The forex market continues to expand, reaching over $6.5 trillion in daily volumes in 2019. There had never been easier for retail traders to get involved, with so many online brokerage companies that come with better trading conditions. Considering that the trading platform plays an important role in the process, we would like to talk briefly about three of the most used software, mentioning both positive and negative aspects.
Developed by Metaquotes, this is a new-generation forex trading platform and even though it comes with some improvements as compared to MT4, we’ll see that it also has some weaknesses. Among the positives, we must mention an increased number of time frames (21 as compared to only 9 on MT4), a forex calendar, and more technical indicators.
On the other side, forex traders generally prefer the software from Metaquotes due to the ability to use expert advisors. However, some traders are still reluctant to switch from MT4, because the programming language used to create EAs for MT5 is very different than the one used for MT4. Traders will have to learn how to make EAs from scratch, which brings us to the second platform we want to talk about.
Even though one of the oldest forex trading software, MetaTrader 4 or MT4 continues to be one of the most popular in the industry. Available on the Metaquotes website or downloaded from brokers such as easyMarkets, this is a piece of software that continues to be reliable thanks to a series of features that are a must in the trading arena.
With extremely friendly user-experience, low resource usage, security, flexibility, and a high level of customization, MT4 continues to trend among forex traders. Like any other platform, it does carry a few disadvantages. We should mention that the charting package does not provide a custom time frame, the execution speed is not suitable for high-frequency trading, and there’s no comprehensive historical data for backtesting.
Proprietary trading platforms
Due to the increasing competition in the industry, brokerage companies had been forced to come out with personalized trading offers. Some of them have allocated resources to develop proprietary trading platforms that provide originality to how a company approaches trading.
Most of these platforms work similar to Metaquotes software, have advanced charting, trading analytics, and other features. Their main disadvantage, though, is that automate trading is not supported. If you want to use automated software to facilitate your trading, proprietary platforms won’t help you at all.