Cloud Trading: Everything A Novice Trader Needs To Know

Cloud trading utilizes cloud-based platforms to allow traders to manage their investments from any internet-connected device, providing benefits like reduced latency, faster execution, and enhanced flexibility and scalability. These platforms also offer robust security measures, such as encryption and multi-factor authentication, to protect user data and transactions.

One of the technological breakthroughs in financial markets is cloud trading. This article delves into the concept of cloud trading, its unique features, and the various platforms available to traders.

What is cloud trading

Cloud trading works by leveraging cloud computing technology to execute and manage trading activities over the internet. Instead of relying on local hardware and software, traders access trading platforms hosted on remote servers. These platforms offer powerful computational resources, real-time data processing, and sophisticated algorithms, enabling traders to execute trades with high speed and efficiency.

Cloud trading also provides the flexibility to access trading accounts from anywhere with an internet connection, enhanced security through advanced encryption methods, and the ability to easily scale resources based on trading demands. This approach minimizes latency, ensures continuous availability, and supports integration with various financial data sources and trading tools.

Risks of cloud trading

The risks of cloud trading include dependence on a stable internet connection, vulnerability to cyberattacks and data breaches, potential technical failures on the provider's side, and limited control over server infrastructure, which can lead to delays in order processing and data loss during outages.

	Traditional trading	Cloud trading
Infrastructure costs	Requires significant investment in servers, networking equipment and maintenance, which can be prohibitive for individual traders and small businesses.	Eliminates the need for expensive equipment and maintenance. Traders only pay for the resources they use.
Access to trading platforms and data	Traders need to be physically present at their workstations to monitor markets and execute trades.	Cloud trading platforms are accessible from any device with an Internet connection. This allows traders to make trades in real time, regardless of their physical location.
Scalability Issues	Challenges arise as trade volumes and data processing needs grow, creating additional costs for equipment and infrastructure.	Cloud trading is easily scalable to meet growing trading volumes and data processing needs. This ensures that traders have the necessary resources for high-frequency trading and large data sets.
Speed	Speed: Potentially higher latency due to physical distance and infrastructure limitations.	Reduce delays and complete transactions faster.
Collaboration	Limited real-time collaboration tools that often require manual integration.	Advanced tools for real-time collaboration and integration with other financial tools.
Maintenance	Requires in-house IT management and maintenance.	Managed by service providers, reducing the need for internal IT management.

Popular cloud trading platforms

Here are some of the most common platforms that are very popular among traders. Each of these platforms has its own unique benefits and features, making them suitable for different types of traders and investment strategies.

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are among the most popular trading platforms in the world, especially among forex traders. Both platforms are developed by MetaQuotes Software and offer powerful tools for market analysis and trading strategy automation.
TradingView is a powerful cloud-based platform for technical analysis and social trading, which has gained popularity due to its unique features and ease of use.
eToro is a leading social trading platform that offers unique opportunities for copy trading and investing in a wide range of assets.
NinjaTrader is a professional trading platform designed for active traders and investors, offering advanced tools for analysis and automated trading.

MT4

Wide range of indicators and analysis tools: MT4 provides more than 30 built-in technical indicators and a large number of graphical objects for analysis.
Expert Advisors: Possibility of automating trading using software robots that can trade according to specified algorithms without the participation of a trader.
Security: The platform provides a high level of data security, which is important to protect trading information and user funds.
Community and Support: Large community of traders and developers, as well as many tutorials and forums.

Limited features compared to MT5: MT4 does not support multi-activity and has fewer order types.
Outdated interface: Although MT4 is still popular, its interface may seem outdated compared to more modern platforms.
Limited Time Frames: Fewer time frame selections compared to MT5.

MT5

Multi-activity: MT5 supports not only forex, but also trading in stocks, futures and other financial instruments.
Expanded order set: More order types and improved order processing compared to MT4.
Economic Calendar: Built-in economic calendar helps traders track important events and their impact on markets.
Improved Charts and Time Frames: More varied time frames and improved charting features.

