After picking a broker and registering on the website, the novice trader goes to the next stage. Now, there is a need to choose a trading platform. This is because most reputable brokers, such as AvaTrade, know that users have different preferences. Therefore, various Trading Platforms (TPs) are created and designed for different requests and situations. The main goal of the broker is to meet the needs of clients and create comfortable conditions for earning money.
Depending on the level of knowledge and experience in Forex (FX), the user chooses the type of trading on the TP: manual or automated. In this case, various devices can be used: tablet, smartphone, PC, and so on. As a result, you can exchange not only real currencies (they are called fiat) but also crypto. On the TP, you can use practical and analytical tools, including viewing charts, indicators, graphs, statistical tables, and more.
On the broker’s website, you first need to visit the page dedicated to selecting a platform: read the terms of cooperation and try to choose a suitable TP. If you are not sure, you can try the free trial version (demo) to avoid risking real money. If everything suits you, you can launch one of the platforms. You should keep in mind that some of them do not require downloading.
Definition of a Trading Platform
A trading platform is a figurative concept. It’s not about a real object but about a virtual one; in other words, TP is a software that allows you to trade the stock exchange with maximum convenience. For instance, you can open or close trading positions; you are provided with “control levers” that you can use at your discretion. In addition, you get up-to-date quotes for various assets (financial, digital, and so on). You can also view economic, trade, political, and scientific market research news, guides, articles, tips, expert recommendations, and more. On TP, you can monitor your progress by looking at graphs and making diagrams yourself. Platforms have different functions and capabilities. Next, we talk about what types of trading platforms are relevant today.
Main Types of Trading Platforms
Proprietary TPs
These platforms are designed specifically for large companies so that they can speculate at the expense of their own assets. Profits are generated by market fluctuations. Modern analysis methods have made it possible to implement complex algorithms and high-frequency trading (abbreviated as HFT). Proprietary TP is suitable for investors and companies with high profitability potential. Working on such platforms requires a professional understanding of the market, quick analysis of the situation, the ability to make urgent decisions, the availability of assets, etc.
The income of proprietary brokers is generated by successful trades, not by commission: traders do not pay commission but they have to give back part of the profits. This percentage is low and varies depending on the broker, region, market situation, and other factors. It is proprietary companies that adapt most quickly to a rapidly changing market by using innovative methods and having a good technical base. It is necessary to keep in mind the increased level of risk in proprietary trading. When working for such TPs, you have to maintain strict control and use risk management.
TPs with Manual Control
Recently, platforms with manual control have been in great demand, as the trader can manage the process: open or close positions. In this case, the user gets a precious experience. Retail investors can trade assets at an amateur or professional level on AvaTrade’s MT4/5 platforms. If you have any questions about the terms of cooperation, you can go to the broker’s official website and enter a request in the online chat and the bot responds to you without delay. Experts recommend starting with manual online platforms in order to gain basic knowledge and understand how the exchange works.
Automated Platforms
You need to know that some manual platforms have an automatic mode (for instance MT5). This technology makes it possible to trade without wasting personal time. Your applications are served within the time period specified by you without your presence. There are TPs for retail traders who focus on automatic operation. An example is Dupli-Trade. The advantages of automatic operation are that you can set up a complex trading scheme remotely and earn a stable income over a long distance. There are many articles on profitable trading strategies on the internet. We remind you that the success of a novice trader largely depends on the choice of a broker. If you sign up on AvaTrade’s website or another one, you can start with just $100 in your account. You would select the MT4 platform and try to create a trading position manually. You can try the automatic operation on the Dupli-Trade platform.
