The trading platform is one of the primary reasons why traders pick one broker over another. Not all trading platforms are the same, and for many traders, the absence of a particular platform is enough for them to ignore the broker's services.
Many traders want a trading platform that allows automated trading. Moreover, the platform should make it easy to upload new indicators. Finally, it should have a dedicated app for mobile trading and should be easy to use.
Considering all these points, this guide lays down the conditions and criteria for choosing the best trading platform in 2021 and it suggests some platforms.
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 trader. It’s the tool the trader uses to transmit orders to the broker but that’s not all it’s used for.
The trading platform also allows the trader to do technical analysis on historical data to find appropriate levels to buy or to sell a market. It also offers a news stream and numerous technical indicators to help the trader in the price discovery process.
How Does a Trading Platform Work?
Brokers usually present traders with multiple options. These days, online trading takes place from the desktop, via a smartphone, or directly on the web. Of the three access channels, the desktop version of the trading platform is usually the most useful because it has more features. The downside is that it has to be downloaded and installed on your desktop or laptop PC whereas the web interface can be accessed at any time from any device that has a web browser. You can take the mobile app with you wherever you go.
Whichever version of the trading platform you use, the point of it is to tell you the latest bid (sell) and ask (buy) prices of an asset and to transmit your orders to the broker to buy and sell at those prices.
Key Features To Look For in a Trading Platform
One of the most important things to check is if the trading platform is suitable for your 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 MetaTrader 4 or 5 platforms, the trader cannot use the broker’s services.
Another thing to consider is the reliability of the trading platform. Licensed versions of third-party software like MetaTrader 4 and 5 are backed up by years of maintenance and experience, so issues are unlikely to occur.
MetaTrader is one of the most popular third-party trading platforms, but there are others, and you can use the broker’s own mobile app or web interface instead.
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, the trading platform should allow it, with trading robots that can execute the trades. The trading conditions (e.g. spreads, fees, and commissions) must be as similar as possible 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. The default settings on some platforms are not trader-friendly. For example, it typically takes two clicks to select an object on the MetaTrader platforms but this can easily be changed to one click.
Finally, if you are a fundamental analysis trader, the mobile app may be sufficient because you won’t need to do technical analysis on a big screen.
How To Safely Use a Trading Platform to Make Money Online Trading?“ A broker provides the trading platform typically for free to its clients. Some big brokerage houses charge a fee for their in-house developed trading platforms but this is rare in the world of retail forex traders. Although a broker provides its services and platform for a fee (one way or another), and is responsible for the timely execution of trades at the best price, it’s the trader who bears the responsibility for deciding which trades to take. Traders should therefore manage their downside risk by allocating no more than 1% of available funds to any one trade, and also applying protective stop-loss orders to those trades. ”- Mircea Vasiu
Choosing the right trading platform may be decisive for a trader's success. Not all trading strategies work on all platforms because the settings, indicators, and other features may be responsible for different outcomes. That’s why we’ve offered our platform suggestions.
Frequently Asked Questions
No. A broker that decides to skip regulation automatically has a credibility problem. It also suggests a weak business model that cannot sustain the costs that come with the regulation process.
Most retail forex traders use the MetaTrader 4 and 5 platforms but there are other platforms such as cTrader.
Yes. Forex brokers have extended their services into other markets due to stiff competition and as a differentiator. Nowadays, you can trade commodities, bonds, shares, indices, and other assets on a single platform.
Yes, you can typically sign up with an online broker in a matter of minutes. However, you’ll have to upload some identification documents to fully activate your account and withdraw any accrued profits.
A stop order or stop-loss order is a pending order attached to an open trade. It will automatically close the trade if it starts to lose money, the idea being to prevent a small loss from becoming a big loss.
Technical analysis means examining price charts to discern patterns that predict which way an asset’s price might go next. Technical analysts look for things like price support and resistance levels, and trading volumes.