What Is MetaTrader?

MetaTrader is an electronic trading software created by MetaQuotes Corp. for online Forex, CFD and futures trading. It allows advanced charting (with multiple built-in indicators), multiple-account and multiple-window management, setting all types of market orders (except for OCO) and features a C-like programming language (MQL) that allows development of the custom indicators, scripts and trading robots (called expert advisors in MetaTrader). But the most important feature of MetaTrader is that it’s free (except for the mobile version). The sample view of the MetaTrader platform is shown below:

As of now, there are two major versions of this Forex trading platform – MetaTrader 4 (or MT4) and MetaTrader 5 (or MT5). The former is more popular as there are almost no Forex brokers that offer live trading via MetaTrader 5. There are two main differences between the 4th and 5th versions:

1. Internal coding languages are different – C-like MQL4 in MetaTrader 4 and C++-like MQL5 in MetaTrader 5.
2. Unlike MT4, in MT5 a trader may hold only one position in one currency pair at a time. You can’t hedge positions in MT5. If you send a Sell order with an open Buy position, the order will close the position rather than open a second position in an opposite direction. It’s done to comply with the US FIFO regulation and to reduce the impact of overnight swaps on the traders’ accounts.

It’s easy to trade with MetaTrader. The platform consists of several standard windows and toolbars:

• Chart windows – display charts and indicators – that’s where you analyze your currency pairs.
• Market watch – a list of symbols available for trading along with the most current Bid/Ask prices.
• Navigator – allows navigation through different accounts, custom indicators, scripts and expert advisors.
• Terminal – lists open positions, account history, broker alerts, account mail and all the logs.

MetaTrader is popular because of its advantages; here’s the list of them:

• Free software. You don’t have to pay anything. You can download the platform from any MetaTrader broker or MetaQuotes themselves, open a demo account via it and use it for chart analysis even if you trade with a non-MetaTrader broker.
• Simplicity and customization – there’s no terminology to learn and everything is done in 2–3 clicks. Charts and windows can be customized without any problems by any trader.
• Ability to create your own indicators and expert advisors. After some basic coding training you’ll be able to create your own tools that will fit your personal trading style.
• High popularity means a lot of user-created content. There are thousands indicators and expert advisors written by other traders and available for free download for your MetaTrader.
• Account history and reports. You can customize your reports and see a good statistical analysis in the standard MetaTrader account reports.

Of course, nothing is ideal in this world and MetaTrader isn’t an exception. It has its own disadvantages:

• Having to install the software. MetaTrader should be downloaded and installed on the trader’s computer – this can be a problem for some people. Many brokers nowadays offer a web-based trading platform that can be ran online inside the browser without installing anything.
• No real support for that user-created software. If you download some indicator or expert advisor, you won’t get too much help with it, and using third-party expert advisors may even be dangerous.
• No “One Cancels Other” orders. You can’t set two orders and tell the platform to cancel one when the other triggers. You can get this functionality by creating a custom expert advisor or script – but that can’t compare to the standard OCO option.

Now you know what MetaTrader is and why is it so popular among the Forex traders worldwide. If its advantages attract you, you may want to consider downloading the platform and trying it on demo account. If you have any questions or comments about MetaTrader, please, use the commentary form below.