How to choose a perfect currency trading platform
A currency trading platform is a software interface that currency brokers provide to their customers in order to provide them access to the forex markets as traders. This might be a web-based portal, a mobile app, a separate downloaded software, or any combination of the three.
In addition to order processing tools, these systems may include research tools.
Things to register in your mind about using trading platforms
- Traders can enter the forex market using a currency trading platform.
- Some clients choose brokerages and platforms that provide access to all asset classes while integrating trading into a single platform.
- MetaTrader 4 (MT4) has established itself as the de facto standard among forex trading platforms.
- Trading techniques that are automated using these platforms might be free of psychological and emotional elements.
- Automated trading is not without flaws, and it needs careful monitoring and thought in order to function well.
- MetaTrader 4 costs $100,000 per licence in upfront fees for brokerages, as well as monthly hosting, bridging, and maintenance expenses in the hundreds of dollars.
- Because each platform is unique, even seasoned traders must learn how to use them before trading with real money.
- In general, it is a good idea to execute at least 50 practise trades to learn how important features such as stop orders function.
- Forex demo accounts can also assist traders in determining how well platforms record transactions for tax purposes.
- Although demo trading is not the real thing, it may assist traders prepare for utilising genuine accounts.
- Most forex traders need to understand how to put up a stop-loss order on a platform. That is the most reliable strategy for highly leveraged traders to avoid huge losses when exchange rates unexpectedly shift in the opposite direction.
Currency trading platforms provide traders the ability to execute buy and sell orders in the forex markets. Forex brokers make their platforms available to clients for usage. Some forex brokers provide their own specialised trading platforms for order processing and research, although many give order access via integrated trading and research programmes.
Many brokerage firms provide a diverse range of currency trading platform solutions to both retail and institutional clients. Banking or brokerage firms may also develop custom currency trading systems to fit their internal needs, with trades performed through institutional trading channels, in the institutional markets.
To get an advantage in forex markets, several platforms provide forex
charting tools that may be used in conjunction with other technologies such as
predictive forecasting software and online trading.
The finest charting software is usually determined by a trader's unique demands and expertise. Considerations include the sort of technical analysis they want to perform, the volume or duration of their trades, and the type of charting equipment they want to utilise. Knowledgeable traders will take notice of the data sources from which charting solutions get their pricing and other information, making sure that such sources are up to date, dependable, and correct.
MetaTrader 5 is by far the most widely used currency trading platform
(MT5). MT5 was created in 2010 as a companion platform to MetaTrader 4,
which is also one of the most popular currency trading platforms; in fact, it is
more popular than MT5.
MT4 and MT5 are both versatile trading platforms that enable currency trading. It should be noted that MT5 is not an upgrade to MT4, but rather a new system with a distinct objective. Unlike MT4, MT5 allows you to trade stocks, CFDs, and futures alongside FX. Both offer fundamental and technical analysis to assist traders in making educated trading decisions.
Both are not open-source software, but are freely extendable and configurable
platforms that enable trading system developers to write scripts and automated
trading algorithms that run within their framework.
MT4 is so popular among retail traders that many brokers who provide their own platforms also offer MT4 integration, allowing retail traders who are already familiar with the platform to easily move their tools to the new brokerage.
When picking and using a currency trading platform, retail forex traders
often search for a few key qualities. Traders seek for simplicity of
installation and usage, which might lead to comparisons of web-based vs
downloaded platforms. Traders in this location may be able to select a platform
directly from their brokerage or use an independent provider.
Fees might also be a significant factor to consider because costs can vary greatly depending on the system. Most traders rely on embedded charting and order-taking mechanisms inherent into the system, thus functionality is essential. The brokerage trading platform with which it is connected will be a critical part of a forex trading platform.
Brokers like Olymp Trade, eToro, IQ Option are popular among forex traders in
the UAE, since they provide access to various asset classes, due to their
expertise in that market and competitive pricing.
Most forex platforms enable traders to establish a demo account before financing a live account. Using a trial period to try out several forex software trading platforms might help a trader decide which one is ideal for their trading needs.
Automated forex trading software is based on a computer that examines
currency price charts as well as other market activities over several periods.
