This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
MetaTrader 4 and MetaTrader 5 are the two most widely used retail trading platforms in the world, originally built for FX and CFD trading. The platforms are produced by MetaQuotes, and they are licensed to brokers who customise the platform for their own product offering. A broker that offers stock trading on MetaTrader is usually offering it as a CFD that tracks the underlying stock, not as direct market access to the exchange. The distinction matters.
The installation
The first step is to download the platform from the broker's website, not from MetaQuotes. The broker-branded version of MetaTrader is connected to the broker's servers and product offering, while the MetaQuotes-branded version is a demo. A trader who downloads the broker's version gets a live account, the broker's product list, and the broker's pricing.
The installation is a standard Windows installer (or a Mac installer, or a mobile app). The installer places the platform in the broker's directory and creates a desktop shortcut. The platform launches in a default configuration, which is usually a forex chart with the EUR/USD pair. The trader closes the default chart and opens a new chart for the instrument the trader wants to trade.
The account setup
The next step is to log in with the broker-issued credentials. The broker sends a login, a password, and a server name, usually by email at the end of the account opening process. The trader enters the credentials in the platform's login dialog, selects the server, and the platform connects to the broker's servers. The trader's account balance, margin, and open positions appear in the platform's terminal window.
The account type matters. A demo account is connected to a demo server with simulated execution, and the prices are not the live market prices. A live account is connected to the live server, and the prices are the live market prices. The trader should log in to a live account for real trading, and the trader should not test the broker's execution on a demo account, because the demo execution is not representative of the live execution.
The instrument list
The instrument list is the set of products the broker offers on the platform. The list is usually available in the platform's Market Watch window, and it can be expanded to show all products or filtered to show only the products the trader wants. The list includes FX pairs, CFDs on indices, CFDs on commodities, CFDs on bonds, and CFDs on stocks.
A CFD on a stock is a contract with the broker that pays the difference between the entry price and the exit price. The CFD does not give the trader ownership of the underlying stock, the CFD does not pay dividends in the same way as the underlying stock, and the CFD is not traded on a stock exchange. The CFD is a derivative product, and the regulatory treatment is the regulator's treatment of CFDs, not stocks.
The chart setup
The chart is the trader's main interface with the platform. The chart shows the price over time, and the trader applies indicators, drawing tools, and templates to the chart. The platform supports a wide range of indicators, including the common technical indicators (moving averages, RSI, MACD, Bollinger Bands) and the less common ones (custom indicators, third-party indicators, and the trader's own indicators).
The chart can be saved as a template, and the template can be applied to other charts. The template includes the indicators, the time frame, the colour scheme, and the drawing tools. A trader who has a working chart setup should save it as a template, and apply the template to every new chart the trader opens. The setup is the trader's edge, and the template preserves the edge across charts.
The order types
MetaTrader supports a wide range of order types, including market orders, limit orders, stop orders, stop-limit orders, and trailing stops. The order ticket is the dialog where the trader enters the order, and the order is sent to the broker's server for execution. The execution is usually fast, but the trader should check the slippage on each fill, because the slippage is a real cost on the trade.
The platform also supports expert advisors (EAs), which are automated trading scripts written in the platform's MQL language. The EAs can place trades automatically, based on the trader's rules. The trader who uses an EA is delegating the trade execution to the script, and the script should be tested on a demo account before it is used on a live account. The script is only as good as the trader's rules, and the rules are only as good as the trader's understanding of the market.
The limitations
The main limitation is the asset class. MetaTrader is built for FX and CFD, and the platform is not a great fit for direct stock trading. A trader who wants to trade stocks on a lit exchange, with ownership of the shares and the right to vote, should use a different platform. A trader who is happy to trade CFDs on stocks, with the broker as the counterparty, can use MetaTrader.
A second limitation is the data feed. The platform's data feed is provided by the broker, and the broker's data feed is not always the same as the exchange's data feed. The trader who is comparing MetaTrader's price to the exchange's price will see small differences, and the differences are usually a function of the broker's data feed, not a malfunction of the platform.
A third limitation is the regulatory treatment. The CFD that the trader is buying on MetaTrader is regulated as a derivative, not as a stock. The leverage cap, the margin policy, and the client money protection rules are the rules for derivatives, not for stocks. The trader should be aware of the regulatory treatment before trading.
Related resources
Where to start
If you are setting up MetaTrader for stock trading, the most useful exercise is to fund a small account, place a small trade, and run the platform for a week. Our broker comparison lists the brokers that offer MetaTrader for stock trading, the asset coverage, and the fee schedule, which together tell you what is on the table before you start.