Forex trading has recently become quite popular. A lot of people step into forex trading without having proper knowledge. The first and the most important decision they have to make is to choose the best trading platform for themselves. This can be a difficult task especially for newcomers who are unfamiliar with the platforms. This article will make it easy for beginners to learn about the most popular forex trading platforms, weigh their benefits and drawbacks, and make a wise decision.

But before talking about the available platforms, this article will give brief details about the technical terms being talked about so that you can understand the article better.

Pending and Limit orders:

When specific prerequisites set by the trader are satisfied, a pending order instructs the trader to purchase or sell an item. Limit orders can only be filled at the trader’s set limit price. Limit orders are divided into two types: buy limit orders and sell limit orders. A buy limit order tells an item to be purchased at a set price or lower, while a sell limit order tells an instrument to be sold at a defined price or higher.

Multiple Trading charts or Timeframes:

When trading, traders use a top-down strategy called multiple time frame analysis, which allows them to see the longer-term trend whilst recognizing excellent entrances on a shorter time frame chart. Traders can undertake technical observation utilizing several time frames to validate or reject their trading bias after deciding on the proper time periods to study.

Algorithmic Trading:

Algorithmic trading is a process of carrying out orders using automated trading procedures that take price, volume, and time into account.

Social Trading:

Social trading is a type of investment that allows traders to watch their friends and professional traders trade. The main goal is to use copy trading or mirror trading to follow their investing ideas.

CFDs:

A contract for differences, abbreviated as CFDs, is a business agreement that distributes the difference between the open and closing trade settlement prices. CFDs are popular in FX because they allow traders to invest the flow of assets in the very short term.

Now moving towards the most popular platforms available for forex trading.

MetaTrader 4

The automated trading platform MetaTrader 4, abbreviated as MT4, is popular among internet retail forex traders. It was created by MetaQuotes Software and was released in 2005. It now has over 85 percent market share among forex brokers all around the world. It is regarded as the top FX platform, according to awards.

Advantages

The most significant advantage of MetaTrader 4 is that investors that become accustomed to the platform may quickly move between other greater forex brokers. With other Metatrader 4 characteristics like one-click trading, pending and limit orders, multi charting, algorithmic and social trading, and 9 time-frames, the 15-year-old trading platform’s reliability is another significant plus.

Disadvantages

Those wishing to trade CFDs are unable to do that using the MetaTrader 4 platform. The charting software is simple but it lacks the intricacy of competing platforms. Limited technical indicators, tools, and timeframes are other cons.

MetaTrader 5

MetaTrader 5, abbreviated as MT5, was also created by MetaQuotes three years after the creation of MT4. The main goal of the new platform was to facilitate CFD trading also.

Advantages

As previously noted, MetaTrader 5 provides the option of CFDs trading unlike MT4, which concentrates only on currency trading. The trading platform is quicker than MetaTrader 4, and it comes with additional indicators and order types. Six pending order types, Twenty-one timeframes, hedging and netting options, and the function of depth of market are among the most fundamental features of MT5.

Disadvantages

The most serious flaw with MT5 is the MQL5 programming language for automatic trades. Because this is not the same as MT4’s programming language ‘MQL4’, if you are an MT4 user, you will have to learn new code from the start.

cTrader

cTrader is a full trading platform solution created by Spotware for Forex and CFD brokers. The platform is jam-packed with options that cater to every type of investing choice possible.

Advantages

With Sixty Five analytical and visual items and level 2 pricing, many believe cTrader to be the best forex trading software. cTrader provides cAlgo for automated trading, which uses C# programming language, that most programmers are more comfortable with.

Disadvantages

Because cTrader has a lesser market share than MetaTrader, the online community is more narrow, restricting bot distribution and the copy trading situation.

Marketsx

Marketsx is a unique trading platform developed by Markets.com that serves as an all-in-one shop for almost all of your trading requirements.

Advantages

MarketsX’s key benefit is a large number of trading tools available, including analytical, basic, and emotion analysis tools. The advanced charting package, Hedge Funds investing confidence, and Insider trades, which indicate smart money buying and selling activities, are among the most important trading tools.

Disadvantages

MarketsX is exclusively available to Markets.com clients, hence it has a limited audience. Regardless of the fact that it is a multi-asset platform, the platform’s capabilities are targeted at share trading, leaving FX traders back.

NinjaTrader

NinjaTrader was founded in 2004. It is a forex graphing platform with advanced features.

Advantages

The majority of traders select this platform because of the configurable graphs and real-time bid data. Lots of pre-configured trade indicators are accessible, along with sketching tools. With the ability to create watch lists and indicator values, the tool assists traders in scanning changes in forex markets. Currency market changes can trigger alerts, and automated strategy programs are pre-programmed.

Disadvantages

Only 6 foreign exchanges provide NinjaTrader and the platform’s user base is rather limited. Moreover, NinjaTrader does not have a mobile app and only has a desktop version.

ProRealTime

It was established in 2001. ProRealTime is web-based and does not require any downloads, unlike most other forex trading programs.

Advantages

ProRealTime’s chart analyzing feature is the trading platform’s strongest suit. The 100 plus indicators, which can be sorted by strike price and expiration dates, are available to macro and micro currency traders. The interface offers a wide range of charts and periods, as well as the ability to trade trend lines across asset classes.

Disadvantages

There are no trading applications accessible because the system was not built for mobile trading. Another concern is the costs that certain brokers demand, which range from an interaction fee to a price for actual data access.