To find potentially successful currency pair trades, the programme analyses
signals such as spread differences, price trends, and market-moving news.
For example, if a software programme detects a currency pair transaction that meets the predefined profit parameters using criteria established by the user, it sends a buy or sell alert and executes the deal automatically.
The absence of emotional and psychological impacts on trading decisions in
favour of a cool, rational approach to the market is a significant advantage of
automated forex trading software.
Beginners, as well as experienced traders, may occasionally make a deal based on a psychological trigger that violates market logic. Such all-too-human errors in judgement simply do not exist with automated trading.
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This is due to the fact that automated software is designed to make your trading judgments unemotional and constant, based on the parameters you've pre-established or the settings you've pre-installed.
Automated trading systems, like any other piece of technology, have flaws. If
a network connection is lost, a deal may fail, resulting in a missed opportunity
or certifying a loss. Theoretical test trades and actual trades might also
Because of the aforementioned technological concerns, as well as trading platform irregularities such as missing or duplicate orders, automated systems need continual monitoring.
According to ForexBroker.ae, Olymp Trade is the finest forex trading platform for newcomers. IG, eToro, AvaTrade, CMC Markets, XTB, and OANDA are a few other decent forex trading platforms for novices.
Forex traders in the United States are restricted to a leverage ratio of 50:1, resulting in a margin rate of 2%. Margin charges might be greater, for example, 3% or 4%, depending on the broker. The 50:1 leverage ratio is most commonly used for ordinary currency pairings, but the leverage ratio for exotic pairs is generally 20:1, representing a 5% rate.
The price of forex trading platforms vary substantially based on the type of platform and the company that provides it. Typically, traders must pay a licence fee as well as costs per trade or block of deals. Commissions on trading activities must also be paid by the trader.
Before you begin trading on a forex platform, you must first understand how to use its features. Traders may, thankfully, test each platform using a demo account, which means no real money is at stake. In this section, we'll go over the value of demo trading and what to look for while experimenting with different platforms.
Let's summarize this chapter
Several platforms are available from several brokers. MetaTrader 4 and 5,
generally known as MT4 and MT5, are well-known trading platforms.
Furthermore, the majority of brokers provide further platforms. These new
alternatives, however, may be the broker's exclusive property. That implies that
other brokers may not have access to the platform.
While each platform operates and appears slightly differently, the majority of them offer essentially the same functions. Forex quotes/prices, charts, technical analysis tools, news feeds, trading history, drawing tools, and currency buying and selling capability are among the services offered.
Some platforms offer more functionality than others. Some of them, for example, have basic analytical capabilities built in. This is significant for long-term investors, but it is irrelevant for short-term traders.
Shortcuts to numerous tools and settings are located at the platform's top. A charting window with the price history of a currency pair or other asset is located underneath these shortcuts. The charting window lies underneath the terminal. The terminal contains many tabs that allow you to access news, account history, and current trading. Not every platform is set up in this manner, but the majority of them do, although in a different order.
To understand the nuances of order input, it's a good idea to conduct at least 50 sample trades on a platform before trading money. A trader should never trade in real time unless they can confidently answer the following questions:
- What is the process for placing a limit order?
- What is a stop order?
- Can I specify a limit and a time limit for entry?
- The platform's spreads are fixed or variable. What is the average spread?
- What is the maximum lot size I may trade (100, 1,000, 10,000, 100,000)?
- Can I combine lots of different sizes?
- Is there any option for me to trade if my main Internet connection fails?
Some platforms employ pop-up order windows, while others allow you to trade by just clicking prices on a chart. To purchase a currency pair, typically click on the offer portion of the quote (the ask). When you wish to sell something, you normally start by clicking on the bid section. Following the appearance of the quotation window, certain platforms allow you to place a market or limit order. Others, on the other hand, make you make your choice ahead of time.
The currency pair for the transaction is depicted on the left in a very short-term chart in MT4. This currency pair is also shown towards the top of the trading box. Next, enter the amount you wish to swap. Set the trade's stop-loss and take-profit levels. A market order or a pending order can be used to place a transaction. Choose the market as the type if you wish to buy/sell at the current price. Choose pending if you wish to purchase or sell at a different price.
