Home Trading MetaTrader: the fundamental concepts of how trading platforms operate

MetaTrader: the fundamental concepts of how trading platforms operate

by Altaf

Many trading systems are available, including PrimeXM, B2Trader, cTrader, OneZero, and a slew of others. To stay competitive in the market, developers are creating new forex trading systems that combine experience with cutting-edge technology. MetaTrader products, on the other hand, are preferred by forex brokers. About 54% of all brokerage companies utilize the 4th and 5th MT versions, according to the statistics. What is the primary cause of such a high level of demand?

An examination of the developer’s background

Aiming to provide advanced solutions for currency trading, MetaQuotes Software Corporation was established in 2000. The company’s fourth product, MetaTrader 4, was released in 2005 and rapidly rose to prominence among brokers and traders alike, becoming the company’s flagship offering. As a result of this first release, MT 4 has received a slew of improvements to make it even more secure, safe, and up-to-date.

With the introduction of MetaTrader 5, traders were finally able to trade both foreign exchange and stock market items at the same time. It’s hard to argue with the fact that MetaTrader 4 is still the most commonly used platform among brokerage companies, even with all of the improvements and new features in MetaTrader 5.

What are the most important characteristics of the MetaTrader online trading platform?

These items blend ease with maximum functionality and these products are simple to use, which may account for MetaTrader platforms’ astounding popularity. What distinguishes the various MT trading platforms available?

  • Strong trading system that can handle many different strategies

MT platforms provide a broad variety of trading instruments, including market and pending orders, stop-loss and take-profit instruments, as well as the Instant Execution option, amongst other things. Traders have access to a versatile trading system that allows them to implement strategies of varying complexity.

  • High-end data analysis

Professional traders are well aware that sophisticated analytics is just half of the equation for success. Technical indicators, interactive charts, and several periods are all included in the MetaTrader platform to give users as many chances to anticipate price moves as possible. MetaTrader platforms are available in a variety of languages.

  • Compatibility with a variety of various trading alternatives is provided

New traders are often intimidated by the foreign exchange market, owing to the abundance of tales about massive losses. Beginners may use MT platforms to communicate with suppliers of trading signals, replicate successful trades, and benefit from their efforts.

  • Compatibility with mobile devices is a must

Both the MT4 and MT5 platforms are compatible with smartphones running on the Android and iOS operating systems. Users get complete access to trade orders as well as sophisticated analysis tools.

  • MetaTrader Market is pre-installed

A trader has access to a one-of-a-kind shop of trading robots, widgets, and technical indicators that are accessible. The purchasing procedure is completely open and safe. Additionally, there are certain free goods and commercial solutions available in addition to the premium features.

Metatrader: how it works and which version best meets your requirements?

Brokers and traders may choose between two different solutions offered by the company, and business owners must decide which version is the most appropriate for their operations. On the one hand, MT4 is the most widely used and least expensive option, while MT5 is the next-generation platform that is compatible with a wider range of financial instruments. What are the most significant functional distinctions?

  1. MQL4 and MQL5 are the programming languages used. The MetaTrader 5 platform has a sophisticated test mechanism that allows traders to determine how helpful their advisors are.
  2. MT5 provides a total of 21 different time frames (as opposed to the 9 timeframes provided by the previous edition). 
  3. Analytic indicators are also part of the package. When compared to MT4, MT5 has 38 built-in indicators, while MT4 only had 30. Traders may also use the MetaEditor to build custom advisers and indicators.
  4. There are many different order types. Buy Stop Limit and Sell Stop Limit orders have been added to MT5.
  5. MT4 is a platform that has been specifically developed for the Forex market, while the 5th edition is suitable for a variety of marketplaces.

Metatrader: how to use it in the cryptocurrency market?

As digital currencies become more popular, more people are looking for methods to get into the market quickly. MT platforms and cryptocurrency trading platforms have significant differences that novices to the sector should know about.

Instead of buying or selling cryptocurrencies, traders use contracts for difference (CFD) contracts on underlying crypto assets, such as the MetaTrader crypto platform, which is supplied by brokers. Traders do not immediately become owners of assets because of this. There are just a limited amount of trading pairs accessible, which is a plus.

In this case, it is impossible to trade spot cryptocurrencies on margin trading platforms such as MT4. The MT platform’s use for cryptocurrency trading has both benefits and drawbacks that brokers and traders should be aware of.

There are two ways to get a MetaTrader platform: via a license or through a White Label solution

A trading platform is an unavoidable step for every new broker entering the market. Business owners are confronted with the need immediately after the formation of their business and the acquisition of a license. MetaTrader 4 and MetaTrader 5 are the two most in-demand systems that may help you grow your brokerage company by providing traders with the most up-to-date capabilities. On the other hand, such solutions are prohibitively costly, with costs ranging from $100,000 to $200,000 being out of reach for most newcomers.

Is it better for a trader to stick with the top FX trading platforms even if they are more expensive? In contrast, new brokers may use White Label MetaTrader systems. What does it mean exactly? MetaTrader platform and license are purchased and used by a company before a broker applies. When a business owner uses a collaborative method, they may obtain a product with their own identity and that is specifically suited to their consumers’ requirements.

Owners of businesses may save up to $200 000 or more by using B2Broker’s White Label MT4 and MT5 solutions. In addition to the fact that there are no additional fees or charges, many new traders are drawn to this way of trading due to its seamless integration, a customizable platform, and round-the-clock technical assistance.

Related Posts

Leave a Comment