A forex broker is a financial service company. It facilitates traders in buying and selling foreign currencies. Such traders are called retail forex brokers or currency trading brokers. Forex is an acronym for Foreign Exchange. You can only trade between two foreign currencies.
Forex brokers trading platforms come in all sizes, shapes, and formats. The foreign exchange market operates globally and at all times. Its users include an extensive array of people, ranging from representatives of investment banks to retail currency dealers.
Ranking Factors of a Forex Broker
What determines the quality of a forex broker? We consider a list of factors before finalizing the ranking of each platform. Is the platform expensive? How much do they charge in comparison to other platforms? Are there any hidden fees? What services do they offer? Is the platform configurable? Do the available tools make earning profit easy?
Some of these factors are:
- Fee and Affordability
- Operating model
- Trading platforms
- Customer services
- Mobile applications
- Analysis options
Best Forex Trading Platforms
To trade forex, you must have an online broker first. Then, it would be best if you worked with a trusted broker. Only then can you succeed in the international market. A currency trader and investor need to monitor the currency trends carefully. Analysis tools such as diverse order types and advanced charting and drawing options help with it.
Below are some of the top trading platforms used by forex brokers all around the world.
MetaTrader 4 (MT4) Platform
This original platform was created by MetaQuotes in 2005.and has since become the most popular online trading platform. It is mainly known for its in-depth analytical tools. Which include more than just graphs and charts. MetaTrader 4 has set many examples for online analysis. You can view up to 31 different graphical researches. Thich includes Elliot wave drawing tools along with Fibonacci studies. It was used by over 55% of the traders in 2018.
- More than 50 indicators
- Trade with just one click
- 9 time-frames
- Multiview charting system
- It lacks sophistication
- Not suitable for people looking to trade/ share CDFs
The best MT4 platform is pepperstone. It has:
- Low fees (0.0 pips)
- Award-winning customer service
- Fast execution speed (-30ms)
- Enhanced demo account
MetaTrader 5 (MT5) Platform
Created a few years after the formation of MT4, MetaTrader 5 isn’t a better version of MT4. This depends upon what you need it for. The key reason for its creation was to offer CDF sharing. MT5 targets the US market. Thus it naturally complies with more US rules than MT4. As CDF sharing saw an increase in popularity, so did MT5. Its usage grew 5.4% from 2019 and was recorded to be 11.5% of all MetaTrader usage.
- 44 graphical studies
- 21-time frames
- Netting and hedging mode options
- Partial order filling policy
- In-depth market functions
- New programming language; MQL5
- Slow adoption
- Less popular
IC market is the best MT5 broker. It has:
- Up to 120 CDF shares globally, the largest among any
- No fee funding and withdrawal system
- Fast trading system
- Low commissions ($3.5 per 100k traded)
- Low Latency
Although no exact statistics have been shared, cTrader is the third most popular trading platform among forex brokers. Spotware made it in 2010. It offers a high-speed trading system.
- Level II pricing
- Fast-entry and execution
- Advanced order types
- Sophisticated back-end technology
- Available on multiple devices
- Limited online community
- Limited sharing of bots
- Limited copy trading environment
- Difficulty in accessing liquidity
- Delay in trade execution speed
The best cTrader platform is FxPro. Its features include:
- Five major jurisdictions regulate it
- It executes up to seven thousand orders per second
- Low trading costs
- Low USD/EUR spreads
According to the accolades awarded, factors considered, and trader’s opinions, the best broker platform is MT4. It is popular, stable, and reliable. The best forex broker which offers MT4 is pepperstone. Pepperstone has the lowest spreads in 2021. It also had the fastest execution speed and most efficient customer service.
The IC market has been discovered to cost the least. It also has the lowest spread for a variety of currency combinations. It offers CFD trading with ZuluTrade and plenty of other trading instruments. This includes shares and crypto too. This particular type of broker is well suited for users who can CySEC regulated subsidiaries and Australian copy traders with an ASIC regulation system.
FxPro has the fastest execution rate on cTrader. It also has the best infrastructure along with a wide range of instruments that can be traded. Despite the regulations worldwide and on FxPro by FSCA, individuals from all over the world can choose any FxPro entity.
Each platform has its pros and cons. However, it depends on your requirements which is the best for you. Therefore, consider the details of each platform before subscribing to any one of them.