Individual investors are given access to FX markets via Forex trading platforms. From platforms for novice traders to the latest platforms, these are usually cost-free and well-made. So, how is your selection process?
The best option will be based upon your requirement, whether you need a convenient and uncomplicated one, an Artificial Intelligence Powered one, Robots, or MetaTrader 4 or 5 alternatives.
We uncover the critical things to consider and list three leading options as a starting point.
Forex Trading Software
The trading software is available in various forms for creating, adding functionality, or supporting platforms. For instance, software for adding tools to charting screens might differ from the one used for creating a predictor or an algorithm.
Platforms contain every kind of feature. However, several enable user-made Artificial Intelligence or add-ons to be included. Other clients can then download these tools without cost, but this additional feature is fascinating for some traders.
Most of the “Off-the-shelf” software lies in 2 categories, i.e., it is either used as an automated trading technique or to create signals. These are usually referred to as “bots” or robots.
FX Signals
As evident from the name, Signal platforms alert the client when market requirements are met.
In this software, options enable the user to dictate in case the user gets signals and how they are sent. The speed of the signals is essential since you need to get the information immediately.
The prime benefit of the software is that it does not require you to stick to the chair and monitor currency ups and downs in the market ticker 24/7 or stay aware of world politics. It is because you will be notified of the price goals as they arrive. The system can also be modified to recognize some patterns.
This software is a double-edged sword because it depends upon your judgment for making the right choice when the signal has been sent.
Signals will bring consistency to trading because traders will be placed when several requirements are met, eliminating impulse trading.
Automated Trading Systems
This type of software takes signals to a new logical stage. It not only identifies trading opportunities depending on your arrangement, but it will also place the trades as per your instructions.
It may be more convenient than a signal platform. However, if you are doing it correctly, it demands considerable work and tuning before you place an algorithm in the market to make it earn money for you.
The automated systems will carry out the trading of your money, employing a pre-established entry set and exit condition you selected before.
Applications are also available for checking the progress of your robot. However, it depends upon them to make good trades.
Forex Signals vs. FX Robots
Compared to the Signal Platform, the number of trades you can carry out using automated trade is unlimited. It is because the number of trades carried out by bots is way faster than by humans, and they can make them whenever the markets are open over the globe.
It implies that it is capable of making more money. However, you have to be sure of your technique since there’s a chance of losing money as fast as you can earn.
The bot follows trading rules until the trading balance finishes. It can happen if things begin going bad. Hence, automated platforms are most suitable for expert traders.
For Beginners – What Do You Demand From a Platform?
The platform you select depends upon your preference, your plans, and the amount you would like to spend.
You will come a long way, employing very uncomplicated and basic platforms for trading. However, if you are into exotic markets and use complicated techniques, every tool and option is available for your aid or for making trades simple and easy.
For novice traders, the most significant element is the human element. Hence, one of the beneficial features a platform can provide is a tutorial system that can aid you with basic knowledge.
Updates about recent trends, tips, and strategies, along with valuable suggestions, are given regularly via emails. Likewise, the client support service aids you in a good start. Hence, if they offer a 24/7 support service, that’s a plus point. The other features that you must consider are security and commission.
Focusing on any one of these will base on what’s best for you. However, focusing on security and caring more about the commissions when you are up and running would be better.
The most trustworthy brokers will provide detailed information about their security and regulatory demands. Also, various bodies over the world will be regulating a top-notch dealer. Hence, for a convenient trade experience, it can usually be the finest to opt for the dealers possessing detailed information behind them and large IT budgets for keeping your money safe.
The low-frequency traders might not even observe the commission charged by their dealers. However, as you evolve and use automated facilities, high-frequency traders can increase the fee you pay for one trade.
When this starts happening, it might require fishing around to ensure that the platform you are using is giving you the most excellent offer.
Forex Demo Account
If all of this sounds too much and you feel daunted, a demo account is an option many prefer to employ first.
