Trading platforms are bridges connecting you to one or more financial markets. These platforms are the kind of software systems provided to users by plenty of authorities such as banks, financial institutions, brokers and exchanges, and even fintech companies and financial software developers. Each trading platform has various features, advantages, and disadvantages compared to other platforms, and you should get familiar with the platform selection criteria to experience profitable trading in your desired market.
Table of Contents
What is a trading platform?
Trading platforms are software systems for creating, executing, and managing trading positions in any market. These platforms act as a bridge or an interface between the broker, the customer, and the financial market.
Many digital currency exchanges and brokers have their platforms with the name of the broker or exchange, among which Binance can be mentioned as one of the most popular ones. Many other brokers and exchanges use common platforms such as the MetaTrader 4 and 5 to connect customers to the market.
What do trading platforms do?
Trading platforms have different features to provide their services. The first feature of any platform is its user interface, which makes it possible to use the system for both the client and the broker. The best trading platforms have an easy and attractive user interface while having multiple sections to provide various services and create various orders and transactions.
Some of the common parts of Trading platforms are:
- Different sorts of technical analysis indicators
- Instant price tables of all types of market assets
- Market news section
- Educational resources from text, audio, and video content to downloadable content
Many brokers offer trading-free platforms or sometimes discounts in exchange for opening and maintaining an investment account or making a certain number of trades per month. Also, the best Trading platforms generally have diverse and practical features and low fees.
Prop (proprietary) Vs commercial trading platforms
Trading platforms can be divided into two general types: prop (proprietary) trading platforms and commercial trading platforms. Trading platforms are tools designed to facilitate online transactions in one or more financial markets. These platforms may be designed for only one market, such as the digital currency market, stock market, commodity exchange, CFD market, NFT market, football player stock market, bond market, etc. Some other platforms allow you to get connected to many different markets. MetaTrader is one of these platforms.
proprietary platforms are customized for a brokerage, a domestic market, an investment company, a bank, a centralized or decentralized digital currency exchange, etc. These platforms can only be used by the public if the users meet the provider’s terms of reference, which may be subscription purchases, account openings, etc. This platform is used to develop the business activities of the platform provider.
An introduction to trading platforms
Apart from our general classification, Trading platforms can be divided according to the market type or trading strategies. For example, day traders prefer some platforms because of the suitable facilities for this type of trading. Also, the digital currency market has various private and commercial (public) platforms. In the following, we will get acquainted with some types of Trading platforms.
Digital currency trading platforms
Crypto Trading platforms allow buying and selling digital currencies and sometimes other digital assets such as NFTs or Metaverse lands. You can buy all kinds of digital currencies on these platforms, such as Bitcoin, Cardano, Ethereum, etc. These platforms are mostly dedicated platforms that offer their services as an online exchange trading system. On these platforms, you can trade with other digital currency market participants.
Stock trading platforms
A stock is a type of security and represents your ownership of a part of a company. Many software systems allow buying and selling shares of the world’s top companies. These systems connect you to the world’s stock markets, such as the New York Stock Exchange (NYSE) and Nasdaq. For example, a stock trading platform may allow you to invest in the shares of these companies:
- Amazon Inc
- Alphabet Inc
- Apple company
- Etsy Inc
- Halliburton Company
- T-Mobile US Inc
- Workday Inc
- Merck Company
ETF trading platforms
Exchange-traded funds, or ETFs, are tradable securities that track a financial index, a commodity, a bond, or a basket of assets. In this case, the price of these securities depends on the price movements of these assets. ETF Trading platforms are also software systems that enable users to buy and sell ETFs. Also, stock platforms usually offer ETF buying and selling services.
Some of the most popular ETF options include:
- Invesco QQQ Trust Fund
- Vanguard Growth ETF
- Vanguard Small-Cap Growth ETF
- iShares Russell Mid-Cap Growth ETF
- iShares MSCI EAFE Growth ETF
- iShares Core MSCI Emerging Markets ETF
- KraneShares CSI China Internet ETF
- SPDR S&P Biotech ETF
- Global X Lithium & Battery Tech ETF
Forex trading platforms
The Forex market is the most traded and the largest financial market in the world in terms of daily trading volume. Forex Trading platforms are either personalized (platforms called brokers) or public and commercial (such as MetaTrader and Zulutrade). Using these platforms, you can buy and sell various foreign currencies in the Forex market or profit from the price fluctuations of currency pairs through upcoming contracts and CFDs.
