What are the Best Forex Trading Platforms?
Wondering what is the best forex trading platform?
Speculate no more, as in this guide; we are going to tell you the best forex Trading platforms and which one you should select for your trading ventures.
So, let's get started.
What is a trading platform?
If you are not living under the rock, then you probably know what a trading platform is. But, for those who don't know, a trading platform is a software program that allows you to trade by opening, closing, and managing market positions through a financial intermediary like an online broker.
Trading platforms are often packaged with additional features, including real-time quotes, charting software, news feeds, and even premium analysis. Platforms can also be customized for individual markets, such as stocks, currencies, options, and futures. Depending on their trading style and size, you can use a number of different trading platforms.
Some trading platforms are readily available, while others are only accessible while using broker. As a result, before committing to a particular trading platform to conduct trades, you should think about the credibility of the broker.
Forex trading platforms
MetaTrader, a trading platform that integrates with a variety of brokers, is the most common platform for many forex market participants.
Its MQL scripting language has become a standard tool for currency traders who want to automate their trading. MetaTrader platforms are divided into two categories: MT4 and MT5. Apart from these, cTrader is a new player, and is gaining the respect of many traders.
Below we'll mention each one of these platforms in detail.
1. MT4
MetaTrader 4 (MT4) is the most widely used retail currency trading platform. MetaQuotes developed the trading platform in 2005, and it now has over 85% market share among forex brokers worldwide.
Its popularity has increased over time as a result of its high levels of customization and automation. Newbie traders will appreciate MT4's fully functioning demo account, which allows you to practice trading without risking any money. A copy trading system and automated Expert Advisor software are two other beginner-friendly features of this trading platform.
MT4
Meanwhile, professional traders would enjoy MT4's advanced analytics and charting capabilities. Using the proprietary MQL4 programming language, you can even build your own trading indicators.
Key features
MetaTrader 4, like many of the best forex trading apps, allows you to execute trades instantly, on-demand, or based on market signals. Aside from that, MT4 has a number of unique and interesting features that make it stand out from the crowd.
Expert Advisors are one such example. These are MQL4-based proprietary programs that can assist you in automating trading. Expert Advisors' quality and cost differ since third parties create them, but they can have a significant effect on your portfolio when used correctly.
The MT4 platform's incredible level of customizability is another essential feature. You can create an interface that matches your exact trading tastes thanks to an infinite number of charts. Custom audio warning trading signals can also be set up to notify you when it's time to copy a trade.
The MT4 platform's advanced analytics toolset attracts experienced traders. With 30 built-in indicators, you can forecast price dynamics when you first install the software. After you've set up your account, you can add almost 3,000 more free and paid indicators.
Pros
- One-click trading
- 50+ Indicators
- Pending and limit orders
- 9 time-frames
- Multi charting
Cons
- Basic functionality
- Limited technical indicators
- Fewer timeframes than MT5
2. MT5
MetaQuotes created MetaTrader 5 three years after the release of MT4. The MQL5 language is used by the MetaTrader 5 platform, which is an automated trading software that runs on your machine and trades for you.
It has the ability to monitor financial symbols 24 hours a day, copy deals, produce and submit reports, review news, and even provide a unique custom graphical interface.
The platform has a straightforward and user-friendly interface that allows you to quickly access all the main menu commands.
MT5
The most commonly used ones are conveniently located on the toolbar. The Market Watch provides stock market and other instrument quotes, while the Navigator provides algorithmic trading software and allows you to manage the technical analysis.
Key features
Since the platform provides the entire development infrastructure for creating and optimizing your own EA, you can automate your successful trading strategy.
The copy trading option allows you to subscribe to active trader signals, making it easier to replicate all trades on your account automatically. For a demo or live accounts, there are hundreds of free and paid forex signals available.
The MetaTrader 5 platform supports the standard netting scheme for currency markets, including stocks and futures, and the hedging option system for forex. It supports two market orders, six pending orders, and two stop orders and has four execution modes: instant, request, market, and exchange execution.
The platform enables you to open 100 stock and forex charts at once, and the 21 timeframes will enable you to analyze even minor price changes in great detail. It also includes Gann, Fibonacci instruments, geometric forms, trendlines, different networks, and 80 technical indicators, and 44 analytical objects.
MT5 is also available for android and IOS like MT4. The mobile edition supports the full range of trading functions, including account tracking and trading history browsing, among other items.
Pros
- User-friendly interface
- Comprehensive set of analytical tools
- Supports eight different forms of pending orders and 21 different timeframes
- An economic calendar is available as part of the platform.
Cons
- Exchange rate hedging is disabled.
- Since the two platforms use other programming languages, a MetaTrader 4 consumer will need to relearn specific techniques.
- For a novice trader, advanced tools and features can be overwhelming.
3. cTrader
Spotware Systems, a Fintech company based in Limassol, Cyprus, launched the cTrader platform in 2011. The platform is unique in that it was created specifically for use with ECN brokers. cTrader has been the site of choice for a number of other leading ECN brokers since its initial launch with FxPro.
The platform is intended for use with brokers that have real-time, no-dealing-desk trading. This means that when you purchase or sell an instrument, you are engaging in a real-world transaction.
Visually, cTrader is very smooth and appealing; it has a simple, uncluttered interface that is very pleasing to the eye. The developers have gone to great lengths to make the platform as user-friendly as possible.
cTrader
A vertical column on the platform's left side displays a list of currency pairs or other instruments with bid/ask quotes (similar to MetaTrader's Market Watch window).
Since this platform is designed to work with ECN brokers, you can expect fair and genuine execution, which can work to your benefit if you understand how to trade in the real market.
Key features
Multi-chart, single-chart, and free-chart modes are available in cTrader. You can choose to have the chart area filled with only one chart and toggle between them, or you can have several charts tiled neatly beside each other.
You can update the color settings for each chart from the standard green and red bars on a black background to whatever you want.
Over 50 indicators are divided into Trend, Oscillator, Volatility, and Volume in the indicator list. In addition, there is a tab named Other. Moving Averages, MACD, Stochastics, Bollinger Bands, and a long list of other indicators are available to meet every trader's needs.
It's best to download a prototype cTrader to see whether your needs are met if you're a trader who relies on a very particular indicator or settings.
cTrader launched a new version in November 2019 that included a Pencil Tool feature that allows traders to draw on charts in a free-form style rather than being restricted to particular shapes or symbols.
Traders can now completely customize their charting experience and take more comprehensive notes on transactions and future trades with this new feature.
The platform's Copy trader features were also updated with the latest update, including the Date of Copying so traders can better monitor copied trades and the corresponding management fees.
Pros
- The platform shows which financial centers are open
- cTrader provides cAlgo for automated trading, which uses the.NET platform and the C# programming language, which some programmers may be more familiar with than MLQ4 or MLQ5.
Cons
- Spotware's server is in the United Kingdom, while MetaTrader's is in the United States, which may cause issues with liquidity and trade execution speeds.
Which platform should you choose?
Forex brokers decide the trading platforms that traders may use. The majority of brokers provide MT4, MT5, or cTrader, while others offer custom platforms best suited for beginners.
Based on the trading software's popularity, reliability, and automated trader features, MT4 is the best forex platform. Not only does the platform provide the best analytical tools on the market, but it also partners with thousands of brokers and provides excellent tools for new traders, such as demo accounts and copy trading. The platform's only drawback is that its execution speed isn't as fast as we'd like, making it unsuitable for high-frequency traders.
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