Best Forex Trading Platform is an important tool as retail trading is becoming famous day by day. And it has become obvious to find the best forex trading platform for traders & investors.
What is forex trading?
Forex trading is a unique place to buy & sell currencies to make a profit from the increase and decrease in the prices of different currencies. This is proficient by buying one currency and selling another at the same time. Trading happens electronically over-the-counter (OTC), via computer networks between individual traders and financial institutions around the world.
Trading usually takes place in currency pairs, where the first currency is known as the base currency, and the second currency is known as the quote, or counter currency.
Logically, traders are curious to know what the best trading platform is. In fact, ‘what is the best Forex trading platform? It is one of the biggest questions that a trader asks at the beginning of their forex trading journey. The fact is the market of the forex trading platform is much competitive, where finding the best trading platform is quite challenging for newbies.
Evolution of the Technology in Forex Trading
The global forex market makes the transaction of approximately $5.3 trillion every day which holds liability to the increasing number of institutional trades every day.
After the financial crisis of 2008, the economy was nearly cleared away. Thanks to the arrival of Forex Trading, which was growing at that time. Corporate investors exchanged their currencies to escape bankruptcy and retail traders started to involve in the market.
The improvement in technology increases the involvement of retail traders in forex trading much more than before. By using some forex trading platform, anyone can easily buy and sell currencies to make a profit from home.
Why is it important to find the best forex trading platform?
Besides the technical, fundamental and other analytical sources, the important part of forex trading is the platform to use. A forex trading platform is software that gives access to the trading market to conduct trading.
Some things are very important to consider when choosing a trading platform:
- Real-Time Trade: Real-time trading became easier with the forex trading platform since people with a standardized yet anonymous internet connection. Real-time trade became possible due to the accessibility of the internet, and the spot market is updated and upgraded instantly as per currency price changes.
- Reliability: The forex platform must be reliable to use for being able to execute the trading positions and be efficient in depositing and withdrawing your funds.
- Analytical Tools: Technology allows forex traders and brokers to pursue an in-depth understanding of the forex software they use. It also allows them to derive analytical data regarding their interests and choices in the global forex market.
- Fees: It is required to be aware of the fees platform charges, as they can eat away at any profits a trader makes.
- Ease of use: The platform must be easy for the trader to navigate and execute your trades.
Best Forex Trading Platform
The forex trading software industry is heavily dominated by MetaQuotes Corp- the producer of the Metatrader 4, which is the most popular software used by traders in the retail Forex market. MetaTrader 4 is the leading choice for most professional traders. Moreover, other options have developed in recent years.
MetaTrader 4 is the most common Forex trading platform among retail traders, which is specially designed for Forex trading. However, the retail Forex is relatively new in the industry; it did not have other reliable third-party software available except the MetaTrader 4. This reliable trading platform provides many useful features, which include:
- Provided Free by Most of the Forex Brokers
- More than 50 indicators
- Many available Expert Advisors
- 1-click trading
- Nine different Time Frame
- Pending orders
- Limit orders
- Multi charting
The above benefits make the Meta trader 4 reliable among the traders. Moreover, there is also a powerful set of mobile applications that are available for almost all types of operating systems, including Android, iOS, and Windows. Although the benefits, some professional traders argue that the platform is slower compared to the other platforms.
Metatrader 5 is quite similar to MetaTrader 4 and nowadays, it is considered one of the best Forex trading platforms.
Although the graphical structure is the same as Metatrader 4, MetaTrader 5 is marginally faster, and supports more types of orders. It also comes with a larger amount of indicators and has some other features.
Besides the better platform, there are not any other revolutionary differences, which can make MetaTrader 4 terminated. The other thing that is good about MetaTrader 5 is that it can handle a larger amount of trading instruments than MetaTrader 4.
The NinjaTrader trading platform has been created in 2004 and is designed for mostly active Forex, futures, and stock market traders.
This platform offers advanced charting, trade simulation and automated strategy building. The person who wishes to execute trades from their platform must buy a lifetime license or lease the platform on a timely basis.
cTrader is developed by Spotware as a competing trading platform for Forex traders. This platform offers advanced charting and trading features and the structure is similar to the MetaTrader platform.
As the MetaTrader platforms are very common in the industry, it is much easier to get support on the internet for the MetaTrader platforms. But the support may be limited for cTrader’s auto-trading capabilities.
There is no opportunity for customizing the indicator for the cTrader users with the limitations of using third-party programs, whereas the MetaTrader platform is mostly customizable.
This trading platform is available in a web browser, but now cTrader is supplied for Android and iOS devices only, which is preferable for most traders.
The ProRealTime trading platform is a technical analysis software that is developed in France by IT Finance. The platform is a unique web-based software that is backed up by the company’s cloud network. A wide range of advanced charting and analytical tools are available in this software with the ability to create customized market scanners and trading strategies.
There is a lot to consider when picking the best Forex platform for beginners – but MetaTrader 4 and MetaTrader 5 are at the top of the list for the best FX software. Moreover, they are time-tested and have been proven to work repeatedly.
Anyways, forex trading consists of high risk due to the volatility and the leverage a trader should discuss with the individual financial advisors before making an investment in this sector.