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 is a retail trading platform developed by MetaQuotes Software, and the platform is offered by most CFD and forex brokers worldwide. The platform comes in two main versions, MT4 and MT5, and both versions run on desktop, web, and mobile. The platform is free for the trader, because the broker pays the licence fee to MetaQuotes. The platform has several advantages for stock traders, and the platform has a few drawbacks the trader should know about.
The main advantages
The first advantage is the automated trading. MetaTrader supports Expert Advisors, which are programs that place trades automatically. The trader can write the EA in MQL4 or MQL5, and the trader can attach the EA to a chart. The automated trading is the platform's main differentiator, and the platform has the largest community of EA developers in retail trading.
The second advantage is the custom indicator library. The platform supports thousands of free and paid custom indicators, and the trader can download the indicators from the MQL5 Market or from third-party websites. The custom indicators cover every trading style, and the trader can find an indicator for almost any strategy.
The third advantage is the multi-broker support. The platform is offered by hundreds of brokers, and the trader can move the account from one broker to another without changing the platform. The trader keeps the same charts, the same indicators, and the same EAs, and the trader only changes the broker connection.
The fourth advantage is the backtesting. The platform includes a built-in strategy tester, and the trader can backtest an EA on historical data. The strategy tester supports multiple symbols, multiple time frames, and multiple optimization modes. The trader can use the strategy tester to validate the EA before going live.
The fifth advantage is the cost. The platform is free for the trader, and the broker pays the licence fee. The trader saves the cost of a proprietary platform, and the trader can use the savings to fund the trading account.
The sixth advantage is the community. The platform has a large community of traders, developers, and educators, and the community produces a steady stream of EAs, indicators, scripts, and tutorials. The trader can find an answer to most questions by searching the community, and the trader can learn from the experiences of other traders.
The main drawbacks
The first drawback is the product range. MetaTrader is built for forex and CFDs, and the platform does not support the full range of stock products. The platform supports stock CFDs through the broker, and the platform does not support the direct trading of US stocks on the major exchanges. Traders who need direct stock trading may need a different platform.
The second drawback is the data feed. The data feed comes from the broker, and the quality of the data depends on the broker. Some brokers provide real-time data, and some brokers provide delayed data. The data quality can affect the backtest and the live trading, and the trader should check the data quality before opening an account.
The third drawback is the interface. The interface is functional, and the interface is not as polished as the proprietary platforms from the major brokers. The interface is harder to learn for beginners, and the interface requires some setup before the trader is comfortable.
When MetaTrader is the right choice
MetaTrader is the right choice for traders who want automated trading, who want to use custom indicators, and who trade stock CFDs or indices. The platform is also a good choice for traders who want to move between brokers, and the platform is a good choice for traders who want to backtest the strategies.
MetaTrader is not the right choice for traders who want direct stock trading on the major exchanges, who want the most polished interface, or who want a platform with deep integration with the broker's research and the broker's customer support.
The difference between MT4 and MT5
MT4 is the older platform, and MT4 supports 9 time frames, 30 built-in indicators, and a single order type. MT5 is the newer platform, and MT5 supports 21 time frames, 38 built-in indicators, and multiple order types including the OCO. MT5 also has a faster backtester, and MT5 supports more programming features in MQL5.
Most brokers offer both MT4 and MT5, and the trader can choose the version that matches the needs. The trader who wants the most features should choose MT5, and the trader who has a large library of MT4 EAs should stay on MT4.
Common questions about MetaTrader for stock trading
Can I trade US stocks on MetaTrader? Yes, through a broker that offers US stock CFDs. The broker determines the stock availability, not the platform.
Does MetaTrader support real-time data? The data comes from the broker, and the delay depends on the broker. Some brokers provide real-time data for a fee, and some brokers provide delayed data for free.
Is MetaTrader regulated? The platform is not regulated, because the platform is a software product. The broker is regulated, and the broker is responsible for the trade execution and the client funds. The trader should check the broker's regulation before opening an account.
Related resources
Where to start
If you are evaluating MetaTrader for stock trading, the most useful first step is to download the platform from a regulated broker, to open a demo account, and to apply a few indicators to a chart of a stock you follow. Our broker comparison lists the MetaTrader brokers and the available products, which together tell you what the platform looks like before you open a live account.