Have you ever had someone tell you that he trades online? Chances are you couldn’t make head or tail about what he was talking about. Well, Online trading means trading that is carried out on the internet. And choosing the best trading platform is a big part of this industry.
Investors and traders sell and buy financial instruments through an internet-based platform offered by a bank or a broker to profit from price variations.
Decision relevant to trading is made on your trading platform and immediately sent to the brokers, which is why a very stable internet connection is required.
Since the 1990s, online trading has grown exponentially. This is mainly due to easily affordable internet connection and computers.
Online Trades You Can Participate in
|
Trading Style |
Timeframe |
Trading Period |
|
Day Trading |
Short-term |
Maximum of one day- never hold any position throughout the night |
|
Scalping |
Short- term |
Few seconds or minutes |
|
Position trading |
Long term |
Years, months, weeks |
|
Swing trading |
Medium- short- term |
Many days or even weeks |
Trading instruments are also sometimes referred to as financial markets. It is a market place where you trade financial securities nationally and internationally.
Traders sell and buy these securities to obtain possible profits. They do this while attempting to limit their risks.
Numerous traders focus more on just one financial market, for instance, CFDs or trading stocks. Still, it is critical to analyze all the available financial markets to trade since they can impact each other.
Different Types of Financial Markets You Can Trade
Looking to enter the financial markets as a trader? Here are all the different types of instruments that are available to you for trading. Spoiler alert: There are too many to choose from!
- Derivatives markets – such as CFDs (Contracts for Difference).
- Forex – referred to as the Foreign Exchange market or FX.
- Money markets – such as short-term debt.
- Capital markets – such as bond markets and stocks.
- Derivatives markets – such as CFDs (Contracts for Difference).
- Commodity markets – such as oil, gold, and silver
- Cryptocurrency markets – which involves Bitcoin and altcoins.
- Insurance market – which moves risk for a premium.
You Need The Following Things to Start Online Trading:
Anyone can start online trading. However, everyone still needs a certain few things in order to do so. Here are the top things that are absolutely necessary to have if you want to start forex trading online:
- high-speed internet connection
- A reliable computer,
- Trading account
- A trading platform
- A broker
What is the Best Trading Platform?
A trading platform is a simple software. It allows traders and investors to place orders and keep an eye on accounts. They do this through financial intermediaries. A trading platform comes loaded with some many features. These include charting tools, real-time quotes, premium research, and so much more!
Who is A Broker?
A broker is an independent company or a person. It organizes and implements trades on another party’s behalf. Brokers must be licensed to give counsel. They also need a license to execute the sales. Brokers will only follow your wishes. They can only trade when you allow them. However, you should know that corrupt brokers also exist. Corrupt brokers perform illegal activities. They will make sure that you’re unable to get good profits.
What to Look out for in the Best Trading Platform
Your success in online trading can depend on the trading platform you are using. This is because it determines the types of markets you can access. It also determines what features you can use to facilitate your trading. Here is what to look out for in a trading platform. It should enable some of the following things:
- Exiting and Entering Setups
- Fundamental analysis
- Availability to support discussion communities and forums
- Switching to several accounts swiftly
- Performing chart analysis
- Using indicators
- Managing setups
- Adding or changing instruments for analysis
- Operating Expert Advisors, and downloading new and custom ones online
- Using a strategy tester
- Stability and Reliability of the platform. Is it going to crash during high-frequency trades?
- Keeping track of close and open trades
- Using several profiles for different types of analysis
- Equity trading possibilities
Using MetaTrader to Trade Forex
MetaTrader is the top trading platform. It is popular among millions of traders and brokers. Traders all over the world use the MetaTrader platform to perform forex trading.
The platform is especially great for CFD and forex trading. Its charting platform is easy to use and navigate. Auto trade broker allows you to follow price changes. It also helps you implement complicated trade strategies. MetaTrader makes sure that you make good trading decisions. This is why it is the top choice trading platform for traders worldwide.
Support Charts on MetaTrader 4
You should know that you will have access to different types of charts with different trading platforms. You can choose the chart that is best for you according to your trading strategy. Not all charts will be helpful to you. MT4 will give you access to the following types of charts:
- Line
- Renko
- Heikin Ashi
- Candle Stick
Why MetaTrader is Popular Among Brokers
MetaTrader is the best platform in the world. There are many different trading platforms today. But only choose the platform that is good for you. Traders still prefer MetaTrader 4. Here is why:
- It is free
- It has incredible features, such as:
- the Pepperstone market terminal
- more than 80 pre-installed indicators
- automated trading
- the market watch window
- the several charts setup with combined and easy to use charts
- the navigator window
- the indicators window
- Ease of programming language MQL4
- It is convenient
- Easy to customize
- It is very secure
Disadvantages of Using MetaTrader
- Comprehensive historical data for backtesting is not available.
- Execution speed is not that exceptional and is not very appropriate for high-frequency trading.
- Its upcoming web platform does not support automated trading.
- Charting packages don’t enable a standard timeframe
Final Thoughts on the Best Trading Platform
As a new online trader, avoid taking risks right from the beginning. Test and try out all types of online ideas, strategies, methods, and market analysis. Do so via many top brokers‘ free Demo account. The account enables you to experience several financial markets and trade without making some big mistakes. Subscribe to forex signals to get the best chance at successful trades. Happy Trading!
