Which trading platform to choose
Since transactions in trading are concluded via the Internet, the basic tool for a trader is a trading platform – a specific program that allows you to analyze the market and enter into various transactions. Of course, there are many such programs. So, the question of how to choose a trading platform is always relevant, especially for beginners.
Trading involves vigorous activity in order to extract speculative profit from the movement of the value rate of various assets. In order to earn in this way, you cannot do without not only special skills and knowledge but also without high-quality technical assistance, which is the trading platform.
There are a number of issues to analyze when choosing a trading platform:
- First of all, you need to pay attention to the technical characteristics of each interesting program. This is where the comparative analysis of different platforms begins.
- However, choosing the conditional “best” platform based on the principle of power or performance will not work because you will also have to take into account the needs of the trader. Beginners need a platform that is easy to understand, experienced traders – one that provides extensive functionality.
- The third factor to consider when choosing is the features of the trader. For example, if a trader is often traveling, he needs a platform with the most convenient mobile version. And if we are talking about a specialist in trading on different accounts, the platform should provide the ability to quickly switch between them.
Of course, you need to consider not only the number of opportunities provided by the platform but also the quality of each component of this program. Problems with the speed of reaction to the trader’s commands or the display of information are strictly unacceptable.
Trading involves responding quickly to changing market conditions, so any loss of time is dangerous. Especially considering that almost all indicators are already a little late, and the broker does not always immediately respond to orders.
How to choose a trading platform
There is a fairly well-defined list of criteria for choosing a trading platform in trading. The assessment of these criteria is unambiguous: the higher the indicators are, the better the platform. Their list:
Speed of work: It means the speed with which the program processes information about the market and the signals that the trader gives. How much information the program can handle. Overloading the strategy with more than three or four indicators is not recommended for reasons of maintaining the concentration of the trader. But these 3-4 indicators are many. A productive platform should display quality without braking and freezing.
Functional variety of features: It is very important for any trader. It implies all the variety of opportunities that he will use in his work: how many indicators and other analysis tools the platform supports, whether it is possible to write your own adviser on its basis, how many timeframes and charts the platform can display.
Convenience of the interface: It is very important that the trader can understand quite easily how the platform works. A large number of functions, of course, prevents this; however, a convenient, intuitive interface makes it easy to get to know the platform and the workflow.
Reliability: The basic criterion, the absolute degree of which is implied. Reliability means that all the functions of the platform work without interruptions, it does not “freeze” and allows you to use all its functionality.
Security: An equally important criterion as the previous one. We are talking about security against hacking and the security of the confidentiality of the information of the trader, including his account. Any doubts about security immediately force you to abandon the platform in question.
True, it is worth saying that privacy and data security also largely depend on the broker.
There are also certain qualities, capabilities, and parameters that are rarely discussed when trying to answer the question of how to choose a trading platform. However, these qualities are essential.
First of all, the platform should provide round-the-clock access to all information. It should also provide an opportunity to analyze the news. This allows you to use the principles of fundamental analysis directly in the platform.
The ability to use a demo account must also be embedded in the platform. Finally, the built-in indicator set plays an important role. Many technical analysis tools are installed on top of the chart as additional applications to the platform program. But the initial set of indicators of a good trading platform should be enough to implement the main strategies.
Besides the simplicity of the interface, it is also important how easy the platform is to configure.
Most popular platforms
Perhaps the first place in popularity remains with MetaTrader. Trying to answer the question of which trading platform to choose, most do not even consider analogs, and choose between the fourth and fifth model of this program.
The fifth is really newer. It was developed as a tool claiming to be the only possible answer to the question of how to choose a trading platform. 21 timeframes, access to news and different markets, four ways to execute orders, as many scaling options, six types of pending orders, and almost 80 market analysis tools are only part of the platform’s capabilities.
But the fourth model of this software is still somewhat more popular due to the large number of copyright indicators made specifically for it. Indeed, MetaTrader4 is very useful trading platform. The platform is reliable, fast, the interface is convenient. There are mobile versions of both the fourth and fifth models.
NinjuTrader is another very popular answer to the question of which trading platform to choose. The main advantage is the ability to trade not only in the Forex market but also to earn money on the commodity market, trade in precious metals, options, and futures contracts.
The functionality is wide, there are opportunities for manual and automatic trading. The manufacturer is an American company, so everything works reliably, safely, and the interface is clear.
There are two versions: free (facilitated by the ability to trade only manually) and professional, which is distributed by subscription. A month of use costs $ 50.
The most unusual trading platform is ZuluTrader. More than a thousand traders who apply for the title of professionals offer through this terminal to anyone who wishes to automatically copy their actions online. That is, the trader simply automatically opens the same transactions as the person whose system he is copying.
The system is free, but you can use it only at your own peril and risk – there are no guarantees that the chosen “model” is worthy of imitation.
MirrorTrader is similar to the previous trading platform, but here the trader is already trading himself. It’s just that the signals of large players and recognized pros (for example, authors of strategies) are reflected in this platform, and the trader already uses their actions as a model and “drawing” for his system.
The trader decides how to use the information received: copy other people’s actions, use them as a tool for analyzing the market situation, or ignore them. Given the specification of the last two platforms mentioned and the fact that NinjuTrader remains paid in the full version, it explains why MetaTrader has no competitors.