Forex brokers play a major role in assisting and helping in conducting trade activities between traders across the globe. A forex broker is basically a financial services firm that facilitates access to trading platforms for the buying/selling foreign currencies. Forex brokers are also known as currency trading brokers or retail forex brokers. There are multiple forex brokers in the market these days that has led to a substantial cut throat competition between them.
In order to earn the top spot many forex brokers have been introducing unique features, good customer support and easy-to-use trading platforms. One of the most widely used trading platforms offered by forex brokers is the MetaTrader 4, popularly known as MT4, which is the preferred choice of many forex traders. Therefore, the majority of the brokers offer this trading platform, in fact a quick scan will apprise you of the fact that the best forex brokers are MT4 brokers. Although they do offer plenty of other platforms too, as different traders have different preferences and requirements.
Understanding The MT4 Software
The MT4 is one of the most widely used forex trading softwares in the world and is used by all types of traders whether beginners or experts. The MT4 is backed by unique features like advanced analysis tools, flexibility in trading, expert advisors and algorithmic trading service. The MT4 offers automated trading that performs trading activity as per the traders’ decided parameters.
Need for a Good MT4 Broker
Trading is impossible without the presence of forex brokers. In order to place live trade orders on the MT4 platform, a trader needs to open a live trading account with a forex broker. A trader can log in and pick a broker as per his trading needs and strategies and then gain access to live rates on the MT4 software. A free demo account is also offered by MT4 for carrying out analysis which does not require a broker’s connection but it does not allow any access to live trade activity or updated forex rates and is only used for practice.
Features of a Good MT4 Broker
Certain things should be kept in mind before picking an MT4 broker for an effortless and smooth trading experience.
- The Technology used by the Platform- A trader should always select a forex broker who offers an easily downloadable trading platform compatible on all commonly used devices and softwares. A good broker will always offer a high tech platform that provides appropriate research and data.
- Fast order execution- A broker who offers fast order execution should be chosen. There should be minimal slippage and orders should be filled at best prices. .
- Transaction Fees- High transaction costs or commissions can put a dent on a traders wallet and hamper growth. A good MT4 broker should be transparent about the costs and commissions so that a trader can make an informed decision regarding his trading activities.
- Mandatory Licensing and Regulations- A good MT4 broker should be equipped with all the required documents and licensing to ensure credibility and trust among traders. These regulations ensure a trader that their trading activity is being carried out rightfully and without any misconduct.
- Efficient Customer Assistance- A good, efficient, problem solving and fast customer support service is an indication of a reputed and superior broker. Pick a broker who has an eligible team of customer support executives available round-the-clock to assist any problems that might emerge.
How to Start Using MT4
A trader can choose a broker to work with depending on various factors like preference, reviews, user interface and experience, customer satisfaction, transaction costs, licensing and regulations etc. After selecting, a trader can simply log in and add funds to the brokerage account and download the MT4 software directly. It should be a priority to select only those brokers who have maintained a clean record and reputation and are properly licensed.
Benefits of Using the MT4 Platform
- Secure and Reliable- The MT4 trading platform is super secure and reliable to use as all the necessary information and data exchanged between client terminals and servers are backed by strong block chain technologies that are impossible to hack.
- Automated Trading- The automated trading feature helps the traders to leverage occurrences of the forex market without personal involvement and probability of human bias.
- Access to Real-Time Forex Estimates– The MT4 platform offers a watch window where real-time bids and market estimates are displayed. The watch window also enables a trader to have an estimate about the margin currency, contract size, margin ratio and spreads.
- Stability and Compatibility- The fast trade execution facility and stability provides a trader with a very slight chance of slippage. The MetaTrader 4 is also compatible on various devices and softwares that are commonly used these days.
A Few Drawbacks of Using MT4 Platform
- Complicated System- Some level of technical knowledge is required to run the MT4 software that makes it a bit tricky for new users.
- Improper Support- The customer support service facility is not one of the strongest features of the MT4 platform. This issue can create a hindrance in trading on the platform for novice and less experienced traders.
A trader should consider all valuable points before opting for an MT4 broker as hasty decisions can lead to improper growth and loss of money in most cases. You should carefully evaluate the advantages and drawbacks of working with MT4 brokers and pick out the one who suits all your trading preferences and strategies.