The forex exchange market is the largest financial market in the world and is open for trading online, every week day. To access this market, traders must connect to the virtual FX market using electronic trading platforms.
The MetaTrader 4 (MT4) is the most popular forex platform used to trade forex by retail traders across the globe. It was developed in 2005 by MetaQuotes Softwares Corporation, a Russian firm that specializes in design of turnkey forex trading platforms. The same firm developed the MetaTrader 5 (MT5) in 2010 to succeed the MT4. The MT5 improved the features of the MT4 but unfortunately, both platforms are not mutually compatible. This means that the apps designed for the MT4 cannot run on the MT5. As a result, most brokers offer both the MT4 and the MT5 so as to allow traders to make a choice between the two platforms.
The MT4 and the MT5 are both available as downloadable desktop applications and also as mobile apps. But, this article will focus on forex trading using the MT4/MT5 mobile apps for Android phones and tablet devices.
CHOOSE A BROKER
In order to trade forex, the first step is to choose a forex broker that offers the MT4 or MT5 trading platform apps for mobile devices. There are many online brokers that offer currency pairs for trading over the internet and making a choice may require a little research or recommendation. Downloading a platform means you have to open a trading account before you can access the download link for the MT4/MT5 mobile app customized for that broker.
Here are the steps to follow in order to open a trading account:
- Visit the broker website and check to see if this broker offers the mobile apps for MT4/MT5.
- Click on “Register” or “Sign Up” or any other link to open a new account.
- Fill the ensuing forms. It normally consists of personal information, email and/or phone verifications, trading experience, account type and source of funds declarations.
- “Know Your Customer” (KYC) verification is a requirement by most regulated and popular brokers. Prospective clients are required to upload a “Proof of identity” and a “Proof of address”.
- If every detail is correct, the account is approved by the broker and login details are provided via email or on the client area. The MT4/MT5 trading account details are received through email.
The new account must be funded in order to start live trading. Depending on the broker, there are several options like bank transfers, credit or debit card as well as electronic payment channels like Skrill, Neteller, etc. Trading accounts are funded instantly especially when cards or electronic channels are used. Bank transfers are the slowest and can take up to 5 business days before the trading account is funded.
MT4/MT5 App Installation
After creating and funding a broker account, the next step is to download and install the M4/MT5 mobile apps. The process is the same for either the MT4 or the MT5. The following steps should be followed:
- From your Android phone, visit the Google Play Store.
- Search for the MT4 or MT5 and click on “install”.
- The app downloads and installs automatically after a few minutes. This depends on the speed of the internet and also on how powerful the Android device is.
- Launch the installed app.
MT4/MT5 App Features
The MT4 and the MT5 Android apps have a number of features that enables the trader to monitor the forex market, open and close trades and also analyse the charts. Here are some of the app features:
- Quotes: This shows the available forex pairs along with their live “buying” and “selling” prices.
- Charts: For every currency pair, the chart can be viewed on different time frames. Long press any currency pair and select “Chart” to view its corresponding chart. These charts are very important as they show the prices of the quoted currency pairs against the selected time frame. There are 9 time frames ranging from one minute to one month. Three chart types are available and they are; bar, candlestick and line charts.
- Indicators: These are used to forecast price changes. Indicators help forex traders to make decisions on the right price to enter and also when to exit a trade. There are many indicators and the MT4 and MT5 apps have lots of indicators. They are grouped under Trends, Oscillators, Volumes and Bill Williams. A total of 30 indicators are found on the MT4 and the MT5 apps.
- Account Balance: From the app, you can view the account balance in real time, even when a trade is open. This helps a trader to monitor trades in order to close out at the right time. Traders can view the profit or loss amounts on all active trades. Trading history can also be viewed.
- Orders: The MT4 and the MT5 are equipped with features to place multiple orders of different currency pairs at the same time. Pending orders can easily be placed, adjusted or closed at will.
How to Trade Forex on MT4 or MT5 Android App
Use the steps below to open and close a trade:
- Open the MT4 or MT5 trading platform on an Android device. The app is launched. By default, a MetaQuotes demo account is opened.
- Select your broker by typing the name; a list displays. Select the correct broker name and server name.
- Login with the account details provided by the broker when your trading account was opened.
- You are logged into the MT4 or MT5 trading platform.
- Tap on the menu button and select “Quotes”. A list of currency pairs and prices displays.
- Select a pair of choice by pressing on the pair, a menu displays. Select “New Order”.
- Order page displays, you can choose to select an order type, set risk parameters or go with the default values.
- Click on “Sell by Market” or “Buy by Market” to place your order.
- The order confirmation screen displays and the screen switches to the “trade” page where orders are monitored.
- To close the order, long press the order on the trade page. A menu displays, select “Close Order” and confirm. The order is closed with either a profit or a loss.
The steps are similar for the MT4 and the MT5 platforms. The difference is that the MT5 has more order types and more options on the display menus.
Generally, the MetaTrader apps are user-friendly, very swift and have many tools needed by the trader. Analytical tools, risk management tools as well as monitoring tools are essential features of the apps. It is no surprise that millions of traders around the world have chosen the MetaTrader apps as their choice of mobile forex trading platforms.