It goes without saying that the reliable software is the cornerstone of the online trading today, as it helps to analyze and trade the financial markets in an efficient manner. Regardless of the strategy applied, a good online trading software is certainly worth its weight in gold. Essentially, the online trading software indicates any tools which assist in making the investment decisions and executing the trades. To have an edge and become competitive on the market, traders have to ensure they all the necessary equipment in their arsenal.
As the industry is literally flooded with the different kinds of online trading tools, we would like to focus on the most important ones in this writing.
Offered by the brokers, trading platform is the tool that actually allows the retail traders to participate in the financial markets. It is a type of the software that enables the trader to open/close and manage their positions. Oftentimes, the platforms come with the additional functionalities such as the real-time quotes, news feed, economic calendar, watchlists, and even personalized reports. All this is done to facilitate the process of decision-making and deal execution. Currently, the most popular online trading platform, especially in Forex, is MetaTrader 4. Many good brokers offer it, e.g. Trade.com. You may want to read more about this in Trade.com review here to learn more about how this broker adapts the platform.
The platforms can be tailored for the desktop use (like MetaTrader) or opened via web browser online. Likewise, the brokers may also power their platforms with the mobile applications for Android and iOS in order to allow trading on the go.
The charting software is the backbone of the technical analysis. Such kind of software enables the users to view the price and data charts, study the asset behavior, analyze price patterns, trends, volumes etc. Usually, the charts are enhanced by the hundreds of technical indicators, multiple timeframes and drawing tools.
Charting tools frequently are incorporated in the trading platforms offered by the brokers. However, they would still be somewhat inferior to the dedicated charting software like TradingView, to give an example.
Also known as algorithmic trading, such kind of online trading software helps the trader to execute the deals automatically without the human input. Therefore, the trades go from the software used to the broker and then to the given market. The emotion factor is taken out of the equation, which can be beneficial if applied wisely. Even at the very basic stage, the automated trading software can produce and execute buy/sell signals, when the trader defines the entry and exit rules, proper position sizing beforehand.
To code the automated trading software, one should use the specialized programming language. Going back to the example of MetaTrader 4, the platform allows building the trading robot (called Expert Advisor) with the help of MetaQuotes Language 4 (MQL4). Yet there are many other options too, such as Python or C++ which are very common in the industry.