What Every Beginner Should Know About MetaTrader 4

What Every Beginner Should Know About MetaTrader 4

MetaTrader 4 (MT4) is a platform primarily designed for forex and CFD trading. It’s widely used by traders of all experience levels, from beginners to professionals. With a user-friendly interface, it’s an accessible option for relative newcomers to forex trading while offering the tools and functions required by more experienced traders.

How does MetaTrader 4 work, and what do you need to know to get started?

Basics of MetaTrader 4

Understanding how MetaTrader 4 works is essential to successfully using the platform. While beginners don’t need to worry too much about MT4’s advanced features initially, having a grasp of the basics will enable you to begin trading quickly.

Here’s a brief overview of MetaTrader 4 for beginners to get you started:

MT4 Key Features:

1. Demo Accounts: Before you risk real money, you can practice trading and test different strategies with a MetaTrader 4 demo account.
2. Customisable Charts: Advanced charting tools with multiple timeframes, technical indications, and drawing tools enable traders to analyse price movements.
3. Order Types: MT4 offers a range of different order types, including market, limit, and stop orders, giving traders real versatility in their trading strategies.
4. Expert Advisors (EAs): Automated trader tools allow users to set up and execute trading strategies without the need for manual intervention.
5. Multi-Device Support: MT4 is accessible on desktops, laptops, and smartphones.

What Beginners Need to Know

If you want to learn how to trade on Metatrader 4 there are few key elements you will need to familiarise yourself with before you begin:

1. How to Read Charts: Beginners should prioritise learning how to read Metatrader 4 charts, using technical indicators like RSI or moving averages. Metatrader 4 historical data can also inform future strategies.
2. Understand Leverage: Leverage can amplify gains and losses, so understanding what it is and how it works is essential. Begin cautiously with a full understanding of the risks involved and the potential rewards.
3. Margins: The margin requirements will depend on the broker and the assets being traded. To avoid margin calls, it’s important to be cautious of over-leveraging.
4. Costs: While MT4 itself is free to use, trading will involve broker fees, spreads, and commissions, so it’s essential to understand how costs will be applied.

What Can You Trade Using MT4?

MetaTrader 4 supports a wide range of financial instruments. This allows a degree of flexibility in your trading and is part of the reason it’s so popular with traders with different goals and experience levels:

1. Forex Trading: A beginner looking to learn MetaTrader 4 techniques will often begin with Forex trading. This allows traders to speculate on major, minor, and exotic currency pairs.
2. Commodities: Such as gold, silver, crude oil, and natural gas. MetaTrader 4 gold trading is a popular option.
3. Indices: MetaTrader 4 allows traders to access the leading stock indices, including the FTSE 100, S&P 500, DAX 40, and Nasdaq, and capitalise on broader market trends.
4. Stocks & Shares: Using MetaTrader 4, you can trade CFDs on stocks. This allows you to gain exposure to major global companies without needing to own the underlying shares.

What Are the Pros and Cons of MT4?

MetaTrader 4 has great features that make it a good fit for a range of traders. The user-friendly interface makes it easy to learn the basics quickly. With strong community support, resources, and free demo accounts, MT4 provides a comprehensive platform for beginners and more experienced traders.

However, MT4 has fewer asset classes than new platforms, and it can take some time to learn how to use all of its features effectively. More experienced traders may wish to consider whether MetaTrader 4 or 5 will be more appropriate in meeting their objectives.

Here’s a brief MetaTrader 4 tutorial for beginners to get you started.

Preparing for MetaTrader 4

Getting started with MetaTrader 4 is a relatively straightforward process. Before you can start using MT4 to trade forex and CFDs, you will first need to set up a broker account.

MT4 has a default demo server that allows complete beginners to explore the platform. If you decide to begin trading, you will need to find a MetaTrader 4 broker.

There are several brokers that provide services compatible with MT4. ActivTrades is an FCA-regulated broker that has established a strong reputation for reliability, competitive spreads, and good customer service. ActivTrades gives you access to tight spreads and fast execution for demo and live accounts, and our award-winning support is on hand throughout.

When you choose an ActivTrades account for either demo or live use, you can develop your skills and trading strategies while benefiting from an experienced and award-winning broker.

FXEMpire, which compares independent brokers, rated ActivTrader as the best-regulated broker.

1. Register an Account: Visit the ActivTrades website and complete the registration process. You must provide personal details, verify your identity, and meet regulatory requirements. An ActivTrades demo account lets you learn how MetaTrader 4 works, develop strategies and prepare for live trading.
2. Download MetaTrader 4: You can download MetaTrader 4 directly from the ActivTrades platform page or the MT4 website. Make sure you choose the appropriate version for your device.
3. Link Your Account to MT4

Once your ActivTrades account is approved, you’ll receive your login credentials. You can then use these to access trading on the MT4 platform.

