Now that you have decided to make the plunge into forex trading, you are probably wondering which is the best Forex trading software available in the market. A trading software is the first requirement for trading in foreign exchange as it is the primary platform that will provide you with access to the market.
It is through this platform that you connect with an online forex broker, get access to exchange rates and execute trades. Modern trading platforms also offer some advanced features like multiple trading accounts, charting, technical analysis and automated trading facilities. These features come handy especially for Forex newbies who can feel a little flustered by this volatile industry.
Though there are a number of trading softwares in the market, MetaTrader 4 and MetaTrader 5 are the most widely used among Forex traders and brokers alike for its user-friendly interface and advanced features. Let’s take a look at what MetaTrader 4 and MetaTrader 5 have to offer for its users.
MetaTrader 4 – A Market Standard
MetaTrader 4 (MT4) has become the standard trading platform in the Forex market as it is preferred by most online forex brokers globally. It is the advanced technology and enhanced stability and security features that make MT4 endearing to brokers and traders.
The software provides the basic functions of order entry and order management as well as advanced features like charting. The platform comes with 50 pre-installed technical indicators that give traders the ability to monitor and analyse the market for favourable trading conditions. Users can enter and exit the market in precise timing with the platform’s nine different time frames and three chart times.
MetaTrader 4 software can be easily installed to Windows-based computers and laptops from its website. All you need is an internet connection for the trillion dollar market to open up on your device
Features of MT4
● User-friendly interface
The MT4 offers an extremely user-friendly interface that allows even novice Forex traders to comfortably execute trades in this complex market. To keep up with the rising trends of mobile Forex trading, MT4 also offers mobile trading applications that can be installed on a wide range of devices.
The platform offers a great deal of flexibility in that it is suitable for users from any part of the world. It supports a wide range of languages and currency pairs. Not just currency trading, the platform also allows users to trade in other markets like commodities, futures and equities. You can also set up multiple trading accounts and view account information like account balance, trading history, access details from within the interface.
● Automated algorithmic trading
The MT4 platform largely owes its success and popularity to its hands-free trading option. It is through its Expert Advisors feature the platform allows users to customise and automate their trades based on algorithms. Automated trading once set-up requires no manual intervention and can save you some considerable time
● Technical indicators
New to Forex trading and worried about investing your hard earned capital? You can relax as MT4’s analytical tools are here to ease your worries. The platform’s pre-installed technical indicators along with its easy to understand customisable charts help in spotting and analysing the market patterns.
When trading in a high volume market like Forex, the security aspect is of utmost importance. MT4 offers maximum security to your sensitive information from attackers and hackers by encrypting all the data between the trader and the server with a 129-bit key. Your IP address also remains completely concealed.
MetaTrader 5 – Sophisticated multi-asset web platform
MetaTrader 5 (MT5) is the most recent, improved version of the MetaTrader trading platform. This sophisticated multi-asset platform offers superior tools for technical and fundamental analysis. The MT5 is better suited for traders accustomed to the nuances of Forex and other asset trading than novice traders. New users may find MT4 more simple and easy to use.
But if you’re already a successful trader, the MT5 can help you a great deal with its advanced features. It supports up to 100 charts that can be opened to monitor the different financial instruments. MT5 offers 21 time-frames that allow to examine short-term fluctuations as well as long-term patterns.
The best feature of MT5 is that it can also be accessed as a web platform without being installed. That means the software does not need much of your storage. But if you are skeptical of the security of a web platform, rest assured as MT5 offers enhanced protection through its two-factor authentication.
Features of MT5
● Navigating multiple accounts
The interface of MT5 is designed to give users greater ease in switching between the multiple trading accounts using the Navigator feature. Considering the fact that MT5 is a multi-asset platform, traders can create separate accounts for different instruments and employ different strategies for each yet effortlessly manage multiple accounts.
● Professional technical analysis
MT5 allows even deeper, professional price analysis and forecasting than MT4 software with 80 in-built technical indicators. That’s not all, you can further download/purchase more indicators using MetaTrader 5 services or even build your own technical indicators. It also offers fundamental analysis tools like financial news and economic calendar that help to understand the dynamics of financial instruments.
● Automated trading robots
With the MT5 you can let the bots do the automated trading of analysing the market and placing the trades for you. Using the developing environment MQL5 IDE, traders can program and optimize the robots for their algorithmic trading strategy. Beginners can use the MQL5 Wizard which will help to assemble a simple robot for your automated trading.
● One Click Trading
The One Click Trading function of MT5 allows users to buy and sell currency pairs, equities and other instruments in just one click. It also provides a sophisticated Market Depth feature with Time & Sales information and supports all types of trading and execution modes. Thee Stop Loss and Take Profit option might come handy to minimise losses and make gains
Whatever your needs be – simple, easy to use order entry and management software or advanced professional analysis and automation, MetaTrader 4 and 5 have got it all. No wonder it is the most widely used trading software in the Forex market.