Some of the most popular Forex pairs traded using these platforms include:
- EUR/USD currency pair
- USD/JPY currency pair
- GBP/USD currency pair
- AUD/USD currency pair
- USD/CAD currency pair
- USD/CNY currency pair
Commodity exchange trading platforms
Commodity exchanges in Iran and the world are markets for determining prices, buying and selling all kinds of basic goods, and offering contracts to recover from the price movements of these assets. Commodity exchange Trading platforms are personalized and public software systems that facilitate these transactions.
For example, some of the foreign platforms that offer their services in the field of commodity trading are:
- eToro platform
- Plus500 platform
- com platform
- AvaTrade platform
- City Index platform
How to choose the best trading platform?
If you are new to the financial markets, choosing the best trading platform is the most important step in your investment. Choosing the right trading platform is the key to helping you deal with the challenges of trading in the financial markets. To choose a platform, consider several points and get familiar with the criteria for choosing the best trading system. In the following, we will learn some of these points and criteria.
Choosing a platform based on the trader’s needs
Never make the recommendation of others in your final decision for choosing a good platform. First, measure your trading needs and see which tools, facilities, and features you need for an easy trading process. For example, a new platform that is not well-known may meet all your needs, while an old and well-known platform needs to have some of the tools you need to facilitate your desired transactions.
Easy access and ease of use of the platform
Your trading platform should match your lifestyle. If you are always on the way, choose a platform with mobile software for your mobile operating system so you can use the platform’s services anytime and anywhere. If you are comfortable with a PC or laptop, your job is easier because most platforms are accessible through the site (using a computer browser) or computer software. Also, the platform should be easy to use, so you don’t have to call others for any problem.
Demo accounts
Some Trading platforms have demo or trial accounts. These accounts help newcomers to the financial markets to buy and sell virtual assets with virtual capital in a simulated environment like the target market. This feature helps these people to learn the platform settings and analytical tools and try some trading techniques before entering the market.
The possibility of connecting to global markets
Apart from domestic market traders such as Tehran Stock Exchange, most traders and investors need access to global markets such as Forex, digital currency, CFDs, NFTs, etc., and this is only possible with a platform with international access.
For example, some platforms provide round-the-clock access to the global Forex market, and others provide access to the New York Stock Exchange and Nasdaq.
Online smart tools
Today, AI technology has come to the aid of Trading platforms in various matters, so traders can save time in planning trades and financial calculations and analyses by using the smart tools of these platforms. It is also possible to automate many transactions using these trading tools.
Trading robots are another example of smart technologies on these platforms. These tools can even decide for you, with your permission, when to enter the trades. Also, smart tools reduce mistakes in transactions and settings of trading systems.
Transaction fees and commissions
Before deciding to choose a platform, you should check the costs of using different Trading platforms. These costs include transaction fees, asset transfer costs, asset conversion costs, trading commissions, interest rates for services such as lending, margin trading conditions, leverages, spreads when buying and selling, and swaps. The importance of checking these costs is that higher costs will slow down your capital growth even if you are successful in trading.
Note that some platforms have discounts on the Pro version; some offer discounts for trading certain symbols; some offer bonuses such as welcome bonuses, and others charge close to zero fees for certain transactions or trades.
Checking the exclusive features of trading platforms
You need to find out about a trading platform’s well-known features. Also, you should know the feature on one platform which is not provided on other platforms, or you need to get information about platforms that provide a feature with the best quality, support, and benefits; these are the same competitive features that can be the basis for your selection.
For example, you can ask yourself these questions before choosing a platform:
- Does the platform provide real-time asset prices?
- Can I access real-time data without paying?
- What is the minimum amount to start a transaction, and can I finance and pay it?
- How many types of trading accounts are offered on this platform?
- What are the trading tools of this platform?
- Does the platform have free and paid educational features or content?
- Does the platform offer a variety of profitable strategies?
Security is a serious issue in choosing a trading platform.
The safety and soundness of transactions in financial markets is the concern of all traders and investors. The trading platform must guarantee the safety of your identity information, transaction information, information such as passwords and bank account numbers, etc. Check what features and algorithms the platform uses to ensure the security of your capital. On the other hand, the best trading platform for you uses encryption security standards to prevent hacker attacks and malware.
Variety of payment methods on the platform
Before choosing a platform for trading and investing in financial markets, you should also pick up information about payment methods on this platform. For example, a platform may have only one payment path, which is unsuitable and easy for you. The variety of payment methods can be in the context of various online payment portals for PayPal accounts, credit cards, domestic bank cards, etc., or the variety of payment methods in asset type.
For example, some platforms allow users to pay using fiat currency options such as dollars and euros, digital currencies and stablecoins, and vouchers. Also, platforms should be able to show trading profits according to the platform’s rules quickly; however, long waiting lines to receive funds are not a good specification for a platform.
