Trading Platforms 7 Steps to Choose Best Trading Platform
With the rapidly growing amount of online forex brokers, the variety of trading platforms is truly striking. Today you can see platforms in all shapes and colors; the question is, which one should you go for? Which platform is the best? Which one is the most user-friendly? Which one has all the essential tools and services?
Along with most famous MetaTrader 4 platform there are also tones of alternatives available today. While choosing a broker is a burden, figuring out the platform is apparently equally tricky. Many beginners get lost in the available abundance.
First and foremost, there is no such thing as best trading platform. Each and every platform is unique in either configuration, features, online or download, tools, inter face or services given. Therefore, your task is to find a platform that suits you best.
With that being said, let’s look at some of the important features that should be included in every trading platform:
1. Compatibility
Since you need a platform that is compatible with your computer, first you need to check whether the platform of your choice works with your operating system. Do you have Windows? Does it work with Vista? What about Linux or Mac?
2. Speed and Flexibility
Forex trader is required to use indicators and view different time-frame charts. So your next task is to figure out whether the platform can handle multiple charts simultaneously, whether there are any unexpected error messages, are there any complications or delay time involved? Demo accounts can give you a overall idea of the platform performance, however the best way is to deposit small amount and try out live account. Compare one platform to another and see which one is working best.
Another important thing - graphics. You have to be able to keep track of every moment and move of the market. Your platform should be able to handle different kind of information at once without hanging and shutting down.
3. History
Good forex trading platform stores historical data. This is very useful in strategy building and back testing.
4. Orders
Since you have to enter and get out of trades based on your trading plan, it is important for the platform to “cooperate”, meaning that one click should be enough to execute the requested task. You have to make sure that orders are organized in the right way.
Also, make sure that there are risk management options, such as stop/loss or similar. This can save you from lots of sleepless nights and unnecessary worries!
5. Beauty and Easiness
Yes, even here beauty is important. And by beauty I actually mean the interface design. The platform needs to be user-friendly and simple to grasp.
The platform might be comfortable enough, but not the tools. Make sure that charting is not too complicated, intuitive and doesn’t make troubles when you set up your technical indicators. Trading is already extremely difficult, so why to make even more headache with bad-quality tools?
6. Demo Account
All forex brokers offer free practice account. Usually it is limited either by amount of available virtual money or time. Demo account is a good way to get a feel of how the live platform will actually work and whether it is suitable for your daily trading activities.
7. Price Feeds
An obvious feature to look for is price feeds. The platform of your choice should offer tick-by-tick price feeds, since every trader need most recent market prices (especially if you are a day trader or a scalper).
Overall, be comfortable with the platform. It has to make trading easier and more enjoyable on every level. Some brokers add all kind of special tools, where you can see what others are trading most, or you can actually chat with other traders live. When choosing the trading platform, make the most of it because the platform and the broker will be your best friends for the years to come.
