Forex traders who intend to stay in the industry for a long time should carefully choose the forex trading platform that best suits their demands.
Every trader wants a great trading platform. Ideally, it should be user-friendly and can execute your trading plan efficiently. Paired with a good forex broker, a trading platform will increase the overall profitability of your forex trading.
What Are Forex Trading Platforms
Forex trading platforms, in general, are software programs that allow retail currency traders to conduct forex transactions, submit orders, and get real-time quotations, typically through the Internet.
There are trading platforms that have a basic user interface while some animated their interface to make it look like a video game.
In addition, some trading platforms have tools for technical analysis which can help in managing overall success and limit their risk exposure.
There are traders who run their trading platform on a VPS or Virtual Private Server. As a result, the risk of downtime is minimized and desired actions are executed properly and on time.
Many Forex Broker Provide Their Own Trading Platforms
There are a lot of retail forex brokers that provide their own forex trading platform. It may be software that you can easily download on your computer or mobile phone. The platform’s performance is a major factor that a trader must consider when choosing a forex broker.
However, there are also some brokers who chose to support popular third-party platforms such as the MetaTrader 4 which can be easily downloaded from their site.
MetaTrader 4 is the most popular forex trading platform in the market. Anybody can download the demo version for free on their website. The demo is supported by most forex brokers. Aside from providing quotes and graphs. MetaTrader 4 also provides a programming language that can function as a bot to execute your trading strategy, provide current news and account management tools.
As a result, MT4 is very popular with traders who can create bots to improve their trading strategies. As a matter of fact, a lot of programmers offer their programs to act as an EA or Expert Advisor that run exclusively with MetaTrader 4.
Features of a Good Trading Platform
Remember to check the trading platform features that are being offered by brokers. Make a checklist of features that you think fit your trading plan and help you improve your long-term goals.
Here’s an example of features that is a must-have for a trading platform:
- User friendly
- Real-time quote update
- Can provide fundamental and technical analysis
- Execute orders such as entering and canceling a trade
- Supported by your forex broker
Examine the features of a trading platform carefully to ensure that the program will fulfill your trading demands effectively at a fair cost, preferably for free.