[Updated 2021] Everything about MetaTrader CFD Trading Explained!

Nov 1, 2021CFD Trading0 comments

Let’s hop on to a guide explaining MetaTrader’s most popular trading platform, in terms of MT4 and MT5, including MetaTrader CFD trading! Its trading ability and feature-rich environment will allow you to trade like a seasoned veteran. This platform has multiplied itself from a trading platform to a global community. It will enable traders to access the indices, forex, commodities & equities within the international markets.

CFD Trading MT4 is highly famous because you can personalize your individual trading preferences and consider it for automatic trading using algorithms.

Here’s a guide on the significant discussion regarding MT4 CFD Trading!

Part 1: What is MetaTrader4 (MT4) Trading and how to use it?

(MT4) is a trading platform designed by MetaQuotes in 2005. Although it most commonly complies with forex trading, MetaTrader 4 can trade within different markets, including forex, indices, commodities, and cryptocurrencies via CFDs.

1. Key Features

  • Interactive charting package
  • One-click trading
  • Analysis tools
  • Capability to download and use Expert Advisors (EAs)
  • 85 pre-installed indicators
  • Build and customize your technical analysis indicators
  • Order execution capabilities
  • Multiple order types
  • Navigator Window
  • Multiple chart setups

2. Steps to use MetaTrader CFD Trading Platform

Here is a simple tutorial guide on how to access and use MT4 specifically over IG.


Step 1: Create an account

You’re first required to sign up for a live IG account to use IG’s MT4 offering. Once you’re over setting up an account, you can set up a live MT4 account from the My IG dashboard.


Step 2: Download MT4

Now, download MT4 to your selected device and log in with your IG credentials.


Step 3: Open a position

Go to the Tools tab when you’re ready to place a trade and click ‘New Order.’ This will pop up in the Order window. Alternatively, you can hit the F9 tab on your keyboard.

open position mt4

Once you’re finished with this, you’ll see the order window.

order window mt4

While the order window can seem tricky in the beginning, here’s a quick guide to all the terms used:

  • Symbol – This drop-down menu helps you to choose the market in which you want to trade.
  • Volume – It represents the number of contracts for a CFD account you would like to trade.
  • Stop-loss – Enter your desired level if you want to use a stop to close the trade. Stops on MT4 are equivalent to essential stops on the IG platform.
  • Take profit – You can use a limit to lock in profits; enter your desired level here.
  • Comment – a small space to comment about a particular trade; or for more advanced trade-management purposes.
  • Type – choose ‘instant execution if you want to place your trade when selecting either sell or buy. Alternatively, you can choose ‘pending order’ if you want to choose the level at which your trade opens.

Based upon the kind of trade you are placing, you’ll have the following options:

instant execution

  • Activate maximum deviation from the quoted price – Trades can sometimes get rejected if prices move randomly after your order placement. If you still want to make the trade within a specific price range and fill out the ‘maximum deviation’ in pips if you still want to place the trade within a particular price range.
  • Sell or buy– When you’re ready to place your trade, hit the ‘buy’ tab if you think the market will grow in value or ‘sell’ if you think it will fall. This will place your trade.

Pending order

pending order

  • Type – Select the type of order you want to place, from ‘buy limit,’ ‘sell limit,’ ‘sell stop,’ and ‘buy stop.’ Discover the difference between limit and stop orders.
  • At a price – Choose the price level at which you want your order to be triggered.
  • Expiry – Consider this box to mention the time and date of your order expiring if the market does not resonate with your ‘at price’.
  • Place – Tap this button when you are ready to place your order.

Step 4: Monitor and close your pending orders and positions

To monitor your pending orders and open positions, open the ‘terminal’ window by hitting Ctrl + T tab or by hitting ‘view’ in the toolbar and choosing ‘terminal.’ Then, you need to navigate to the ‘trade’ tab.

You can delete a pending order or close a position by hitting the small ‘x’s on the profit column’s right menu.

monitor positions mt4


Step 5: Modify limits and stops on open positions

To modify limits or stops on pending orders and open positions, you need to open the ‘terminal’ window (Ctrl + T) and go ahead with the ‘trade’ tab.

Now, right-tap the pending order or position you’d like to edit, then choose ‘modify or delete order’ to display the order window.

You will then can add limits and stops or modify your position. Hit the red modify tab when you finish confirming your changes.


Step 6: Customise MT4 charts.

