Trading forex is one of the most profitable endeavors when you know what you are doing. To successful get into the currency market, you will need to go through a broker. For a broker to get you connected to the market, you will need to open an account.
Forex brokers have different types of trading platforms on which they allow their customers to open their accounts. There are different types of platforms and different brokers use different platforms. Here is a list of the available types of trading platforms, try it out here.
Prop platforms
A prop platform is a trading platform that is developed by forex brokers for use by their clients. Forex brokers will develop their own platforms that fit in with the way they offer their services.
A prop platform will have features that are unique to the broker who is its provider. Once you have used a prop platform as a trader, you will find it difficult to trade on other platforms when you change brokers. This is because you might end up at a broker who has a totally different platform.
Commercial platforms
A commercial trading platform is a platform that is developed by a company that is not a forex broker. There are a number of brokers who prefer that their clients use commercial platforms. This gives them more time to offer their best financial services rather taking up their time teaching how to use their platform.
Commercial platforms are easy to use and have numerous beneficial features to the trader.
Dealing desk platform
As the name implies, this is a trading platform that is mainly used by market makers, large players in the forex market and brokers.
It is through this type of platform that all trades go through at the brokers office. They are connected to the traders trading platform and help the broker and the trader connect.
Non-dealing desks platforms
Unlike dealing desk platforms, non-dealing desk platforms offer traders live market prices as provided by market makers. This means that if you are using a non-dealing desk platform, you can trade without going through a forex broker. This is however discouraged as you can easily and quickly lose all your capital.
Downloadable trading platforms
This is a trading platform that can be downloaded onto the device you are using to trade. It can be downloaded onto a laptop, smartphone or any other mobile device.
Web based platforms
Web based platforms are trading platforms that can be easily accessed through any device as long as it can access the internet. This means that all you need is a device with internet access, and a password to your account.
Requirements for using certain trading platforms
Minimum balance
There are platforms that require a trader to have a minimum amount of cash deposited into the account on the platform. Without this minimum balance, you will not be able to use this platform.
Specific type of assets to trade
Other platforms are specific to trading particular assets. Forex brokers and trading platforms allow their users to access a range of markets that provide a range of assets that one can trade and profit from. Some platforms only allow you to trade currencies or options or commodities or other assets.
Charge fees and commissions
There are some platforms that charge fees and commission to traders. For every transaction carried out on the platform, there are charges levied that traders have to pay.
Negative balance protection
There are some platforms that ensure that traders using them do not blow their accounts completely. These platforms ensure that as a trader, you cannot lose more than you have in your account.
Conclusion
There are numerous types of trading platforms as explained herein. As a trader, it is best to select a trading platform that is recommended by your forex broker. This makes it easy for you to communicate and connect with your broker when you are facing challenges in your trading career.
