What Is the Best CFD Trading Platform?
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Wondering what the best CFD trading platform for 2020 is? Then look no further! Our guide will provide you with an introduction and comparison of the top platforms available, an introduction to the best indicators for CFDs in MetaTrader 5 and much more!
For a beginner trader, CFD trading can be complicated, and its complexities might be a little overwhelming. It is therefore important to select the right trading platform - one that meets all of your needs and that is also easy to use.
Your chosen platform must be efficient for order entry and cancellation, to enable all of the account management capabilities and to facilitate market analysis. Technically, a trading platform that provides CFD trading should permit you to gain real-time quotes, analyse the markets, to enter orders, and to implement strategies. In addition to all this, the best trading platforms for CFD trading will also include a range of other useful tools and indicators.
Forex brokers supply different trading platforms to their clients, and a considerable number of online CFD brokers may provide the use of different independent platforms, like the MetaTrader (MT4) software package.
An Introduction to the Top Platforms
If you are a professional trader, you probably already know which platforms are regarded as the best and most popular. MetaTrader 4 and MetaTrader 5 (MT5) will give you exactly what you need. These two are undoubtedly the best platforms and deserve your attention.
Why Is MT4 the King For CFD Trading?
The world of CFD trading has adopted the MT4 platform as the market standard, and it is now used by hundreds of brokers worldwide. This was not an accident: the MetaTrader 4 platform offers traders advanced technology and extensive security, so that they can open and close positions without ever having to worry about the stability of their trading platform.
Chart 1: An example of the MetaTrader 4 trading platform. Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.
Key Features of MT4
What is it that makes this platform so special? First of all, this CFD platform possesses a very user friendly interface to work with, empowering new and experienced traders alike to trade on this volatile market with ease. The second feature is the support of all major languages. Users worldwide can benefit from the MetaTrader 4 platform and all of its data in their own language, without any additional effort required.
Alongside these useful characteristics, the platform can offer you advanced and revolutionary charting capabilities. In turn, this enables traders to perform trades, and to thoroughly analyse the technical elements of the market at the same time.
There is also one very popular and powerful capability within the MetaTrader feature portfolio, and that is Expert Advisors. These are automated trading features which can automatically open and close trades based on preset rules. They can be sourced from a variety of suppliers to customise and enhance the capabilities of your platform.
Communication Tools in MT4
It would also be a mistake not to mention the communication tools available in MT4. The software incorporates advanced communication tools for brokers to post messages, and to keep communicating with CFD traders in real-time. Long and complicated email threads are thus avoided, leaving you more time to concentrate on your trading.
Unlike a lot of other platforms, MetaTrader 4 requires moderately low resources to run, meaning that it keeps its disruption of your computer to a minimum. This also permits the platform to act much more swiftly, making it possible to accomplish trades and traders' requests straightaway. In addition, all users are able to view account information within the platform. Details available include trading history, access details, account balance, and also password information.
When you are dealing with a sensitive and private issue like CFD trading, you will of course want to ensure that your account is protected from potential hacks and attacks. Of all the CFD trading platforms available on the market, MT4 has one of the highest security levels that encrypts the data between a CFD trader and the server with a 128-bit key. The trader's IP address is also completely concealed.
Customisation in MT4
The final point is that MetaTrader 4 allows customisation, so that CFD traders can tailor the trading platform to meet their own trading needs and practices. This includes the ability to develop and program your own Expert Advisors and technical indicators using MT4's advanced MQL programming language.
You can also boost the capabilities of MetaTrader with the MetaTrader Supreme Edition plugin from Admiral Markets. This excellent plugin enables traders to gain access to additional premium analytics, news, trading insights, and a range of innovative trading tools that enhance the trading experience. To find out more and to download MetaTrader Supreme Edition for FREE, click the banner below!
Trading CFDs With MetaTrader 5
MetaTrader 5 is the latest version of the outstanding and popular MetaTrader trading software. Let's first look at the interface. If you are in control of several accounts, it is easier than ever to manage them with MetaTrader 5. This is because the new accounts window in the 'Navigator' tab permits movement between accounts quickly - facilitating the implementation of different trading strategies in different accounts, with no trouble or unexpected delays.
Chart 2: An example of the MetaTrader 5 trading platform. Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.
If you decide to generate two accounts in which you carry trade and scalp, for instance, it has never been easier to switch between the two categories to respond to unanticipated market events. Day-traders and long-term investors alike, appreciate this useful time saving feature.
The Different Types of Indicators in MT5
There are many new indicators in MT5 not available in MT4. MT5 classifies CFD indicators into four different groups, as follows:
- Bill Williams
Custom indicators are also supported. All this makes access to indicators considerably simpler and much faster.
Among these indicators, the Double Exponential Moving Average (DEMA) is actually an advanced tool with minor lag and greater accuracy than a regular EMA. This variety is another reason why MetaTrader 5 can be considered the best CFD trading platform.
Among MT5 oscillators, there is the Triple Exponential Average (TRIX). TRIX features a triple exponential moving average, and oscillates to nearly a centreline at zero. Efficient and assiduous filtering out of market noise is a noticeable advantage of this indicator.
Among the Bill Williams indicators, there is the new market facilitation index supplement. This tool releases signals on the basis of the mutual interaction between volume, price and the indicator itself. The total number of new indicators in this version of the software is seven.
Chart 3: An example of some of the trading indicators in the MetaTrader 5 trading platform. Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance.
Among those, five new trend indicators plainly have the greatest potential. Both double and triple exponential moving averages and their derivatives, are the best new additions to the MT5 toolbox. For those who prefer to use automated trading, MetaTrader 5 has developed an excellent trading script and a strong Expert Advisor.
The MetaTrader 5 script is as powerful as ever, and this new version sees previous bugs and errors addressed. The programming language has also been enhanced and condensed into a more efficient and user friendly form. In addition, Expert Advisors in MetaTrader 5 empower the 'chart-in-chart style', which allows a more in-depth analysis of the technical strategy being tested.
Conclusion - What Is the Best CFD Trading Platform?
It is extremely important to choose a good platform when trading CFDs. The platform should meet all of your requirements and should work for you. It is no mystery as to why MetaTrader platforms are considered to be the most popular and serviceable ones. They are uncomplicated yet powerful. Don't hesitate to test them both for yourself, as each one is a contender to be the best CFD trading platform.
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About Admiral Markets
Admiral Markets is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.