When it comes to trading online, there are a plethora of trading platforms available to choose from. In fact, there are so many tools and software that it may become a challenge to select the right one. In this article, we will discuss how to choose the right trading platform and what to look for when selecting it.
There are plenty of online charting tools available on the web. What are the main criteria when selecting the best one for you?
- Valid and reliable Market Data feed
- Drawing and measurement tools
- Chart manipulation and customization, dark mode
- Indicators and custom indicators
- Automated trading software support
- Has its own programming language
- Has a big community
- Easy to access from any device
- Mobile Experience
Make sure the platform has a good live data feed with market prices and bid and ask prices from top brokers who provide the best price data. It is important to have flawless and gapless live prices to test your strategies and conduct a valid technical analysis.
If there are too many gaps and delays, then it can affect testing and trading training in negative ways. Especially when back-testing and forward-testing new trading strategies
After getting prices correctly, it is important to analyze these prices and draw figures on the charts. Analyzing chart patterns and measuring the pips between price levels and movements is very important for setting proper stop loss and take profit. So the second criterion will be about drawing tools and how easy you can use and delete them when not needed. We will not discuss trading platforms themselves in this article because this article is about criteria and not the platforms themselves.
There is a guide to FX trading platforms if the reader wants to find exact trading software names and functions. Well-selected trading software is very important for success in online trading business. Which software used when trading could have a defining moment on the results. It also depends on personnel favorites and choices. Some traders prefer MetaTrader 4 while some others are fans of Tradingview. It all depends on personnel preferences, since both of the platforms provide all trading features. MetaTrader shines in this department with its ability to quickly measure pips with a mouse click.
Visuals may seem like an exaggeration, but it is really annoying when you can not switch to dark mode when needed. This little feature makes the trading platform complete. TradingView’s dark mode will make it so much easier to analyze charts and price data.
Indicators and Custom Indicators
The next big thing when selecting the software is indicators and possibility of custom indicators. It is almost impossible to trade without indicators, and many traders are using custom-built and programmed tools. Almost all the platforms offer all popular indicators. MT4 comes with in-built indicators, and custom indicators can be downloaded for free or bought on the marketplace.
Tradingview and other platforms offer similar capabilities. So be careful to select the platform which will enable users to find and even build indicators. Probably, Tradingview is the best when it comes to custom indicators, but discussing it is outside the scope of this article. Let’s continue.
The next criterion is automated trading software, or Expert Advisors (EAs). EAs enable traders to automatically make alerts when important events happen and even automate the whole trading process. It is important to know if a trading platform supports robots.
EAs reduce the time for traders to stare at their screens and are generally a good assist. There are many free robots available online, and many trading platforms, offer the ability to test the robot before buying it. MetaTrader has plenty of free and paid robots available online.
This is an interesting criterion and is not for everyone. For traders who plan to automate their strategy in the future and for programmers who love learning new languages, this feature is a good addition to the list. This also adds to the trading platform’s credibility and shows how serious the team behind the software is.
MetaTrader and Tradingview have their own programming languages, for example. This makes it easy to write custom indicators and robots as well.
This is a big one. Big community means there are many traders and programmers who can share their experience with each other and provide the community with profitable strategies and tools. On forums, there are plenty of custom indicators, and the chance of finding the exact tool you are searching for increases with bigger communities.
TradingView here too shines with its huge community and popularity. There are many custom indicators and automated strategies available online for free. It is the same with MetaTrader and other platforms, but TradingView offers all of this by just opening a webpage without extensive installation and effort.