MT4 offers a plethora of tools you can use to personalize charts. Here’s how to:

Draw on charts

MT4 consists of various ‘objects’ you can consider drawing on charts.

draw on charts mt4

  • Cursor
  • Crosshair
  • Draw vertical line
  • Draw horizontal line
  • Draw trendline
  • Draw equidistant channel
  • Draw Fibonacci retracement
  • Draw text
  • Draw text label
  • Arrows

Simply select the object to draw where you want from the toolbar and hit the chart. The positioning and width of some things settle by hovering your mouse as you tap on the chart, while others open up a separate customization window.

Right-click on the chart to remove or edit an object, then choose ‘objects list’ from the panel. It will then display a window showing all the chart’s active objects.

Select your object from the list, then chooses ‘edit’ to customize the indicator settings, or you can easily remove it by clicking the ‘delete’ tab.

Add indicators

You can add indicators such as stochastic oscillators, RSI, and Bollinger bands to charts. Then, simply drag your selected indicator from the ‘navigator’ panel and drop it on the chart’s top panel.

Now, a customized window will open up.

add indicators mt4

Alternatively, you can add indicators to a chosen price chart using the menu bar. Hit the ‘insert’ tab, then the ‘indicators’ tab, and select your indicator from the drop-down menu.

To remove or edit an indicator showing on a chart, right-tap within the chart panel and choose ‘indicators list’ from the menu.

A window will come up with a list of all the active indicators on the chart. Choose your indicator from the list, then hit the ‘edit’ to personalize the indicator settings or remove the ‘delete’ tab.

Change timeframe

To transform the price chart’s timeframe, right-tap the chart, choose ‘timeframe,’ and then select your preferred option from the drop-down menu. Timeframes vary from one minute to monthly.

You can also modify the timeframe of a chosen price chart using toolbar buttons.

change timeframe mt4

  • M1 (1 minute)
  • M5 (5 minutes)
  • M15 (15 minutes)
  • M30 (30 minutes)
  • H1 (1 hour)
  • H4 (4 hours)
  • D1 (1 day)
  • W1 (1 week)
  • MN (1 month)

Step 7: Set up a price alert

Open the ‘terminal’ window to set up a price alert and navigate the ‘alerts’ tab. Right-tap within this window and choose ‘create’ from the main panel.

This will pop up the ‘alert editor’ panel, where you can customize your price alert.

set price alert mt4

Step 8: View your trade history

You can check your trade history via opening the ‘terminal’ window and navigating to the ‘account history tab. You can modify the date range by right tapping within the window and going with one of the options listed below:

  • All history

Last month

  • Last three months
  • Custom period

view trade history


Step 9: Download trade reports

To create a trade report, open the ‘terminal’ panel and visit the ‘account history tab again. Right-tap and then choose one of the following options:

  • Save as report
  • Save as detailed report

download trade reports mt4

Both options will bring a detailed report of individual trades (closed transactions, work orders, and open trades) and an account summary. The detailed report consists of additional metrics such as profit factor and drawdown factor.

So, all these steps are applicable while you’re trading MT4 CFDs as well. To learn more, skim through the following sections!

Part 2: Why is MT4 CFD Trading Considered as Best?

If you are a regular trader, you may already know which trading platforms are considered the famous and best CFD trading platforms, explicitly concerning our subject CFD Trading MT4.

However, the MT5 and MT4 are undoubtedly some of the best CFD platforms that deserve your attention.

Here’s why MT4 the King for CFD Trading?

The scope of CFD trading has adopted the MT4 platform as the market standard CFD trading app, and it is now viewed by multiple brokers worldwide.

And, it’s also because the platform offers traders extensive security and advanced technology so that they can close and open positions without ever worrying about their stability.

These functions are part of the reason MetaTrader 4 CFD trading has become extremely famous.

mt4 cfd trading

Here’s an instance of the MetaTrader 4 trading platform that you can consider while trading MT4 CFD.

Disclaimer: The financial instruments charts in this article are for illustrative goals and do not include solicitation or trading advice to sell or buy any financial instrument offered by Admirals (ETFs, CFDs, and Shares). Also, remember not to take past performances as an indication of future performance.

Key Features

First of all, this CFD trading platform consists of a very user-centric interface to work with, empowering both experienced and new traders alike to trade on this volatile market with ease.

The next best feature of MT4 CFD is the support of all major languages. Users worldwide can take advantage of the MetaTrader 4 platform and its data in their language without any extra effort.

Then, the CFD platform provides you with revolutionary and advanced charting capabilities. So, it allows traders to perform trades and deeply analyze the market’s technical elements simultaneously.

