What is a Trading Platform?
A trading platform is a software that gives access traders to the global market instantly. Market participants can open and close positions through these intermediaries and seek to gain profit from the market. The trading platforms’ cost is frequently free or at a discounted price for sustaining a funded account or making a given number of trades per month.
There are two types of trading platforms prop platforms and commercial platforms. Prop platforms are customised for large brokers to suit their specific requirements and trading style. Commercial platforms target day traders and retail investors. Its focuses on ease of use and helpful features like news feed and chart. Hence, it offers sources of education and research are also given for the people.
Trading platforms have multiple functions that are packaged into one. These features are real-time quotes, charting tools, news feeds, and premium research and offers the infrastructure to trade at various markets like stocks, forex, crypto and more!
What are the features of a Trading Platform?
1. Demo Account
A demo account is a type of account that enables you to trade with a simulated fund with no real capital risk. It is a great way to learn the basics of the functions and your strategies with the trading platform. Every trading platforms offer free demo account for trial. For more detail, check on our information about demo accounts!
2. Live Prices
Trading platforms offer live prices from data providers. The accuracy of the price of an asset would be essential for trading. Therefore, making sure whether the platform is providing the correct price is needed.
Base on the live price data, the chart is formed in the meantime. The chart is a visualised set of data that helps recognise the trend, support and resistance, and other factors necessary for trading. Plus, trading platforms offer several types of charts like a Line, Bar, Candlestick, Renko and more!
4. Economic Calendar
Trading platforms provide an economic calendar for entire users for free! The economic calendar consists of several major important schedules such as employment rate, interest rate signalling, reports from Federal Reserve and other central banks with hundreds of other types of events. These events may affect the movement of assets as a whole.
Alerts on trading platforms are useful to remind a trader when to enter and exit the position. You can choose a ticker that you want to trade and set the alarm when it reaches a certain price to either buy or sell. It is implemented in every trading platforms!
6. Copy Trading
Copy trading is a type of social trading where you can automatically copy the trades via eToro, Zulutrade and Metatrader. It is often time fully automated and enables you to prevent mistakes from human emotions. But, the strategy may not be permanently outperforming, and possible human mistakes can occur.
How to pick a good trading platform?
1. Fees and commission
Fees and commission is a primary element to consider when we are choosing a trading platform. The fees here are not a trading fee, but it could be a fee for transferring your fund, subscription, inactivity, annual and research and data. Ensuring a platform does not charge these fees, which could be challenging for the beginners.
2. Features available.
The features of the trading platforms are similar but also has different functions to appeal their own speciality. Considering factors such as your trading strategy, an instrument to trade and tools available are necessary to choose a suitable platform for you!
3. Margin requirement
Some of the brokers may require a high amount of minimum deposit to start trading. The minimum amount of funds for margin requirements can range from $100 to $100,000. Therefore, ensuring the minimum margin requirement is needed!
4. Execution Speed
Speed of execution would be vital for trading. A lag in executing orders would be critical for traders as there is a probability that the order is executed at higher prices. This could directly influence the profit rate in the long-term.
Reputation from users is also a great source to consider whether a trading platform is a good one or not. You can check on app stores and websites’ reviews to see how people think about the platform.
What are the popular trading platforms?
MetaTrader 4 is a stand-alone online trading platform developed by MetaQuotes Software. It provides access to a range of markets and hundreds of different financial instruments, and you will have all the tools you need to manage your trades and analyse the markets while it is free to everyone. This trading platform enables you to access more than 30 technical indicators, which may help you identify market trends and signals for entry and exit points.
- Easy to read charts.
- Real-time monitoring of the market.
- Provides 30+ technical indicators.
- Nine different time-frames to choose from.
- Determine entry and exit points based on signals.
- Multi-device functionality and trustworthy security system.
MetaTrader 5 is the newest and most advanced online trading platform in the industry, offering from MetaQuotes. It includes a multi-threaded strategy tester, fund transfer between accounts, and alerts to remind you of the latest events. Hence, Its diverse functionality, fundamental and technical analysis tools, copy trading, and automated trading equip you with the best tools and instruments available. MetaTrader 5 is also entirely free for download.
- 44+ analytical objects with an unlimited number of charts.
- 38+ technical indicators are implemented.
- Economic calendar and email system.
- Multi-threaded strategy tester.
- Fund transfer process between accounts.
- Alerts to remind up-to-date market events.
- Embedded MQL5 community for traders to chat.
cTrader is a brand-new trading platform that was established in 2010 by Spotware. It offers complete solutions for traders packed up with various features to enhance every aspect of your investment. It provides excellent indicators, advanced order types, fast entry, and execution. The User Interface is stunningly impressive and easy to understand the components.
cTrader also offers copy training, algorithmic trading solution, Open API and FIX API. Together it is tuned for those people who are interested in system trading. If you don’t know how to make one, choose one to copy with a simple click!
- Mac, Windows, iOS, and Android supported.
- 9 charts are implemented ( Candle, Bar, OHLC, Line, Heikin, Dots, Renko, Range, and Tick chart).
- Over 70+ indicators are pre-installed for you!
- Custom indicators built-in cTrader Automate from thousands of developers.
- 8 different formats to set-up chart view based on your trading style.
- Easy to create up to 50 templates with a variety of strategies and time-frames.
Tradingview is an easy and effective platform for technical analysis and automated trading. It is very convenient to implement ideas on the chart due to its flexibility. With the most active social network of millions of investors and traders within the trading view platform, you can gain brilliant ideas by communicating with them,
The price data is obtained by professional providers who have direct and extensive access to various markets. It offers real-time price data on more than 100,000 instruments from over 50 global exchanges 24/7.
- Tradingview has an advanced chart with over 10 types of chart.
- Direct access to stocks, futures, indices, forex, crypto and CFDs.
- Offers price analysis tools including indicators, strategies, drawing objects and more.
- One of the best alert systems which can be set precisely.
- Instant access to more than 100,000 instruments.
The trading platform is a fantastic technology where we do not have to visit an exchange offline to trade in the financial market. It is online and user-friendly to use. It is very cost-efficient and convenient to access the global market with an internet connection.