Many platforms would enable you to operate a simulation account on the actual Forex market employing fictional money to demonstrate your performance if you had made the decisions you did.
It can benefit novice traders interested in testing and satisfying themselves cost-freely. It can also be helpful for the experienced ones interested in testing techniques and new ideas in an atmosphere with zero risks. It’s the best kind of training that one can get.
If a platform offers such a feature, we highly recommend it, and you must go for it. It should be counted as an actual benefit.
Forex Platform Types
Whatever platform you employ, there are chances that it will be dependent upon either of the two software packages, i.e., MT4 or MT5. These are the most well-known dealer platforms over the globe. OK, but what are the differences, and which should I opt for?
MetaTrader 4 (MT4) – MT4 is older than MT5. It has set many standards we have come to expect concerning what a web-based system can offer.
It is well-known for its comprehensive analytics that goes beyond the typical charting and graph you would expect to show your trade progress. Overall, thirty-one distinct graphical studies can be brought to results, together with Fibonacci studies and Elliot Wave drawing widgets.
It pioneered delivering these brilliant analytics to the mobile phone to enable users to access these robust widgets on their phones, like desktops.
MetaTrader 5 (MT5) – It was developed about five years ago and is an upgrade. However, it is not regarded as a better version of MetaTrader 4. It relies upon what you a.
Compared to MT4, MT5 is inclined more toward the US market and acts more under US regulations.
Since it has more features, such as 44 graphical studies rather than 31, it is suitable for high-frequency trading. If this is what you are searching for, then MetaTrader 5 is an excellent choice. And if not, then you might find the extra tools bulky and needless.
It is not thought that the base OS of MetaTrader 4 operates slower than MetaTrader 5. So consider it a slender version of the same thing with more of what you need and lesser of what you don’t.
Bespoke – Bespoke is the 3rd option for Forex platforms, and many dealers will offer white-label platforms together with the typical MetaTrader 4 and MetaTrader 5. Hence, these are also worth going through.
The best advantage of such platforms is that they are typically developed for a particular market, technique, or currency pair. So, if you have a solid plan, a platform designed around the idea is child’s play.
You will realize that trading with it is much more comfortable, and they also possess many user-friendly tools. However, it can be less flexible in other areas.
For Mac – Nowadays, most forex trading platforms possess versions capable of operating on Personal Computers and Mac devices. However, very few of them are developed to work on MAC without an emulator of some sort.
Though this is often a workable solution, you might figure out that specific platforms are not developed, mainly keeping Mac devices in mind. It might create issues like features bugging or not working at all. It can be a critical problem if you rely on these features as a part of your trading technique.
The ideal approach would be to prefer a platform developed to operate on Mac devices, which might reduce the options for particular products you can employ. However, you will be given every power of a top-notch Forex platform without fearing it may disappoint you.
You must also consider the connections these platforms possess with external dealers since there’s no good in opting for a platform that’s good for your Mac but is used by no one.
The platform that maintains the right balance among these two considerations is the most suitable.
Security
As described above, security is one of the vital characteristics. Let’s discuss it in detail;
In any security characteristic, a vast compromise is between safety and convenience, and you will figure out that gives surety in specialization in either of the two, sometimes both.
Another crucial factor you should care about is regulation by a legal body since it is more significant than any external characteristic.
It will assure that your platform or an honorable dealer remains confined to the laws in their market and will not get away with your money or use it on anything risky. It is the most basic security characteristic. Hence, it is preferable to go for the regulated and licensed ones for your satisfaction.
Other characteristics vary from dealer to dealer and platform to platform. These can comprise features like face or fingerprint scanning, two-factor authentication, security alerts via SMS or phone call, and the capability of locking and releasing your account remotely.
You might think of some of these as very helpful and some just annoying. So, the security level is dependent upon your decisions.
As said earlier, high-frequency traders in a reliable platform may feel like letting their guard down for convenience. On the other hand, small-scale traders may opt to set their security as high as possible.