Then, there are Expert Advisors, which is one of the powerful capabilities within the MetaTrader platform. These are automated trading features that can automatically close and open trades depending upon the current rules.

They can get sourced from different suppliers to personalize and improve your platform’s functionalities. All of these features make it a famous online CFD trading MT4.

Part 3: Top 5 MT5 CFD Trading Platforms 2021!

MetaTrader 5 is the most recent software launch from MetaQuotes Software, the Russian firm behind the trading platform. Unlike its previous incarnation, MT5 CFD allowed commodities and equities to trade alongside the general forex components.

Connection times are enhanced, and new indicator tools are added.

MetaTrader 4 and 5 might look synonymous, but they aren’t compatible in the backward. MT5’s programming is written in entirely another language, whereas the MT4 software is in MQL4.

Generally, users didn’t want to re-purchase or re-write robots that operated fine on the MetaTrader 4 CFD platform.

Still, plenty of quality brokerage options exist for international traders who wish to use MetaTrader 5. We’ve compiled a list of the best MetaTrader 5 brokers depending on reputation, functionality, and other tradable markets.

1 – Pepperstone

pepperstone

Pepperstone is a reputed international trading platform known for having great award-winning 24/7 customer support, low spreads, and a super-fast 30ms order execution on a good range of leveraged CFD trading options for Forex, Stocks, and cryptocurrency trading available for both desktop and mobile.

Pepperstone is under regulation by the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission, Australian Securities and Investments Commission, Capital Markets Authority of Kenya (CMA), Federal Financial Supervisory Authority, and Dubai Financial Services Authority (DFSA). Pepperstone Markets Limited is headquartered in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 regulatory bodies.

Pepperstone requires a minimum deposit of 200 GBP/USD when opening a Pepperstone trading account.

Pepperstone does charge a certain amount of commission on CFD instruments.

Also, they may charge a commission fee as a service charge for accessing the selling and buying of financial assets via your trading account.

This brokerage makes most of its revenue from charging a commission fee on registered traders and client transactions.

Commission fees can vary based on the type of trading, financial assets, and specific trading account levels you have.

The broker commissions charge if the brokerage fulfills an order, cancels an order, or modifies the order on your behalf.

Generally, there is no commission if your brokerage does not fulfill a market order.

Be aware that if your order is canceled or modified, your brokerage may charge a commission fee.

2 – FP Markets

fp markets

FP Markets is another well-recognized online trading platform known for its low Forex trading fees and very tight spreads from 0.0 pips and high leveraged CFD trades, with available leverage going up to 30:1. FP Markets offers negative balance protection, NY4 Server facility fast order execution with no requotes on trade prices. Forex, commodities, cryptocurrencies, and Share CFDs are available on the FP Markets trading platform.

Any payments funded to FP Markets accounts by traders get held in a segregated bank account.

FP Markets use tier-1 banks for added security. It is an official measure of a bank’s financial health and strength.

A Tier 1 bank is said to be the most secure platform regarding client capital. It is a term that defines the bank’s financial strength. Also, this bank has some robust core capital reserves and financial regulators who use tier one banks because they can cope with unexpected financial losses.

FP Markets comes under the Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC).

FP Markets require a minimum deposit of 100 GBP/USD when opening an FP Markets trading account.

FP Markets does charge a commission on CFD instruments.

3 – IC Markets

ic markets

IC Markets is a top-tier trading platform and broker known amongst active traders. Raw IC Market Spreads are from 0 pips. IC Markets pride themselves on quick 40 milliseconds order execution speeds, which process $15 plus Billion USD or near about 10 billion Pound Sterling in daily trades. Also, they are one of the few brokers that can say they offer an institutional-grade trading platform.

IC Markets is regulated and supervised by and checked for conduct by the Australian Securities and Investments Commission, Financial Services Authority, Cyprus Securities and Exchange Commission (CySEC) regulatory bodies.

IC Markets has three entities regulated by three regulatory authorities. IC Markets AU  (trading as IC Markets) holds an Australian Financial Services Licence (AFSL No. 335692) to carry on a accounting services business in Australia, limited to the financial services covered by its AFSL. IC Markets (EU ) – regulated by the Cyprus Securities and Exchange Commission (CySEC) under the CIF Licence No 362/18. “IC Markets SC” – controlled by the Financial Services Authority of Seychelles with a Securities Dealer Licence number: SD018

For added security, IC Markets use tier-1 banks. It is the official measure of a bank’s financial health and strength.