Diversification of orders on trading platforms
Some trading software systems and online digital currency brokers and exchanges only register simple orders such as market orders. In contrast, professional platforms can create orders such as stop loss and adjustable orders such as multi-step orders. These orders will help you develop trading strategies and reduce trading risk.
Customer support
Newcomers to financial markets always need platform support services. On the other hand, professional traders also need to receive some advice for various reasons during high-volume investments or software problems, etc. Therefore, before choosing a platform, check whether the desired platform has a trained and always available customer support team. Note that many financial markets offer 24/7 financial services, and it is better for your platform to have 24/7 support services.
Having the necessary permits
One of the points that increase the credibility of a platform with customers is the licenses and approvals that the platform has received from global, regional, national, or industrial bodies. For example, first check where the company providing the platform is registered. Also, some platforms offer their services based on the regulations of certain institutions, including SIPC, SEC, or FSRA.
Introducing some famous foreign trading platforms
You must know some of the best platforms in each market to choose Trading platforms. Using foreign platforms is usually difficult or impossible for Iranian users because most platforms support international laws to sanction Iran and Iranian users. Iranian users’ capital in these platforms faces the risk of being blocked at any moment. However, to better understand the concept of the trading platform and the features of different platforms, you must be familiar with these platforms. In the following, we will get to know some of these platforms.
eToro platform; one of the top stock market platforms
The eToro platform is a popular software system for markets such as stocks and ETFs and a suitable scalping brokerage. The platform covers various assets and suits investors and traders of various skill levels, from beginners to professionals. Using eToro, you will access thousands of shares of the world’s top companies and exchangeable funds in the United States and other countries. The minimum stock trade on eToro is only $10. This platform also provides access to the forex market, currency pair trading, and even copy trading.
Some of the features of the eToro platform include:
- The possibility of using Forex signals
- The possibility of accessing the digital currency market with support for transactions of more than 70 digital currencies
- Paying a commission percentage on the suggested and requested prices
- Reducing risk with copy trading
- Support for trend trading
- Having mobile software
Access to the cryptocurrency market of the Crypto.com trading platform
One of the foreign platforms for cryptocurrency trading is Crypto.com. The platform offers more than 250 cryptocurrencies from various blockchain networks and projects. You can easily open an account on Crypto.com in less than 10 minutes. Crypto.com supports debit and credit cards but charges you 2.99% of the transaction amount as a fee.
The Crypto.com platform has a native token called CRO, which, when purchased and deposited over three months, increases the APR rate on your other deposits to earn profit. Transaction commissions are also flexible on this platform; as the volume of transactions increases, commissions decrease.
Some features of the Crypto.com platform include:
- Average fees compared to other platforms
- Support for a significant number of digital currencies
- Ability to access the NFT market
- Having mobile software
- Possibility of instant deposit to receive interest
- Lack of access to assets outside the digital currency market
XTB platform; a tool for CFD trading
The XTB platform creates favorable conditions for trading in the Forex CFD market. However, with this platform, you can access other markets, such as stocks and digital currency. XTB has a demo account for market beginners. Note that XTB is a broker, and the name of its dedicated platform is xStation 5.
Some of the features of the XTB platform include:
- Access to more than 2100 markets in the world
- The possibility of trading CFDs with underlying assets of more than 48 currency pairs
- Getting access to more than 2 thousand shares of American, European, and Asian companies
- Having access to only 10 digital currencies
- The possibility of profiting from the market of commodities such as oil and gold
- Minimum transaction of 0.01 lot
- Leverage till 500:1 in Forex trading
- Failure to provide professional analysis of the market, assets, etc.
- It is not possible to buy stocks (it is only possible to make a profit from stock CFDs)
Coinbase trading platform; a famous digital currency exchange
Coinbase may not be the best trading platform in the digital currency market, but it is one of the most suitable platforms for beginners. The advantage for beginners is that they can open a trading account quickly and invest in cryptocurrencies using credit cards (American and European) or Visa and MasterCard. Of course, we all know that access to these payment methods is generally difficult and even impossible for Iranians.
