The Prominence Of Modern Forex Trading Platforms
Forex is one of the most highly rated financial markets in the world that results in a staggering $5 Trillion worth of transactions happening on a daily basis. Both institutional, as well as retail traders, contribute towards the massive daily volumes, and various economic events are considered to have an enormous impact on the market. Forex is known to be highly volatile, which makes it one of the most attractive investment platforms for high-risk investors.
The large rise in the popularity of Forex trading over the past decade has led to the development of several Forex trading platforms that are aimed to satisfy the stringent requirements of the modern day trader. Although Forex trading has many characteristics that are similar to traditional stock trading, the concept of modern day Forex transactions is revolutionary regarding dealing and investing.
The Different Types Of Forex Trading Accounts & Platforms
Forex trading platforms are designed to connect a trader to the FX market either through a dealing desk, STP, or through an ECN account. All of these accounts differ in the spreads, quotes, commissions, and the way in which orders are carried out over the trading platform. An ECN account connects a trader directly to the liquidity provider such as banks, which in turn helps traders to enjoy tighter spreads, instant market execution of orders, and access to better quotes when compared to normal STP accounts. ECN accounts are also virtually free from dealing desks, which further enhances the speed of execution as well as the overall trading experience. STP and dealing desks, on the other hand, involves higher spreads, slower execution times, and sometimes charges a commission too. Most experienced, as well as professional traders usually, prefer trading through ECN accounts; however, some traders prefer dealing desks and STP account due to their relative lack of commissions and other fees.
Top 3 Forex Trading Offers
STP accounts are further divided into two different forms, the Micro, and the Standard account, which allows a trader to trade using micro and standard lots respectively. However, apart from the obvious difference between ECN and STP accounts, all types of trading and order execution are carried out over dedicated trading platforms that are either developed solely by a broker, or by using white label trading platforms that are designed by standalone trading platform developers.
Some of the large FX brokers prefer to build proprietary trading platforms from scratch, but several companies also offer a diverse set of trading platforms to help their traders to choose a platform that satisfies their specific trading requirements. Currently, MetaTrader is the most popular trading platform that is used by a significant majority of Forex brokers and is considered to be one of the most preferred Forex trading platforms for a large number of traders from across the globe. Other popular trading platforms include the cTrader, ProTrader, TradingStation, Ninja Trader, MarketsPulse, and JForex, among others; however, MetaTrader continues to be at the top of the list due to the simple, powerful, and user-friendly nature of the interface.
Traders can also make use of the WebTrader platform that works on a Java based platform, which allows traders to access their trading accounts through a web browser. While conventional desktop trading terminals are required to be installed on a computer, a WebTrader can be used virtually anywhere in the world by just using a web browser and a secure internet connection. WebTrader can also be used on mobile devices as modern day smartphones and tablets have excellent capabilities to run even the most demanding applications.
With the introduction of mobile devices into the market, FX trading has quickly found a way to cater to traders who wish to trade on the move. Several trading platforms are now designed exclusively for iOS as well as Android operating systems and offer a broad range of features and conveniences to mobile traders. Several industry leaders estimate mobile trading to be the future of the financial markets, which is witnessed by the significant penetration of mobile Forex trading platforms into the average retail trader market.
FX Trading Platforms vs. Traditional Stock Trading Platforms
Traditional stock trading platforms use a dealing desk model where the traders can either ring up their broker to place orders, or open trades within the platform itself. These platforms offer the ability to pull up quotes, open detailed historical charts, and perform technical or fundamental analysis on stocks and indices according to a trader’s preferences. FX trading platforms are an advanced form of the traditional stock trading platform that offers insight into currency pairs, commodities, and precious metals. Forex trading interfaces are connected to a global liquidity pool such as an interbank or a dealing desk, which is significantly different to a stock trading platform that is connected directly to a stock exchange.
Stock trading platforms are regulated by specific stock exchanges and financial regulatory authorities applicable to the exchange’s home country, and all market participants are required to follow the rules that govern trading and investing in the respective stock exchange. Forex trading, on the other hand, is a global financial market and is not reserved to a country’s particular economy. Therefore, FX brokers and their trading platforms can either be regulated by a single regulatory agency in a particular country, or by a group of regulators situated in different countries.
Both the Forex as well as Stock trading platforms have many similar characteristics that make them comparable to each other. Several new age FX trading platforms also offer the unique ability of trading stocks, indices, bonds, and other financial instruments along with currency pairs, thereby enabling traders to diversify their investment portfolio in both the currency markets as well as stock exchanges by using a single trading account.
