Editorial staff
When getting into the trading space, you need to understand the kind of platform that your broker is using. Multi-regulated FX brokerages such as TIOmarkets offer powerful platforms including MT5, which this article will further debate. The best forex trading platforms present traders with a way to place and track a watchlist of currencies, receive alerts when there are interesting trades to undertake and perform complex trades. If you are a beginner getting into this space, you really can’t afford to miss out on the kind of trading platform you use.
There are often two main types of trading platforms that you can find out there. The first is the proprietary platforms that are developed by brokers and offer specific features, and the other is third-party platforms like TradingView, which are user friendly. However, these ones might lack a deep sense of customization.
Making the comparison
Comparing both kinds of trading platforms, you’ll find different pros and cons. For example, the platforms developed by brokers have specific features that work with the brokers, but it becomes difficult to use them when you want to change brokers. Also, since the broker’s main purpose is to earn commissions and charges, they may not fully focus on the quality of their platform. Even though the platforms are not substandard, they might be complex, only to be understood by high-end traders.
On the other hand, platforms like MT4, MT5 and TradingView can be more user-friendly but lack the customization as far as the broker is concerned. You see, certain traders might want a professional trading platform that is customized with the broker’s feeds, so that they can get live updates. However, since the broker is the one buying the platform, they might embed features that favor the broker but are not liked by the users. However, their user-friendliness is great, especially if you want to move from one broker to another with ease.
How to choose the best forex trading platform for your needs
Once you have made the decision that you actually want to start forex trading and you are serious about getting a platform, then you need to apply some rigorous selection criteria. The platforms you choose should offer you comfort, and the features they have should be easily understandable. There is no need to operate with a platform that makes you look like a pro to the outside world, but the functionality makes you scream for your life.
Before you can even start looking at the features, the platform should already entice you on the first site. If it is not that much enticing, then start looking for common things like graphics and buttons that help you navigate with ease. If these do not appeal to you, you can be sure that you will take a lot of time to be accepting of the platform.
The platforms should be reliable
Being reliable is the first thing that a trading platform should offer. So, the reliability of execution and the reliability of deposits and withdrawals are very key. Ensure that it supports the most common payment methods, since that can be very frustrating.
Does it have a mobile app?
In the current world of smartphones everywhere, it would be a big plus if the platform you chose had a slick mobile app. This makes trading flexible and convenient. There is a rampant growth of trading apps which has merely coincided with how user preference is evolving. More people are getting more interested in managing their money through smartphones and tablets.
Confirm the license
It is important that you find a platform that is licensed in your jurisdiction. You want a platform that is closely monitored by a monetary authority that audits it in terms of:
- Privacy policy
- Deposits
- Withdrawals
- Funds security
- Best execution policy
- Trading activities
Watch out for the trading conditions
Different brokerage services usually have spreads and fees that are guaranteed to affect your capital once you trade with their platform. If there are too many, then your potential profit might be significantly affected. You can also look at the ease of deposits and withdrawals, leverage and margin requirements, even though they are not really major factors.
Best trading platforms to work with
Some of the most popular trading platforms that are offered by a majority of brokerage services include TradingView and MetaTrader.
MetaTrader 4 and 5
Once you mention forex trading to any trader you meet, they will definitely tell you about MetaTrader 5 (MT5), which is an addition to MetaTrader 4 (MT4). MT5 was awarded the ‘best forex trading platform’ in 2019 and 2020 at the Finance Magnates Awards.
Both trading platforms are flexible and complement each other when trading forex. It is important to note that MT5 is not an update to MT4, but is a system with a different purpose. For MT5, you can also trade stocks, CFDs and futures, on top of the forex that MT4 offers.
TradingView
The brainchild of trio Denis Globa, Constantin Ivanova and Stan Bokov was launched in 2011, and has gained massive popularity over the last few years. It offers comprehensive trading, social networking solutions and charting for the financial community with a good number of advanced features and interactive tools.
Users of the platforms have the chance to interact with a vast range of drawing tools, technical analysis indicators and customizable charts. On top of that, the platform facilitates a global market data coverage that ensures traders have real-time information whenever they want.
All in all, if you are a beginner, it is important that you have prior knowledge of what you will be interacting with. Ensure that you are reading reviews to understand what platforms best suit your purpose and the ones that can bring out the best in you.
Editorial staff
