring out how it works and getting comfortable with its functions means that you understand trading platform fundamentals. From there, you’ll be able to work out at least the basics of most other platforms.
The combination of these two factors alone makes learning MT4 an significant part of becoming comfortable in the forex and CFD world. Needless to say, we believe that learning it as a beginner is a good idea. It gives you a solid foundation and, since the platform is fairly robust, leaves you room to grow. However, in the interest of fairness, we can’t say there aren’t any downsides. Let’s look at those.
Why you wouldn’t want to learn MetaTrader 4
As we mentioned earlier, MetaTrader 4 was developed in 2005. The problem is that it definitely sometimes looks and feels like software made in 2005.
Since then, the tech industry has focused on streamlining software, making it accessible, and improving user experience. MT4 has missed out on that process, and that can be off-putting for people fresh on the markets. That may make some traders to opt for a more modern platform first.
We can’t say either choice is wrong; it’s a matter of perspective. Choosing a simpler platform is easier at first. It lets you start sooner and alleviates some of the stress of your first trading days (and we all know those can be really stressful). However, it builds a weaker basis, and offers less longevity since it’s less likely that you’ll find the same platform if you switch brokers. In the long run, that may end up costing more time than you’ve saved initially.
Another thing some people may consider a disadvantage of MT4 is that MT5 supersedes it. The logic is sound, why would you learn an older version of a program while a newer one is available?
However, the two versions have coexisted for nearly fifteen years, so one isn’t going to push the other out. In fact, MT4 is still much more prominent than its would-be successor. As such, it may be wiser to learn MetaTrader 4 and then expand the knowledge onto MetaTrader 5, rather than forgoing the older version entirely.
MetaTrader 4 – Key features for beginners to learn
We’ve established that MetaTrader 4 is a good starting point for traders due to its prominence and features that allow it to serve as a baseline for other platforms. Here, we’d like to expand on that.
We’ll outline key functions and expand on why they are especially important for newer traders.
Built-in charting tools and indicators
MetaTrader 4, even at a baseline, offers a great set of tools that help analyse markets and enhance market movement visualisation. At a basic level, multiple timeframes and chart types can help you scope out asset prices. MT 4 also includes charting tools, which you can use to manually mark points of interest.
However, the technical indicators are the real high point. The indicators hinge on automated market calculations and offer you an unbiased, data-driven view. There are over thirty out-of-the-box indicators, including some you may have heard of already, such as moving averages, Relative Strength Index, and Fibonacci. Furthermore, you’ll find thousands of custom, community-built indicators that you can use for free (and of course, some paid ones).
The wealth of indicators and charting tools allows traders to start understanding the stats behind the markets and building strong analytical skills.
Simple risk management with MT4
Building good habits early is essential when learning any new skill. That’s even more pronounced in trading, where hundreds or even thousands of dollars are constantly on the line. Managing risk is a crucial thing to master and doing it early will reduce the chance of a careless mistake denting your budget.
MetaTrader 4 offers simple tools to get you started. Take Profits and Stop Losses, as well as their trailing variants, let your platform close your trading positions when they go above or below a certain point. It’s easy to get into the habit of using the tools, and doing so can prevent some debilitating losses.
One-click trading and different order execution types
MT4 offers one-click trading, which eliminates the trade confirmation window after your market action. That’s especially meaningful when combined with MT4’s four execution types:
- Market execution
- Instant execution
- Request execution
- Exchange execution
We won’t go into details on each of these, since they can be overwhelming when presented all at once. However, the four execution types allow you to employ different strategies and adapt to diverse market conditions. Sometimes you’ll want more control over your pricing, and other times you’ll prioritise speed.
Trying out different tactics and seeing what works for you is an integral part of becoming a competent trader. MT4 supports that, giving you full control over how you want to price your trades.
Free demo trading accounts
Demo accounts aren’t inherently a MetaTrader 4 feature, but rather something offered by brokers. But, since most forex and CFD brokers offer MT4, their demo accounts also use MT4.
The concept is simple, you get a trading account with a specific amount of virtual currency (meaning fake money) to try out the platform. You can learn the software, try out trading, and test your strategies. And since this isn’t real money, you can’t win or lose anything, making it a very low-pressure environment. It’s a fantastic way to train without anything on the line before depositing any actual money.
You and MT4 – The final tally
Learning MetaTrader 4 is a great way to get a jumpstart on trading as a beginner. It’s a secure, reliable, and popular tool that remains potent across all trading levels. And while it can feel overwhelming at first, that fear dissolves quickly as you use the platform more and more.
Once you do get the hang of it, you have a tool that you can use with most brokers that gives you control over your trading while providing you with everything you need to map out markets, and most importantly, that grows with you. As you progress from beginner to intermediate and eventually work towards becoming a professional trader, you’ll find new ways to make use of MT4’s robust features. For instance, you may find yourself employing Expert Advisors (EAs), which enable algorithmic trading, or backtesting, an essential step in validating trading strategies.
Eventually, you’ll likely want to experiment, and we encourage that. You may even find a platform you prefer to MT4. But MetaTrader 4 is the bread and butter of forex and CFD trading, a true all-rounder that’s almost omnipresent and that you can always fall back on.
Khước từ trách nhiệm: 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.
