MetaTrader 4 for FOREX trading

I've been trading the FOREX using the OANDA's trading platform for a couple of years and I recently came across the trading software called MetaTrader. MetaTrader looks a bit like Metastock and includes charting tools, indicators and a system tester for backtesting purposes. The FOREX trader can also program an automated trading bot like FAP Turbo to execute the trading orders according to the trading system.

Upon searching a bit online, I found out that many FOREX brokers offer MetaTrader as an available trading platform but it seems that the development on that field is still ongoing. For example, plenty of FOREX traders are trading with OANDA while many others are interested in Direct Access Forex Brokers or ECN Forex Brokers. Those trading in OANDA's trading software have the option to connect MetaTrader with OANDA's software but they need to gain access to OANDA's API which costs $600. On the other hand, MB Trading, a well known ECN broker, was beta testing the implementation of MetaTrader but haven't yet launched the product. Rumors say that MetaTrader will officially be featured in MB Trading in 2009.

MetaTrader 4 looks like a promising FOREX trading software and it is free! However, after installing the software you are prompted to open a demo account in UWC - United World Capital located in Cyprus. You are then presented with 4 charts of 4 major FOREX pairs and you can start working on your trading strategy. Of course all major currency pairs are available and there are a couple of useful indicators.

Regarding the automated trading tools, they are so called Expert Advisors and you can apply a different one on each pair. To tell you the truth that's how I came across MetaTrader 4. I found the so called FAPS Turbo, Forex Auto Pilot System Turbo, an Expert Advisor designed for use with MetaTrader 4. There are many reviews about FAPS and quite a few traders admit that it has worked for them. You simple drag the Expert Advisor, EA for short, into the MetaTrader's charts and it informs you of the signals either for going long or short. MetaTrader is also capable of executing the signals automatically making it a totally automated trading system. On the other hand, you are able to write your own EA and backtest it using historical data and then forward test it in a demo trading account.

FOREX traders use MetaTrader for technical analysis as well and execute their orders in their broker's trading platform, like OANDA. I haven't done much with it, since I installed it yesterday but I will continue experimenting with it and let you know of my experience with it.

Trading - Online Trading Software