Difficulty switching from MT4: Many traders who are used to MT4 find switching to MT5 difficult due to differences in functionality and interface.
Fewer compatible brokers: Although the number of brokers supporting MT5 is growing, it is still less compared to MT4.
Higher resource usage: MT5 may require more system resources, which may be an issue for traders with less powerful computers.

TradingView

Cloud data storage: All charts, settings and analyzes are stored in the cloud, allowing traders to work from different devices without losing data.
Social features: The ability to communicate with other traders, share ideas and strategies, and follow the opinions of experts.
Wide range of analysis tools: A large number of built-in indicators and scripts for technical analysis, as well as the ability to create your own indicators using the Pine Script language.
Access to multiple markets: Supports a variety of financial instruments, including stocks, forex, cryptocurrencies and futures.

Cost: Although the basic version of TradingView is free, many advanced features are only available through subscription, which can be expensive for some traders.
Limited Trading Options: Despite powerful analysis tools, direct trading capabilities through TradingView are limited and dependent on broker integrations.
Lack of full automation: TradingView does not provide the same trading automation capabilities as platforms focused on algorithmic trading.

eToro

Social Trading: The ability to copy trades of successful traders and investors, allowing new traders to learn and earn at the same time.
Intuitive Interface: The platform's ease of use makes it accessible to traders of all experience levels.
Wide range of assets: Ability to trade stocks, forex, cryptocurrencies, commodities and indices.
Risk Management Tools: Built-in functions for risk management and capital protection, such as stop losses and take profits.

High spreads and commissions: Compared to other platforms, eToro may have higher spreads and commissions, which impacts trading profitability.
Limited Analysis Tools: While eToro offers basic analysis tools, they are not as advanced as other platforms such as MetaTrader or TradingView.
Limited flexibility: eToro is more suitable for beginners and intermediate traders, professionals may find the platform not flexible enough for their needs.

NinjaTrader

Advanced technical analysis: Wide selection of indicators, drawing tools and the ability to create custom strategies.
Trading Automation: Ability to develop, test and execute automated trading strategies using NinjaScript, a programming language based on C++.
High performance: Fast data processing and order execution, which is especially important for scalpers and day traders.
Community and Resources: Large community of users, extensive library of educational materials and support from professional traders.

Difficulty to use: The platform is aimed at professional traders and can be difficult to learn for beginners.
Cost: Although the basic version is free, many advanced features and functionality are only available with a paid subscription or by purchasing a license.
Resource intensive: Requires powerful hardware to perform optimally, which can be a challenge for traders with limited resources.

Also we have selected brokers who support and provide cloud trading to their clients. This comparative table aims to provide an in-depth analysis of several leading brokers that offer cloud trading services. Each of these brokers is renowned for their unique features, regulatory compliance, and technological advancements.

	Pepperstone	OANDA	FOREX.com	IG Markets	Qtrade-de
Minimum deposit	$0	No	$1000	$1	€1,000
Instruments	CFDs on Forex, Index, Stocks, Currency Indices, Commodities, ETFs, Crypto	FX, Indices, Bullion, Commodities, Crypto	Forex, cryptocurrencies, indices, commodities, stocks	Forex; CFDs on indices, commodities, and stocks; Cryptocurrencies, options, interest rates, sectors, bonds, knock-outs, ETFs, and Futures on indices and commodities	Forex (major, minor, and exotic currencies), futures contracts, and CFDs on indices, commodities, stocks, ETFs, and bonds
МТ4	Yes	Yes	Yes	Yes	Yes
МТ5
Trading View
Forex regulation	ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec	FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	FCA, BaFin, ASIC, MAS, CySec, FINMA, BMA, CFTC, NFA	FCA, Amtsgericht München, CSSF
Deposit fee, %
Withdrawal fee, %
Open an account	Open an account Your capital is at risk.	Open an account Your capital is at risk.	Study review	Study review	Study review

