Forex trading has certainly evolved into a hugely popular trading format in recent times. The main reason for this is the uniqueness of the currency market that allows investors of any magnitude to trade in. The various benefits that a trader gets with Forex cannot be compared to other trading formats. Most forex traders usually trade in the traditional markets as well as in Forex to maximize their returns greatly. To reap rich rewards in forex, a good knowledge on the trading forex platforms is necessary.
About Trading Platforms
A trading platform is essentially the software that helps as a line of communication between a broker and a trader.
The platform is a veritable source of information including charts, quotes, and interfaces that have orders which will be executed by a broker. There are mainly two types present.
- Software in a trading platform can be present locally in the computer used by a trader. Such software is mostly compatible with Mac, Linux, and Windows operating systems. Brokers usually offer various options for traders to choose from.
- Another platform category is the web-based software that is run based on the popular web language: Java. This type of trading platform is highly favored as you can access it from anywhere provided you have an internet facility.
While most trading platforms are offered for free by brokers, some brokers offer platforms with advanced features and different functionality levels that give more benefits to the traders.
What An Ideal Platform Should Provide
Ideally, an online platform acts as a bridge between the forex trader and broker. It gives real-time data along with historical data and lets traders access orders, which are essential to trade in forex effectively. There are also third-party software programs that are allowed by brokers who have an application program interface or API. Some of the factors that you should look into regarding forex software include:
- Charges and presence of additional features
- Type of software
- Order interface types
- Availability of historical data and backtesting
- Convenient and effective user interface
Top Forex Platforms
Here are some of the best forex platforms for traders.
- FXOpen: This broker specializes in ECN or MT4 accounts. Traders get to choose from 49 currency pairs and also on silver and gold on MT4 right from 0 pips using the ECN account. The commissions are low starting from $1.8 and the leverage here is 1:500.
- iForex: iForex has three trading platforms that can be personalized to suit your trading activity, speed of the internet, and personal preferences. One is a downloadable platform that is considered best for professional traders while you also get an all-inclusive web-based platform and innovative mobile platform and app too. Hedging capabilities, advanced market orders, immediate future profit payments, and leverage of 1:400 are some of the exceptional features of this platform.
- FXCM: Free trading signals, facility to place entry orders anywhere in the spread, and pips of 2.5 for Euro/USD and 2.8 for British pound/USD are some of the features you are bestowed with when you choose this broker. It is also one of the largest and listed on NASDAQ.
- FBS: Maximum leverage up to 1:500, currency deposit facility in EUR and USD, and a minimum deposit of $5 are some of the beneficial features of this platform.
Most brokers give traders the opportunity to trade with a demo account, before funding a mini account. It is best to try the broker’s software before deciding on the right software for you.