The forex market is one of the largest and most diverse entities of its type anywhere in the world, with more than 170 different currencies represented and available to traders. Despite this, seven currency pairs make up 68% of the forex market’s total trading volume, with the USD known as the single most dominant asset.
As the forex market has continued to evolve over time, we’ve also seen a larger number of innovative trading platforms become available to customers.
In this post, we’ll look at three of the best and most widely used brokerage sites for traders, while asking why they’re so popular amongst investors.
- The MetaTrader 5
First up is the MetaTrader 5 (MT5), which was launched in 2010 and five years after the release of its indirect predecessor (the MT4).
There are several differences between the MT4 and the MT5, however, with the latter written in a completely unique programming language and capable of offering access to a broader range of asset classes apart from forex (including stocks and commodities).
The platform also boasts an advanced Market Depth feature, which works alongside a tick chart and Time and Sales information to drive more informed trading decisions. Up to 100 charts can also be opened in the platform when monitoring a wide range of financial instruments, while the MT5’s charting system includes 21 time-frames.
The MetaTrader 5 is also home to more than 80 built-in technical indicators, which are great for providing insightful price analysis.
- The MetaTrader 4
The aforementioned MetaTrader 4 (MT4) was launched in 2005 by MetaQuotes, with this having become the main standard-bearer for trading forex.
While it lacks the volume of technical indicators and time-frames shared by the MT5, it’s incredibly easy to use, while the use of customisable charts makes it easier to access information in your preferred manner.
Given this, and the fact that the platform remains synonymous with forex, the MetaTrader 4 is arguably ideal for beginners who are looking to get to grips with currency trading.
The MT4 is also renowned for its range of Expert Advisors (EAs), which can be built from scratch in order to capitalise on automated and algorithmic trading.
Third up is a trading platform and technical analysis software platform that has been developed in France.
It’s also unique in the marketplace, as it operates as a web-based software program that’s backed up on the company’s Cloud network. It also offers a comprehensive range of advanced charting and analytical tools, alongside the ability to create customised market scanners and detailed strategies.
The app also operates using its propietrary ProRealCode language, which is fairly typical of forex trading platforms in 2021.
The only potential issue here is that users must pay a software license fee to access the platform, while additional fees are charged in instances where you want to analyse real-time market data.
However, users must pay a software licence to use the platform. On top of this, there are additional fees to access real-time market data.