With the COVID-19 pandemic forcing people to work and trade from home, many traders – both new and old – have had to learn how to use online trading platforms to keep track of their investments. Online trading platforms provide numerous benefits, such as the ability to view data and make trades from the comfort of your own home. As a result, the global online trading market has experienced steady growth. These platforms offer real-time market insights and a range of features to provide traders with a seamless trading experience.
Barchart.com explains why online trading platforms are better than traditional offline methods.
One of the most significant changes that web terminals have brought to the trading software scene is the democratization of trading. Traditional trading platforms were often only available to professional traders or those with significant financial resources. Web terminals, however, have made trading more accessible to a broader range of people, including retail traders and investors. This has opened up new opportunities for traders and investors of all levels and has helped to create a more diverse and competitive trading environment.
One critical feature of online platforms is their adaptability. Offline trading platforms were often designed for a specific type of trader or market. Traders had to go to multiple platforms to access different markets or trading strategies. Traditional trading required more time and effort this way. Online platforms, however, are designed to be flexible and adaptable. Traders can access multiple markets and strategies from a single platform, allowing them to diversify their investment portfolios. Online apps can also give instant notifications, to inform traders of new opportunities.
Security is naturally a major concern for traders. Traditional trading platforms have various security loopholes. For example, most of your data will be stored on paper by the brokerage firm you select. This means they can be easily lost, destroyed, or worse, stolen. This poses a serious threat to your data security and investments. While some traditional offline platforms do store your data on their personal servers, they are often vulnerable to hacking and other cyber threats. This could result in the loss of sensitive information and financial losses.
On the other hand, online trading platforms use state-of-the-art security measures such as encryption and multi-factor authentication to protect traders’ data and funds. Traders can focus on trading without worrying about the security of their information.
Online Trading Platform Types
There are primarily two types of online trading platforms: applications, and web terminals or websites. Here’s how they differ:
Applications are software-based trading platforms that require you to download and install software on your device. Usually, an app has both personal computer and smartphone versions available. However, finding a compatible version for your device’s operating system can be challenging in some cases. Still, trading apps are handy for maintaining your portfolio from your smartphone. Some apps even give personalized feedback and notifications.
Web-based platforms are simply websites that you can access from a browser like Google Chrome, Microsoft Edge, Mozilla Firefox, Bing, and more. The website interface contains all the necessary tools to carry out a trade. This is important since the web terminals update their market data in real-time, so you can always be prepared to trade. Some web-based trading platforms also have apps that you can install on your device. Your profiles on both the application and the web terminal are synced to present the correct data, and the interface on both platforms is similar to ensure a comfortable user experience.
Why Web-Based Platforms Are Better
There’s an ongoing debate on whether software-based platforms or web terminals are more efficient when it comes to trading. The answers vary depending on personal preference. However, after deep-diving into all the technical data, we definitely recommend you use a web-based trading platform to maximize your productivity. Below are the reasons why the benefits of web terminals outweigh those of software-based solutions.
One of the most significant changes that web terminals have brought to the trading software scene is speed. Applications can often be slow to start and load, taking several minutes to display the latest market data. This delay could be critical in fast-moving markets, where traders could more easily miss essential trading opportunities. On the other hand, web terminals are designed to be fast and responsive, with near-instant access to market data. This allows traders to make quick decisions based on the latest market conditions and gives them a significant advantage over older, slower platforms.
Ease of Use
Web terminals can easily be accessed through a browser on any device. All you need is a computer or mobile phone with a browser, and access to the internet. Unlike apps that you have to open and log into, with web terminals, you can more easily switch from one website to the next if you ever need to compare data or do additional market research.
Web terminals are also accessible through multiple devices, as long as they have a browser. Apps, on the other hand, need to be installed on the device before you can open them. To use a trading app, you will first have to install it on your device. Doing so not only uses up storage space, but over time, the app will continue to store data and cache files. So, it consumes more space in the long run. This is a major downside for traders with low storage space on their smartphones or personal computers.
Server Downtime or Bugs
Software companies are constantly developing newer and better versions of their products. Due to the different operating systems, app developers need to build software specifically catered to the individual requirements of different devices.
While the application interface is the same on all devices, the backend is different, and it’s controlled by different servers. As a result, if the app server for your operating system is down, you will not be able to go online and make trades until it’s fixed.
Similarly, if there’s a technical error or bug specifically in the app version that you are using, your trading app will start glitching. For example, if the iOS app version on your device has a bug, the developers will have to provide an update to fix the issue before you can execute a trade. This gives traders using a web terminal from any device an edge.
What Web-Based Trading Platform To Use
MetaTrader 5 Web Terminal is a powerful tool that allows users to access financial markets directly from their web browsers. It offers a wide range of features and tools that make it easy for traders to manage their trades and analyze market data. On this web platform, you can trade a wide range of assets, from currencies and commodities to metals and indexes. Web Terminal can be accessed from any device with a web browser. This makes it an excellent option for traders constantly on the go or who need to access markets from anywhere, even multiple devices.
The MetaTrader 5 Web Terminal also offers various order types, including market orders, pending orders, and stop orders. Moreover, it also boasts a variety of execution modes, such as instant execution and request execution. Traders can choose the order type and execution mode that best suits their trading strategy.
The platform’s range of risk management tools is designed to help traders manage risk and protect their capital. These include the ability to set stop-loss and take-profit orders, as well as the ability to place hedging trades. MetaTrader 5 Web Terminal also offers a range of account management options, including the ability to view account balances, open positions, and closed trades.
The internet has made everyday tasks easier and more convenient for everyone. It has given traders the chance to monitor and trade stocks, currencies, and other exchanges safely from within their homes. We hope our guide helped you gain better insights into this platform and the web-based trading scene in general.