The trading platform is one of the decisive reasons why traders pick a broker or another. Not all trading platforms are the same, and for many traders, the absence of one platform is enough to ignore the broker's services.
One would want a trading platform that allows automated trading. Moreover, it should make it easy to upload new indicators to it. Finally, it should have a dedicated app for mobile trading and be easy to use. For this reason, this article lays down the conditions and criteria for choosing the best trading platform in 2021 that perfectly fits the trading style of any trader.
Our List of the Best Trading Platforms
Here is our list of the best trading platforms in 2021:
What Is a Trading Platform?
A trading platform is the brokerage house’s interface with the client. If you want, it represents the tool used for the trader to transmit the orders to the broker.
The trader uses the trading platform for multiple purposes. One is, as mentioned above, to transmit the order to the broker. Another is to do technical analysis on historical data so as to find appropriate levels to buy or to sell a market. Moreover, a trading platform also offers a news stream as well as numerous technical indicators designed to help the trader in the price discovery process.
How Does a Trading Platform Work?
The trader usually has multiple options given by the broker. In the 21st century, online trading takes place on the desktop, smartphone, or directly on the web. Therefore, the broker offers three different options to make the most of a trading platform. Out of the three, the desktop version is the most useful one for the simple reason that it has more features; it needs to be downloaded and is more stable when compared to the web-based platform.
Traders buy and sell using the bid and ask prices offered by the broker, and the broker receives the orders sent via the trading platform. Without the trading platform, online trading could not exist.
Key Features To Look in a Trading Platform
One of the most important things to check is if the trading platform is suitable for one's trading style. For example, a trader may use only automated trading, but the robots are built using the MetaEditor offered by the MetaTrader platforms. In this case, if the broker does not offer the MetaTrader4 or 5 platforms, the trader cannot use the broker’s services.
Another thing to consider is the reliability of the trading platform. Licensed versions like the MetaTrader4 and 5 are backed up by years of maintenance and experience and therefore, issues are unlikely to appear. On the other hand, in-house built trading platforms are more prone to errors.
Pros & Cons of Using a Trading Platform
How To Choose the Best Trading Platform for Me?
The trading style should be the starting point. If a trader uses automated trading, make sure the trading platform allows it and that the robots can execute the trades. Also, check the trading conditions so as to be similar to the ones used when back-testing the robot.
Next, the trader must check the indicators offered by default and how to customize the trading platform. For instance, the default settings in some platforms are not "trader friendly," and one needs to change them. Think of the fact that typically the trader needs to select an object with two clicks on the MetaTrader platforms, which is inconvenient. However, that can easily be changed to one-click.
Finally, if you are a fundamental trader, the app may be just the thing you need. As technical analysis is not relevant, there is no real need for the desktop version.
How To Safely Use a Broker to Make Money Online Trading?“ A broker provides the trading platform typically for free to their clients. In some cases, some huge brokerage houses that developed expensive trading platforms charge a fee for their use, but that is rare in the retail traders’ FX world. A broker, therefore, offers its products and services in exchange for a fee. The trading platform is part of the "package" offered by the broker and is a decisive factor in choosing one broker over another. However, the trader bears the responsibility of doing the research before sending orders to the broker, just like the broker bears the responsibility of routing the orders to the liquidity providers in search of the best price. ”- 100fb
Choosing the right trading platform may be decisive for a trader's success. Not all trading strategies work on all platforms, like the settings, indicators, and other features may be responsible for different outcomes. As such, the list presented in this article gives the reader a well-rounded choice of the best trading platforms in 2021.
Frequently Asked Questions
No. Some of them are, some others are not. A broker that decides to skip regulation automatically has a visibility problem. On the one hand, customers cannot trust the broker. On the other hand, the inability to claim regulation suggests a weak business model unable to sustain the costs that come with the process.
It depends. Most FOREX retail traders use the MetaTrader4 and 5 platforms. However, some other ones exist, like the cTrader, for instance. Depending on the trading style, some platforms are more suitable than others.
Yes. Forex brokers extended their services into other markets due to both stiff competition and led by the desire to offer something more to their clients. Nowadays, one may trade commodities, energies, bonds, shares, indices, and so on – mostly under the form of Contracts for Difference (CFDs).
Yes. All one needs is a stable Internet connection and a broker that can provide its services in the region. In a few simple steps presented on the broker’s website, a trader may open an account in a matter of hours or even minutes.