Useful Functionality Of Forex Trading Platforms

What is a Forex trading platform?

A Forex trading platform is software that is used to conduct trades on the Forex market. It provides traders with access to the market, as well as the tools and features necessary to conduct trades.

Trading platforms can be classified according to several criteria, including:

• Platform type. Trading platforms can be divided into two main types: desktop and web-based platforms. Desktop platforms are installed on the trader's computer, while web-based platforms are accessible through a web browser.

• Provider. Trading platforms can be provided by a broker or an independent provider. Brokerage platforms are typically provided for free or at a discounted price as a bonus for opening an account with the broker. Independent provider platforms are typically more functional and offer more features, but they can also be more expensive.

• Functionality. Trading platforms vary in the set of features they offer. Some platforms offer only a basic set of features necessary for placing trades. Other platforms offer a wider range of features, including market analysis tools, automated trading, and social trading.

• Cost. The cost of trading platforms can vary depending on the platform type, provider, and set of features. Brokerage platforms are typically free or offered at a discounted price. Independent provider platforms are typically more expensive.

Major Types of Trading Platforms

• Desktop platforms. Desktop platforms are the most common type of trading platform. They offer a wide range of features and capabilities, as well as high performance. Desktop platforms are typically installed on a PC or laptop.

• Web-based platforms. Web-based platforms are a simpler and more user-friendly option for beginner traders. They are accessible through a web browser, so they can be used on any device with an internet connection. Web-based platforms typically offer a basic set of features sufficient for placing trades.

• Mobile platforms. Mobile platforms allow traders to place trades using a smartphone or tablet. They typically offer a basic set of features, but some platforms may offer a wider range of features, including market analysis tools.

Functionality of Forex trading platforms

The functionality of Forex trading platforms can vary depending on the platform provider. However, in general, all platforms provide the following core functions:

• 1

  Market access. The trading platform must provide traders with access to currency pair quotes. This can be done in two ways: through an API or through a web terminal. An API is a set of programming interfaces that allow the platform to connect to the exchange directly. A web terminal is a web application that provides access to the exchange through a web browser. Read also information about best brokers with API trading.

• 2

  Trading system. A trading system is a set of tools and features that allow traders to place trades. These include:

  • Order window. The order window is used to place and manage orders.

  • Stop-losses and take-profits. Stop-losses and take-profits are used to limit losses and capture profits from trades.

  • Markers. Markers are used to denote important levels on a chart.

  • Indicators. Indicators are used to analyze the market and make trading decisions.

• 3

  Signals. Signals are automated trading recommendations that are generated based on market analysis.

• 4

  Education. The trading platform should provide traders with tools and resources for learning to trade on Forex. These include:

  • Articles and video tutorials. Articles and video tutorials provide information about the principles of trading on Forex.

  • Demo account. A demo account allows traders to trade on real quotes without the risk of losing money.

In addition to core functions, trading platforms may also provide additional features, such as:

• Social trading. Social trading allows traders to exchange information and strategies with other traders.

• Automated trading. Automated trading allows traders to program their trading systems.

• Multi-currency. Multi-currency allows traders to trade multiple currency pairs simultaneously.

Best Forex brokers

1

9.4/10

Go to broker

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.

Minimum deposit:

$50, $100 (for UK clients)

Bonus for deposit:

0%

Regulation:

CySEC, FCA, ASIC

Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

Study Review

2

9.2/10

Go to broker

Your capital is at risk.

Minimum deposit:

No minimum

Bonus for deposit:

0%

Regulation:

FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA

Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

Study Review

How to choose a trading platform

When choosing a trading platform, you should consider the following factors:

• Functionality. The trading platform should provide all the necessary functions for your trading style.

• Usability. The trading platform should be easy to use and navigate.

• Cost. The cost of a trading platform can vary depending on the provider and the set of features.

• Trading style. If you are a beginner trader, you will need a trading platform with a simple and intuitive interface. If you are an experienced trader, you may need a trading platform with an expanded set of features and tools.

• Broker. Most brokers offer their clients a choice of trading platforms. Before choosing a trading platform, you should familiarize yourself with the offerings of your broker.

• Personal preferences. Some trading platforms are better suited for certain trading styles or types of traders. Before choosing a trading platform, you should read reviews from other traders and try it in demo mode.

• Security. It is important to choose a trading platform that is secure and protects your personal information and funds.

• Customer support. It is important to choose a trading platform that offers reliable customer support if you need help.

• Updates. It is important to choose a trading platform that is regularly updated with new features and bug fixes.

Major Forex Trading Platforms

There are many Forex trading platforms available from various providers. Some of the most popular trading platforms include:

• MetaTrader 4. MetaTrader 4 is the most popular Forex trading platform. It provides a wide range of features and tools, as well as widespread support from brokers.

• MetaTrader 5. MetaTrader 5 is a newer version of MetaTrader 4. It offers an expanded set of features and tools, as well as support for new trading instruments, such as contracts for difference (CFDs).

• CQG Trading Station. CQG Trading Station is a powerful trading platform that offers a wide range of features and tools for professional traders.

• NinjaTrader. NinjaTrader is a versatile trading platform that is suitable for traders of all skill levels.

• Thinkorswim. Thinkorswim is a trading platform developed by TD Ameritrade. It offers a wide range of features and tools, as well as support for trading on the stock market and other exchanges.

By considering the factors listed above, you can choose a Forex trading platform that is right for you.