The forex market is a lucrative and volatile entity, and one that sees an estimated $6.6 trillion traded every single day. This is a vast sum, and one that’s indicative of a margin-based marketplace where traders can enjoy disproportionately high profits.
However, the volatile and leveraged nature of the market also makes it possible to lose considerably more than their initial deposit, and with this in mind, it’s crucial that investors seek out every possible advantage when executing orders.
For example, you need to choose the right trading platform to help you achieve your objectives. In this post, we’ll look at some of the key considerations before asking which platform is the right one for you.
What are the Key Considerations When Choosing a Broker?
It’s certainly true to say that not all forex trading platforms have been created equal, and there are several key metrics against which you should measure potential brokers.
One of the first (and most important) is security, as you must be able to access an encrypted platform that can safeguard your personal details and hard-earned capital effectively.
These sites should boast 128-bit SSL encryption as a minimum, as this offers the optimal level of protection for traders and is virtually unhackable
even when using contemporary hardware.
You can also search for regulated and licensed brokers in the UK at the Financial Conduct Authority (FCA), while the Prudential Regulation Authority (PRA) provides a similar source of data if you want a second reference.
Another important consideration is the associated transaction costs, which may be applied whenever you enter a trade or when completing deposits and withdrawals. Typically, costs are applied to cover the spread of a particular trade, although these will vary significantly from one broker to another.
Also, we’d caution selecting brokers based solely on the fact that they offer the cheapest rates. Instead, you should measure transaction costs against the speed and reliability of the platform, before making a decision that offers genuine value.
As you can see, each of these factors impacts considerably on the performance of a brokerage site, you’ll need to perform your due diligence before making an informed decision.
What’s the Best Forex Trading Platform for you?
While we’d always recommend comparing the market and choosing a broker that offers value in relation to your own unique circumstances, there are a select few platforms that stand head and shoulders above the competition.
Take the MetaTrader 4 app, for example, can be accessed on both mobile and desktop devices and has continued to set the standard in the forex market since it was first developed in 2005.
This platform also offers immense advantages to traders, with the MetaTrader4 providing real-time access to market prices and liquidity while simultaneously allowing for the execution of multiple trading orders at any given time.
This also ticks the box of offering robust security and increased levels of encryption, enabling traders to operate with genuine peace of mind. Similarly, this platform is amongst the most affordable and competitive when it comes to forex transaction costs, so you can optimise your profitability over time.
Not only this, but the MT4 continues to blaze a trail for other apps to follow in the forex market, despite the fact that this platform has since been superseded by the less popular MetaTrader 5.