MetaTrader 4 binary trading
If you are looking to trade binary options on the MetaTrader 4 platform, you definitely need a forex broker offering the binary product. To make a profit with a fixed payout, you will have to register with the broker and install the “bo" plugin.
The minimum deposit to start a live account is about $250, and you can test your trading skills risk-free with a demo account up to $100,000.
The MT4 platform was developed by MetaQuotes and is licensed to Forex brokers offering binary options as a side product. In most cases, you will be able to trade binary options on the major forex pairs only, with expiry times up to 4 hours. The available binary pairs are displayed on the bottom of your Market Watch with the “bo” suffix.
The binary trading is as simplified as you can expect. You just select direction and expiry time, which starts at 60 seconds. The amount you can risk is variable and depends on your broker. The payout is about 80%, which means your risk-reward ratio is 1:0.8 (you risk 100% of your investment).
On this page, we have displayed some of the best forex brokers offering binary options trading.
MetaTrader 4 Advantages
- Android and iOS app
- Custom Indicators
- Trading Robots
- Copy Trading
- Strategy Test
Trading binary options on MT4 has some clear benefits for traders. First, the MetaTrader platform is stable and reliable software used daily by millions of traders. You can download it free and install the desktop application or use the mobile app.
The MT4 platform delivers live quotes on interactive charts with 9 timeframes, which include 1 minute, 5 minute, and 15 minute up to 1 month candles. Traders can easily draw Equidistant channels and Fibonacci retracement to better understand the future price dynamics.
There are 30 built-in technical indicators available, but you can also take advantage of over 2,000 free custom-developed indicators plus over 700 paid ones. These tools will help you create all kinds of trading strategies with different levels of complexity.
The Algorithmic trading, or auto-trading, is probably the most popular feature on MT4 and allows you to develop and test robots (Expert Advisors). Once you have a successful strategy, you can make it run automatically by creating a trading robot. The full-fledge environment also allows you to test and optimize your robot before using it on a live account.
If you don’t want to use robots, you can simply copy trades from other traders. There are over 3,000 signal providers available, and you can select by their trading results. You can run the automated copy trading on the demo account first and later switch to a real account if you like the results.
How to trade binary options on MT4
First, you have to register an account with an MT4 broker that offers binary options. Once you have an account, you will have to install the MetaTader application and the binary options plugin. You will receive all instructions from your broker via e-mail, so you just need to follow the steps.
To locate the binary options forex pairs, you have to load the MT4 platform and check on the Market Watch. Usually, the binary pairs are displayed last with the “bo” suffix at the end, like “EUR/USDbo” and “USD/JPYbo”. Most brokers offer only the major pairs for binary trading.
You need to double click on the pair to open the binary terminal, then you select the amount you will risk and the expiry time. The MT4 binary brokers focus on short-term investments, like 60 seconds, 5 minutes and 15 minutes. The longest expiry time is 4 hours. End of the day expiry and weekly options are not available.
How to add a custom indicator on MT4
The MetaTrader 4 platform offers a great number of indicators, which you can drag and drop on the charts from the Navigator window. However, one of the best features on MT4 allows traders to add custom indicators, which are not available by default.
To add a new indicator, follow these steps:
- Go to File/Open Data Folder
- Copy/Paste your indicator into the Indicators folder
- Restart Metatrader 4
- Locate the new indicator in the Navigator
How to load a template on MT4
Once you add the custom indicators, you may also need to load a template. To load the template, you just need to follow 3 easy steps:
- Go to Charts
- Load template
If you make changes to the indicators’ settings or you add some drawings on the charts, you can always save the new template and load it again later.
MetaTrader is the only platform that allows you to add custom indicators and create all kinds of trading strategies. Even if you don’t trade with an MT4 broker, you can still use the MT4 platform to set up your strategy and place trades at your binary broker.
Please keep in mind forex brokers offer a limited number of currency pairs (usually 4 or 5 majors) with which you can trade binary. Furthermore, the offered payouts are lower than what the binary brokers pay, and you will also face limitation on expiries.
Our advice would be to keep using the MetaTrader 4 platform for your trading strategy and place trades at a regulated and stable binary options broker.