A Day Trading Platform Guide for Successful Traders
The Top-Notch Approach to Selecting the Right Day Trading Platform
Day Trading is the process of buying or selling stocks to make high and short-term profits. It is not easy to earn money in sales, which is why it would be wise for an investor to determine which software to use and which dealer to tap for active trading services. Usually, the seller uses the market data he or she receives from several independent sources to develop trading strategies.
Oftentimes, a broker offers customers to choose one or another specialized service which he or she will claim to be optimal by cost and would come with several security options. There are also independent platforms that are apt for the more experienced and active traders. As for beginners, it is easier to focus on using the software offered by their chosen dealers.
Main Features of Selling Platforms Service
The primary function of any board dealing with sales operations is to offer tools that will help the Day Trader to competently and timely learn the indicators of the market. It is also well within its function to place orders. New services that are most often used for short sales operations have the following set of technical characteristics:
Access to the history of market indicators and price movements
A Day Trader should always be informed of even the slightest cost changes in market price indicators. This enables him or her to make decisions and take profit as soon as possible. Every minute counts. Historical data is primarily used to conduct short technical analysis and to refine a specific active trading strategy made on costs. That is why it is necessary to initially consider the service with consideration to this function as not all versions have it. Therefore, before opening an account make sure that the historical data tracking means are implemented in a particular program.
Buying and selling orders
Automation offers of order execution
The presence of the top automatic selling function provides online traders with the ability to carry out a specific part of trading processes namely buying and selling pending orders. In other words, as soon as you set specific cost parameters for buying currencies or stocks upon the occurrence of certain conditions, the program will do everything automatically. Some of the most advanced selling platforms also offer the means of additional installation of selling robots. Their function is to implement a variety of sophisticated strategies and to instantly respond to market cost changes according to the conditions you specify.
Selection and comparison of independent trading platforms
The primary purpose of using a standalone service is analytic visualization of various market indicators and the management of selling stock orders. To be able to start selling, you will have to connect to one or several selling brokers. In this way you can place various deals in the markets you are interested in. The use of professional selling platform offers traders with a more specialized interface compared to what brokers offer.
Thus, a day trader can choose one or several online brokers who will help place deals for conducting buy/sell activities. If over time you are placed in a situation where you need to change your broker, new selling programs need not be reconfigured. Specialized trading platforms often have advanced functionality that includes:
- Charts and analyzes of market indicators;
- Use of various automated selling functions;
- Availability of a specialized signal function on market changes.
Each trading platform has its characteristics. Therefore, not all online brokers support the use of specific programs. Consequently, it is worthwhile to consider in more detail the most frequently used trading platforms that which will not cause you any trouble when choosing a broker.
Considering MetaTrader 4’s Platform Service
This software is the most effective and widely-used trading platform for buy/sell operations in the financial markets. Initially, the program was provided to brokers with trade licenses. In turn, the brokers offered to use this service for their customers. All customer privacy data is posted on official servers managed by a trusted third party. At the same time, a top trader using this program has full access to his or her trading accounts, is permitted to view various price indicators and the dynamics of their change, and is given the capability of selling stock orders and checking them.
The trading program can be downloaded from the official MetaQuotes Corp. website absolutely free. Then you will need to choose one or several selling brokers with whom you will work with in the framework of selling operations. As for the free program interface, it is customer-friendly for both beginners and experienced traders. Moreover, there are a lot of training videos on this platform that teach novice traders management processes and assist them in selling stocks immediately. But what makes this free program standout are its analytical functions. For analysis of online quotes as well as the use of online charts, this program offers 23 analytical tools and works with 30 different selling indicators.
Benefits of Using MetaTrader 4
After downloading the program, you need to start the important task of studying its functionality and opening an account. In light of the simplicity of the interface as well as intuitive buy/sell and control systems, it will not take you much time. To better understand why this software is so popular and effective, it is worth considering its advantages in more detail, including:
- The ability to quickly master the management of the program. Regardless of whether you have had previous work experience, you can easily understand how the program works and how you can manage the most frequently-used functions.
