The gist
- MetaTrader 4 is software made by MetaQuotes and licensed to brokers; the broker, not the software, sets prices, costs and account protection.
- Contract specifications, execution, swaps and symbol names differ from one MT4 server to the next, so read them before trading.
- A familiar MT4 login screen proves nothing: fraudsters use the same interface, so verify the company named on the server.
MT4 brokers are firms that offer trading through MetaTrader 4, a platform built by the software company MetaQuotes and licensed to brokers worldwide. For years it has been one of the most familiar screens in retail currency trading, and that familiarity creates a trap: because the charts, order window and menus look the same everywhere, it is easy to assume the firms behind them are alike too. They are not. This guide explains what the software does, what the broker controls, and how to check the company before trusting it with money.
What MT4 is, and what it is not
MT4 is a trading terminal: charts, indicators, an order ticket, an account history and a programming language (MQL4) for custom indicators and automated strategies, known as expert advisors. It comes as desktop, web and mobile versions. Its successor, MetaTrader 5, adds more order types, more timeframes and support for exchange-traded instruments, and uses a different programming language, so programs written for one do not run on the other without rewriting.
What MT4 is not is a broker, a market or a regulator. MetaQuotes supplies the software; each broker runs its own MT4 server and connects it to its own pricing and order-handling systems. When you trade mt4 forex pairs, the prices on your screen come from your broker, the orders are handled by your broker, and your deposit sits with your broker. The software is the same; everything that decides your costs and your safety is not.
What differs between MT4 brokers
| Controlled by the software | Controlled by the broker |
|---|---|
| Chart types, indicators, drawing tools | Prices, spreads and the quality of execution |
| Order window layout | Commissions, swap rates and non-trading fees |
| Programming language for EAs | Contract sizes, leverage and margin rules |
| Look and feel on each device | Where your money is held and what protection applies |
Contract specifications
Right-click any symbol in MT4's Market Watch and choose Specification. This window is the most important and least read part of the platform. It shows the contract size (100,000 units for a standard currency lot; commonly 100 ounces for gold, though not everywhere), the number of digits quoted, the swap rates for long and short positions, and the trading hours on that server. Two brokers' "GOLD" symbols can have different contract sizes, which changes the value of every move.
Digits, points and pips
Most MT4 servers quote currencies to five decimal places (three for yen pairs). MT4 measures distances in points, the smallest quoted increment, so on a five-digit quote ten points make one pip. A spread shown as 12 points is 1.2 pips; on one standard lot of EUR/USD, where a pip is worth $10, that is $12 per round trip. Confusing points with pips is one of the most common sizing errors in MT4; the pip calculator works in pips.
Symbol names and account types
Brokers often add suffixes to symbols (for example ".r", "m" or "pro") to separate account types with different pricing. An expert advisor written for one naming scheme may not find its symbols on another server, and a strategy tested on a raw-spread account may behave differently on a standard one.
Execution
MT4 supports "instant" execution, where the broker may requote if the price has moved, and "market" execution, where the order fills at the next available price and may slip. Which one you get, and how requotes and slippage are handled, is the broker's choice. Its order-execution policy should say.
Checking the company behind the screen
When you log in to MT4, you choose a server. The server name usually includes the operating company's name, and the account's legal owner appears in the terminal's settings and on your statements. That is the company to check, using the steps in our guide on how to choose a broker:
- Find the company on the regulator's own register and confirm its permissions.
- Check that the website and contact details match the register, to rule out a clone.
- Read the client agreement to see which legal entity holds your money.
- Compare the full cost for your trade size, including swaps shown in the specification window.
Because the software can be obtained by anyone who licenses it, and because web and mobile versions let a user connect to any server name typed in, fraudulent operations have used MetaTrader to make fake platforms look credible. A trading screen that looks exactly like the real thing proves only that someone paid for, or copied, the software. If a stranger sends you a server name to type in, stop and verify; our scam guide explains why.
Using a demo account sensibly
Most firms that offer MT4 also offer a demo account funded with pretend money. It is a good place to learn the software: placing and modifying orders, reading the specification window, testing an expert advisor, seeing how margin changes as positions open. It is a poor guide to results. Demo fills may be cleaner than live ones, spreads can differ, and trading pretend money feels nothing like risking your own. Treat a demo as a flight simulator for the controls, not as evidence that a strategy works.
Rankings of the "best MT4 broker"
Searches for the best mt4 broker lead to many league tables. Most of them are funded by the brokers listed, through affiliate payments for each account opened, and they compare features that the software supplies to everyone. A table that ranks a firm highly for "offering MT4" is ranking the one thing that is identical across all of them. The questions that matter are the ones in the table above, and they have to be answered for the specific legal entity that would hold your account in your country. We do not publish a ranking, and we suggest reading anyone else's with that conflict in mind.
MT4 and the long-term investor
MT4 was designed for leveraged trading in currencies and CFDs, with nightly financing on every open position. It is not built for buying and holding company shares or funds, and holding leveraged positions for months through it can be expensive, as our trading fees guide shows. If your horizon is years, a conventional share-dealing account that holds real assets in a nominee structure usually fits better. If you trade through MT4 as well, keep the two clearly apart.
Reader questions
Is MT4 a broker?
No. MetaTrader 4 is trading software made by MetaQuotes. Brokers license it and connect it to their own prices and accounts. Your contract, costs and protection all depend on the broker, not the software.
What is the difference between MT4 and MT5?
MT5 is the later platform, with more order types, more timeframes and support for exchange-traded instruments. It uses a different programming language, so expert advisors written for MT4 need rewriting to run on MT5.
Why does my spread look ten times bigger on MT4?
MT4 shows distances in points, the smallest price increment. On a five-digit quote, ten points equal one pip, so a spread of 12 points is 1.2 pips.
Sources
- MetaQuotes, MetaTrader 4 platform documentation
- UK Financial Conduct Authority, Financial Services Register