MetaTrader 4, also recognised as MT4, is an electronic trading platform widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and launched in 2005. The software is licensed to foreign exchange brokers who provide the software program to their clients. The software program consists of both a client and server component. The server component is run by the broker and the client software program is provided to the broker’s customers, who use it to see live streaming prices and charts, to place orders, and to manage their accounts.

Its developer, MetaQuotes Software, had previously launched a quantity of versions of the MetaTrader platform beginning in 2002. MetaTrader 4 was a drastically enhanced version and was released in 2005.

Between 2007 and 2010, a number of brokerages brought the MT4 platform as an optional alternative to their existing trading software program due to its popularity with traders and the large number of third party scripts and advisors.

MT4 is designed to be used as a stand-alone system with the broker manually managing their position and this is a frequent configuration used by brokers. However a quantity of third party builders have written software program bridges enabling integration with different financial trading systems for automatic hedging of positions. In late 2012 and early 2013, MetaQuotes Software commenced to work closer to removing third-party plugins for its software from the market, suing and warning developers and brokers.

MetaTrader supply two types of trading orders, Pending Orders and Market Orders. Pending orders will be done solely when the price reaches a predefined level, whereas Market orders can be executed in one of the four modes: Instant execution, Request execution, Market execution, and Exchange execution. With Instant execution, the order will be executed at the price displayed in the platform. Its advantage is that the order will be executed at a known price. However, a good trading chance can be missed when the volatility is high and the requested price can’t be served. Request execution mode allows trader to execute a Market order in two steps — first, a price quote is requested, then, a trader decides whether or not to buy or sell using the received price. A trader has several seconds to figure out if the received price is worth trading. Such mode offers a certain knowledge of price combined with guaranteed execution at that price. The tradeoff is the decreased speed of execution, which can take a lot longer than different modes. With Market execution, the orders will be executed with broker’s price even if it is different from that displayed in the platform. The advantage of this mode is that it allows trading without any sort of requotes. However, deviation can get considerable during risky price changes.[18] In Exchange execution mode, the order is processed by the external execution facility (the exchange). The trade is carried out according to the modern-day depth of market.

Components

The complete MetaTrader 4 package includes the following components:

MetaTrader 4 Client Terminal – the client part. Provided free through brokerages for real-time online trading and as Demo (practice trading) accounts. This presents trade operations, charts and technical evaluation in real time. The internal C-like programming language allows users to program trading strategies, indicators and signals. 50 basic indicators are included, each of which can be in addition customized. The software runs on Windows 98/2000/XP/Vista/7. Some users have reported success using Wine on Linux for the client terminal and on Mac using WineBottler.

MetaTrader 4 Server – the core of the system, the server part. Designed to handle user requests to perform trade operations, display and execution of warrants. Also, sends price quotes and news broadcasts, records and maintains archives. Works as a service. Does not have a separate interface.

MetaTrader four Mobile – controls a trading account via cellular devices such as mobile phones or PDAs. Runs on Windows Pocket PC 2002/Mobile 2003, iOS, and Android.

MetaTrader 4 Administrator – is designed to remotely control the server settings.

MetaTrader 4 Manager – designed to take care of trade inquiries and manage customer accounts.

MetaTrader 4 Data Center – a specialised proxy server and can be an intermediary between the server and client terminals. It reduces the price quote sending load on the main server.