Forex · Beginner · 4 min

MetaTrader 4/5 and cTrader at a glance

You can describe what forex trading platforms do, how they differ from the broker behind them, and what to check before trusting one.

Same screen, different broker

Open the websites of many forex brokers and you will see the same few names: MetaTrader 4, MetaTrader 5, cTrader. The screenshots look identical, the buttons too.

That can make very different providers look alike. This lesson describes what these platforms are, what they do and do not decide, and what to watch out for when automated trading enters the picture. It names them neutrally, without recommending any.

Software, not broker

A trading platform is software for viewing charts, placing orders and managing positions. Three are especially common in retail forex and CFDs:

MetaTrader 4 and MetaTrader 5, developed by MetaQuotes. MetaTrader 5 is the newer version and supports more asset types.
cTrader, developed by Spotware.

Brokers license these platforms and connect them to their own systems.

The key point: the platform does not set prices, execute your orders or hold your money. The broker behind it does. That means:

Prices and spreads come from the broker.
Execution depends on the broker, including whether it acts as market maker, as covered in the lesson on broker types.
Swaps, leverage and margin rules are set by the broker.
Your money sits with the broker, so its regulation and investor protection matter.

Two traders using the same platform at two brokers can see different prices and get different fills.

Platforms also allow automated trading. In MetaTrader, such programs are called an expert advisor, often shortened to EA. Many are sold online with impressive track records. Backtests can be fitted to the past, screenshots edited and accounts selected. Regulators such as the CFTC warn about schemes that promise high returns from trading bots.

Download platforms only through your regulated broker or the official provider. Fake copies of popular trading apps have been used in scams.

Backtest ≠ live

A fictional trader buys an expert advisor online. Its sales page shows a smooth equity curve with 90% winning months over five years.

The curve comes from a backtest, optimized on past data.
Live, the robot trades profitably for two months.
Then a central bank surprise moves the market sharply. The robot keeps adding to a losing position, and the account loses 40% in a day.

The platform worked perfectly. The strategy did not, and the track record was never real trading.

Common mistakes

Choosing a broker by its platform. The broker decides prices, safety and costs.
Trusting robot track records. Backtests and screenshots are easy to fake or fit.
Downloading platforms from unofficial sources. Fake apps exist.
Letting automation run unattended. Programs do not understand surprises.

The takeaway

MetaTrader and cTrader are software, not brokers. The same platform can show different prices and fills at different brokers, so check the broker.

Check yourself

Quick quiz

4 questions. Instant feedback, nothing is saved.

1Tap the step that decides the prices and fills you get.

Tap the chart.

The platform is only software. The broker behind it quotes the prices, executes the orders and holds your money.
2Two traders use the same platform software at two different brokers. Will they see the same prices?

Spreads, swaps, execution and leverage depend on the broker, not on the software.
3What is an expert advisor in MetaTrader?

Expert advisors are scripts. Many sold online promise more than any program can deliver.
4A website sells a trading robot with a track record of 90% winning months. What should you assume?

Backtests and screenshots are easy to manipulate. Regulators warn against promises of high, steady returns.

of 4 correct.