Trading platforms are a crucial part of anyone’s trading experience. They’re how traders most directly interact with the markets, and where they spend most of their trading hours. Their features and limitations can dictate which strategies are viable, and some tactics, like algo trading, are available only because of online trading platforms.
And in the endless task of optimising your trading routine, making small tweaks here and there, and finding new solutions to tackle specific situations you encounter so that you squeeze every penny that you can out of the markets, platform choice has a significant impact. Choosing the best platform, sensibly, leads to the best results.
But that’s like looking for the best pair of shoes. Different shoes work better for different events, look and feel different, and in the end, you’re the one wearing them. You wouldn’t wear dress shoes to take a quick run, nor would you put on your comfy running shoes to a fancy event. Similarly, you can only find the best option for your needs and current situation.
And while that isn’t the quick answer you were perhaps looking for, we’re still here to help. In this text, we’ll outline some of the most common options you’ll run into, as well as who might get the most mileage out of them.
Choosing a trading platform – What you should consider
Before we dig into online trading platforms individually, we’ll outline some of the things a forex trader may look for in a platform.
Availability
For a platform to be a viable choice, a good forex broker has to offer it. A good platform won’t do you much good if it’s only available with high-cost, low-variety brokerages.
As such, when choosing your preferred platform, you may want to choose ones on the popular side (it’s also why our text covers the most widespread options).
Asset variety
Not all assets can be connected to all markets. You need to make sure that your online trading platform supports all the trading instruments in your trading routine.
Indicators and visual tools
Generally, you’ll want to do a good portion of your analysis inside your trading platform. That’s why a good set of tools to help understand markets is key. If your platform lacks these features, external tools can alleviate the issue, but it’s smart to avoid workarounds as much as possible in trading.
Complex features of trading platform
Most traders keep their trading routine somewhat simple, but pros can get a lot of mileage out of platform features. Backtesting, EAs, calculators, and DOM, are things most traders won’t consider, but that could streamline trading processes and find small optimisations.
Comfort
When you get frustrated, you make bad decisions. Trading is inherently stressful. In that environment, it’s wise to eliminate other potential causes of stress.
People often underestimate how important it is for you to be happy with how your platform handles. This includes things such as interface, navigation, and how smoothly it runs on your device.
Actually, liking your trading interface can improve your trading longevity. This leads to reduced frustration, which is beneficial for trading.
Additionally, it has a positive impact on life in general. Therefore, finding a trading platform you enjoy can enhance both your trading experience and overall well-being.
MetaTrader 4 trading platform
Earlier we said there isn’t a quick answer regarding the best platform. However, MetaTrader 4 (MT4) is definitely the closest you can get. The platform has spread widely and traders consider it the standard in the Forex and CFD trading world.
Once you get past the somewhat outdated design, the system becomes quite easy to use. At least, this is true for the basic features. Therefore, while the design may seem old-fashioned, the main functions are user-friendly.
It can connect to all markets and has a deep pool of assets available (again, depending on the CFD broker’s server). It has a set of 30 baseline indicators and some EAs that you can apply out of the box. The interface is completely modular, letting you set up your proverbial desk however you like.
MetaTrader 4’s popularity isn’t just an advantage because you’ll find it with most brokers. It has an active community, with thousands of custom indicators available. This way, the system grows and can support almost any type of analysis you can imagine.
It’s also fairly good when it comes to more advanced features. It has multiple order execution types, supports backtesting, and has EAs available. For the most tech-savvy investors, the MQL4 custom programming language lets you create your own indicators and EAs.
MT4 is always updated
MT4 is an online trading platform that you can use for years and years and still find new things. Paired with the low barrier to entry, we can see why it’s the frontrunner in the forex world. However, the dated look and feel may push traders to look for more modern-looking or intuitive options.
MetaTrader 5 online platform
MetaTrader 5 is the successor of MT4, but it isn’t a direct upgrade, with both being prominently but separately present on the market. Its interface is a bit more modern but a bit more complex, making it slightly worse for newer traders.
MT5 is meant for more advanced traders than its predecessor. For instance, instead of only supporting hedging, it has hedging and netting. This is a feature that makes virtually no difference for most traders, but those with detailed tactics may find use of it.
The primary advantage of MetaTrader 5 is its more advanced technical capability. For instance, its backtesting is multi-currency and multi-threaded, allowing you to paint a much clearer picture of your strategy.
Pruebas retrospectivas is also generally faster on MT5. MQL5 is also a more complex, object-oriented program language than MQL4. All this also leads to better EAs, making MT5 a better tool for algorithmic traders.
The glaring weakness is that the system is much less common than MT4. Often, it also requires a special account with fewer options than other trading accounts. So while MT5 may be a better investment in the long run, it’s also more limiting and somewhat overwhelming for newer traders.
cTrader
This online trading platform is quite a bit newer than both versions of MetaTrader and it shows. However, while there’s a small gap in availability between MetaTrader 4 and MetaTrader 5, cTrader lags way behind. Even though it’s likely the third most popular forex and CFD trading platform, it’s much, much rarer than either MT.
Function-wise, it’s interesting. Its usability is much better, with a modern interface and more intuitive commands. It has built-in cloud sync, and on the advanced side, offers better DOM features than both MetaTraders, making it valuable for scalpers.
C# programming language for algo trading
Another unique advantage is that it uses the C# programming language for algo trading. It’s important to note that its capabilities are much worse than MT4 or 5, however. But if you’re a programmer already and want to play around, you’ll likely be able to use cTrader’s features faster as they’ll be at least somewhat familiar.
Not much else can be said in cTrader’s favour, unfortunately. Its backtesting capabilities are worse although the UI is cleaner, its customisation is more limited, and the number of free indicators and tools is smaller.
If you’re a scalper, or you prefer how it feels, cTrader is an entirely valid choice, though. It’s a powerful tool and doesn’t lag behind industry leaders for basic trading routines. The biggest issue you may run into is that if you designate cTrader as your main platform, you’re limiting your broker choices. But again, if you’re confident you’ll stay with a broker that offers cTrader for a while, that isn’t an issue.
Proprietary platforms
A lot of online brokers have in-house platforms for traders to use. Generally, these offer a simple UI and easy trading protocols making them great for beginners. However, there are some really interesting specialty tools in there as well.
Due to the wide variety within this category, it’s impossible for us to comment on it as a whole. Our advice is that, if you see that your broker offers a trading platform, you should test it out. At worst you figure out that you don’t like it after a few hours, and at best you have a new tool in your trading arsenal.
Copytrading/social trading platforms
Lastly, we come to copytrading platforms. These aren’t really separate platforms usually, but interfaces that let you follow trades and strategies for other investors.
For beginners, they might be a good tool to start getting used to trading concepts, and for more advanced traders, a nice way to have a steady income stream without investing mental energy.
However, these platforms do reduce the earnings since there are commissions for copytrading. Additionally, they can become a bit of a crutch. We recommend against them being your main way of market interaction, unless you’re not really interested in trading.
Experiment and find the best trading platform for YOU!
Our final piece of advice is to experiment. We can’t emphasise enough that it’s crucial how the platform feels to you. Trading is highly individual, and everyone has their preferred market behaviour and ways of using software.
Don’t stick to one thing because it’s more technologically advanced on paper (especially if you aren’t using the technologically advanced features). The only way you’ll find the best platform is by trying out a bunch of them, so don’t be afraid to do so.
Descargo de responsabilidad: Esta información no se considera asesoramiento ni recomendación para invertir, sino que es una comunicación de marketing
