The platform with which we invest is important, since it is not the same to trade from an easy to use and intuitive platform, than in a complex where it is difficult to make orders, see charts, or find indicators. The MetaTrader 4 platform is a widely used platform and very popular with traders, and it is perhaps its simplicity that makes it such a widely used platform.
This trading platform was created in 2005 by MetaQuotes Forex trading software, although many brokers have now adapted it for other markets. It hardly requires resources for its operation, whose greatest value is the graphic capacity it offers, and it also has a wide variety of indicators available.
To download the platform it can be done from most brokers since almost all have MetaTrader 4 available to operate.
To begin with, it must be said that it is a completely free platform, which means that even if you want to familiarize yourself with it and learn all the options it has before starting to operate, you can download it for free. This platform allows you to place 2 types of orders: instant execution to buy and sell and pending order to enter the market at a fixed price.
The graphics are very comfortable to use since it allows you to customize them so that they best suit our tastes. If we select the properties option (command F8) a window opens in which we can select both the color of the candles, the type of graph and set a scale.
Also very useful is that you can take a result sheet from the account with built-in management of historical databases and an import / export function of these data, to facilitate better measurement of results.
Strengths: The programming language that it uses, MetaQuotes Language 4, is very simple to program, it also includes the option of backtesting to check the system that we program.It has an internal email through which you can communicate with the broker.You can conveniently place multiple graphics on your interface.It allows automated trading through the “expert advisor” tool, from which you have access to countless pre designed systems.
Weak points: It is quite rough and visually unappealing.We can’t add more chart types like Renko, or Range Candles.
When operating in Forex (currency market), assets are currency pairs, that is, one currency is purchased using another and not each currency independently. The first currency of the pair is the primary currency with base 1. The second currency of the pair is the secondary currency and is the value that is reflected in the price. The basic unit of measurement for currency prices is the pip, and generally represents the fourth decimal of the value (1 pip = 0.0001), although there are some pairs such as those crossed with the Japanese Yen that the pip is the second decimal.
Depending on the broker you use, you may have some commissions or others. If what you want is to operate with currencies, the best thing is a broker that does not charge purchase or sale commissions or that these are as low as possible. As a general rule, in the Forex market, when a position is opened, the most recurring commission is the spread, or fork, which is the difference between the purchase and sale price.
According to the broker, the type of account and the time of the market, this fork may be higher or lower, again if we want to operate in the foreign exchange market, the most normal thing is that operations are carried out in the short term, so when lower be this fork, better for the trader. Next we will see an example with the Axitrader broker.
As we see the spread to operate with Axitrader at the time we take the screenshot is 0.5 pips for currencies such as GBPUSD or 0.2 pips for EURUSD with the Pro account, but it can increase with more volatile currencies and moments of High volatility or low liquidity market. The spread to be paid by the trader for each open position is the fork multiplied by the position size.
In this case, Axitrader clients can choose between trading Forex with two types of account, the Pro and the standard, below we can see some differences and similarities between them
The level of leverage you can have with currencies is very high. In the case of Axitrader it allows us to have a leverage of up to 1: 400, that is, we can move 400 euros for each euro of ours that we put.
From MetaTrader 4 you can trade any asset as long as it is enabled by the broker you use, since the “default” option is only the currencies. In the case of Axitrader we have other assets such as raw materials and indices available.
The operation to operate with these assets is the same as with that of currencies. You have to control the leverage, since when working with CFDs the leverage that the broker has and the one that you have configured on the platform when creating the account, can make you go with a high level of risk.
It is important to take into account the hours of each asset when we go to trade, since there are indices that close during the week, unlike the forex market. If we want to trade for example in GBPUSD, we can do it in different ways, either by clicking on the “New order” button located at the top of the platform, clicking on “sell” or “buy” in the “One click trade” box Located in the upper left part of the graph, right-clicking on the graph and selecting an order or using the F9 key.
Finally, say that the platform has a large number of indicators for technical analysis and even if you know how to program in the mql4 language, you can get to install your own technical indicators. The same happens with the automatic trading systems in MetaTrader 4, these can be incorporated through the Expert Advisors tool and the Strategy Test, which offers the performance of a simulated system in the past, also offers an optimization based on genetic algorithms.