These days, trading in the financial markets has become much, much simpler and easier. All you have to do is to go online Financial Services , find a forex broker, sign up and fund your account, wait for the details, and voila, you can start trading.
You can start trading via the platform offered by the broker Funding Methods and there are many different kinds of trading platforms, all available today.
There can also be some differences on the platforms offered by the broker. You guess what’s next: you got to be familiar with how these platforms are classified.
This article talks about the different ways to classify trading platforms. Read on!
Trading platforms can be classified according to format. Based on this classification, platforms can be either downloadable or non-downloadable versions. If it’s non-downloadable, it’s usually web-based. If it’s downloadable, it comes in the form of a software package.
The web-based platforms run using Java, and can be accessed by the trader by typing the URL name in the browser. You then have to input specific details if you want to access your personal trading account.
The good thing about this kind of platform is that it can be accessed anywhere, meaning you don’t have to download on your device or PC.
Platforms can also classified according to the programming language used in them. They also come in different forms based on this classification.
For instance, the MetaTrader platforms are designed using the Metaquotes language (MQL). This is one of the most widely used currency trading platforms. The MetaTrader 4 version is one that allows very fast trade executions, like one-click trading from charts. Aside from those, the programming language used in developing this platform allows for back-testing strategies and the use of automated trade with the help of Expert Advisors.
There’s also the MetaTrader 5 platform, which is the latest version of the MetaTrader platform. It doesn’t have much difference when it comes to appearance, but it has tons of additional capabilities. That means that the technology in this version is more comprehensive with built-in tools like charts and indicators.
Platforms can also be classified on the basis of their trading models. Platforms, when divided based on this, can be classified into two: the Dealing Desk platforms and ECN or Direct market access platform.
Dealing desk platforms are typically offered by forex brokers that want to serve as market makers. The platform is linked to the broker’s dealing desk. In fact, all transactions and trades must pass through this desk. In other words, all process should be overseen by the dealing desk of the broker.
ECN platforms are generally called non-dealing desk platforms. The pricing doesn’t come from the dealing desk from the many liquidity providers. You can see all the prices displayed on the terminal while you can choose the price that will best suit your trading model.
In a way, you have the power to have a direct access to the money markets.