Software and Platform Options

Platform and Software Options

To trade within the financial market requires a balance of both technical and fundamental analysis. In order to apply this research successfully, traders must be capable of understanding the current political and economic news, and how to apply technical indicators so that a specific financial instrument may be traded.

The financial market shifts according to economic news. Currency pairs are the core of FX trading, and are some of the most popular assets used when trading binary options. These pairs offer the best example of how economic news affects trading, as their movements are representative of the differences between two economies.

Fundamental analysis – also referred to as news trading – cannot really be completed without proper technical analysis. Whilst the news may offer an explanation as to why markets are moving, technical analysis allows a trader to allocate the perfect entry and exit point, be it in the FX or binary options market.

There are many technical trading theories that can be applied – Elliott Waves, Gartley, Gann, etc – along with a wide selection of accompanying technical indicators. However, before these tools can be put to use, a new trader must first have a basic understanding of the software and trading platforms available to them.

Classical Platforms

The world’s FX markets are dominated by the popular trading platform, MetaTrader. This platform, offered for free by most brokers, is user friendly, intuitive and even allows for traders to code their own strategies. MetaTrader is available in two formats – MT4 and MT5. MetaTrader4 continues to reign above the later development, however a strong fanbase for MT5 is emerging as many of the software’s kinks have begun to be ironed out. There are of course alternative forex platforms available, designed to make a trader’s life easier. To name just a few: ESignal, JForex, Bloomberg, and cTrader may spark your interest. However, it should be noted that many of the big name competitors to MetaTrader are subscription based, and perhaps best suited to those with more experience or liquidity.

Traditional platforms are downloaded and installed on a trader’s primary computer. The terminal is then access through this system using a login. When using this platform, a good internet connection and healthy hard drive are crucial for market quote speeds and a true live representation of an instrument’s situation. Traders are limited by a classical platform’s static location, unable to access the platform fully without using the desktop in question. Which is why many of these leading platforms now operate accompanying mobile applications for flexible trade on the move.

Why Web Based Platforms?

With the development of the internet and telecommunications taking a huge leap in the last decade, it was only a matter of time before everything else followed suit. Although traditional trading platforms (such as MetaTrader) continue to command a decent following, many new traders now expect more from brokers and their software. Convenience is everything, and web based terminals are able to offer an investor easy access to the financial markets, which are then further improved with expansion into mobile device applications. It is for this reason that many leading brokers now offer web trading to their clients.

For an inexperienced trader there are plenty of advantages to using a web based trading platform. Firstly, you aren’t required to download and install any software in order to set up an account, allowing for little or no necessary knowledge to gain access to the online trading world. Secondly, a trader isn’t limited by their desktop system, which previously had to meet the requirements and upgrades necessary to run those particular types platforms. For example, MT4 was originally built to operate on a Windows based PC, which left Mac users out of the equation if not for the additional installation process of an emulator in order to configure their computer first.

However, there are drawbacks to using these online trading sites. Trading platforms are notoriously heavy, requiring a speedy internet connection and a computer with a healthy hard drive. Plus, even with an incredible internet connection, the technical tools found on these platforms are rarely match the high standards on offer through downloadable terminals. The resources for forex and binary trading found there can be limiting, and the theories represented cannot always be successfully applied. For example, Elliot Waves is arguably the most popular theory currently used by traders. In order to analyse markets with it, one has to count waves, placing letters and numbers on a specific instrument chart, before scanning through various time frames until the correct setup is found. This approach is simply not possible with most web based trading platforms.

To overcome such issues, traders are encouraged to setup a demo accounts with leading traditional platform provider’s, such as MetaTrader, even if they have no intention of sticking with the platform in the long run. Using a demo, it is possible to analyse markets from a technical viewpoint (trend lines, indicators, support and resistance, etc), whilst keeping a binary options platform active for taking direct trades.

Online trading platforms are the primary tools that unite forex and binary options brokers. However, I would say that forex brokers offer more possibilities when it comes to trading, in a sense that the trader can choose (based on their knowledge and capabilities) between multiple platforms, charting tools, software packages, etc. It is precisely the lack of this sort of accessibility for binary options brokers, that makes web trading more popular among them and essentially the only possibility to trade and access accounts.

Due to these limitations, binary options brokers continue to offer a wider variety of trading tools and features to their traders, as they are developed through their representative platforms.

Mobile Trading Applications

In the wake of smartphones and tablets trending to become essential commodities, and online access a modern necessity, mobile trading has gained significant traction. Interconnectivity and online social networks have played a key part in the explosion of online trading, and as a consequence this avenue has become more appealing to the everyman, rather than simply to institutions, banks and hedge funds.

The biggest advantage by far with mobile trading is speed. So long as you have good wifi or network access, opening up an app on a smartphone or other device allows for direct access to a trading account, providing an immediate opportunity to trade. All of this is achievable in the time it takes for your computer to start-up and load a website, or initiate a desktop platform.
With the financial markets moving at the speed of light, every trading second counts. Speed is therefore extremely important in finding the best striking price for a binary option, or the right entry into a long / short position when trading in the forex markets.

In order to clearly understand the significance of speed execution and access to a trading account, consider the vast amount of trading signal providers that are already out there. Signals to sell or to buy specific options are sent via email, and by the time these signals are sent, the trade must be taken immediately. Therefore, fast accessibility to a trading account is paramount, with mobile trading now an essential part of a trader’s life.

Mobile trading platforms are also easy to understand and navigate. They are not meant as a tool for analysing markets, but merely facilitate quick access for trading swiftly. At this time, it’s best to be prudent when relying on a terminal apps as primary tools for trade, as this is still fairly tentative ground. Nevertheless, review websites (such as ours) and onsite customer feedback ratings, should give a trader plenty of scope to find the most suitable mobile apps available on the market for their needs.

Well-tested mobile applications therefore provide a reliable solution to a variety of technical issues that may be interfering with your traditional desktop or web based trading platform. It’s always smart to have a plan B.