MetaTrader 4, usually called MT4, is a trading platform that many retail forex traders use to see price quotes, analyse charts and place trades. It’s software, made by MetaQuotes, that runs on desktop, web and mobile devices. Brokers install an MT4 server and give clients access through the MT4 client. In practical terms MT4 is the interface where you watch currency pairs move, place buy or sell orders, and manage your positions — either manually or with automated programs.
A quick picture of what MT4 does
Think of MT4 as the trader’s workspace. On one screen you have the Market Watch showing live bid/ask prices; on another you open charts and add indicators; the terminal window shows open trades, balance and history. The platform also includes a built‑in editor for writing simple programs (called Expert Advisors), a strategy tester for backtesting, and multiple ways to place orders. For example, a retail trader might use MT4 to run a chart with a 1‑hour timeframe, apply an RSI indicator to spot overbought conditions, and place a pending sell order with a stop loss and take profit attached.
Core features explained
MT4 combines several useful capabilities in one package. Charts are available in candle, bar and line formats and you can switch timeframes from one minute up to monthly. The platform comes with many standard technical indicators — moving averages, RSI, MACD and Bollinger Bands among them — and you can add custom indicators created by the community. Order types include market orders for immediate execution and pending orders (buy/sell limit and stop variants) for entries at specific price levels. Trailing stops let you automatically move a stop loss as a trade becomes profitable.
A concrete example helps: if you open a buy on EUR/USD for 0.1 lot at 1.1000, you might set a stop loss at 1.0950 and a take profit at 1.1100. MT4 shows your current floating profit or loss, the account balance, and the margin used. If your broker executes the trade, the platform records the entry, and your stop and limit orders are handled by the broker’s server.
How MT4 works behind the scenes
MT4 operates on a client–server model. Your MT4 program (the client) connects to the broker’s MT4 server, which supplies price feeds and executes orders. Prices you see come from the broker’s liquidity providers or internal pricing engine. When you click “Buy” or “Sell,” your instruction goes to the broker’s server which validates the order against your margin and available liquidity, then executes or rejects it.
Execution behaviour can vary between brokers and account types. Some brokers offer market execution where the order fills at the next available price, while others offer instant execution and may requote in volatile markets. Those differences affect slippage and order fills, so it’s important to test execution on a demo account before trading with real money.
Automation with Expert Advisors (EAs) and MQL4
One of MT4’s distinctive strengths is automation. Expert Advisors are scripts you install on MT4 that can open, modify and close trades automatically according to rules you define. EAs are written in MQL4, a programming language that lets you encode entry and exit logic, money management and custom indicators.
For example, a simple EA might buy when a short‑term moving average crosses above a long‑term moving average and place a fixed stop loss. Traders commonly use the strategy tester in MT4 to backtest such EAs against historical data to see how they would have performed. There are large communities and marketplaces where traders share or sell indicators and EAs, but quality varies widely — treat third‑party tools with caution.
Choosing a broker and versions of the platform
Brokers licence MT4 from MetaQuotes and offer it to clients; the broker’s implementation determines which instruments you can trade and which server settings apply. Some firms still prefer MT4 because it’s familiar and light on resources; others push MT5, the newer platform, which supports more asset types and additional features. MT4 remains focused and widely supported for forex and CFDs, and many traders stick with it for those markets.
Before you install MT4, pick a regulated broker you trust, open a demo account and test the platform’s spreads, execution and available instruments. Demo trading gives you a realistic environment without risking capital, which is especially helpful if you plan to run automated strategies.
Practical steps for beginners
Start by downloading MT4 from your chosen broker (use only official broker sources). Install the client, log in with the account credentials the broker provides, and spend time exploring the interface. Open charts, try different timeframes, add an indicator, and practice placing market and pending orders. Use the strategy tester to run simple backtests, and if you plan to use EAs consider running them first on demo and then on a VPS (virtual private server) if you need 24/7 uptime.
Keep examples simple while learning: trade small lots, use a clear stop loss, and review the trade history to learn how orders were filled. Customise chart templates and save workspace layouts so that you can load the same setup each session.
Risks and caveats
MT4 is a tool — not a guarantee of profit. Trading forex and CFDs involves significant risk, and you can lose more than your initial deposit when using leverage. Platform risks include slippage, requotes, latency, connection problems and broker‑specific restrictions (for example, some brokers block certain EAs or do not allow hedging). Historical backtests do not predict future results; an EA that performed well on past data may fail in live markets. Also remember that MT4 itself is not regulated; regulation applies to the broker providing the server and the trading account. This article is educational and not personalised advice — always do your own research and consider seeking independent guidance before trading.
Key Takeaways
- MT4 is a widely used forex trading platform that provides charts, indicators, order management and automation through Expert Advisors.
- The platform connects your client software to a broker’s server; execution quality depends on the broker and account type.
- Beginners should start with a demo account, practise basic order types and test any automated strategies before using real money.
- Trading carries risk; this is educational information and not personalised trading advice.
References
- https://www.kcmtrade.com/hc/content/mt4-metatrader-4-meaning-usage-forex
- https://fxtrading.com/en/trading-platforms/mt4
- https://www.metatrader4.com/en/trading-platform/forex
- https://en.wikipedia.org/wiki/MetaTrader_4
- https://www.ig.com/en/trading-platforms/metatrader-4/what-is-mt4-how-to-use-it
- https://www.cmcmarkets.com/en/metatrader-4/what-is-mt4