Would you like to get onto a Forex trading floor to buy or sell currencies? The online market is naturally virtual strict! The only way you can get trading access to the Forex platform is by opening an account with an experienced Forex firm or broker. This will make possible for you to execute orders on the traded currency pairs, for example, exchange between US dollars and European Pounds.
There are many Forex platforms provided by Forex brokers. Each of these platforms has its own pros and cons. It is imperative that you understand the various types of Forex trading platforms as it will have a big impact on your trade outcome. Forex trade platforms are classified into three ways: according to format, programmable language and trading models. In this article, we will review each of these classifications into detail:
Classification According To Format
This type of classification divides Forex platforms on the basis of if the software is available in an online non-downloadable format or in a downloadable file format.Under this classification, there are two types of platforms:
a) Downloadable Trading Platforms
You have to download this trading platform on to your device. The device can be a smartphone r a personal computer. Downloadable Trading platforms are available as executable files that have to be unpacked and further compiled into the platform.
b) Web Based Platforms
These platforms run on JAVA. You can access them by typing the URL into your browser. Your login details are then used to access the trading platform. You can therefore access the platform anywhere, meaning you don’t need to carry the device containing a downloadable platform.
Classification According To Programming Language
This classification is done in regards to the language used in the platform’s programming design. Under this classification, trading platforms include:
a) MetaTrader( MT4 and MT5)
These platforms are products of Metaquotes software. The MT4 is widely used due to its user friendly interface, auto-trading abilities and the many tech indicators it offers. You can easily download your Meca Trade platform. All you need to do is register for a free demo account with a Metatrader Forex firm or broker. The MT5 is a successor of the MT4 trading platform though many brokers still prefer offering the MT4 platform.
b) ActTrader Platform
The Act Trader platform enables you to customize your workspace with the help of detachable windows and tabs. It is comes with a built-in one-click trading feature that allows you to open and manage your position in the fastest way.
The Act Trader platform also boasts the FXApp that allows you to find the best automated trading strategies. Another important feature is the Act Vat visual strategy editor that enables you to automate your trading strategies from charts directly without the need of writing a line of code.
c) Trade Station
This platform uses the Lua programming language. It is mainly used by big Forex capital companies as part of their trading suites.
The cTrader is an Electronic Communications Network platform that gives you direct market access in Forex trading. It also provides you with a large set of technical analysis tools, fast trade executions and access to a large pool of liquidity providers.
The Currenex the platform is available in two versions: the Currenex Classic Platform that functions under market marker conditions, and the Currenex Viking Platform, the ECN platform. The Viking platform is ideal for professional traders as its interface may be difficult to use for starters. The Classic platform has charts and tools that make it simpler to use. It is therefore ideal for beginners.
Classification According To Trading Model
This classification is done according to the trading model through which the broker operates. Forex platforms under this classification are as follows:
a) Dealing Desk Platforms
These platforms are mainly used by market markers. They connect the broker’s dealing desk with trade platforms such that all pricing has to originate from the desk. All orders are executed at the dealing desk. Trading platforms like Act Trader and Meta trader fall under category.
b) Non-Dealing Desk Platforms
They are also known as direct access trading platforms. They display pricing information directly from different liquidity providers. Several platforms such as Currenex Viking software and Level II software fall under this category.
While forex trading is one of the most trending types of trade today, it’s many platforms gives you an opportunity to choose the one that best suits your trading objectives. The information that we have provided you with in this article will help you choose the right Forex Trading Platform. Kindly utilize it for your success in Forex trading.