- The presence of a large number of trading tools. For a Day Trader to complete deals, an important tool such as historical data analysis is often used. In this selling platform, it is imperative that this function be used with great efficiency. Day Traders have access to a massive amount of data and news, this permits them to conduct various technical analyses of their future strategies
- The speed of making trade operations. High market volatility requires the trader to be focused solely on selling processes and have an immediate reaction to the change in target indicators. That is why, in this program, the function of performing various important selling operations is done with maximum speed and utmost security without overloading the software itself.
- A wide selection of trading tools. This software was initially designed to allow a customer to trade in virtually any financial instrument, including stocks and cryptocurrencies such as Bitcoins or Altcoins. Traders with experience are also given the chance to administer active trading in the market.
- Integration with other software. The functionality of the program allows you to use it alongside the most well-known operating systems namely, Linux, iOS, and Windows.
Availability of a mobile application
The use of mobile phones in the modern world is exceptionally increasing. That is why companies are trying to integrate their software to various mobile devices. Such a strategy provides an opportunity for traders to invest even when they are on the move. It also permits them to react more quickly to relevant news in the financial markets. This is why MetaTrader 4 can be used through any mobile operating systems.
Using the High-Tech MetaTrader 5 Software for Trade
In essence, MetaTrader 5 is an updated version of the MetaTrader 4 trading platform. The multi-purpose functionality of this software offers the trader the most efficient trading tools and analytics functions. The developers of this platform made sure that the trader had the opportunity to invest and work in absolutely all traditional markets such as:
- Forex markets;
- CFD markets;
- Cryptocurrency markets;
- Binary options.
H3: Day Trading Platform Compatibility of MetaTrader 5
Although most modern platforms are designed to be compatible with the most popular operating systems, not all of them have such capabilities. Nevertheless, with MetaTrader 5 Day Traders can freely try their platform without any fear as it is integrated with Linux, Windows, and iOS. Besides, most brokers advise their customers to download the platform directly from the manufacturer’s website. This saves them from additional trading costs.
To use the program, you will need a stable Internet connection and the availability of a device on which it will be installed. To provide full security features, the platform also offers the use of a two-factor authentication and support charts.
Features of the MetaTrader 5 Platform for Trading
By and large, this platform offers Day Traders a complete set of tools to ensure efficient and quick selling. About 100 different analytical charts are also available to the customer. They make an analysis of price dynamics in the time range from 1 minute to 1 month. Also, to build effective selling strategies, a trader is divided with more than 80 indicators including:
- Market Indicators;
- The volatility indicator of the selected financial instrument;
- Market Pivot Point Indicators;
- Demo options policy;
- The ability to use it across all time zones;
- Support charts;
- The function of signals for buying and selling stock orders;
- Individual settings of customer indicators.
The platform testing function has also been implemented for beginners as part of the demo version of the program. Using such a demo selling simulator will allow you to further learn about the various functions of the program and test them in the real financial environment. Hence, you can build an effective selling strategy that can be used for real selling.
The choice of cash accounts for trade service
Advanced brokers offer their investors standard cash accounts for sales operations. In essence, cash accounts mean that you will buy various financial instruments using your existing capital without using borrowed funds or margins. Using a cash account is essentially a standard option that brokers will offer you to start your selling journey. The main advantages here are the absence of margins and the ease of opening all cash accounts and maintenance at the required level. Besides, you do not have to experience additional risk that is already inherent to active traders who use margin accounts. Since most markets are highly volatile, the use of additional margin accounts carries exceptionally high risks especially for novice investors.
While cash accounts do boast of numerous advantages, there are several drawbacks. If you start selling with your funds, this limits your opportunities for rapid growth. The lack of leverage trading costs customers 50% more. Simply put, with leverage you would be able to trade with 50% less the amount compared with a cash account with the profit being the same.
Features of Trading with a Margin Account
Some online brokers will offer you a margin account for powerful selling. In other words, you will be allowed to invest through borrowing a part of the capital to increase the size of your selling profits. In practice, it looks like this: for example, you want to provide only half of the funds for the purchase of a selling instrument, the dealer will provide you with the rest of the money because of the leverage. One should bear in mind that when selling stocks in a period of high fluctuations, the percentage of margin from some companies will be limited.
Analyzing the benefits of powerful marginal accounts trade, it is worth noting that the client can independently choose the period when it is necessary to return the loan funds that were involved in selling operations. Another good advantage is that when using leverage, the percentage for using borrowed money is much lower than the conditions offered by the bank or your credit card.
However, despite the full benefits provided by powerful margin accounts, the risk of losing money increases significantly. For example, if you use a private account, (in the event of negative results), you will only lose the money that you had saved. However, when using advanced margin accounts, you also risk borrowed money. Naturally, your losses may be higher than the funds used for the initial deposit. The use of margin accounts should be the prerogative of exceptionally active traders as beginners, in most cases, make fatal mistakes and lose significant amounts of money.
Trading Account Management Features
Professional companies can also offer you the possibility of using a managed trading account. In essence, a managed profile is a situation wherein you provide your resources and the broker’s capital to investment firms. Generally, investment professionals have full control over all transactions and act as advisers when making a final plan. In turn, the broker may also offer you two types of managed accounts: the joint funds or the individual accounts.
When choosing a good joint fund, your resources are placed at the disposal of the investment fund, which also contains the capital of other traders. The profit that the investment fund generates is subsequently equally distributed among the active traders who have invested their resources. In this case, various selling strategies are also available to the trader. Thus, each customer decides whether he/she wants to participate in a joint profile with higher risks and greater profits, or choose a safe strategy; however, the profit will be less here.
As for individual site accounts, in this case, you trust your investments in the management of a dealer who will manage your account individually and use different strategies according to your individual profit generation needs. What you should consider when choosing individual site accounts is that you should place your full confidence in a true professional and consequently his or her strategic plan. Moreover, if we are talking about individual accounts, there is a minimum threshold for the funds that you must deposit; it should average at about $10,000. The choice of such companies is very convenient for those investors who, despite the availability of considerable financial means, do not have enough time for active sales operations.
Different Profile Options for Providing Day Trading
With rare exceptions, advanced brokers offer their investors a particularly standard website account. However, more often than not, you will be able to get an offer with various profile levels and get the requirements you need to complete to open them. These levels of accounts assign names like Golden, Silver, and Bronze. To open a Bronze or an entry-level account, you will need minimal funds. In this case, the customer is given access to the website to chat with a broker and is provided with weekly news on market trends, various financial news, and comments, and tips. If you plan on opening a Silver account, you will need to fund a minimum of $1,000. In this case, you will be able to receive weekly data on market situations and you will be assigned to an individual broker.
If the amount of your investment exceeds $5,000, you can open a professional Golden account. This type of profile provides the client with the maximum level of profits as he or she is given access to numerous financial, technical investment, and management tools. In any case, when choosing a website deposit, the dealer will offer you a variety of profile options as well as bonuses for opening each of them. Nevertheless, the rule stands: the more experience you have in sales operations, the more sound investment you would be able to make.
The ability to evaluate a broker for Day Trading
Before you choose a broker, a good financial analyst will recommend using a demo account. Demo accounts usually have excellent customer service for newcomers. It also provides full opportunity to try the software without using real money. A user will be provided with virtual money. Such will help you fully appreciate the functionality of the selected site and allow you to try your hands on various market strategies. However, you need to be careful in using virtual money. Traders are not always able to correctly assess even the smallest of risks present in markets where real capital is used.
Broker Payment Options
Professional brokers usually offer customers a variety of execution options for depositing and withdrawing funds on the site. A trader needs to be well-versed with fees before he or she can even start trading. Besides, you should immediately check the speed of withdrawal of funds from your profile as well as how much time it takes to deposit funds. It is also best to check all trading costs, regardless of how often you plan to replenish your profile or withdraw money. It goes without saying that the higher the amount you plan to fund the broker, the higher the fees will be. As such, it is better to be concerned about the customer service fee in the beginning.
Day trading in various regions of the world
If you are planning to choose a dealer without reference to a specific place or country, you can select specialists who live, for example, in the U.S., Europe, Australia, or Singapore. However, before you make the final choice, you must always turn your attention and examine the issue of a variety of tax subtleties and rules in each country and how these rules apply to you.
Tax issues are significant. Check them in advance with the dealer and get to know what types of taxes you will have to pay. Perhaps it will be a capital gains tax or income tax options. Also, it is vital to understand whether you have to pay taxes abroad or in the country where you live and work. Therefore, if you seriously want to know the rules of dealing, try to clarify these issues in advance.
Some experienced traders, when choosing a broker, pay attention to details pertaiing to customer service and money security options depending on the country where the dealer operates.