Trading Forex is much easier than it used to be. With online tools making it more accessible than ever, many more beginners are getting involved.
Part of what makes it so accessible is the availability of Forex trading platforms. A trading platform is, quite simply, a piece of software that serves as a medium of communication between a trader and a broker.
A trading platform is what makes it possible to execute trades from wherever you are. It provides tools and resources for you to make decisions, and turn those decisions into practical trades.
Trading platforms provide quick and effective trading conditions and access to financial markets, which is ultimately what opens the markets up to anyone interested.
Let’s have a look at the technology behind trading platforms.
What technology do trading platforms use?
Trading platforms do not use a uniform programming language. Depending on whether they’re provided through web applications or Windows (or other OS) software, they’ll use whatever language serves their needs best.
However, as a general rule, the best Forex trading platforms are relatively simple and lightweight. They provide everything you need to trade without resource-high downloads or running, and without a necessary understanding of the programming language.
As a trader, you’ll choose the software that is most useful to you. If you are using Windows, for example, it’s in your best interests to use Windows technology. On the other hand, if you are using a Mac OS, you’ll benefit from either Mac-based technology or web-based software.
How does a trading platform benefit me?
As mentioned, you need a trading platform to execute your trades. Without the relevant software, you won’t be able to access the markets.
But a trading platform will provide you with far more benefits than the basic trading capabilities.
Before you execute your trades, you have to decide which trades will suit you best. For this, you need to analyse the constantly changing data coming from the markets. A good trading platform will give you access to all the data you need, as well as tools to analyse the data. It will give you charts and statistics, historical analysis, and indicators.
These indicators will alert you as to when a position is viable. You’ll set them up so that you are informed when your trading strategy is in line with market events.
The trading tools allow you to set up scripts and instructions as to how to carry out trades. For example, you can set up a Stop order, for when a currency reaches a certain value, or falls below that value. There is also the option of using Expert Advisors (EAs), which allow you to carry out automated trading, although this is only recommended for experts.
Which trading platform should I use?
It is widely accepted among traders that MetaTrader 4 (MT4) is the best trading platform. Over 90% of traders use it. That is not to say there are no alternatives, but with its easy functionality and its usability, it is the standard choice of beginners and experts alike.
A Forex trading platform allows you to get trading immediately. All it takes is a simple download, or even the use of a web app, and you have all you need to take advantage of the Forex market.