In the next section, we look in more detail at how to set up and begin trading with a MetaTrader 4 account.

Setting Up MetaTrader 4

MetaTrader 4 (MT4) is a versatile PC, Mac, Android, iOS, and web-based platform. Getting up and running with MT4 is relatively easy, whether you’re looking to trade on a computer or mobile device.

Download MetaTrader 4

After you’ve opened your account with your broker of choice, the next step is to download MetaTrader 4 to your device.

Click the download link for your operating system:

1. Windows 10 or later: Download the MT4 version for PC.
2. macOS: Use the dedicated Mac-compatible MT4 installer. Some versions may require additional steps using software like PlayOnMac.

For Android or iOS:

Search for “MetaTrader 4” on the Google Play Store or Apple App Store, then download and install the app on your mobile device for trading on the go.

For Linux:

Install MT4 on Linux using tools like Wine to ensure compatibility.

For Web Trading:

Use the MetaTrader 4 WebTrader directly from your browser without any downloads. This is ideal for quick access from any device.

Install and Launch MT4

PC/Windows Installation:

Run the downloaded installer and follow the on-screen prompts to complete the installation. Once installed, you can launch the program and begin the set-up process.

Mac Installation:

Install the MT4 app, using PlayOnMac if required. Follow any additional instructions specific to macOS systems.

Set Up Your Trading Server

1. Demo Server: If you’re practising, connect to the default MT4 demo server and enter the MetaTrader 4 demo account credentials you received during registration.
2. Live Server: For live trading, select your broker’s server (e.g., ActivTrades) from the server list.

Customise and Configure MT4

1. Add Your Favourite Assets: Access the Market Watch window to add Forex, Gold, Indices, and other asset classes you wish to trade.
2. Set Up Charts and Indicators: You can customise the charts you will use with technical indicators, timeframes, and colour schemes that suit your trading strategy.

Test and Start Trading

If you’re beginning with a MetaTrader 4 demo account, you can practice using virtual funds to familiarise yourself with the platform and test strategies.

When you’re ready to start live trading, you must deposit funds into your account. Choose your strategies and begin trading your asset class in real market conditions.

Trading with MetaTrader 4 on ActivTrades

Understanding how to use MetaTrader 4 to its full potential takes time, but beginners can quickly master some of the basics to start trading profitably.

Here’s how to navigate the platform and quickly get to grips with MT4:

Select a Trading Instrument

Use the Market Watch window to explore available trading instruments, such as currency pairs like EUR/USD, commodities like gold, or indices. You can then drag an asset to a chart for real-time price tracking or double-click it to open a trade window.

Place a Trade

Double-click the desired instrument in the Market Watch window when ready to trade. You can then input your trade details, such as the amount you wish to trade, and set the parameters of any risk management tools, such as stop loss.

Decide whether you wish to buy or sell based on your market analysis.

Price Alerts & Analysis

MetaTrader 4 allows you to set price alerts for specific market levels. This allows you to monitor key price points without constantly checking the charts.

Using the Terminal to view your trading history, you can assess your past performance. MT4 provides charting tools and technical indicators, such as RSI and Moving Averages, for in-depth market analysis. These key MetaTrader 4 indicators can provide a wealth of information to support your decision making.

MetaTrader 4 Tips

Here are a few more quick MetaTrader 4 tips that can enhance your trading experience:

1. Set Stop Loss and Take Profit: Risk can be managed by setting automatic levels to close trades, ensuring you stay protected in volatile markets.
2. Explore Automated Trading: Expert Advisors (EAs) provide automated strategies that can deliver positive results, but you must monitor the performance of your chosen strategies to avoid unexpected outcomes.
3. Try Backtesting: MetaTrader 4 backtesting allows you to refine your approach and strategy performance using historical market data.
4. Use Custom Indicators: Additional tools such as volume-based indicators and Fibonacci can inform and enhance your analysis.
5. Set Limit Orders: Sell/Buy Limit orders allow you to automatically enter trades at specific price levels.

For further information and detailed guides, visit our educational resources.

FAQs

Is MetaTrader 4 free?

Yes, MT4 is free to download here. However, live trading requires an account with a broker like ActivTrades.

Can you trade crypto, stocks, or futures on MT4?

Yes, you can trade forex, cryptocurrencies, stocks, and futures, depending on what your particular broker offers.

What’s the difference between MT4 and MT5?

MT4 primarily focuses on forex trading, while MT5 offers multi-asset capabilities. Learn more in our comparison guide.

How do you withdraw money from MetaTrader 4?

Withdrawals are processed through your broker’s platform. For guidance, visit ActivTrades’ support page.

The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.

Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.