Step 1: Choosing the right platform

The first and crucial step is choosing a cloud trading platform that meets the investor's needs. Here are the previously mentioned platform options:

MT4 and MT5: Suitable for Forex traders and offers powerful tools for technical analysis and trading automation.
TradingView: Ideal for those seeking powerful analysis tools and social features.
eToro: A great choice for beginner traders and those who want to use social trading and copy trading features.
NinjaTrader : Suitable for active traders and investors who need advanced tools for analysis and automation.

Step 2: Registering on the chosen platform

After selecting a platform, you need to register and create a trading account. This process usually includes the following steps:

Fill out the registration form on the platform's website with your personal information. Confirm your email address.
Upload the necessary documents for identity verification (e.g., passport or driver's license).
Wait for the platform's confirmation of your registration.

Step 3: Funding your account

After registration and account verification, you need to fund your trading account. Most platforms support various funding methods, such as bank transfers, credit cards, and e-wallets.

Step 4: Learning and practicing

Before trading with real money, it is recommended to undergo training and practice on a demo account. This will allow you to:

Familiarize yourself with the platform's interface and functionality.
Learn the basic principles of technical analysis.
Develop and test trading strategies without risking real money.

Step 5: Developing a trading strategy

Successful trading requires a well-thought-out trading strategy, which should include:

Trading goals: Define your financial goals and the time you are willing to dedicate to trading.
Risk management: Establish rules for risk management, such as stop-loss and take-profit levels.
Market analysis: Choose appropriate methods of market analysis (technical, fundamental, or a combination of both).
Trading signals: Determine the signals that will indicate when to enter and exit trades.

Step 6: Starting to trade

When you are ready, you can start trading with real money. Follow your strategy and remember to regularly analyze your results and make adjustments as needed.

Step 7: Continuous learning and development

Financial markets are constantly changing, so it is important to continuously learn and adapt. Keep up with the news, read analytical articles, participate in webinars, and communicate with other traders.

Cloud trading offers excellent opportunities for accessing financial markets and managing investments. By following this guide, you can begin your journey in cloud trading and develop your skills to achieve your financial goals.

API integration at cloud trading

As cloud trading continues to gain momentum, the ability to seamlessly integrate various tools and platforms via APIs (Application Programming Interfaces) has become a significant advantage for traders and developers. APIs enable you to create custom trading strategies, automated trading systems, and advanced market analysis tools by allowing different software applications to communicate and work together. Using an API allows you to increase trading efficiency by 20-30% by automating processes and quick access to data.

This is why APIs are so popular and actively used by both large financial institutions and individual traders. According to a report by MarketsandMarkets, the global API market is expected to grow from $3.71 billion in 2020 to $8.41 billion by 2025 at a compound annual growth rate (CAGR) of 17.3%.

MT4 and MT5 remain the most popular platforms for using APIs among traders. APIs from TradingView and cTrader are also in high demand. The most popular types of APIs in cloud trading are market data API (about 60% of users), order management API (about 45%), and account management API (about 30%).

To use the API for trading, a trader must obtain access to the API documentation from the selected broker. This opens up the option to develop it yourself or use existing software. It will interact with the broker's API to execute trades, obtain market data, and manage the trading account.

The cost of using the API for trading depends on the broker. Some brokers provide APIs to their clients for free, while others may charge fees for API access or for certain uses.

Some cloud trading platforms offer paid subscriptions with advanced features such as access to more sophisticated analysis tools, more simultaneous strategies, prioritized technical support and backups. For example, TradingView offers several subscription levels:

Pro: $14.95 per month (or $155.40 per year)
Pro+: $29.95 per month (or $299.40 per year).
Premium: $59.95 per month (or $599.40 per year).

These subscriptions include more active alerts, advanced charting and data capabilities.

