November 29, 2020

Forex trading platform – How to choose one?

Forex trading has become popular stock trading. People are moving towards the Forex market due to its high volumes of trade and high liquidity. However, every trader who wants to trade in the Forex market has to choose a platform to trade. Basically, there are two types of Forex trading platforms. One is Metatrader (MT4, MT5), which has a history as old as hill and the other is hybrid versions of the web-based systems that are custom made by Forex brokers to trade in the market. Before making the choice between the two it is important for the trader to analyze the pros and cons of two platforms. Metatrader

Benefits

This is a platform that has a history as old as hill and is installed on the hard disk of the computer. When you use this platform to trade in the market, you can trade any type of currencies including exotic pairs. It is a good platform serious Forex trader because it can store large historical data which is quite helpful in charting. You can also incorporate applications on the platform to provide charting information and signaling in the real time.  The software is highly secured with the user authentication. The interface of the software is available in different languages and well suited for both traders and brokers.

Disadvantages

The Metatrader will work only on the computers with Windows operating system. Many brokers who use Linux, Mac computers are not able to use this wonderful platform. The system is also not designed to react to the news or happenings in the market immediately which may increase or decrease profits.

 Web-Based Platforms 

It is a host of hybrid web traders provided by the brokers. Few of these web-based platforms include FXCM, eToro, Markets.com, Avatrade,  Alpari and much more. The best advantage of web-based platforms is they can be accessed from anywhere. The trader can access the trade from anywhere as long as he has accesses to the computer and internet. The web-based platform can access diverse portfolios as it can handle diverse financial instruments like stocks and futures. As these web-based platforms are customized by the brokers, they provide detailed charts, analysis, and indicators in trading. Many brokers are offering forecasts, technical analysis, buying and selling singles in their customized platforms.

Disadvantages

A trader who is using these web-based platforms needs you to have a high internet connection. Slow internet connection will cause a delay in opening and close the deals which may bring changes in profits and losses you make through Forex trading. Trading cannot be completely automated in this web-based platform which is another major determinant of your goal of increasing your profits and reducing the losses.  

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