A Forex trading platform is a trading software that provides Forex trade execution and trading analysis for Forex traders. Trading platforms such as MetaTrader 4 provide efficient order-taking methods and charts that rightly serve their purpose for Forex traders and brokers as well.
Fortunately, there are a lot of trading platforms in the market that you can choose from. However, only MT4 and very few trading platforms provide product quality, responsiveness, reliability, and analyzing tools. To test these qualities you can use the demo account before opening a full account or start live trading.
Responsiveness
Slippage is one vital aspect of trading that is mostly neglected by traders, especially newbies. The trader may consider the use of stop-loss to avoid incurring losses but when a high-volatility event happens and it causes a gap, the value can get worst by the time the order gets executed. With this kind of high volatility trading environment, you cannot expect to see your desired value and results. Instead, your trades will be executed on your next possible value. Such differences in price often happen, and this is normal. But these can lead to unexpected failures if left unnoticed. Therefore, you need a responsive trading platform that readily executes order while the value is still high.
Reliability
One that doesn’t crash or freeze – that type of trading platform is highly needed by every Forex trader out there. As you already know, the forex market can move rapidly and changes its value in seconds. Especially when there are global economic news and updates, a reliable trading platform that provides stability is a must. More importantly, you must consider the reliability of a trading platform more than its looks.
Additionally, if you are an aggressive trader that trades frequently, you will need a stable trading platform, one that never suffers from crashes and lags.
User-friendly Interface
When trading Forex for the first time, you may encounter difficulties and confusion along the way. After all, those Forex terms and processes are not to be underestimated. Therefore, a user-friendly interface is highly needed to avoid additional confusion. When trading, the opening, and closing of trades must be done smoothly and immediately. As much as possible, the trading platform should provide a one-click trading option and fast management of stop-loss, order types, and limit orders. These are highly advantageous to every trader in the financial market.
Analysis Tools
Another factor to consider is the trading platform’s ability to analyze your trades. It is almost impossible to have regular profits if you don’t use analysis tools.
Automatic Trading
In MetaTrader 4, automatic trading is offered and it is so convenient for traders who have regular jobs and other responsibilities in life. Automatic trading places orders automatically based on the pre-loaded rules and data according to the trader’s trading plan.
Security of Data
Of course, you cannot claim that the trading platform is great if it has security issues. This is the most important quality of a Forex trading platform. The trader’s personal data must be treated with utmost importance and it shouldn’t be compromised.