Best Forex Trading Platform Comparison

“The goal of a successful trader is to make the best trades. Money is secondary.” – Alexander Elder

It is not unusual to find out that many of us may get carried away and start trading without any education, just to make money. However, as wise traders tell us, the goal is to make the best trades. This means developing the right skills, educating yourself and learning to be patient. If you’re looking for gold, you will eventually get lost and miss opportunities that are right in front of you. Build discipline and invest in your skills, and the money will follow. 

One of the ways towards making good trades that will also give you consistent profits is by having the right tools. For forex traders, having access to a reliable, secure and easy-to-use trading platform is very important and the first step towards achieving your goals.

Popularity of trading

With the internet and the growing number of brokers worldwide, trading foreign currencies has become increasingly accessible to traders of all levels.

Forex trading has become very popular and is appealing to a wider audience, with also more and more women interested and excelling in trading. This is mainly down to the availability of trading platforms, the lower deposit requirements, lower fees and widespread forex education. With more people interested in trading, 外汇经纪商 have also improved their resources, services and platforms, so traders have all they need to trade effortlessly online from the comfort of their own homes.

You may have wondered which is the best trading platform to start trading. If you’re just starting, make sure to find the right forex broker who will offer their own version of MetaTrader 4 (MT4) or MetaTrader 5 (MT5). Choosing the right forex trading platform can be challenging. Many brokers may offer their own proprietary trading platform. Other brokers ensure that their traders have access to the leading trading platforms MT4 or MT5.

MT4 and MT5 provide all the necessary tools, resources and flexibility needed for traders to explore their favourite markets on the go or on their desktop computers. They also have a big community of traders which is growing every day, allowing every trader to reach out and learn more about these popular platforms.

What are trading platforms?

They are software systems designed to trade various securities. They enable the opening, closing and managing of positions through an online broker. They offer sophisticated tools such as advanced charting tools, live news feeds, and access to proprietary research. They can also include features such as real-time quotes and interactive charts or offer access to specific markets such as currencies or futures markets.

Online brokers tend to offer access to these platforms for free or at a discounted price.

Types of trading platforms:

• Trading platforms can be divided into two different categories: commercial platforms and proprietary platforms. Commercial platforms target day traders and retail investors because they are easy to use and have many helpful tools such as real-time quotes, international news, interactive charts, educational content, and research tools.

• Proprietary platforms are not available to the public and are developed by large brokerages and other financial institutions for their own trading activities.

When you first register with a broker, make sure to check their trading platform. Most reliable brokers tend to offer MT4 which is generally the best platform for both beginners and advanced traders.

MT4 or MT5?

MT4 and MT5 are both very popular trading platforms used by forex traders around the world.

1. Which markets do they focus on?

Released in 2005, MT4 has become the industry standard for forex trading. It is mainly used for forex and CFD (Contracts for Difference) trading. MT4 is considered a simpler platform and easier to get to grips with.

MT5 was released 5 years later, in 2010. If you trade stocks or more than one asset class, then MT5 is definitely the right platform for you as it offers access to a wide range of global markets. MT5 allows traders to trade other asset classes like stocks, commodities, and futures and is a more versatile platform for traders.

2. Programming language

MT4 uses a widely used programming language called MQL4 (MetaQuotes Language 4). It is used for programming custom indicators, expert advisors (EAs), and scripts. On the other hand, MT5 uses a more powerful version, the MQL5 (MetaQuotes Language 5), which provides more advanced features and capabilities and is perhaps more suited for those who are looking for more complex trading strategies.

3. Order types and execution

MetaTrader 4 offers fast order execution and supports four types of order execution: Instant execution, market and exchange execution. MT5 offers more order execution types than MT4, including Fill or Kill and Immediate or Cancel. While MT5 offers fast execution speeds, many traders will still go for MT4, as it is more straightforward and easy to use when executing trades.

4. Timeframes and historical data

MT4 offers traders the opportunity to access information and data in nine standard timeframes, from 1 minute to 1 month. However, with MT5 traders can access 21 timeframes and more detailed historical data to help them when conducting market analysis.

5. Hedging

Both MT4 and MT5 users can hedge their positions and protect their accounts against unpredictable volatility and market risks. They can do so by opening multiple positions in the same instrument, in opposite directions (buy and sell) at the same time. Traders have the flexibility with both platforms to manage risks by using various hedging strategies.

6. Netting

MetaTrader 4 uses netting accounting. Netting in trading means that a trader can offset a position in one instrument or currency with another position in the same instrument or a different one. Netting aims to offset losses in one position with gains in another. By aggregating all trades in the same instrument into one position, traders need to close specific positions to offset them. But in MT5, we have hedging accounting, which allows traders to open both long and short positions in the same instrument, without the need to offset them.

MetaTrader 4 and MetaTrader 5 offer traders many flexibilities but MT4 stands out for its simplicity, massive library of EAs and generally its appeal to such a huge base of traders. On the other hand, MT5 allows for diversification as you can access a wide variety of markets beyond just CFDs or forex. Its advanced programming capabilities, flexibility and improved features might appeal to some traders, so MT5 might end up being the right choice for you. Whatever you choose, make sure it fits your needs as what other people say may not apply to you.

Trading forums and online forex communities offer extensive online reviews and you can join any forum online to discuss and find out more about these platforms. The trading community is huge and trading forums abound, so you will always find information to guide you and help you make the right decision. With so many brokers online and professional articles written by traders about MT4 and MT5, you will be able to assess their features and decide for yourself.

Also, before you start trading, remember that as the great Warren Buffet once said, “Risk comes from not knowing what you’re doing.” Work hard, learn, practice and focus on your skills. Knowing what you’re doing will prove to be rewarding in the long term.

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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.