Technical trading tools you need to explore Forex market
What software and Forex tools to use for trading
All you need to trade currencies is internet access and software for trading. There are several options available: to get the software created by the broker you wish to trade with or to trade with the world-known trading platform MetaTrader.
Trading platforms for Forex are called MetaTrader 4 and 5 (also called MT4 and MT5). You can easily download the platform from the official website or go to our page to read more about the variety of trading platform options. You can also watch a video tutorial on how to download, install and login into MetaTrader to work with your favorite broker.
As a broker, FBS offers more Forex tools for trading, including our own mobile trading platform – FBS Trader. This mobile app for iOS and Android is simple to use yet powerful trading platform that gives access to the most popular trading instruments right from your pocket.
A trading platform is a place where trader can make money online. You will use it to view and analyze the chats of financial instruments and make your trades. Below you can see the example of the terminal window.
MT4 vs. MT5
One of the frequently asked questions among the beginner traders is what MetaTrader to choose – the 4th or the 5th version?
Many think that MT5 is just an upgrade of MT4, but it’s not really true. MT4 is tailored for Forex and CFDs trading while MT5 provides traders with access to these instruments and also stocks. MetaTrader 5, on the whole, offers a greater number of instruments.
To see the difference, let’s compare two versions of the trading platform.
MT5 offers a greater number of timeframes.
For example, there are 11 different types of minute charts and 7 hourly timeframes. Overall, MetaTrader 5 has 21 timeframes, while MetaTrader 4 has only 9.
So, if you like analyzing and trading multiple timeframes, MT5 is a perfect choice for you.
MT5 has more types of pending orders.
MT4 has 4 types of pending orders: Buy Limit, Buy Stop, Sell Limit and Sell Stop. In MT5 there are 2 more: buy stop-limit and sell stop-limit.
Both MetaTrader versions have lots of analytical tools.
MetaTrader 4 has 30 built-in indicators, over 2 000 free custom indicators and 700 paid ones, as well as 24 analytical objects.
MT5 offers 38 technical indicators and 44 graphic objects. It’s also possible to download additional indicators.
Unlike MT4, MT5 has a built-in economic calendar you can access easily.
Hedging is allowed in both terminals. Both versions of the platform work with Expert Advisors (EA trading robots) and technical indicators.
Overall, MetaTrader 4 is much simpler. It’s great for beginners and those traders who want to focus on Forex market in a rather simple interface.
MetaTrader 5, on the other hand, is the best choice for traders who need in-depth analysis and a wider range of trading instruments.
2022-10-28 • Updated
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- How much money do I need for Forex trading?
- Forex Demo Account
- How to determine position size?
- Leverage and margin. How can you use them in Forex trading?
- What Are Rollover and Swap and How to Use Them When Trading?
- Transaction, profit, loss. Types of orders
- Economic calendar
- When is Forex market open?
- Bid and Ask price. Spread
- Calculating profits
- What are Lots, Points, and Leverage
- How to trade?
- What are currencies, why do they come in pairs, and that pair types are there?
- The advantages of Forex trading
- What Is Forex