Cloud trading: profitable if warned

I can confidently say that switching to cloud platforms has significantly simplified the trading and market analysis process. One of the key advantages is the ability to access your data and trading tools from anywhere in the world, allowing you to respond promptly to market changes.

From my personal experience, I recommend that before you start trading with real money on your chosen platform, you should spend time practicing on a demo account. This will help you master the platform and test your strategies without financial risk.

Cloud platforms often offer built-in news feeds and economic calendars. Use them to track important events that can impact the markets. Additionally, continuously educate yourself and improve your skills by participating in webinars, reading specialized literature, and interacting with other traders.

Cloud trading opens up numerous opportunities for traders of any level. By using modern platforms, you can achieve high efficiency in managing your investments and reach your financial goals.

Conclusion

To sum it up, cloud trading offers many benefits, including reduced latency, faster trade execution, improved collaboration and integration, and environmental sustainability.

Cloud trading can significantly increase the number of successful transactions by introducing edge computing, serverless architecture and blockchain. These innovations will further expand the capabilities of cloud trading platforms, making them indispensable tools in financial markets.

For those who want to stay ahead in the competitive trading environment, it is imperative to explore cloud trading platforms as the future of trading lies in the cloud and leveraging this technology today will pave the way for a more prosperous future.

FAQs

What is cloud trading and how does it differ from traditional trading methods?

Cloud trading involves using cloud platforms to conduct and manage trading activities. It utilizes internet servers and services to provide real-time access to trading tools, data, and resources.

What are the main advantages of using cloud trading platforms for new traders?

Cloud trading offers reduced latency, faster trade execution, and greater scalability. Traders can execute trades from anywhere with an internet connection, making cloud trading more flexible and accessible compared to traditional trading.

How secure are cloud trading platforms and what measures can I take to protect my trading account?

Cloud trading platforms are designed with stringent security measures to protect user data and transactions. Common security features of cloud platforms include data encryption, multi-factor authentication (MFA), and regular security audits. To ensure additional security, it is recommended to use strong passwords and regularly update security settings.

Can I start cloud trading with small investments and what are the associated costs?

Yes, you can start cloud trading with small investments. Costs typically include platform subscription fees, trading commissions, and possibly other fees such as data feeds or premium tools. It is important to choose a platform that fits the investor's budget and offers good value for the features provided. Don't overlook the demo account—it can be an effective way to learn and practice trading before investing real money.

Team that worked on the article

Andrey Mastykin is an experienced author, editor, and content strategist who has been with Traders Union since 2020. As an editor, he is meticulous about fact-checking and ensuring the accuracy of all information published on the Traders Union platform. Andrey focuses on educating readers about the potential rewards and risks involved in trading financial markets.

He firmly believes that passive investing is a more suitable strategy for most individuals. Andrey's conservative approach and focus on risk management resonate with many readers, making him a trusted source of financial information.

Also, Andrey is a member of the National Union of Journalists of Ukraine (membership card No. 4574, international certificate UKR4492).

Learn about our editorial policies

Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

Copy trading

Copy trading is an investing tactic where traders replicate the trading strategies of more experienced traders, automatically mirroring their trades in their own accounts to potentially achieve similar results.

CFTC

The CFTC protects the public from fraud, manipulation, and abusive practices related to the sale of commodity and financial futures and options, and to fosters open, competitive, and financially sound futures and option markets.

Algorithmic trading

Algorithmic trading is an advanced method that relies on advanced coding and formulas based on a mathematical model. However, compared to traditional trading methods, the process differs by being automated.

Futures contract

A futures contract is a standardized financial agreement between two parties to buy or sell an underlying asset, such as a commodity, currency, or financial instrument, at a predetermined price on a specified future date. Futures contracts are commonly used in financial markets to hedge against price fluctuations, speculate on future price movements, or gain exposure to various assets.

Cryptocurrency

Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.

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