Types of trading platforms, which terminal to choose for Forex trading?

Nowadays, Forex trading is carried out using a trading terminal. This software allows you to participate in the market and make trades. In addition, the trading terminal allows using graphical tools to conduct technical analysis. Receive the latest economic news and test trading strategies on history.

There are more than ten types of trading terminals, their main differences are functionality and interface. Brokers usually provide no more than three types of terminals, among which may be their own development.

Types of trading terminals and their features

All terminals can be divided into two large groups. Universal terminals suitable for trading in any markets and terminals intended for trading only in certain markets, exchanges. Universal terminals can be divided into the following types:

• Client platforms are software installed on your computer. This is the most fully functional type of platform with all the tools for trading. Advisors, custom indicators and scripts work only with this type of platform.
• Web terminals - this type of platform does not require installation on a computer. You can open this terminal and log in from any browser and on any device. When they first appeared, they lacked most of the functionality. Now the web terminal is practically no different from the client platform and has all the necessary tools for analysis and trading. It allows you to trade from anywhere in the world where there is Internet access, and are popular with many traders.
• Mobile platforms - install on a smartphone or tablet. In most cases, this is a stripped down version of the client platform, but still has all the functions for trading. Although this platform allows full trading, the absence of some tools makes this process inconvenient. Typically, traders use it only to control open transactions and very rarely to open orders.

Next, consider several popular platforms and compare them. 

MetaTrader4 (MT4)

Currently, MetaTrader 4 is the most famous and popular Forex trading program. This platform provides trading not only currency in the Forex market, but also stocks, futures and CFDs. The developer of this trading platform is MetaQuotes, a company specializing in developing software for financial markets.

Almost every broker has this terminal, because when choosing a broker for the bulk of traders, the presence of a metatrader is a decisive factor. This terminal is provided to customers absolutely free of charge and in order to download and use it, you only need to open a broker's personal account.

The main functionality allows you to:

• make transactions, including those locked in various financial instruments, such as currency pairs, stocks, futures and CFD-contracts.
• to conduct technical analysis in a high-quality manner - an easily manageable chart, graphical tools and indicators.
• receive and inform the trader about important news online, in the news feed.
• send push notifications and an email message, at a given event.
• develop expert advisors, custom indicators and scripts, for this there is a programming language provided - mql4.
• test expert advisors for history, while receiving various indicators in the test report, such as profitability and drawdown.
• conduct automated trading using an expert advisors.

And this is not the whole list of functionality. It is also worth noting that this terminal has a mobile platform, which gives another plus to this platform. With such impressive functionality and versatility, the developers still managed to make the terminal convenient, simple and understandable. It will take a beginner just a couple of hours to learn all the functionality of the terminal.

MetaTrader5 (MT5)

The fifth version of the terminal from MetaQuotes, designed to replace MT4, has long remained in the shadows. One of the main reasons why traders were in no hurry to switch to MT5 was the ban on locking and the practically new functional of the new version. And only after adding a second order accounting system - hedging, which allowed having opposite positions in the market, began to gain popularity.

MetaTrader 5 has all the functionality of the fourth version, and plus the following innovations:

• the terminal was equipped with the Market Watch supplement - a stock exchange glass.
• There are two systems for recording orders - netting (for exchange trading, combines all transactions into one position) and hedge (each transaction is a separate position).
• The base for technical analysis has expanded, additional timeframes have appeared.
• orders received additional settings, and two new types of orders appeared - Buy Stop Limit and Buy Stop Limit.
• the programming language has changed to mql5, the main difference from mql4 is the speed of execution, compared to mql4 it has become 5-15 times faster.

MetaTrader 5 certainly provides more tools for the trader to work comfortably, but still lags behind MT4 in the ease of working with it.

Ninja Trader

 

This is another universal terminal for trading in financial markets. The developer of this platform is the American company NinjaTrader Group, located in Denver, Colorado. The Ninja Trader terminal is not inferior in functionality to MetaTrader and even surpasses. Allows you to directly connect to stock exchanges, bypassing intermediaries. With Ninja Trader you can trade both the Forex market and the stock markets with stocks and futures.

The main disadvantages are that you have to pay for the professional version, although some brokers provide free access. Also, the terminal itself is quite difficult to learn.

Ctrader

This is a relatively young platform. The main advantage of this platform is the speed of order execution, as well as an easy and simple interface. CTrader has many built-in functions for in-depth market analysis. And the functions of ChartShots and ChartCasts allow you to exchange experiences and ideas with other traders. One of the drawbacks is that the platform only works with ECN accounts.

Which trading platform is better?

For comfortable trading, you should choose a terminal for yourself, and not follow someone else’s instructions. After all, it will depend on the terminal how quickly you will react to the market and open orders.

Here are the main criteria that you should pay attention to when choosing a terminal:

• Speed ​​and productivity is the very first thing to be tested. Problems such as untimely swapping quotes, freezing charts or slow processing of orders may occur. Well-known terminals have this criterion at their best, and if you choose among them, you are unlikely to encounter these problems.
• Convenient and simple interface - it’s not very convenient to work with an application whose layout of the main elements is poorly organized. This slows down the trading process and has a direct impact on its outcome. Therefore, we choose an intuitive interface.
• Functionality - everyone trades according to their strategy and to implement it, you need a certain functionality. Someone trades on the news and needs constant access to online news. For scalpers, one-click trading. Those who apply technical analysis need access to a set of indicators. And if trading is automated, then the terminal should be able to work with expert advisors. And it should be possible to test these expert advisors on history.
• Mobility - nowadays without it, no where, many traders, to control orders, download a mobile terminal to cell phones.
• Security is also an important criterion, all trading operations must be confidential.

If you are a beginner trader and do not know which terminal to choose, then we recommend starting with Metatrader 4 and 5.

This is the most popular platform and most traders use it. This terminal has an intuitive interface, and is equipped with all the necessary functionality for successful trading. And the most important advantage is the huge number of expert advisors and indicators for this terminal. Even if you do not pick up a expert advisor, your programming language will allow you to develop your own unique expert advisor.