IC Markets require a minimum deposit of 200 GBP/USD when opening an IC Markets trading account.

IC Markets does charge deposit fees.

And they charge commission on CFD instruments.

4 – FXTM

fxtm

FXTM is an online  trading platform and multi-asset broker launched in 2011

Almost ten years later, FXTM has grown to offer retail investors Cryptocurrency trading, Forex Trading, Indices trading, Commodities trading, Stocks trading, ETFs trading, and CFD trading.

However, they are not an international broker as they are not allowed to run in some prominent geographical locations. FXTM has headquarters in London, United Kingdom.

They offer various trading instruments as Forex trading, Cryptocurrency trading, Stocks Trading, Indices Trading, Commodities Trading, CFD Trading, and ETFs Trading.

Here, you require a minimum deposit of $10. Firstly, go and sign up for a demo account with the FXTM platform.

FXTM can check among various levels of traders whether you have experience or are a beginner.

For added security, FXTM uses tier-1 banks. Tier 1 is the banks’ official measure for financial health and strength.

FXTM requires a minimum deposit of 10 GBP/USD when opening an FXTM trading account.

FXTM does not imply deposit fees. However, these third-party or bank merchant fees may apply.

FXTM does charge commission on CFD instruments.

5 – Markets.com

 Markets.com

Markets.com is a market maker that provides commission-free trading via its Markets account when trading forex. The broker’s power lies in its trading platforms called Markets and Markets.

They also offer a wealth of market sentiment, fundamental and technical tools for CFD, Forex, and stock trading. This platform also offers MetaTrader 4 and 5 as other platform options.

With 13 plus years of experience, Markets.com has offered retail investors Forex trading, Spread Bets, and CFDs. However, the Spread Bets are only there for UK customers trading.

Markets.com is a regulated global broker headquartered in Cyprus.

This means Markets.com is supervised by and is checked for conduct by the Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Financial Conduct Authority (FCA), Australian Securities and

Investments Commission (ASIC) regulatory bodies.

Markets.com requires a minimum deposit of 250 GBP/USD when opening a Markets.com trading account.

They do not charge commission on CFD instruments.

Brokers

Pepperstone FP Markets IC Markets FXTM Markets.com
Regulation Financial Conduct Authority (FCA), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Cyprus Securities and Exchange Commission, Federal Financial Supervisory Authority, and Australian Securities and Investments Commission. Australian Securities & Investments Commission, Cyprus Securities & Exchange Commission Australian Securities & Investments Commission, Cyprus Securities & Exchange Commission, and Financial Services Authority (FSA). NA Cyprus Securities & Exchange Commission (CySEC), Financial Conduct Authority (FCA), Australian Securities & Investments Commission (ASIC), and Financial Sector Conduct Authority (FSCA).
Products/Instruments Available Forex, Cryptocurrencies, Shares, ETFs, Indices, Commodities, and Currency Indices. Forex, Shares, Metals, Commodities, and Indices. Forex, Commodities, Indices, Bonds, Digital Currencies, Stocks, and Futures. Metals, Stocks Trading, CFD Stocks, Indices, FX Indices & Currency Pairs, Commodities, Stock Baskets, and Contract Specifications. Currency, Stocks, Indices, Commodities, Bonds, ETFs, Blends, and Crypto.
Leverage Up to 30:1 for retail clients and 500:1 for professional clients. 30:1 1:1 to 1:500 1:1000 for FX Majors, 1:500 for FX Minors, 1:50 for FX Exotics and 1:500 for Spot Metals. 1:30
Margin Begins from 0.5% Starts from 1% Below 50% Starts from 1% Starts from 0.2%
Platforms MT4, MT5, cTrader, and Social Trading MT4, MT5, Mobile Trading App, Web Trader MT4, MT5, cTrader MT4, MT5, FXTM Trader Markets, Markets, MT4, MT5, Mobile

Conclusion

So, this is all about the MT4 CFD trading platform! We can’t say that it’s the best because there are multiple great platforms out there to consider. However, you must choose the best CFD trading platform for your specific trading style and preferences. The platform must comply with all of your requirements and should be workable for you.

However, we can say that it is no mystery why MetaTrader platforms are the most famous and serviceable ones. Here, traders can trade CFD options, forex, and other instruments from their laptops around certain parts of the globe.

Finally, now that you understand both the MetaTrader 4 CFD and MetaTrader 5 CFD and what makes a top CFD trading platform, we wish you the best with your MetaTrader CFD trading.

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