Understanding CFD Finanacial Instruments

As a newbie trader, contracts for difference can be somewhat overwhelming. These seemingly complex financial instruments can be better understood by using the right CFD trading platform. Oftentimes, a CFD broker will use include a customizable user interface on an existing CFD trading platform such as MetaTrader 4 or MetaTrader 5. Many CFD brokerages provide their traders with a wide variety of CFD trading platforms to choose from. Whether it is a proprietary trading platform, or a blended platform, there are many options available to clients. For example, trading platforms such as MetaTrader 4 often allow a free download of the CFD trading platform for clients.

Regardless, it is important that the CFD trading platform is user-friendly, efficient, and up-to-date. The characteristics of effective CFD trading platforms include full account management capabilities, order cancellation, order entry, and a wide range of market analysis tools. The best CFD trading platforms provide traders with all of the above characteristics, including real-time quotes on financial instruments. Traders should be able to implement transactions and enter orders quickly and easily. The two most popular CFD trading platforms available to clients today are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms offer a full range of features, market access and market information.

As far as CFD trading platforms go, MT4 is the undisputed king. As the gold standard in CFD trading, MetaTrader 4 has been widely adopted by brokers around the world. It is not the lack of alternatives that makes MT4 so popular; it’s the functionality, advanced technology, technical and fundamental analysis, and security features that are deserving of praise. Clients can easily open positions, close positions, and enjoy uninterrupted trading on a secure platform – that is the MT4 promise. CFD trading is inherently volatile, and to function effectively in such an environment a sophisticated and stable trading platform is required. It is ideally suited to novice traders and experienced traders alike, yet another example of its adaptability to the individual client. MT4 also uses highly sophisticated MQL programming language to offer maximum functionality, efficiency and security.

MT4 is also available in multiple languages, bolstering its appeal to traders around the world. Perhaps its most useful feature is charting. Charting functionality allows traders to analyze technical aspects of the market while conducting trades on a wide range of assets. EA’s (Expert Advisors) are yet another feature of MetaTrader 4 that is deserving of praise. Brokers can communicate easily with clients on MT4, using real-time communication channels. There is no need for complex threads of emails, making the trading experience so much easier. As for its PC requirements, MT4 uses very few resources. As such, it is unlikely to cause disruptions to the functionality of your desktop, smartphone, or laptop. With less resource intensive requirements, MT4 operates smoothly and efficiently across the board. Security is always a primary concern on trading platforms, and MT4 uses the highest security encryption protocols in the industry. 129-bit key encryption is used and the client’s IP address is masked at all times. Since MT4 allows for customization according to the broker’s needs, it is possible to add a personal touch from the brokerage’s perspective.

CFD traders now have another MetaTrader option in the form of MT5. This is the latest operating version of the software from the world’s most renowned CFD trading platform provider. Multi-account usage is now possible with MT5, and management is certainly made easier with this option. Thanks to the Navigator, it is much easier to move between different accounts and to adopt different strategies. As always, MetaTrader 5 offers a user-friendly interface and no delays in trade execution, navigation, and functionality. Scalping and carry trades are possible, and switching between different categories is much easier with MT 5. As a regular trader of CFDs (stocks, indices, commodities, and Forex) it is much easier to switch between categories and respond to market volatility. The time-saving aspect of MT5 CFD trading is certainly appreciated.

Other useful tools available with MetaTrader 5 include custom indicators such as Bill Williams, oscillators, volumes, and trends. Analytical tools can also be classified according to preferences, simplifying the process accordingly. New trend indicators such as triple exponential moving averages (TRIX), double exponential moving averages (DEMAs) and adaptive moving averages (AMAs) are available. In terms of CFD trading platforms, the accuracy inherent in MT5 makes it a top contender for best CFD trading software on the market. MetaTrader 5 features 7 new indicators, including 5 trend indicators. The expert advisors and trading script on the MT5 platform is ideally suited for automated trading. The condensed programming language offers greater efficiency and user-friendliness.

The majority of traders today have switched to mobile trading as their preferred medium. Mobile trading with MT4 and MT5 is entirely possible. Mobile trading apps can be downloaded from the CFD broker for tablet, smartphone or phablet access. Once the mobile trading platform is up and running, traders will have access to a wide range of trading opportunities, anytime, anywhere in a regulated jurisdiction. Mobile trading allows for easy buying and selling, even editing of orders by simply accessing real-time prices on the go. A wide range of charting features is available including technical analysis capabilities such as pivot points, arcs, trendlines and market visualization. Mobile trading also allows for charting features for iPad and iPhone, and customized notifications for stop losses, take profits and price alerts.