Forex MT4 Platform

The Forex Markets & The Covid Effect!

Markets, the Covid effect

This is a 5-day chart of the Great British pound US Dollar pair, where we can see a rise of price from 1.2790 to a high of 1.3170 before the pair fell back at the end of trading on the 31ST July. Much of the move higher has been due to an overall decrease in the performance of the United States dollar and where extreme volatility crept into the market on Wednesday 29th August, when the federal reserve held are interest rates on hold but where the FOMC comments at the press conference were extremely rubbish regarding the outlook for the American economy as the continuation of the covered virus escalates within the United States.
The volatility continued on Thursday, when unemployment data in the form of continuing jobless claims in the United States showed an increase, and more importantly, the annualised second-quarter gross domestic product figure was released for the US at – 32.9%, the biggest such drop in history. The US dollar was heavily battered as a result, giving an uplift to the pound, Euro, AUD, NZD, and others.

Incredibly, this is a Dow Jones industrial average daily chart, which shows that while the Dow took a dip down to just above 26,000 on the last day of trading for July, it subsequently rallied to 26,482 at the close. Naturally, analysts, market commentators’ and traders alike are bewildered by the fact that the United States posted its biggest loss in gross domestic product in such a short time frame in history, and yet the Dow Jones remained unscathed.

So, what can we expect in the ensuing weeks? With regard to the Dow Jones, it’s pretty much being driven by technical analysis and where the big numbers such as 26,000 seem to be holding as support and where the recent attempt to breach 27,000 failed and can therefore for the assumed to be a resistance level. Larger sized institutions are looking at the long term rather than the short term. They believe that a v-shaped recovery is possible and that when suitable medical solutions are found to minimise the impact of Covid on individuals to perhaps where it can be managed to almost like cold virus, or flu symptoms levels, the American economy can return to normal very quickly. However, pessimism is more and more creeping into the markets as top analysts scratch their heads and talk up the possibility of another crash in US equities. However with regard to the United States dollar, we should expect a toing and froing effect, with more volatility, and where bad news will affect the US dollar performance during certain times of the days and weeks and whereby bad news regarding the UK and Europe, such as what we are seeing at the moment regarding further lockdown measures being implemented by the British government as cases of Covid escalate, and whereby further outbreaks in covid are being seen across Europe can be considered to be bad for both the UK and the Eurozone economies, in which case you might expect a reversal in the euro and the British pound such as we saw on the last day of trading for July when these major currency pairs reversed from sharp rallies.

Sentiment is playing a large role in the majors, with USDJPY bouncing off of multi-month lows, as seen on this monthly chart, as investors buy yen as a safe haven currency.

Similarly, for the USDCHF pair, which has been sold heavily to a low at the end of July, as seen on this monthly chart, to 0.9100, again a multi-month low as investors buy the Swiss franc for its safe-haven status.


Forex MT4 Platform

MetaTrader 4 vs MetaTrader 5: An In-Depth Comparison

If you’re a forex trader, chances are that you’ve already heard about MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These are the two most popular trading platforms on the market and are among the most common platforms offered by online brokers, especially with MT4. Do know that there are other trading platforms out there, but today we will focus on these two major options. Here’s what the platforms have in common:

-Both MT4 and MT5 can be accessed for free through your forex broker. Other platforms might ask for a lifetime licensing fee, which could force you to pay around $499 out of pocket.

-Both platforms were created by the Russian development company MetaQuotes Software Corporation, which is a leader in the financial market.

-Each platform offers a user-friendly interface that is easily navigable. Video tutorials for both platforms can be found online.

-Both platforms are compatible with Windows, Mac, iPhone/iPad, and Android devices.

MetaTrader 4 (MT4)

MT4 was created in 2005 and specifically built for forex traders. Compared to MT5, the older version might seem simpler, but it is probably the best option for anyone that simply wants to trade forex and it is a simpler choice for beginners. Here are some of its (best) features:

  • 9 timeframes
  • Four types of pending orders: buy stop, buy limit, sell limit, sell stop
  • Allows hedging
  • 30 built-in indicators
  • 3 order execution types
  • 31 graphical objects
  • Single-threaded strategy tester
  • Easy to use
  • Very Accessible (supports PC, Mac, Browser, iPhone/iPad, and Android devices)

MetaTrader 5 (MT5)

Five years after MT4 was created, MT5 was released. Contrary to popular belief, MT5 is not a newer upgraded version of MT4, instead, it was created to provide traders access to stocks, CFDs, and futures because MT4 was designed for trading forex. The programming language for MT5 is more complex and allows traders to perform more actions while offering more timeframes, pending order types, built-in tools, and so on. Here are some of MT5’s most notable features:

  • 21 timeframes
  • Six types of pending orders
  • Allows hedging and netting
  • 38 technical indicators
  • Economic calendar
  • 4 order execution types
  • Supports several transaction types
  • 44 graphical objects
  • Multi-threaded strategy tester
  • Fund transfer between accounts
  • Embedded MQL5 community chat
  • Very Accessible (supports PC, Mac, Browser, iPhone/iPad, and Android devices)

In addition to offering 2 more pending orders, order execution types, and other options, MT5 also comes with more built-in convenience options, including the ability to transfer funds between accounts through the platform and the embedded community char feature. These things aren’t necessary, but they do make trading more convenient.

The Bottom Line

Comparing MT4 and MT5 is a little more complex than comparing apples and oranges. Both platforms are user-friendly and designed for simple navigation, however, MT4 is more simplistic, making it a better option for beginners or those that don’t need MT5’s features. MT4 was created for forex trading, while MT5 was created to offer access to stocks, CFDs, and futures. MT5 also offers 12 more timeframes, 2 more pending order types, netting, one extra order execution type, more graphical objects, and a multi-threaded strategy tester. Still, many traders prefer MT4 because they may not need these extra features. In the end, it comes down to personal preference. Some traders are dead set on one platform or the other, while others are happy with either. If you’re unsure, consider testing out a demo account on both MT4 and MT5 to see which platform is best suited for your needs.