Broker to Trading

These are UK brokers offering MT4 trading. But what is MT4 ?

What is MT4 ?

MT4 is MetaTrader 4. It is an online platform which enables the trader to trade at their own discretion, making their own decisions and to trade using automated trading strategies called Expert Advisors (EAs). Expert Advisors are rules (or algorithms) which are executed by a computer program, commonly known as robots. These can be used, modified or built by the trader, using MetaQuotes Language 4 (MQL4), which is similar to C++. On the platform, there are 30+ inbuilt technical indicators (though more may be supplied at a particular broker), but others can be downloaded or the trader can build them in MQL4. If the trader wishes to simply trade using charting tools, they can, but as can be seen, they can also automate their trading.

Are these brokers regulated ?

All these brokers are authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom.

Is MT4 suited to Forex trading ?

Because Forex is traded with a range of trading styles, including MT4 automated trading, then MT4 can be seen as a platform suited to Forex trading.

Non-automated vs automated Forex trading

The fundamental difference between non-automated and automated trading is that the trader makes their own decisions to trade in the first, while a computer program executed trades in the second. Both ways of trading normally have an important similarity, in each case rules are being followed (which can be effectively the same, for example executing a trade on an indicator signal). A computer program will execute these rules tirelessly and accurately, barring equipment or connection errors. Thus a strategy executed by a robot can potentially scale, based on advantages in speed and accuracy.

Some strategies are simply not possible for a human to execute and some would rapidly exhaust the trader. However these advantages can also be disadvantages, as the computer program may rapidly and accurately execute a strategy but deplete an account balance as it makes what a human trader might perceive to be incorrect trades, for example when market conditions change. Herein is the advantage of the human trader, that they can exercise discretion and exit trades or change them.

However strategies no matter who executes them, tend to be based on repeated patterns, so there can be an advantage to executing them, even if the account goes into drawdown for a time (i.e. they may work out in the end). But this gets at the nature of the Forex market: it can move in complex ways and it it not known prior to the end of the trade whether sticking with the trade was a good idea or a bad idea.

So there is arguably no cut and dried reason to use either approach. In fact these ways of trading can be combined, by adjusting automated strategies, or by using robots with non-automated trading, depending on the kind of strategy being used and other factors. No matter what method is utilised, the fact that a strategy worked in the past, or worked when backtested, does not mean it will work when applied to the live market. A potential advantage of MT4, is that it is a well established platform, which lets the trader use both automated and non-automated trading, and offers scope to let the trader use strategies or indicators created by other, or make their own.

Can markets other than Forex be traded on MT4 ?

All of these brokers provide a range of markets on MT4, offered as CFDs.