Anyone starting out in trading will need some sort of platform to execute their trades on. Before the technology revolution, you and I would never have had the opportunity to actively trade but now with the emergence of the internet, access is easy. People who have very little knowledge can log in from their laptop in their bedroom and start trading.
This is all possible with trading platforms. A trading platform is somewhere (doesn’t have to be online) where you can buy or trade an instrument, and in the case of Forex, somewhere you can speculate on the price of currency volatility.
Most brokers now have a presence online and most of those also have their own platform, somewhere to take trades. Brokers tend to offer their own webtrader, an online platform that allows you to take trades, analyse the markets and often giving you up-to-date news that affects the market.
Types of Forex Platform
As mentioned there are webtraders that most brokers now offer but there are also third-party platforms that brokers can connect to via API connections. There are also platforms that offer additional services, like social trading. Social trading platforms are normally built into a platform, so they would be considered as a platform that offers social trading.
The most popular third-party platform is MT4, in fact, MT4 is the most popular platform worldwide. MT5 was built to cater for more assets, not just CFDs, it has more features but the reason lots of traders still fall back to MT4 is the language required to build the Expert Advisors, MT5 uses a new language and with people so used to the MT4 one, it is the reason MT5 has struggled to take off, on top of that it’s also because more retail traders trade CFDs rather than the underlying asset. Read more about MT4 vs MT5 here!
Some popular trading platforms include:
- MetaTrader 4
- MetaTrader 4 ECN
- MetaTrader 5
- FX Stat
- Forex brokers with Free VPS Hosting
Social Trading Platforms
Social trading platforms have become more and more popular as trading has become more accessible to the masses. It allows traders to copy experts trades. As an expert, why would you give away your trades? Well, for one, these social trading platforms pay you, you take a commission from the amount of novice traders that follow you and often when they take a trade as well. From the brokers perspective, if you are encouraging traders to take trades, then you are helping the broker generate revenue, they are simply giving you a cut of this.
Below are some of the top social trading platforms:
If you are looking for your broker to tick several pieces of criteria, then see our other lists of broker categories and how we rank certain brokers: