Metatrader is a trading platform developed by MetaQuotes Software Corp., specialized in creating software for the financial markets. The latest version of Metatrader, at the time of this writing, is Metatrader 5 (MT5), although Metatrader 4 (MT4) is still widely used.
The entire Metatrader package consists of a server backend (for brokers) and the trading terminal (for clients). The entire software is licensed to financial brokers who then distribute copies of the client software to their customers. The communication between the server and client software over the internet allows independent traders to get the latest price data and execute their transactions in seconds – a technology not available during the previous decades.
What Does MetaTrader Do?
Metatrader was primarily developed for traders within the Forex retail exchnge industry. It allows small-time traders to speculate and profit from the fluctuations and price movements on the world's major currencies.
Metatrader also supports the development of custom software, in the form of expert advisors, scripts, and indicators. These software can be coded by metatrader programmers, and can be used to develop software that may help the trader in automating some tasks. Moreover, the terminal can also allow traders to use automated trading, where all trading decisions are done by software alone.
Who Can Trade Using Metatrader?
Virtually anyone can trade in the Forex market using retail Foreign exchange platforms such as Metatrader. In order to trade live in the financial markets, traders will need to sign up for an account with an accredited broker. However, speculators can also test their investment strategies on a demo account. This encourages aspiring traders who possess knowledge on trading the financial markets, but lacks a reasonable experience to do so, to test and refine their trading skills without compromising their investment.
However, despite the promise and convenience offered by Metatrader, it still does not change the fact that most participants within the Forex Market lose money. It was estimated that about 99% of traders are not profitable. Those who aspire to take a career as an independent Forex trader should carefully consider their options and thoroughly test and improve their trading skills on demo before switching to a real account.
Where Can I Trade Using Metatrader?
Most retail traders use their own money in trading currencies, and are often found at the comfort at their own homes. Aside from computer hardware and software, one will also need a fast internet connection in order to establish stable communication with the broker's server. The aspiring trader will also need to sign up for an account with an accredited Forex broker.
Trading platforms such as Metatrader has contributed much to the growth of the retail Forex trading industry. Theyave small-time traders the opportunity to participate in the Forex market, which was previously available only to banks and institutional investors.