For a forex trader to be able to go online and trade currency, they need to belong to an online forex trading platform such as Rakuten forex trading Australia platform. These platforms belong to registered forex brokers and brokerage companies. This broker is responsible for displaying the latest trading options and also information pertaining to the forex market in real time. They should also make available any information they think would benefit a trader. On these trading platforms, traders can freely buy and sell currency pairs to make profits.
What most traders are not aware of is the fact there are numerous varying types and version of online platforms. There are differences in the platforms made available by different brokers. It is important for traders to learn about the different types of platform. This is because it is believed that the type of platform one trades in has an effect on results traders get.
Classifying forex trading platforms
There are several factors that determine the ranking of a forex platform. Here are the most important factors.
Based on a format, forex trading platforms can be categorized as either downloadable or non-downloadable versions.
The non-downloadable platform version is available as a downloadable software package. It runs on Java and is accessible through a URL address. The user needs to login into the platform to access their trading account. This bears the advantage of being accessible from anywhere by the trader. All they need to be able to trade is an internet connection and a computer.
For the downloadable version, the software is stored in the device it is downloaded to. This version is available in the executable files format which needs to be run on the device it was downloaded to every time the user needs to access their account.
The programming language
There are some platforms that are classified based on the programming language used to create them. Platform programming languages include Metaquotes, Lua, cTrader, and ActFX.
Rakuten forex trading Australia platform is created using the MT4 programming to ensure it is stable, reliable and efficient. The MT4 programming ensures that the platform is user-friendly and easy to navigate even for novice traders.
The best programming languages include:
MT4 (MetaTrader 4) – this is a popular platform programming version that allows for fast trade executions. Most successful platforms online make use of this version.
MT5 – this is the latest MetaTrader version. While the interface is the same, it comes with added capabilities to its predecessor the MT4. Even with the new capabilities, the traders have an easy time transitioning to the new version because of its ease of use. It comes with more inbuilt tools like charts and indicators. The new version also allows traders to import signals from the trader community.
Advanced trader – this is a type of version that is built for newbies in the market who are looking to eventually become pro traders. It has an easy to use interface which makes it easy for users to navigate the platform easily.
ActTrader – this is a version used by a selected number of traders. It is available in a web-based or software version. The layout of the interface is different from what most platforms that use MT4 or MT5 offer.
For this category, trader platforms are categorized on a trading model basis that is determined by the model used by the broker. The two models are direct market access (ECN) and dealing desk model.
Dealing desk platforms are common on platforms offered by traders who are also market makers. This platform is linked to the broker’s dealing desk and all deals and trades pass through the desk. The trading prices are availed from the dealing desk.
For the ECN platforms, there is no broker-dealer desk involved. The pricing in these platforms come from different liquidity providers. The prices are displayed on the terminals which give the trader the chance to pick the price they think suits their model of trade.