However, let’s review some of the features of the Coinbase trading platform:
- Coinbase has a simple and attractive user interface
- It has more than acceptable safety
- There is a 1.49% commission and a 3.99% fee for purchases using credit and debit cards
- An amount like $50 is enough as a minimum deposit
- A high commission is possible on urgent purchases
- There are limited trading instruments
Binance trading platform; the most famous digital currency exchange in the world
Binance is a platform for trading digital currencies, and you will not have access to other markets using it. Binance is also the most famous and largest crypto exchange in terms of trading volume and assets. The advantages and disadvantages of this trading platform are:
- Ability to integrate with TradingView
- Access to real-time cryptocurrency price data
- Having all kinds of orders
- Having technical indicators and graphing tools
- The minimum deposit on Binance depends on the payment method
- Providing support for more than 80 digital currencies
- Not being suitable for beginner traders
- It would contain uncertain regulatory status
- There would be very high fees when using credit cards
Fidelity trading platform; a suitable platform for long-term investment
Although Fidelity provides a wide range of practical tools for short-term traders, this platform is one of the best options for long-term investments. You can access thousands of stocks, ETFs, and mutual funds using this platform. You can also invest in the fixed-rate bond market through this platform.
Some of the features of the Fidelity platform are:
- Having suitable assets and financial instruments for buying and holding
- Being able to calculate monthly cash flow to know the future of the investment
- A suitable option to achieve financial goals during retirement
- Having mobile software that is complicated for beginners
- Having advanced analytical and research tools that are not suitable for beginners
- Having financial accounts with high minimum
Why is MetaTrader 5 a popular trading platform?
Many Trading platforms we have introduced to you so far are included in the group of dedicated foreign platforms. The main problem with these platforms is that the companies that provide them to users generally act by the laws of international sanctions against Iran. This feature causes Iranian users to face many problems in using them, and there is even a possibility of blocking their accounts. On the other hand, there is some trading software that brokers and exchanges can use to provide services to Iranian users without any problems. One of these platforms is Metatrader 5 (MT5), the latest version of the Metatrader group.
The MT5 platform allows traders to access many markets and assets using their broker or exchange services, including digital currency and forex markets. MT5 allows traders to view asset price charts and create various orders. Metatrader 5 has advantages such as a multi-disciplinary strategy tester, money transfer between accounts, and a system of alerts to know about the latest market events. Metatrader 5 also offers traders to communicate with other traders and share tips and strategies through the built-in MQL5 chat tool.
Advantages of using Metatrader 5
The MetaTrader 5 trading platform or application offers many features to profit from the financial market. Traders prefer this powerful trading platform over other options due to its comprehensive features and powerful functions.
In the following, we will get to know some of the features and benefits of using this platform:
- The possibility of complete adaptability of information
- Providing useful information about all types of assets in the stock market, forex, etc.
- Having 38 indicators for technical analysis such as Fibonacci tools, Elliott Waves, etc.
- Having facilities for better forecasting in the CFD market
- The possibility of automating transactions and round-the-clock access to financial markets such as Forex
- The possibility of using trading robots
- The possibility of using the copy trading method
- Ability to use the API transaction method
- Great features for day traders
- The possibility of using trial accounts with the help of digital currency brokers and exchanges
- The possibility of using fundamental analysis methods
- Very high platform safety
- Providing trading options using real money
- Being used in many digital currency brokers and exchanges around the world
ZuluTrade; one of the best platforms for copy trading strategy
ZuluTrade is one of the oldest and most well-known platforms for managing transactions in the financial markets. This platform allows investors to act like experienced forex traders. The advantage of this method for market beginners is that they can copy the trading methods of financial market professionals without the need for high technical knowledge and experience in successful trading from the beginning. Also, these people pay commissions only when these transactions are profitable.
Zulu Trade is a Finvasia Group subsidiary founded in 2007 by Leon Yohai and Kosta Eleftheriou. Yohai aimed to build software that would allow him to act like the best traders in the market. Zulutrade currently has about two million users, and its transactions reach more than 800 billion dollars.
The ZuluTrade trading platform is for brokers trading in cryptocurrencies, stock markets, Forex, commodities like petroleum, and indices like the Nasdaq. The platform then allows users to review and copy the strategies of top traders.
Some of the benefits of Zulutrade include:
- The possibility of executing the transaction after receiving the signal in Lock Trade
- Receive emails and automate using the Automator feature
- Having an active forum and social networks
- Create scripts using the ZuluScript feature to configure trading bots
- Risk management using the ZuluGuard feature
- Having an economic calendar
Aron Groups provides you with the best trading platforms
Trading platforms have various features and a bridge for connecting to the financial markets. As one of the top brokers active in the global financial markets, Aron Groups has been able to provide access to these markets using the top trading platforms. Among these platforms, we can mention Metatrader 5 and Zulutrade. Beginner traders can use Zulutrade for copy trading. Professional traders can also share their experiences on this platform and increase their profits. Also, traders and investors at all levels, from beginners to professionals, can benefit from the unique features of MetaTrader 5 in Aron Groups for profitability.