Forex Trading Platforms: Different Approaches To Classification

By Nick

If you want to get involved in forex trading (or if you have already been doing it for some time), you need to know that it is a complex and multifaceted enterprise. When dealing with it, you should understand the fundamental aspects of this process linked to currencies, business environment, geopolitical news, and many other elements. This knowledge is an essential foundation on which you may build your forex success if you are lucky and skillful enough.

Meanwhile, even keeping this vast mass of information in mind, you still have to obtain a basic understanding of the forex sphere as it is. A starting point from which you can launch your exploration is learning more about the personal account you will use for trading operations. In this field, there is a huge variety of options from which you may choose the one most suitable for starting your career. At the very least, you'll have to decide whether you want to practice in the safe environment of the demo account or if you are ready to throw yourself into the bulk of risks and opportunities with the live account.

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However, this classification is merely a tip of an iceberg. Sooner or later, you'll have to decide on more complicated characteristics of your trading profile. This article will help you navigate the complex classification of forex platforms so that you will be able to select a platform and an account with the consideration of all the criteria that are the most suitable to your style, strategy, and trading personality.

Criterion 1: Downloadability.

First and foremost, when looking at different types of forex platforms, one can notice that some of them are downloadable while others are not. Versions of the platform belonging to the first type can be downloaded from the places of their storage and installed on the devices on which they are to be used. In essence, the platforms of this type can be viewed as applications or other software pieces. Today, there are downloadable trading platforms for various types of devices (personal computers, tablets, phones, etc.), as well as different operating systems.

As for non-downloadable platforms, the main thing that distinguishes them from their counterparts is the ability to reach these platforms online. To use them, you don't have to download any files and install any applications. Instead, you reach for the web address where the platform can be found, log in to the system, and use it in a way you prefer.

When choosing between these two types of platforms, traders should consider the circumstances in which they will be used, the power of their devices, the stability of the Internet connection, and a number of other factors that usually make the difference between installed programs and online platforms. Without these factors, it is impossible to say which of the two types of platforms is objectively better. As always, it all depends on the specific circumstances that may change each time.

Criterion 2: Programming Language.

Forex platforms are complicated pieces of programming aimed at performing a variety of different multifaceted tasks. Therefore, programming languages used to code each of them plays a significant role in the peculiarities of their functioning. Depending on the programming language used, the existing forex platforms can be divided into several main types. Their list includes (but is not limited to) MT4 and MT5 MetaTrader, TradeStation, Currenex, cTrader, and ActTrader. Among these platforms, MT5 MetaTrader is the most widely used. You can reach it through the following link: https://nsbroker.com/web-trading. However, you can choose any platform you prefer, depending on your taste, criteria, and trading style.

Criterion 3: Availability of a Dealing Desk.

Forex platforms can come with or without a dealing desk integrated into them. Dealing desks are the particular elements of the platforms that provide a connection space for forex traders and brokers with whom they interact. A dealing desk is the starting point from which trader's activities begin, as it includes the whole spectrum of information about the deal, from the type of the operation to pricing. The aggregators such as MetaTrader, Currenex Classic, ActTrader, and some others are vivid examples of platforms with dealing desks available.

ALSO READ: What Is Leverage, Margin, And Margin Call In Forex Trading

The platforms without dealing desks are also frequently referred to as those having direct market access. As it is obvious from their very name, the main distinguishing feature of these platforms is the lack of a dealing desk, due to which brokerage agencies play slightly different roles in the trading operations conducted there. Traders obtain the essential information directly from liquidity providers, limiting the brokers' mediative role in their operations. Among the platforms lacking dealing desks, one may distinguish such services as cAlgo, cTrader, Currenex Viking, and others.

Final Thoughts

When you get involved in forex trading, you should realize that this sphere is both risky and rewarding at the same time. It can have many pitfalls and peculiarities that make a difference between your success and failure. Therefore, it is in your best interest to learn as much about this trading sphere as possible. Getting to know your options when selecting a platform is an essential step that should precede any serious actions in the forex sphere. We hope that this article provided you with a general understanding of different forex trading platforms that exist today. If you keep this knowledge in mind and deepen it with time, you will have a high chance of succeeding in forex trading.

(Disclaimer: The article is sponsored and hence promotes some commercial links.)