How to Choose Trading Platforms
What Is a Trading Platform
Trading platforms can be delineated as pieces of software that act as channels for information between a broker and a trader. They provide users with specific information, including charts and quotes, and have an interface for orders to be performed by the brokerage.
On one hand, a trading platform software may be based locally, which means it is downloaded and installed on an investor’s device and may be utilised with Mac, Windows, and/or Linux OS. The various brokers provide different solutions in this regard.
On the other hand, there are heaps of brokers that provide web-based software. The benefits of trading platforms that are web-based are that they may be utilised by any computer device that is hooked to the internet.
Most of the time, trading platforms are gratuitous, but specific brokerages necessitate a fee for providing traders with higher-functionality platforms. Other brokers possess platforms, characterised by various functionality levels for more active traders.
Types of Trading Platforms
As mentioned, two types of trading platforms exist:
- A web-based that is personally developed by each broker.
- A desktop software – MetaTrader4 or MetaTrader5.
The bulk of brokers offer both variants, but there are some exceptions that either offer a desktop version or a web-based software.
At Forex Brokers Reviews, we recommend newbie dealers to commence their trading careers with web-based platforms because they are easier and more user friendly. This is due to their ease of access directly from a browser, without any need for downloading additional programmes or complex software.
For seasoned traders, we wholeheartedly recommend MetaTrader4 and MetaTrader5. The MT platforms are teeming with useful functions and options, which advanced traders will already know and which they may utilise to their trading benefit.
Factors to Consider When Opting For a Platform
- Is the platform gratuitous? If not, what additional perks are available in exchange for the charge?
- Is the software Internet- (HTML or Java), Mac-, or Windows-based?
- What are the ready available technical indicators in the charting element?
- Is it possible to trade straight from the charts?
- Is back testing of strategies permitted through the platform?
- Does the platform’s software record historical data?
- How does the order interface look like and what are the available kinds of orders?
- Is the graphical user interface (GUI) soothing to the eyes?
- Does the GUI allow monitoring lots of information at once?
- Is the software equipped with an API, permitting extra software and programming?
The majority of Forex brokers let new-fangled users derive advantage from a demonstration account prior to cashing in a real trading account. Ensure you test every broker’s trading software throughout their trial periods to aid you in deciding which platform suits your necessities best.