Trading on the financial market has become widely popular during the last few years. The reason is simple – everybody wants to make money. However, is Forex trading as easy as it looks? What broker must we choose? And also what trading platform should we use to execute our trades? I will try to answer these questions in this article.
After you read this article let me know was it useful for you? How it contributed to your trading experience?
By far the most well known forex trading platform in the world is MT4. This is a platform that is famous for its simplicity and many forex brokers use it. However, there are plenty of non-Metatrader forex brokers which chose to not offer this software for various reasons. Those are usually large and top forex brokers with couple of hundred thousand client accounts.
Why not using MT4?
It is hardly easy to understand why a broker doesn’t use MT4 from a client perspective. However if you look from a broker side of view it will be easy understood. The first reason is that MT4 is external software and in this sense cannot be easily modified. The largest brokers simply cannot afford the risk to put their client capital in software that they don’t have full control over. Most of the reasons why not using it lead to the security and vulnerability problems. Many of the Expert advisors execute scalping patterns and must be controlled with a separate plug-ins. Most of the plug-ins are free but some have to be purchased. As with all turn-key solutions, MT4 comes with its rules and practices. Some of them are not quite convenient for brokers so they prefer to not use this platform.
How to choose the best broker?
Regardless of the platform, the forex broker must be properly regulated and to have a good reputation over the years. Many forex brokers claim that they are regulated but the best way is to check. Simply perform a search on the financial regulator website for this broker and you will see if it is really regulated. Regulation may not cause you big problems if you trade with small amounts but investing a couple of thousands of dollars in a non-regulated entity is simply not advisable.
Another major concern is of course the platform. MT4 is the most well known platform but if the broker is a non-MT4 one it is a great idea to explore the platform by using a demo account and trade for at least a month. You should also note that the demo execution is not in any way related to the live one. Many of the experiences you will encounter on live platform will not appear on the demo. For example the demo execution is perfect and you will never see any slippage, re-quotes or simply anything that might be an obstacle for execution the trade. In the real worlds the things are different and you should be very careful with the platform in order to use it wisely.
Guest post by Peter Traychev.