Forex Trading Platforms.
Trading platforms are software applications provided to traders by Forex brokers. You need a trading platform to make trades on the Forex market.
The most common trading platforms are MT4 , MT5 and cTrader.
The most popular trading platforms are third-party applications which you can install on your computer. The most common third-party trading platforms are MT4, MT5 and cTrader. Some brokers also have their own trading platforms, which are usually accessed via your browser.
Trading platforms are more than just trading applications.
Trading platforms are more than just trading applications. Most trading platforms will also have charting tools, research tools, and options for automated trading or copy trading.
Which is the Best Forex Trading Platform?
Many believe that MetaTrader 4 (MT4) is the best platform because it is the most popular and is supported by most Forex brokers. Others argue that MetaTrader 5 (MT5) is better, as it is newer and has more modern features. Others prefer cTrader for its advanced customisation and intuitive layout.
Alongside MT4, MT5 and cTrader some Forex brokers also have their own platforms. Known as proprietary platforms, they are usually web-based and are better suited to beginner traders. They also tend to have a simplified interface and fewer customisation options.
Broker’s own platforms are often easier to use for beginner traders.
With MT4, MT5 and cTrader, it is easy to switch brokers and keep your platform with all your preferences and customisations.
With MT4, MT5 and cTrader you can switch brokers but keep your platform.
But if you decide to use a proprietary platform, the platform will not move with you if you decide to switch broker. This means you will lose any customisation and specific platform knowledge that you have gained.
First, let us have a closer look at the most popular third-party platforms.
MetaTrader 4.
Launched in 2005, MetaTrader 4 (MT4) is the world’s most popular trading platform. Like most retail trading platforms it’s available for free from MetaQuotes or any of these MT4 Forex brokers.
MT4 is considered the Forex trading industry standard due to its execution speed, customisability, broker adoption and security. Over 90% of brokers will offer support for MT4.
MT4 is the most popular trading platform in the world.
MT4 runs smoothly and executes trades quickly, even on slower internet connections. But it is most famous for its customisation options.
You can build or buy trading robots for MT4 to automate your trading.
MT4’s open-source scripting language, MQL4, allows traders to build and buy Expert Advisors (EAs), indicators and other trading robots. These can then be installed on the platform to assist with and automate trading.
MT4 also has an advanced charting package, allowing traders to view multiple charts at different timeframes. These charts can then be overlaid with indicators to provide even more precision.
Like most platforms, MT4 is also available on mobile, tablet, in a web browser and as a downloadable application. Be aware that some of the customisation options are lost on mobile devices or on a web browser.
MT4 is extremely popular, so there are thousands of reviews and guides that will help get you started and answer any question you may have. Most MT4 brokers will help traders set up the platform and offer specialist technical support.
The best MT4 broker is AvaTrade. With excellent MT4 technical support for beginners, both FSCA and ASIC regulation and competitive trading conditions, they come top of a long list of MT4 brokers.
MetaTrader 5.
Launched in 2010, Metatrader 5 (MT5) is the most recent version of the MetaTrader platform. Though it is not as popular as MT4, MT5 is also supported by many brokers. It is more modern in appearance and features than MT4 but there is not a huge difference between the two platforms.
MT5 and MT4 are very similar trading platforms.
Like MT4, MT5 allows traders to access the Forex market. But it also provides native access to other CFDs, like equities, stocks, and commodities. MT4 only supports access to these other markets via modifications to the platform. This wider range of CFDs is also good for brokers, as it lets them offer more products to traders in a single platform.
MT5 also comes with a more advanced scripting language (MQL5), which allows for more complex algorithms than MQL4. The MQL5 back-testing function is also more reliable, permitting a more precise understanding of how an EA is going to operate in a live trading environment.
The main problem for many traders is that MQL5 is not backwards compatible with MQL4. This means that any trading robots built for MT4 will not work in MT5 and vice versa.
Trading robots built for MT4 will not work in MT5 and vice versa.
The MT5 interface may look like MT4 but it has more features. MT5 has a more advanced charting package, including 12 more timeframes and more built-in technical indicators. MT5 also has a Depth of Market function, allowing traders to see view the bids and offers for any given instrument or currency pair. Other features include an economic calendar, a live news feed, a larger number of pending order types than MT4 and an embedded chat system.
MT5 is also available on mobile, tablet, in a web browser and as a downloadable application.
The best MT5 brokers is XM. With tight spreads, excellent customer service, and great educational support, XM stands out from the rest of the MT5 brokers.
Here is our top list of reputable brokers offering MT5:
cTrader.
cTrader is a multi-asset trading platform, allowing users to trade Forex as well as other CFDs. Launched in 2011, cTrader offers high-speed execution with a cleaner user interface than the competing Metatrader software.
cTrader also allows for automated trading with the built-in cTrader Automate. cTrader Automate allows traders to build or buy trading robots (cBots) and custom indicators. Algorithms built for MT4 and MT5 will not function in cTrader.
cTrader Automate and cTrader Copy let traders automate trading and copy trading strategies.
Another feature, cTrader Copy allows traders to copy trading strategies, as well as provide strategies for copying by other traders.
One of the best features of cTrader is the fully customisable layout. You can pick a chart-only layout or the default, which includes analysis and trading news. Even the charts are customisable, allowing you to display different charts side-by-side, or toggle between them. cTrader appears and functions in a similar manner to MetaTrader 4, so any transition would be easy if you are used to the latter.
It is easy to transition from MT4 to cTrader.
If you tend to trade with a certain set of currencies, the platform also allows you to create a “favourites” window, allowing you to always have easy access to your most-traded currency pairs. Here you can immediately see quotes when you launch the application so that you can make trades quickly. Additionally, cTrader comes pre-packaged with over 30 technical indicators and objects, allowing even further customisation.
The best cTrader broker is FxPro. FxPro’s cTrader account offers tight spreads, market execution, no requotes and will allow for partial fills for orders that lack liquidity.
Currently, cTrader is supported by the following brokers: