The demand for technically more sophisticated trading platforms kept growing, in particular for retail forex trading, and the need grew for individuals to trade the global markets directly. This market segment allowed even small investors to access the markets and trade with smaller amounts. smartphones, tablets) compatible with automated tools such as trading robots.Īlong with the introduction of online trading platforms, a rapidly growing segment of the foreign exchange market had also emerged, which involved individuals who could access the global markets and trade online through brokers and banks: retail forex. Although the first generation of such electronic trading platforms was basic software downloadable to computers and still lacking user-friendly interfaces, gradually new features such as technical analysis and charting tools were added, resulting in more enhanced attributes and also the option for these programs to be used as web-based platforms and on mobile devices (e.g. As a result, web-based retail foreign exchange allowed individual customers to access the global markets and trade on currencies directly from their own computers. The very first generation of internet-based foreign exchange (forex) trading platforms emerged in 1996, making it possible for foreign exchange to develop at a much faster pace and for customer markets to expand. Starting from the 1970s, e-trading platforms that did not provide live streaming prices were gradually replaced by more developed software with near instant execution of orders, along with live price streaming and more enhanced client user interface. The first such platforms were mainly used for stock exchange and known as RFQ (request for quote) systems, in which clients and brokers placed orders that were only confirmed later. It was also was during this time that electronic trading platforms started being applied to carry out at least a part of these transactions. Until the 1970s, financial transactions between brokers and their counterparties were still being processed manually, and traders did not have the possibility to access the global financial markets directly but only through an intermediary. Online investors can trade on live market prices being streamed by trading platforms, as well as enhance their profit potential with some additional trading tools provided by these platforms such as trading account management, live news feeds, charting packages and can even use trading robots, also called expert advisors.Īs compared with today’s online trading platforms used for trading a series of financial instruments such as currencies, equities, bonds, futures and options, the very first such software versions were almost exclusively associated with stock exchange. facilitate online transactions between buyers and sellers by executing their trades). brokerage companies) that operate as financial intermediaries (i.e. Online (or electronic) trading platforms are computer-based software programs used to place trading orders for various financial instruments through a network with financial institutions (e.g. especially developed for individual online traders). Not only is MT4 considered to be the most popular online trading platform to access the global markets but it is also regarded as the most efficient software for retail foreign exchange trading (i.e. For most online traders and investors, whether they are trading forex or CFDs (Contracts for Difference on various financial instruments), MetaTrader 4, is undoubtedly a household name today. Released in 2005, the MT4 trading software became extremely popular with retail forex traders especially for its easy to use features and the ability to even facilitate automated trading by allowing users to write their own trading scripts and trading robots (commonly known as expert advisors). MetaTrader 4, commonly nicknamed MT4, is a widely used electronic trading platform for retail foreign exchange, developed by the Russian software company MetaQuotes Software Corp, which is currently licensing the MT4 software to almost 500 brokers and banks worldwide.
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