Not all trading platforms are equal. Similarly, not all online trading companies in India and Malaysia provide similar quality product offerings, especially with reference to their trading platforms.
Therefore, before you sign up with an online trading broker like 70 Trades, it is vital to ask and answer the following questions (in no particular order) about the broker that you open an account with before you transfer your trading deposit to the company’s bank account:
- What online trading platform do they offer for traders to trade on?
- What is their customer service like?
- Do they take the time to help newbie traders learn to trade profitably?
- Do they ensure that all their traders are bona vide investors and not front companies, terrorist organisations, or scammers by collecting the relevant Know Your Customer documentation?
- Is their website’s user-interface and usability up to par with best practice methodologies?
It is important to note at this juncture that, even though all of the questions mentioned above are equally important, only the topic about the different online trading platforms is within the scope of this article.
What is an online trading platform?
Before we look at some of the different online trading platforms on offer, let’s have a brief look at the definition, function, and purpose of an online trading platform. In short, Ivestopedia.com defines an online trading platform as “software through which investors and traders can open, close, and manage market positions through a financial intermediary.”
This essentially translates into the fact that an online trading platform utilises Forex technology to This essentially translates into the fact that an online trading platform employs Forex technology supported by a software application interface and undergirded by the latest network and security technologies and best practices. Thus, an online trading platform aims to allow traders to trade profitably real-time and safely and securely.
The different types of online trading platforms: MT5 and others
It is logical to assume that there is more than one online trading platform type (or brand). And, they do not all have the same functionality, security, and real-time information in the form of graphs, charts, and technical indicators. Thus, it is safe to assume that a trader’s trading success is primarily dependent and impacted upon by the online trading platform’s quality and usability.
Therefore, it is vital to choose an online trading partner that offers the “Rolls-Royce” of online trading platforms. Before we look at what is currently known as the crème de la crème of trading platforms, Metatrader 5 (MT5), it’s important to note that there are other articles and reviews on this topic available on the Internet for consumption.
MT5: Features, pros and cons
Metatrader 5 is known as the top online trading platform globally. This opinion is expressed by more than one online financial market trading expert. In fact, Metatrader5.com describes its product as “the best application for trading stocks, currencies, and futures.”
Here are several reasons why MT5 is considered the best online trading product for trading derivatives and stocks on the global financial markets today:
Multiple types of trading orders
MT5’s functionality allows traders to trade by opening different types of orders like pending orders (trades that open only when specific prerequisites are met), trailing stop loss orders, and orders containing stop-loss and take-profit values.
Professional technical analytic tools
MT5 has a comprehensive range of charts, including candlestick charts, technical oscillators like the Relative Strength Indicator (RSI), price movement indicators like the Bollinger bands, and analytical tools like Fibbonacci, Gann, and Elliot tools.
Two-position accounting modes
The netting and hedging accounting modes can both be adopted for different trading scenarios. Traditionally, the netting mode is used on exchange markets and the hedging method is used for Forex trading. These two accounting modes also allow for the setting of take-profit and stop-loss positions on every open trade.
Both technical and fundamental analysis on the trading instrument need to be conducted before a trade is set up and opened. MT5 provides the trader with the capacity to conduct both types of analysis through the trading platform. The two fundamental analysis components are the financial news and the economic calendar.
One of the most critical factors of any successful trading journey, is the quality and usability of the online trading platform. The Metatrader 5 trading platform checks all the boxes.