Forex Trading Basic

Best Trading Platform | Tips for choosing trading platform

Forex Trading Hedging Strategy

Before you start analyzing the factors that determine what is the Best Trading Platform, it should be noted that when we speak of platform we are not referring to the broker. Often, you will find articles that relate broker to the platform as synonyms, as that represent the same reality, and that’s not exactly true.

It is true that, as a general rule, the trading platform will be provided to us by the broker you have chosen. So, choosing a broker is much more important! Although it is also true that a single trading platform may be valid for trading Forex with different brokers. The trading platform is our working tool, while the broker is our agent to execute the orders derived from our analytic work in the platform.

Why choosing the Best Trading Platform is important? 

Often the fact of having a well functioned trading platform is overlooked by the traders. Many traders start trading with real money before learning all the functionalities of ta trading platform.

Our success in trading largely depends on learning how a trading platform works and how we use the platform for trade executions. There is more to understand in the trading platform which is responsible for translating on our computer screen anything that might be happening in the market. If that translation does not allow you to have a complete, simple and quick understanding of market reality, your trading decisions is likely to end in vain.

In addition to analyzing the market and make decisions about it, the trading platform is allowing us to interact with the market ; i.e. enter buy and sell orders, the stop loss, executing planned strategies while the operation is in full swing, etc. As surely you’ve already understood, leaving the decision to the trading platform to a simple “which facilitates my broker” is a risk to be avoided.

Types of Platforms: What is the Best Trading Platform?

The Forex platforms are programs that allow us to trade in the foreign exchange market, i.e., they allow us to receive information and to place different types of orders. The fundamental information that allow us to get the price of various currency pairs and their evolution over time. But we also can provide other information, such as:

  • Forex news
  • Opinion and technical and fundamental analysis
  • Opinions of other investors

With respect to orders, the simplest order is to buy or sell at market price, but Forex platform can allow us to place other orders.

The Best Trading Platform will allow the following orders: 

  • buy and sell at market price
  • buy and sell at a certain price (Pending Order)
  • stop loss and take profit

Here are some platforms and their subjective assessments to determine what is the Best Trading Platform:

MetaTrader

It is one of the most popular proprietary platforms and  many would  say that this is Best Trading Platform.It has a successful track record in the Forex market. It is very flexible, since it allows you to create or apply different trading tools for it through a programming language similar to C ++. You can have strategies, scripts, indicators and custom alerts in your platform. It also can automatically trade according to custom strategies.

Best Trading Platform

Trade Station:Best Trading Platform

It is not as popular as MetaTrader but also offers huge possibilities for customization and development of customized strategies. Some say it offers more possibilities than MetaTrader. Tradestation is not free, unless your broker offers it for free.

Ninja Trader:

It is also very complete software. Its first versions were very difficult to use for trading, but the latest version is having good reception.

ActTraderact-trader

ActTrader is another full-featured Forex trading platform that is developed by ActForex. The workspace of ActTrader is primarily designed for easy customization according to the needs and requirements of the user who can choose to trade CFDs, ETFs, forex, equities, Forwards and Options straight from the platform.

Web platforms:

Retail Forex brokers will often provide their own proprietary trading platforms to their clients. The quality of their deal execution platform often represents a key criterion that traders use in the selection of a Forex broker.

What to Look for in a Forex Trading Platform

In either case, the Forex trading platform you select should be easy to use, efficient in order entry and cancellation, allow account management capabilities and facilitate market analysis.

Basically, Forex trading platform software should allow traders to receive real-time Forex quotes, enter orders and execute transactions. In many cases, trading platforms will also offer a variety of other useful tools and features.

Why MetaTrader 4 is the Best Trading Platform?

The market standard for independent Forex trading platforms is the popular MetaTrader 4 trading platform. This sophisticated software package is offered online free of charge by its developer in a fully functional demo version.

The MetaTrader 4 platform provides an overall access point for the Forex trader to participate in the Forex market, as well as providing helpful analytical tools.

MetaTrader 4 Features

In addition to providing Forex quotes, deal execution, account management, news and other analytic capabilities, MT4 also offers traders the ability to automate their trade plans using the software’s proprietary MQL4 programming language. This language has specific features for Forex trading and allows you to create your own Expert Advisor or Custom Indicator.

Also, many commercial Expert Advisors or EAs, as well as a number of custom indicators, are specifically designed to run on MetaTrader 4. This allows you the possibility of automating your trading or using an existing trading robot to get started right away.

MetaTrader 4 Can Get You Started Trading Forex Fast

Once you take the time to download and install MetaTrader 4 on your PC – which takes approximately 15 minutes – pretty much the only thing left to do to make your first Forex trade is to open and fund an online Forex trading account.

This can get you started trading Forex very quickly, even if you know nothing whatsoever about the Forex market. This is especially true if you want to use a commercial Expert Advisor to perform your Forex trading automatically for you.

Nevertheless, you should be aware that many such EAs do not live up to their vendor’s sales pitch when subjected to a live trading environment.

In addition, the MetaTrader 4 trading platform can also serve as an excellent Forex educational tool, especially when combined with additional Internet educational research on how the forex market works and profitable forex trading strategies.

Basically, you need to practice trading using the MT4 system to trade a with an opening a Forex demo account with a suitable Forex broker before opening a live account can help prepare and familiarize a novice trader with respect to what trading in the Forex market actually entails.

MetaTrader 4 versus MetaTrader 5: Best Trading platform

best trading platform

Metatrader 5 is the latest version of MetaTrader and successor metratrader 4. Its adoption is slow and most brokers still use MetaTrader 4. The main differences between MetaTrader 4 and MetaTrader 5 are:

  • Unlike MetaTrader4, MetaTrader 5 is itself designed for the trading of equities, in addition to Forex trading, futures and CFD’s. MetaTrader 4 also allows the use of these instruments but was not designed specifically for this.
  • MetaTrader 5 includes a product market MQL integrated, which allows purchase products as indicators and strategies. In MetaTrader 4 you have to visit other web sites, as the official site of MQL4. (Http://www.mql4.com/)
  • The MetaTrader 5 products are not compatible with MetaTrader 4, this means that the Expert Advisors MetaTrader 4 will not work in MetaTrader 5.
  • MetaTrader 5 has more own indicators. 38 in MT5 against 30 in MT4 .
  • Most traders still prefer MetaTrader 4 and MetaTrader 5.

The Bottom Line: Best Trading Platform

As you have learned from this article that MT4 is the best trading platform, but not every MT4 platform provided by the brokers will result in same. We will recommend you to grab a platform from our recommended broker HYCM.

What next?

Lear More on MT4 Platform: Introduction to MT4 Platform

Get used to MT4 Platform: MT4 Platform functions

Learn How to open a demo account in MT4: Opening Demo Trading Account

LEarn How to open a live trading account: Opening a live Account

READ MORE

Chapter 3Getting Started with Forex Trading
Lesson 1Choosing Forex broker
Lesson 2Best Trading Platform
Lesson 3Introduction to MT4 Platform
Lesson 4MT4 Platform functions
Lesson 5Opening Demo Trading Account

Go back to Main Page: Forex Trading for Beginners

About the author

Syed Nazim

Syed Nazim is the Marketing Manager of RedMaroon, a Digital Marketing Agency for Financial Institutions. He is also involved with Forexing24.com as a writer and financial Analyst. He is a brilliant marketing geek with vast experience in every sector of Digital Marketing. He likes sharing strategies, tactics and proven methods to help you build a business and live the life of your dreams.

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