Factors Considered When Choosing a Forex Trading Platform

A trading platform is simply the software provided by the broker to enable the trader to participate in the money markets. There are many platforms currently in existence, and they offer adequate information and tools necessary to enable the trader to participate efficiently in Forex. Some of the key information provided include quotes and charts. Furthermore, the platforms offer interfaces on which the trader executes their orders for the brokers to execute. These platforms can be localized via installation on a trader’s platform or they can be Web-based. Different brokers offer different platforms, but they are all compatible with Windows, Mac, and Linux systems.

MT4 and MT5

Web-based platforms can be accessed from anywhere and from any Internet-connected device. They run using Java and are free. Nonetheless, for added functionality, some brokers will offer premium platforms at a fee. In other cases, the most active traders are offered additional features to improve their trading experience. When choosing a platform, it is the norm of traders to select platforms with powerful tools and are easy to use. MetaTrader4 (MT4) and MetaTrader5 (MT5) are the most preferred platforms because they are easy to use and are highly stable.

This software is developed by a Russian company based in Cyprus known as MetaQuotes. They develop additional plug-ins to enhance the experience for traders using their platform. MT4 has API that allows traders to implement all their trading strategies automatically. The Expert Advisors feature enables traders to trade with increased precision and efficiency while using the MT4 platform.

MT4 mainly uses MQL4 program language that allows experts to compile and write trading strategies to be executed on the MT4 terminal upon request. Thus, the platform attracts experts and new traders due to these additional tools and features.

Multiterminal

Another popular platform is the Multiterminal. It is popular for traders with multiple accounts it enables them to monitor all their accounts without having to log into each of them manually. The platform allows the traders and money managers to executes trades on a scale all the consolidated accounts, and it is prompt and efficient.

Though the Multiterminal is highly beneficial, multiple accounts management is considered illegal till the manager or trader is issued with a legitimate operating license. But, it should be noted that Expert Advisors (EAs) cannot be operational on
the Multiterminal.

ECN

Currenex platforms are the other popular platforms that are not MT4. The platform creates an ECN transparent trading environment that is fair with no conflicts between clients and brokers. In the ECN platforms, many participants are listed with their offers available on display. Buyers and sellers meet in an order book that has the biggest differences between the BID and ASK offers. This difference that is also the spread pops on top of the book.

Traders operating with significant money volumes prefer the Currenex platform. Moreover, ECN trading platforms are more affordable hence traders with large volumes prefer them. The spread is narrowed down as much as the markets can allow via commission costs added to the costs incurred. When choosing a platform, every trader is advised to choose wisely since the platform is the fundamental tool of trade in the Forex markets.

Speed

The execution speed also determines the selection of these trading platforms. Speed is essential when markets are highly volatile. Prompt executions enable traders to scalp the markets profitably and successfully.

Summary

It is evident that costs incurred determine the type of platforms that traders choose to use in the markets. Also, charts and technical indicators’ availability will influence the platform that the traders want. The best platforms provide for back-testing of strategies and have Graphic User Interface that monitor a lot of
information simultaneously.The API provides for additional automation and programming. Traders are advised to use the brokers demo accounts to determine the one that best suits their trading strategies.

Categories: Tutorials

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