When it’s time for you to start Forex trading there is a plethora of information you need to stock up on. Most importantly you will need to learn the basics of Forex trading, how it works and what it is actually. Once you have gone through all of that, it will be time to actually start. But how do you do that? What do you need to have to actually make a trade? To “short” something and etc? Well, there are these things called Forex trading platforms. I’m going to tell you right now, there are a bunch to choose from, but which is the best Forex trading platform? Let’s discuss what they are, how they work and what options you have.
Forex trading platforms for beginners
Forex trading happens online, therefore it is only natural to understand that you need some kind of software. There are various options for this, as brokers either commission other companies to make it for them, or they just buy a license for an existing one. The most common way is to buy an already existing one, but which one is the best Forex trading platform for a beginner? The custom-made one or the bought one?
Actually, there is no real “advantage” to speak of as the platform’s efficiency heavily depends on the person using it. Meaning that if you are a beginner, one platform may be better than the other, but for a veteran, it could be the other way around. Let’s look at the options you have.
MetaTrader
MetaTrader will always be on top of the Forex trading platforms list as it is arguably the most used one out there. It was developed and released my MetaQuotes in 2002 alongside some other software as well. MetaQuotes is a third party company, founded in 2000, which primarily specializes in developing, updating and maintaining Forex trading platforms. Using their software is probably the cheapest and most efficient alternative for Forex brokers, that’s why you’ll see them most often, but are they good for you as a trader? You’ll usually find two versions of MetaTrader, MT4, and MT5, let’s discuss the differences.
MetaTrader 4
Meta Trader 4 trading platform was one of the first trading platforms made by MetaQutoes, which immediately became popular with Forex brokers and got adopted very rapidly. It is also held in high regard with both beginner and veteran traders for its simplistic design and small learning curve. Here are some of the features:
- 50 inbuilt indicators
- Limit orders
- 1-click trading
- Pending orders
- Advisors
- Multi Charting
This is just scratching the surface, however, and if you are a Forex trading beginner those bullet points are probably sounding like gibberish to you. Let’s now find out what truly makes MT4 one of the best Forex trading platforms available today.
MetaTrader 4 – The Good
MetaTrader 4 is constantly being updated and maintained by an in-house team of developers from MetaQuotes. The platform is relatively durable and has been tested numerous times. The fact that it has existed for nearly 17 years and hasn’t lost its popularity is a testimony to its effectiveness.
MT4 is the most popular Forex trading platform not only for traders but for brokers as well. Pretty much every broker you encounter will have MT4 listed on their platforms, which is another testimony to its effectiveness. The fact is that MT4 always acts either as a primary platform or as a reliable substitute to the broker’s custom-made platform. You can never go wrong with it, and it is never out of place.
It is extremely beginner-friendly meaning that the learning curve of the platform is not too steep. It is actually one of the best Forex trading platforms for beginners. The only thing it lacks in this department is the design, which is rather outdated. Other than that, you can’t get more simplistic.
MT4 is so popular with brokers that, when switching them, you won’t be forced to apply to new platforms. You’ll be able to just change your account and software and continue trading. Furthermore, it is compatible with desktops, tablets, and mobile devices too.
MetaTrader 4 – The Bad
The only major disadvantage I could think of when discussing MT4 was the design. It is no secret that the MetaTrader 4 Forex trading platform has an extremely outdated design. In fact, it is so old that you’d think you’re traveling through time when trading. It has that old Windows XP vibe which is sometimes annoying for young traders.
MetaTrader 5
MetaTrader 5 trading platform is another software developed by MetaQuotes. Some say that it is a direct improvement upon MT4, which is not necessarily the case. If it was indeed just an update, then MT4 would be made obsolete, but as you can see it is not. Actually, there are very few differences between MT4 and MT5. When comparing these trading platforms for beginners you’d have to concentrate on the smallest details.
MetaTrader 5 – The Good
MetaTrader 5 usually has more trading instruments implemented in it. Although MT4 also has the capacity to feature things like CFDs, Indices and other assets, brokers usually opt to feature them on MT5 thanks to its expanded nature.
MetaTrader 5 trading platform is actually significantly faster than MT4, which is why it is very popular with Scalpers (traders who close their trades after a few seconds or minutes).
MT5 contains more indicators and Charting possibilities, which makes it more sought-after by experienced traders who are good at multitasking and trading several instruments at once.
MetaTrader 5 – The Bad
MT5 trading platform is indeed considered as one of the best trading platforms out there, but there are a few disadvantages. One of them is the scarcity of it. This doesn’t mean it’s rare or anything, but compared to MT4 it is harder to come by.
MT5 is also a lot less user-friendly than MT4, which further increases the learning curve. Actually, the fastest way to learn MT5 is to learn MT4 first and then transfer.
MT5 does not have rollover and hedging.
cTrader
cTrader is pretty much one of the only other options for traders when they start their careers. Basically, it’s either between the two MetaTrader or cTrader. cTrader is actually the first trading platform to challenge MT4 and MT5 and emerge victorious when it was mentioned as the Best FX trading platform in 2018.
Why cTrader is a good choice
The design of the platform is superb and trumps both MetaTrader 4 and MetaTrader 5 in every way possible. It is way more modern and doesn’t strike the eye that much. The colors are chosen in a fashion that helps them stand out, while MetaTrader’s color-pallette may drown some vital information.
One Account Platform. One of the reasons why cTrader is the best FXtradingg platform award holder is its One platform One account system. Where both the Demo and Live accounts are connected to the same Login and Password. Which makes it way more flexible for traders.
Fast and fluid trade executions that trump MetaTrader. Automated copy trading is also one of the biggest advantages of cTrader. If you are a beginner and are intimidated by the market, you can just indicate the “stop-loss”, “take-profit” margins and let the platform do its magic. This is one of the primary reasons why its the best Forex trading platforms for beginners.
WebTrader/MobileTrader
These are the odd ones out in the trading community as they are not stable brands of trading platforms, they are a custom made software for a specific broker. Usually, the brokers create their platforms to better suit the majority of their audience. Meaning that if the broker hosts an overwhelming majority of veteran traders, then the platform will be tailor-made for them specifically. Even if beginners can number in the millions, the sheer percentage will still win. Therefore it is easy to get left out.
However, if you are able to find a tailor-made one for a newbie than WebTrader can prove to be one of the best Forex trading platforms out there.
There will be some problems you may encounter with these platforms, however. The primary one is the lack of flexibility. Meaning that you will only be able to access the platform via your desktop and not your mobile device. Judging by the fact that we leave very active lives in the modern age, it could prove to be a disadvantage, when a major call needs to be made.
WebTrader may be one of the best trading platforms for beginners, but it is the best one for brokers as well, for all the wrong reasons. You see, a custom-made software is more vulnerable to the broker’s machinations. Therefore an interference from the company to better suit their goals could be a possibility.
How to choose the best Forex trading platform
As you can see, there is no exact strategy for choosing the best one. The only thing you can do is to stack up with knowledge about them. This means that you will find out the features of all of them, and calculate which one suits your trading style the most. For example, if you’re a scalper, then you’d go for MT5 or cTrader. If you want hedging, then you’d opt for MT4. There are a plethora of options and choosing the best one is very hard.
There is arguably no such thing as the best trading platform for a beginner, as they are able to cover everything. The best way to go about it is to, just try them all out and settle for the one you feel most comfortable with.
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