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MetaTrader 4 (MT4) was initially designed for trading in the Forex market. However, its versatile features have since been adapted to cater to other financial markets. This platform offers users the advantages of automated trading algorithms, the convenience of trading on mobile devices, and a comprehensive suite of tools for detailed technical analysis.
Due to its dynamic nature, I’ve developed a preference for trading forex on MT4. The platform offers tools and features that perfectly complement my forex trading strategies. However, I also recognize the inherent value of stocks. Holding stocks can serve as excellent long-term positions a hedge against potential market volatility in forex. This combination provides both short-term opportunities and long-term security in my portfolio.
Can I Trade Stocks on the MT4 Platform?
Yes, you can trade stocks in the MT4 platform because today, all CFd brokers offer US major stocks and worldwide significant stocks in the MetaTrader 4 platform. To see stocks, go to View than Symbols and “Show” stocks to be visible in the navigator.
Nowadays, most CFD brokers have incorporated central US and international stocks into the MT4 offering. If you’re wondering where to find these stocks, it’s pretty simple.
Please see my video with instructions:
Here are screenshots and detailed instructions:
Here’s a detailed step-by-step guide on how to make stock symbols visible in MT4:
- Open MT4 Platform: Launch your MetaTrader 4 application on your computer or device.
- Access Main Menu: You’ll see the main menu at the top of the MT4 platform.
- Go to ‘View’: In the main menu, locate and click on the ‘View’ option.
- Select ‘Symbols’: A dropdown menu will appear after clicking ‘View’. From this dropdown, choose ‘Symbols.’ This will open a new window displaying available instruments.
- Navigate Through Categories: In the ‘Symbols’ window, you’ll notice categories like ‘Forex,’ ‘Commodities,’ and more. Some brokers might have a ‘Stocks’ category or divide them based on stock exchanges like ‘NYSE’ or ‘NASDAQ.’
- Find the Stock Symbols: Browse through the list or use the search function (if available) to find the specific stock symbols you’re interested in.
- Show the Stock Symbols: Once you locate the desired stock symbol, right-click on it. A context menu will appear with various options. Select ‘Show’ from this menu.
- Close the ‘Symbols’ Window: After making your selections, close the ‘Symbols’ window.
- Check the ‘Market Watch’ Window: On the left side of the MT4 platform, there’s a ‘Market Watch’ window. The stocks you’ve chosen to show should now be visible in this section.
- Drag and Drop to Chart: If you wish to see the price chart of a particular stock, drag and drop the stock symbol from the ‘Market Watch’ window onto the main chart area.
Difference Between Real Stocks and CFD Stocks in MetaTrader 4
Trading CFD stocks means entering a contract with a broker to exchange the price difference of a stock without owning the actual stock, and often comes with leverage, increasing both potential profits and losses. In contrast, buying real stocks involves purchasing actual company shares, granting ownership rights and dividends directly from the company, but without the high leverage often associated with CFDs.
CFD Stocks in MT4
- Definition: CFD stands for “Contract for Difference.” When you trade a stock CFD, you’re not purchasing the actual stock. Instead, you’re entering into a contract with a broker, agreeing to exchange the difference in price of the stock from when the contract is opened to when it’s closed.
- Leverage: CFDs typically come with leverage, which means you can control a prominent position with relatively little capital. However, this also amplifies potential losses.
- Short Selling: With CFDs, you can quickly go “short” (betting that the stock price will go down) without the need to borrow the stock, as you would with real stocks.
- Dividends: If you’re holding a CFD position when a company issues a dividend, you’ll receive a cash adjustment in your account. However, if you’re short, the adjustment will be negative.
- Ownership: You don’t own the actual stock with CFDs. This means you don’t have any shareholder voting rights or other stock ownership benefits.
- Overnight Financing: Because CFDs are leveraged products, you’ll typically be charged an overnight financing or “swap” fee if you keep the position open overnight. The rate varies depending on the broker.
- Platforms: CFDs on stocks are widely available on platforms like MT4, which primarily cater to forex and CFD trading.
- Definition: Buying real stocks means purchasing actual shares in a company. You become a partial owner of that company, however small that portion may be.
- Ownership Rights: As a shareholder, you typically have voting rights in company decisions. You might also receive dividends directly if the company chooses to distribute them.
- Dividends: When you own an actual stock, dividends (if issued) are typically paid directly to your brokerage account.
- Leverage: Typically, standard stock trading doesn’t involve leverage, meaning less potential for magnified losses. Some advanced brokerage accounts offer margin (a form of leverage), but it’s generally less than what’s available with CFDs.
- Short Selling: Selling real stocks short can be more complicated and may require borrowing shares to sell them, with associated fees and potential limitations.
- Duration: There’s no time limit on holding real stocks. Unlike CFDs, which may have expiration dates, you can keep them for as long as you want.
- Platforms: Real stocks are traded on stock exchanges through brokerage platforms, which might offer additional tools and research explicitly tailored to stock investors.
In Summary, While CFDs offer flexibility, easy access to short selling, and leverage, they come with overnight financing costs and lack the ownership rights associated with real stocks. On the other hand, real stocks provide actual ownership, potential dividends, and longer-term holding benefits but might not provide the same degree of leverage and can be more challenging to short-sell.