Setting up your broker on MT4 could be a challenging task if one has not done it before. Initially, you can perform paper trading on MT4 without connecting your MT4 to a broker, but once you want to trade with real money, you will be needed to open an account with a broker and set it up on MT4.
In the piece, we will be guiding you to set up a broker on your MT4 application or software. But before then, you need to choose a good broker first. Check out our 5 tips for choosing a reputable broker
Then the question arises from a newbie; what are brokers, and why do I need one?
Key Takeaways
• Setting up a broker on MT4 can be challenging if you have not done it before.
• A broker is an indispensable part of the trading ecosystem, and he acts as the middleman between the trader and the market.
• You can choose between four types of accounts when you want to set up your broker on MT4
• You need to open an account with a broker and fund it before trading on a real account.
A broker acts as the intermediary between a trader and the financial market. Brokers also, act as an intermediary between Forex traders and liquidity providers.
For example, if a trader wants to sell a financial instrument, such trader needs to find a buyer to sell to; this is the point where the broker comes in, the broker’s work is to link between the trader and the buyer so that trade can be done flawlessly.
Why Do You Need a Broker
- Brokers act as a middleman in the market.
- A broker acts as the link between the trader and liquidity providers.
- A broker gives you a margin to leverage your trades, from 2 to more than 400 times your equity.
Types of Forex Accounts
There are four main types of forex accounts you can open with a broker.
1. Standard Trading Account
A standard forex account allows a trader to trade on a margin of 100:1. This means that you only need to deposit $1000 to trade like you have $100,000 trading equity.
2. Mini account
A mini account ensures you can trade on a 10:1 margin. Meaning you can open positions up to ten times your initial capital.
3. Micro account
A micro account enables traders to trade in 1,000 lots. It is generally regarded as the least type of forex account one can open in terms of initial capital. Some brokers accept as low as $5 for the initial deposit.
4. Managed account
These are accounts where which are managed by other individuals apart from the owner of the forex trading account. The owner funds the account but trading is carried out by another entity.
Open an account with a broker
To make use of MetaTrader4, and trade with real money, you must first open an account with a broker.
Each broker may have different account opening formats, but one important thing the client must fulfill at a minimum is KYC (Know Your Customer), which includes a proof of identity and a proof of residence.
You may start to trade on your account once the broker has certified that you have passed the necessary verifications.
Traders may first open a demo account with the broker to understand the platform before trading on a real account.
Downloading MetaTrader 4
MetaTrader 4 is available for download on four platforms namely: Windows, Mac, and Linux working systems.
Mobile packages are also available on both Google Play and the Apple Store. Alternatively, MetaTrader four can also be downloaded via your preferred broker’s website.
After downloading the MetaTrader software either on your computer or mobile phone, click on install, if it does not install automatically. The manner of installation will depend on the type of MT4 you downloaded and the device you have downloaded on.
Setting Up Your MT4 with a Broker
- Open an account on the Forex broker’s website.
- Read the broker’s terms and conditions and accept if you want to trade with them.
- Fill in the required fields of personal data and submit all relevant documents (usually a proof of residence and a government-issued ID.
- Select the account type; whether a mini, micro, standard, or managed account, while doing this, you must also select your preferred currency of trade, e.g dollars, pounds, etc. You must note that the preferred currency cannot be changed once you have selected it and your account is opened.
- Once you have submitted the needed documents, the broker will review their authenticity.
- Log in to your account.
- Select “real account” and your MT4 login will be generated.
- Copy your MT4 login details into a safe place.
- Open MT4 on your desired platform and select the broker you have the account with.
- Insert your broker-generated login and enter your password to start trading with your Broker.
How to Fund Your Real account
- Log in to your trading account, and select the “Deposit” option, this option varies from one broker to another, it may be “add funds”, “cashier” etc.
- Go through the available deposit options. A lot of brokers tend to have different deposit options, choose the one most suitable to you and follow the necessary instruction on the broker’s website (you must note that sometimes brokers require you to withdraw with your initial deposit option, therefore you should use a convenient deposit option).
- If you have completed your deposit and your deposit is successful, you can open your MT4 and start trading!
Final Thoughts
On the journey to becoming a Forex trader, one must eventually open a forex account with a broker. Setting up your account with your broker ensures that you can have access to the forex market and earn from the market movements.
Meanwhile, traders must note that trading with real money means proper risk management must be used while opening and managing trading positions.
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