A lot of people call me to ask which one I think is A good Forex trading platform and also profitable. What they really mean is asking if it’s profitable and this is where we need to understand that a trading platform is not a trading method, it in-fact is software where you place your buy and sell orders. It’s not feasible for a broker to manually and physically attend to all your calls, hence they give you this facility to just download their trading platform and place your orders by just clicking a few buttons, buy or sell; your choice. You can also check your account summary as well as open and closed positions status on the same trading platform. A good Forex trading platform will also let you view and print all your trading or transactions statements for any trading time period of your choice by click of a few buttons. To start with, understand that a trading platform is the main software which connects you to your account and your account to the markets.
However, there are more things that go into defining a good Forex trading platform than just a trading platform which we will touch upon in a while but for the moment, we need to understand that there is standard trading software called MetaTrader which is available with all of the brokers. Meta-trader has its version where the most basic was MT1 but progressively they have brought it to version5 that has more of features in terms of its use and user friendliness. Besides Meta-trader, some brokers prefer to develop their own proprietary software called STANDALONE trading platform and enjoy patent rights to ownership of it. Given a choice, a broker will prefer offering only the standalone software to its clients but, they find a difficulty that most of the traders who have a mind set for meta-trader platform prefer trading only on Meta-trader, rather than trying to understand the functionality of some other trading platform. Hence brokers do not have choice but to offer them both the options.
So five Meta-trader version and tens of standalone software can give you a difficult time deciding which one you want to choose, so let me give you a few tips to experiment with. This will help you in your selection:
a) A good Forex trading platform will always have a separate charting application and not inbuilt. In helps you at the time of slow internet connectivity where the bandwidth required to log into the platform is really low. A trading platform with no charts will load onto your computer faster even with low-bandwidth rather than a platform with inbuilt- charts which requires higher bandwidth to load.
b) A good Forex trading platform will give you facility to trade with a single click, unlike the typical software where you need to click many button to confirm your traders. It helps you when you are a scalping trader or prefer taking quick opportunities especially at the moment of sudden spikes or market news. Similarly, a good trading platform will also give you a facility like WYCIWYG which means what you click is what you get. It helps you avoid the re-quotes problem that usually starts happening when you have made profits in your account. Most of the profitable traders experience that after taking their profit to a certain level; they find it hard to open positions as the platform keeps on re-quoting but never takes your order through.
c) A good Forex trading platform will have the features to accept complex orders including Good until closed and one cancels another. Some strategists build their game around many conditions which they want to load on to their trading platform every time it’s formulated and then obviously, leave it on the markets to take a course. A platform with advanced order-taking features helps in this kind of a trading unlike the traditional ones where you just give ENTRY, TP and SL based orders.
d) That’s about a good Forex trading platform but If I were to talk about a SUPER-GOOD forex trading platform, then it would have a trading automation facility where I could just script my algorithm and market analysis indicators on to its charting application from where it would read the markets on its own and place automated orders into my platform on its own. In other words, a good forex trading platform will have scope for designing and installing the expert advisors for automated trading.
Things are happening and trading platforms are being taken to new levels of sophistication. “Deltastock broker” has come out a with a software that shows you market rates from multiple banks and multiple brokers with available liquidity options so you not only get the best rates but also get easily disposable volumes. Even better is that “Etoro broker” has come up with new kind of a feature called OpenBook where you can see your fellow traders and also see all their positions. Of course, it’s on a separate window so that it does not mix with your personal trading operations but you also have this facility to put open-book inside your own platform so that you can chat live with them, find a more human interaction based atmosphere, and finally follow them or lead them, your trading experience.