How to choose a trading platform for Forex trading

A trading platform, also known as trading software, is the computer software through which you trade online.

Imagine that this is a platform which connects you to the Forex market online – most importantly, through an investment firm, a broker that provides it for free. Which trading platform will you choose? MetaTrader is the most popular software available on the Forex market. You may have heard about it before.

To sum up. A broker is not the same as a platform, because it is the broker who provides the software and not the other way around.

Find a perfect solution for you.
Forex platforms are created by external software companies (e.g. MetaTrader 4, MetaQuotes) or ordered by brokers. In the case of external platforms, a license is granted. The broker has no influence on the update process, which is slower than on the proprietary platforms. Creating your own platform is a bold step which puts you in control of the direction of application development. Updates are more efficient and they reflect the clients' needs.

In the age of smartphones and fast Internet, every application of note has its own mobile equivalent . It is an interesting solution for those who want to keep an eye on their investment from any place with an Internet access or 3G/4G network coverage.
How to choose a broker?
Broker/Brokerage Firm is an entity which accepts transaction orders for derivatives (CFDs) from its clients. Pursuant to the Act on Trading in Financial Instruments, such services may only be provided by authorised entities after obtaining the consent of the brokerage firms, banks conducting brokerage activities, foreign investment firms.
A broker should be selected to match the client's preferences, i.e. the initial capital, regulations issued by the financial institutions which supervise the specific broker, trading conditions, costs, deposit and withdrawal methods.

Let's start by giving you a powerful dose of knowledge.
Types of brokerage firms
Brokerage (Forex) firms can be divided into two categories:
market makers, also known as dealers. With all the transaction data and quotes from the global marketplace at their disposal, they enter into transactions with the client.
intermediaries, or brokers who transfer clients' orders for execution to other entities, e.g. other brokers, and then choose the best offer.
This can be achieved, for example, with ECN (Electronic Communication Network) technology which connects other investment firms and brings together as many 'liquidity providers' as possible.
Please note, however, that the Forex is not a centralised market. In each case, the other party is another financial institution which quotes transaction prices. Therefore, foreign exchange rates may vary slightly across brokers. It is different in the case of stock exchanges, where clients' orders are placed and transactions are concluded between clients.
What are CFDs? What is the idea of trading in contracts for price differences?
CFDs are derivatives, which means that their price is based on the price of the assets they are based on, called the underlying assets, as well as on the brokerage firm's margins. The underlying assets may include currencies, stocks, indices, commodities.
How do CFDs work?
To know about CFD trading, you have to know how CFD works
transactions with contracts for differences are based on the leverage effect, which means that you can open positions with a nominal value which exceeds that of your deposit,
you do not become the owner of the underlying, such as shares,
you may benefit both from increases (a long position) and decreases (a short position),
the difference between the position's closing and opening valuations is the essence of the settlement between the parties to a transaction,
they generate costs in the form of spread (the difference between bid and ask prices, negative swap points (cost of positions held overnight), swaps can also be positive, broker's commission.
How does a leverage work? Margin deposit.
The effect of a leverage as used on the Forex market – i.e. on an OTC market – lies in determining the conditions on which a transaction will be entered into, and how it will be settled. The parties agree that, in order to conclude a transaction, the full margin deposit for an amount concerned will not be required, but, say, 1% of that amount instead. An investment firm does not provide you, as the client, with a loan to cover the notional value of the transaction, but only agrees with you how the result of the transaction will be calculated.
The use of a 1:100 leverage (1% of the margin deposit) entails a high risk. The parties to the transaction agree that a 1% change in the price of the instrument will result in a loss or profit equivalent to 100% of the deposit (the example does not include costs).
Here are some basic principles you should follow when establishing a relationship with an investment company:
1. Check whether the investment company is a foreign broker.
2. Check whether the broker has the appropriate qualifications and can provide brokerage services in your territory
3. The broker's model of operation (market maker, other) is equally important. They may differ in terms of the commission system, spread types.
4. Check where the broker stores the funds deposited by you.
You have learned about Forex and its basics. You have also decided that you want to trade on the currency market. Now you want to know more!
Knowing what your platform requirements are is the best starting point.
xStation 5
xStation 5 is the next installment of a proprietary trading platform developed in 2016.
With its intuitiveness, speed and tools such as Market Analysis, transparent account statistics, built-in database of information and educational materials and many other options, it has quickly gained popularity among traders.
With custom one-click operations and the ability to handle charts and orders with keyboard shortcuts, the execution of orders and platform navigation take no time at all, improving your chances of success and leveraging fast-moving market moves.
It is worth mentioning the latest update (dated 23 April 2018), which improves the operation of the platform and introduces new features. Here are some of them:
Basket orders
With a new window for order placement, multiple transactions may be concluded with a single click. It can be very useful to view summary data on margin deposits and commissions.
In addition, the new Favourite Instrument Groups feature allows you to focus on the instruments you trade.
Notification of expiry dates
With this option, you can check the position's expiration date.
Filters in the company scanner
Adding filters makes it easier to select the companies you are interested in, by category:
The most popular, Blue Chips, Speculative and other.
Message finder
This module makes it much easier to stay up to speed with market and economic developments. This is also a channel through which information about XTB training courses is provided. The message filter allows you to determine the type of notifications you receive.
In addition:
news window – with this option, you can monitor changes in the functionality of the platform.
a payment menu was added. A convenient menu allows you to quickly withdraw your profits.
possibility to report bugs. Each suggestion supports the development of the platform.
Mobile version of the xStation platform
Use a mobile application to manage your positions from any device – iPhone, Android smartphone. xStation mobile provides access to 3000 CFD instruments – Forex, Indices, Commodities, Shares, Cryptocurrencies, ETFs.
The application is extremely fast, all features are at hand.
Once you have scrolled down the menu on the left, you can select the instrument to trade, charts with basic technical analysis tools, order menus with open positions, pending orders and history. In addition, you have access to: an economic calendar, market news, analyses and educational materials.
At the bottom of the screen, you can see the balance of your account, and the balance of open positions.
To sum up, the platform offers the most important features to meet the needs of both novice and advanced traders. No wonder that this solution is being used actively by more than 50% of XTB's clients.
Just enter the store on your smartphone and download the apps.
Visit Google Play store for the Android app.
MetaTrader 4
The most popular trading platform among retail clients, whose success lies in simplicity.
Its biggest advantages:
one-click trading,
a simple and clear interface,
many customisation options,
simple programming language, which allows you to find online a lot of indices, automatic strategies, or to create your own scripts as soon as you master it.
Once you've written your own script, use the built-in MT4 Strategy Tester to minimise the time spent on tracking markets – your algorithm will do it for you.
the platform is also available for smartphones.
Now you know the basics, you have chosen your broker, and you are even ready to open an account.
XTB offers both real and demo accounts.
Open a demo account and test the platform.
Demo account:
it's free and you can use it for 30 days
it simulates the actual trading conditions without exposing you to any risk,
you can learn to analyse charts, follow market trends, open and close transactions.
Now you can ask yourself: what is the best time to go live with a real account?
This is a good question that doesn't have a simple answer. Forex trading is a learning process, it is an individual matter. It also depends on your investment needs, expectations, and the time you invest.
Remember!
Investing in leveraged derivatives is risky. Losses may exceed your deposit.