What is a platform in trading?

A trading platform is a trader’s main interface and point of interaction with the markets. Via a platform, traders analyse assets, place orders, check out their performance, and much more. As such, understanding how to use a platform is a big deal.

This article will serve as an introduction to trading platforms and their key features. And while there are many different options, making it impossible to cover them all, many of them share the same functions. As such, understanding these key features is bound to make traders much more versatile and capable.

How to access a trading platform?

Everyone knows that the quickest way to start learning a new program is to start using it. The same goes for trading platforms, but the frustrating thing is that it may be difficult to just download them and get started.

A quick way to access a trading platform is to find a broker that offers both the software and a demo account. That way, traders can create an account free of charge and start learning their platform. Demo accounts are stocked with virtual funds, which can’t be withdrawn. That means that all trading here is only for practice and testing, making it the perfect learning environment without added pressure.

One thing to note, though, is that some demo accounts last for a limited amount of time. This isn’t difficult to circumvent. The obvious, easiest choice is to find a broker with a long-lasting demo or one without a time limit altogether. However, if brokerage availability is limited, it’s fine to simply find another broker’s demo and continue from the previous stopping point.

Which trading platform is the best?

The next logical question is which trading platform offers the highest performance, since that’s a good way to improve trading results, at least in theory. However, there’s no easy answer to this question.

Top platforms are generally fairly similar in features. As such, they are pretty close to one another in performance. Thus, traders often choose the best one for themselves based on how the platform feels. Again, this involves testing, as a platform may sound great on paper, but have unintuitive controls and suffer from lag.

However, there’s no denying that some platforms show up more often than others. In general, these have risen through prominence by constant updates, strong performance, and due to the fact that traders prefer them.

MetaTrader 4/5

Traders who have visited multiple brokers already may have noticed that they mostly offer some version of MetaTrader. It’s likely the most widely spread platform in the forex and CFD space, making it somewhat of a benchmark.

MetaTrader 4 is more intuitive, while MetaTrader 5 is more feature-rich. However, even between them, the differences are fairly slight. And while both platforms are powerful, they require some getting used to. The newer of the two is fifteen years old, and their interfaces may look and feel somewhat dated.

Their broad functionality is supplemented by their massive audience, creating a wide array of custom tools. As such, it’s the platforms are extremely versatile, and only grow further as time passes.

cTrader

The second platform on our list has a large dropoff in popularity, but that doesn’t make it less viable. In fact, cTrader offers much of the same functionality that MetaTrader 4 and 5 do, but looks much more modern. As such, many traders prefer it over the industry titans.

However, that doesn’t mean it’s strictly better. Some functions are more limited, and the audience is much more modest. That translates to fewer custom tools made by users as well.

Still, cTrader is a fantastic tool, and unless traders intend to dig really deep, they are unlikely to notice any shortcomings compared to MT.

TradingView

TradingView is an analysis software primarily, but some brokers also implement it as a platform. Its exact implementation is highly dependent on the broker’s execution, and as such, it may feel different from trading company to trading company. However, for analytical traders, TradingView offers the deepest pool of tools, and as such, it’s always worth considering.

Custom platforms

Brokers often also make in-house tools to help traders access markets. And while these can be tough to explore, since they can be unique and thus conflict with previous trader knowledge, they can also be immensely useful. Because they are custom-made to suit the service of the broker that made them, they are often well-suited for the trading conditions. In general, they are always worth checking out.

Basic platform functions

Let’s look at some basic platform functions that are essential to understand. Any modern trading platform should have these functions, and they comprise the core of the trading experience. This list will cover them:

• Asset list/watchlist: A list of assets available, usually split into categories and modifiable so it shows the traders’ favourite trading instruments.
• Charts: A visual indicator of asset value through time.
• Opening an order: A basic trading action that lets traders buy (speculate on positive movement) or sell (speculate on negative movement).
• Take profits: Allows trades to end automatically once they grow a predetermined amount.
• Stop losses: Allows trades to end automatically once they shrink a predetermined amount.
• Account history: A list of all active and past trades can be used to close orders or analyse past performance.
• Closing an order: Terminate a trading position or a portion of a position, collecting wins or losses.
• Timeframes: Determine how long each data point in a chart will represent.
• Indicators: Various tools that help understand markets and analyse asset performance.

A lot of traders fear the initial period because they believe starting out is immensely difficult. However, these explanations are simple, and realistically, getting started with these tools is simple as well. Traders will mostly be able to place their first trade and understand what’s going on without much trouble at all.

Of course, for most of these features, there’s much more to cover than the little snippets here. Platforms tend to grow with trader skill, rewarding those who put in the time and effort to learn.

Advanced platform features

For traders who are past the initial stages, or simply want a glimpse of what can be achieved, we’ve decided to present some of the more complex features. These can slowly be incorporated into a trading routine to attempt to achieve greater flexibility, trading uptime, or power.

• EAs/Algo trading: Programmable strategies that are executed by an algorithm rather than an actual trader. As such, they eliminate emotional charge and operate on pure logic. EAs are programmable, allowing traders to either craft them by hand or download existing ones.
• Backtesting: A feature that allows tactics to be tested on previous market conditions. Particularly popular in combination with EAs and algorithmic trading. Together, they allow the tactic to be tested on real conditions and verify the theoretical concept in practice before risking any money.
• Programming: Most modern platforms are programmable to an extent. They use either a custom language or an existing one, like C# for cTrader, for instance. Tech-savvy traders can learn the logic behind platforms and create custom tools like bots, indicators, signals, and much more.

The trading platform: A window into the trading world

Platforms are the bread-and-butter of trading. All trading actions and most analysis are executed within them. However, they are more than just an interface, they are a powerful tool that can help traders improve their grasp on markets if used correctly.

It’s highly advisable for traders to find a platform that they feel comfortable with, as they are bound to spend a lot of time looking at it.

免责声明: This information is not considered investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.