There are more possibilities with a pending order since you must enter the price at which you wish to purchase or sell. You can also specify when the order will expire. Place the order once everything has been filled out.
Tax reporting is one feature that many inexperienced forex traders neglect. Because forex is a worldwide market, dealers seldom furnish evidence to tax authorities in the trader's home country. The trader is exclusively responsible for tax compliance. Brokers generate extensive transaction histories, which traders must subsequently gather in order to complete their tax returns. A trading platform with highly structured and flexible reporting functions is required for such a setup.
The quality of reporting, on the other hand, differs widely amongst dealers. Every dealer will give you a detailed transaction report. It may be the difference between spending hours or minutes generating a final report for your accountant depending on how those transactions are written out. Some forex traders make thousands of deals every year. It is priceless to have a platform that records all of those trades in an easy-to-understand income statement.
Currency trading is taxed differently depending on the individual's tax
situation. Most dealers will not provide you tax advice, and if they do, you
should disregard it. The vast majority of them lack the specialised knowledge
required to cope with the world's numerous tax agencies. Before making any
decisions, you should always get the advice of a tax specialist.
In general, more user-friendly platforms with more ordered reporting of your trading history are preferable for tax purposes. Examine the transaction history and account statements after you've completed some practise trading. Consider how simple it would be to view your year's profits and losses.
Once you've grasped the fundamentals of a trading platform, you may try out other tactics on the demo platform. Are you a short-term momentum trader that prefers high leverage and attempts to profit on changes of 10 to 20 pip? Or do you want to use less leverage and hold positions for a longer period of time, perhaps yielding hundreds of pips? Demo trading can assist you in determining which style of trading best suits you.
Demo trading is not the real thing, but it may help you prepare for it. After
suffering a significant loss on a demo account, many people remain completely
calm. Some of them, on the other hand, get utterly insane over even a minor loss
in a genuine account. To make demo trading as fruitful as possible, you should
trade the demo account as if it were real money.
Taking little steps into actual trading is frequently the best way to get started. Some forex brokers, such as Olymp Trade, let you start an account with as little as one US dollar. When you begin trading with even a few hundred dollars, the experience becomes tangible. Trading in tiny increments is a natural progression from demo trading.
Even if you decide to trade in real time, demo trading may be quite beneficial. Many successful traders will test methods in a practise account before putting real money on the line. Profits in a live account cannot be guaranteed by demo trading. Many traders, however, believe that failure on a demo account nearly always leads to failure in real life. That is why demo trading is essential for forex traders' growth and development.
A currency trading platform is a tool that forex brokers provide to their clients in order for them to trade currencies. Platforms might be online, web-based portals, mobile apps, downloaded software, or a mix of the above. These tools enable traders to do market research, test strategies, generate buy and sell signals, and execute orders. Currency trading platforms have considerably enhanced the trading environment for forex traders, and without them, effective forex trading is nearly impossible.
Main References: Investopedia
Learn more about online trading brokers for UAE citizens and residents.
Best Online Brokers for trading Forex, Bitcoin, CFDs and Stocks in the UAE
Here is a list of top online brokers to open an account for trading Forex, Bitcoin, CFDs and Stocks in the UAE. These brokers have above-average reviews on sites like Reddit, Quora and Trustpilot; and are totally legit, safe and trustworthy for UAE citizens and residents.
The brokers listed on this webpage accept clients from within the United Arab Emirates. Most of these companies provide an online trading platform for fiat currencies (such as Pound Sterling, the Euro, the US dollar, Japanese Yen etc.), buying and selling of cryptocurrencies (for example Bitcoin, Ethereum, Tether, XRP etc.), stocks (this includes listings on Abu Dhabi Securities Exchange, Borse Dubai, Dubai Mercantile Exchange, Dubai Financial Market and NASDAQ Dubai), CFDs (Apple, Microsoft, Amazon, Google, Tesla etc.), UAE government and corporate bonds, and short-term to long-term fixed income securities.