How To Find A Good Platform For Trading Forex
Trading Forex involves a great deal of effort and psychological strength which determines whether a trader succeeds or fails in the FX market. However, the choice of a platform also plays a pivotal role in deciding whether a trader is ultimately successful in trading. Forex markets are highly volatile, and prices are bound to change within a few seconds. Therefore, slippages, re-quotes, and incorrect price feeds can all act as a deterrent to a trader’s trading performance. A trader should be able to enter and exit the markets at the best price and should also preferably pay the lowest spreads. An excellent trading platform should necessarily allow a trader to enjoy a seamless trading environment where the trader can take risks without worrying about the platform freezing up during volatile news events or extreme market conditions.
It is relatively easy to find a good trading platform by performing a thorough research of brokers through several online resources. One of the great advantages of FX trading is that most brokers allow traders to test their platforms using demo trading, which enables their clients to get familiar with the interface before opening a live account. Demo trading is a great way of testing out different FX trading platforms available in the market and is a sure-fire way of finding a good platform that suits a trader’s requirements.
Which Trading Platform Is Better For Technical Analysis?
Technical analysis involves the use of indicators, lines, and other charting tools that help a trader to analyse the markets and make a sound investment. Therefore, it is preferable to perform technical analysis on large screens, which necessitates the need for dedicated desktop trading platforms. Small screen devices such as smartphones and tablets severely limit the amount of technical analysis that can be performed on financial instruments. Modern day brokers and other platform developers are always designing innovative mobile trading platforms to ensure that traders can perform a wide range of technical analysis on their mobile devices, however, in the current market scenario, desktop Forex trading platforms are highly preferred for in-depth technical analysis of the markets.
How To Interpret Information Provided On Forex Trading Sites
Forex trading sites and review websites are always on the lookout to test and evaluate new as well as existing trading platforms that are currently available in the market. This offers an excellent opportunity for traders to read through several online information portals before making an informed decision about the platform that is most suited to their trading personality. The reviews and information presented in these reviews vary according to the website, but there are a few pointers that will help you to interpret the information and choose relevant features that are more suited to your trading requirements.
Most online FX trading sites will have detailed information about the platforms such as the type of platform, the number of financial instruments on offer, trading tools required for performing extensive technical analysis, the speed of execution, ease of use, and overall reliability of the platform. Since all trading terminals are connected to a broker’s server, the safety and security of user information are also of paramount importance. Brokers usually employ encryption protocols to ensure that the client information is safe and secure against any cyber-attacks.
As a trader, you must first find out your trading style and determine the type of trading environment that suits you. Once you make a list of preferences and requirements, you should carefully read through several platform reviews to find the platform that satisfies most of your requirements. It is ultimately difficult to choose a platform that suits all of your requirements; however, you should demo trade before you open a real live account. You might be surprised to find that a platform that satisfies the least of your preferred requirements might be the best suited to your trading personality.
What Are The Promising Qualities Of Top Forex Brokers?
It is the duty of the top Forex brokers to carefully understand their clients’ needs and offer a brokerage service that is reliable, ethical, and in the best interest of the traders. Most brokers strive to be the best in the industry by constantly updating their services and catering to client complaints in an efficient manner. Forex is a highly risky market, and traders are unable to cope up with the added pressures that originate from unreliable brokers whose sole intention is to make money through fraudulent means. So, what makes the top Forex brokers tick in the industry?
Almost all reliable FX brokers in the industry are regulated by a credible and trusted regulatory organization, which is one of the primary factors that determine whether a broker can be trusted or not. Regulation is the key to establishing a good foothold in the industry, and most traders nowadays prefer to choose a broker that is properly regulated by a trustworthy agency.
Safety Of Client Funds
Clients should have access to their invested capital as well as their profits without any conditions attached to them. Trading orders, withdrawals, or internal transfers must be performed in a smooth and efficient manner, which will not only improve a trader’s trust in the broker but also help traders to reduce stress by knowing that their funds are safe with their broker. The brokerage company should also implement protective policies in place to safeguard client funds by keeping them in segregated accounts and ensuring that they are not used in case the company runs into any internal issues.
Offering The Best Trading Platforms
A good trading platform is once again a prerequisite for brokers to earn a good reputation in the industry. A broker cannot gain a significant market share unless they are proactive in designing and developing the best trading platform that can help their clients to enjoy a great trading environment.
Excellent Customer Service
A top Forex broker pays extra care to ensure that all of their customers are offered the best customer service experience to reduce the amount of uncertainty that is associated with FX trading. If a broker is committed to top-notch customer service, it is rest assured that the broker is committed to the welfare of their clients.