Trading platforms are software that allow you to open new positions in the market and manage existing positions. Electronic trading platforms form an essential part of a trader’s experience in the Forex market. Traders should choose a platform that suits their needs and provides them with powerful tools and features to achieve success in this dynamic market. In this article, we will review the best trading platforms in the Forex market, focusing on the features and benefits they offer to traders.
MetaTrader 4 (MT4) and MetaTrader 5 (MT5):
The MT4 and MT5 platforms are among the most popular and used in the Forex market.
It offers an easy-to-use interface, advanced technical analysis features, and automated trading capabilities.
cTrader:
It features a modern and easy-to-use user interface.
Offers fast execution features and advanced technical analysis tools.
NinjaTrader:
Primarily designed for trading CFDs and futures.
It allows traders to create and test customized trading strategies.
TradingView:
A social analytics platform that allows traders to share analysis and insights.
Provides advanced charting and powerful technical analysis tools.
IG Trading Platform:
A popular platform that provides direct and instant trading.
It offers advanced analysis and regularly updated economic news.
How to choose a trading platform:
Company Reputation: Choose a platform from a reputable and licensed company.
Trading Features: Make sure the platform meets your needs in terms of tools and analytics.
Execution technology: Choose a platform that provides fast and reliable execution. How do trading platforms work? Online trading platforms provide software that connects you to the financial markets. They are used alongside brokerage services to enter buy or sell orders. Online trading is only possible if you have the right tools and software through the trading platform. Trading platforms are the mechanism that allows traders – and you – to interact with the financial markets.
Types of trading platforms in the Forex market
There are two main types of trading platforms:
Private platforms
The proprietary platforms are designed for large institutions, such as investment banks. The distinguishing feature of these private platforms (as the word “prop” suggests) is that they are tailored to the company or organization using them. Proprietary platforms are built on advanced software, are designed for institutional trading purposes, and are not accessible to retail traders
Professional institutional trading entities can use proprietary platforms not only to access markets and execute their trades, but also to perform simulations. The goal here is to create an exclusive trading platform where traders can analyze, buy/sell, and make forecasts through a single platform.
Commercial platforms
Trading platforms target retail traders. It allows you to buy/sell, analyze charts, get market updates and learn the basics of trading. And if you’re an individual trader, trading platforms give you everything you need to place trades, manage your positions and get market insights. They are also customizable, but different from the way proprietary platforms are. It is completely bespoke, based on the needs of the organization that commissioned the platform. On the other hand, commercial trading platforms come with a set of features that are accessible to all users on the platform. Users can switch between different features based on their trading strategy, or customize parts of the software based on their needs. Account holders enjoy free access to MetaTrader platforms. Popular among online retail traders, these trading platforms offer a wealth of features as well as access to a wide range of financial instruments.
Which trading platform is best for me? The best platform depends on the type of trading you want to do. For easy and direct access to the markets and financial instruments, the MT4 and MT5 platforms are great for that. You can also try alternatives like TradingView or NinjaTrader platforms. People with more experience may also want to try a trading platform, as it offers advanced analytics, through features such as visualization tools and heat maps.
Trading platforms? MetaTrader 4 and MetaTrader 5 platforms
The MetaTrader 4 (MT4) platform was developed by MetaQuotes in 2005. It provides access to the financial markets for users of Windows, Android and iOS devices. You can download the MT4 platform through trading companies and enjoy trading Forex, indices, metals and oil. Users can benefit from the following features:
- Plot up to nine time frames on the chart so you can identify potential price trends.
- Have up to four pending orders at one time.
- Hedging positions, i.e. opening a second position that conflicts with the original position. Example: You buy Tesla shares but believe that there will be a decline in prices in the short term. You can then hedge the position and sell, keeping your original position.
- Use 30 technical indicators to analyze financial markets.
- Customize parts of the software to create your own technical indicators and algorithmic trading orders.
MetaTrader 5 platform
For those who want a more advanced experience, the MT5 platform is available for free download at Infinox. It provides access to more financial instruments, as well as additional features that may benefit experienced traders:
- You can trade Forex, indices, metals, oil and stocks via the MT5 platform.
Plot up to 21 time frames on the chart so you can identify potential price trends. And hold up to six pending orders at a time.
Hedging positions, i.e. opening a second position that conflicts with the original position. For example, if you are long on Tesla shares but think there will be a price decline in the short term, then you can hedge the position and sell, keeping your original position.
Trading platforms and how to choose them
Here are some considerations to help you get started:
- What are the costs and fees?
- Is the trading platform free? If not, how much commission will you pay on your trades?
- Do you need access to Tier 2 pricing? Traders can access the Nasdaq order book to check market depth and momentum, a service referred to as Level 2. Traders can sign up to receive Level 2 data, which tells them the bid and ask price range at a given price level.
- Is there a minimum capital requirement? Some trading platforms require that you have a certain amount of money in your trading account.
- What analytics can you access via the trading platform?
- Do you have access to features like charts, news feeds and expert insights? The amount of information you need depends on how experienced you are at reading financial statements.
- Can you benefit from learning anything through the platform? Make sure the program you choose gives you access to educational materials. If you want to learn from others more directly, you may want to choose a social trading platform, such as IX Social.
- Brokers offer platforms in 3 versions: in the form of software installed on a computer, in the form displayed in an Internet browser and in the form of a mobile device application.
Downloading the platform to the computer includes downloading a file, installing it on the computer, and then starting to use the platform. This solution enables the platform to operate in a more stable, faster and reliable way. Sometimes the disadvantage of this choice may be that changing the platform settings is done through a specific computer and in a world where everything has become portable, this choice has begun to lose its popularity among retail investors.