- Olymp Trade - People simply love this one (Olymp Trade Review)
- Binance - World's largest cryptocurrency e-wallet and exchange that also has an online trading platform, where their members can invest or trade in virtually hundreds of cryptocurrencies and new tokens. (Binance Review)
- IG Markets UAE - UK broker located at Tower 2, Level 27, Al Fattan Currency House, DIFC. (IG Markets UAE Review)
- City Index Middle East - London-city broker with a branch in the UAE. (City Index Middle East Review)
- eToro - Social trading platform, but much better options are available out there. (eToro Review)
- Swissquote - It's a Swiss bank that offers an online trading platform for forex and CFD trading. (Swissquote Review)
- easyMarkets - Israeli brand that is big all over. (easyMarkets Review)
- OANDA - American broker that is now spreading its wings. (OANDA Review)
- Forex.com - Google ranks them in the top 10 for the term "forex". (Forex.com Review)
- Plus500 - UK brand that has its own platform, OK for CFDs, with mediocre reviews. (Plus500 Review)
- AvaTrade - Regulated by ADGM's Financial Services Regulatory Authority (FSRA) in Abu Dhabi. (AvaTrade Review)
- FXCM.com - Oldest brand when it comes to retail online forex trading. (FXCM.com Review)
- Mashreq Neo - An online trading platform provided by Mashreq Bank. (Mashreq Neo Review)
- ForexTime (FXTM) - Owned by Andrey Dashin from the Alpari broker fame. (ForexTime FXTM Review)
- Noor Capital - Licensed and Regulated by the UAE Central Bank and SCA. (Noor Capital Review)
- XM.com - XM broker is big in Africa and South East Asia, and now promoting themselves hard in the UAE. (XM.com Review)
- Saxo Bank - Danish Investment Bank with a long history of catering for premium forex investors. It also provides crypto trading facility. (Saxo Bank Review)
- Pepperstone - Originally Australian, but licensed locally by Dubai Financial Services Authority. (Pepperstone Review)
- ADSS - Based out of Abu Dhabi and regulated by the Central Bank of the United Arab Emirates. (ADSS Review)
- CMC Markets - UK-based broker that is popular among CFD traders. (CMC Markets Review)
- Orient Finance - Local online-trading broker that caters to novice traders looking to invest in the foreign exchange markets. (Orient Finance Review)
- Alfa Financial - Their office is located at City Centre Deira on Port Saeed Road; and generally tends to attract investors within Dubai. (Alfa Financial Review)
- One Financial Markets - Local forex broker with an office at Dubai International Financial Centre at Index Tower. (One Financial Markets Review)
- Amana Capital - A broker located at Central Park Towers, Dubai International Financial Center. (Amana Capital Review)
- ETX Capital - UK broker that has a decent reputation among Arab investors. (ETX Capital Review)
- Century Financial - Old online-trading broker with an office at Level 6, Building 4, Emaar Square, Downtown Dubai. (Century Financial Review)
- IFCM UAE - Nothing special about IFC Markets, but it does have a dedicated .AE website for UAE clients. (IFCM UAE Review)
- EARNEX - This one is present at Jumeirah Lakes Towers and is licensed by the SCA. (EARNEX Review)
- Interactive Brokers - American online-trading broker that is expanding into Asian and Arab markets nowadays. (Interactive Brokers Review)
- Rakuten Securities - Japanese broker that usually looks out for large institutional investors. (Rakuten Securities Review)
- Dukascopy Bank SA - Swiss bank that offers online forex trading on its own proprietary platform. (Dukascopy Bank SA Review)
- Gulfbrokers ae - Dubai Multi Commodities Centre (DMCC) regulates this broker, but there nothing extraordinary about this brand. (Gulfbrokers AE Review)
- IQ Option - It's a below-average broker with no Dubai office, but does have a toll-free virtual number for UAE: 800 032 0891 -> No Arabic, English only. (IQ Option Review)
Reviewed by Arpita Singh
Arpita Singh is the main writer at ForexBroker.ae. As a senior investment professional with 10+ years of experience working at top-tier Private Equity and Sovereign Wealth Fund; she is also responsible for fact-checking concepts, reviews, and related details about brokers and exchanges listed on this website. Full Bio.