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What is Blockchain? How does Blockchain work? How is the application?

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What is blockchain technology?\

Blockchain technology is an advanced database mechanism that enables transparent information sharing within a business network. Blockchain databases store data in blocks that are linked together in a chain. The data has chronological consistency because you cannot delete or modify the chain without consensus from the network. Therefore, you can use blockchain technology to create a ledger that cannot be edited or changed to keep track of orders, payments, accounts, and other transactions. The system has built-in mechanisms to prevent unauthorized transaction entries and create consistency in the overall view of these transactions.

Why is blockchain important?

Traditional database technologies pose many challenges in recording financial transactions. For example, consider the sale of a property. Once the money has been delivered, ownership of the property is transferred to the buyer. Both buyers and sellers can individually record monetary transactions, but neither source is reliable. Sellers can easily claim that they haven’t received the money even if they have, and buyers can also argue that they have transferred the money even if they haven’t paid.

To avoid possible legal problems, a trusted third party is required to monitor and authenticate transactions. The presence of this central authority not only complicates the transaction, but also creates a loophole. If the central database is compromised, both parties can suffer losses.

Blockchain mitigates such problems by creating a decentralized, tamper-proof system for recording transactions. In the case of asset transactions, the buyer and seller are both created by the blockchain for a separate ledger. All transactions must be approved by both parties and automatically updated to both’s ledgers in real time. Any previous transactions with any errors will cause the entire ledger to falsify. Those characteristics of blockchain technology have led to the technology being used in various fields, including the creation of digital currencies like Bitcoin.

How are different industries using blockchain?

Blockchain is an emerging technology that is being adopted by various industries in an innovative way. Below, we will describe some of the use cases in different industries:

Energy

Energy companies use blockchain technology to create peer-to-peer energy trading platforms and streamline access to renewable energy. For example, consider the following use cases:

  • Blockchain-based energy companies have created a trading platform for individuals to buy and sell electricity. Homeowners with solar panels use the platform to sell their excess solar energy to neighbors. The process is largely automated: smart meters generate transactions and the blockchain records these transactions.
  • With blockchain-based crowdfunding initiatives, users can fund and own solar panels in communities without access to energy. Donors can also receive rent from these communities once the solar panels have been built.

Finance

Traditional financial systems, such as banks and stock exchanges, use blockchain services to manage online payments, accounts, and market transactions. For example,  Singapore Exchange Limited , an investment corporation providing financial transaction services across Asia, uses blockchain technology to build a more efficient interbank settlement account. By adopting blockchain, they have solved many challenges, including batch processing and manual reconciliation of thousands of financial transactions.

Media and entertainment

Companies in the media and entertainment sectors use blockchain systems to manage copyright data. Copyright verification is important for artists to receive fair compensation. Multiple transactions are required to record the sale or transfer of copyrighted content. Sony Music Entertainment Japan  uses blockchain services to manage digital rights more efficiently. They have successfully used a blockchain strategy to improve productivity and reduce royalty processing costs.

Retail

Retail companies use blockchain to track the movement of goods between suppliers and buyers. For example, retail company Amazon has filed a patent for a distributed ledger technology system that will use blockchain technology to verify that all goods sold on the platform are trusted. Amazon sellers can map their global supply chains by allowing participants such as manufacturers, shippers, distributors, end users, and secondary users to add events to their books. the one after registering with the certification authority.

What are the characteristics of blockchain technology?

Blockchain technology has the following main characteristics:

Decentralized

Decentralization in the blockchain refers to the transfer of control and decision-making from a centralized entity (individual, organization, or group) to a distributed network. Decentralized blockchain networks use transparency to reduce the need for trust among participants. These networks also prevent participants from exerting authority or control over each other in ways that undermine the functioning of the network.

Invariant

Immutable means that something cannot be changed or changed. No participant can forge a transaction once someone has recorded it in the shared ledger. If the transaction record has an error, you must add a new transaction to compensate for the error and both transactions are displayed in the network.

Consensus

A blockchain system that establishes rules for the consensus of participants that allows transactions to be recorded. You can only record new transactions when the majority of network participants agree.

What are the main components of blockchain technology?

The blockchain architecture has the following main components:

Distributed Ledger

A distributed ledger is a shared database in a blockchain network that stores transactions, such as a shared file that everyone on the team can edit. In most shared text editors, anyone with editing permission can delete the entire file. However, distributed ledger technology has strict rules about who can edit and how. You cannot delete entries after they have been recorded.

Smart contract

Companies use smart contracts to self-manage business contracts without third-party assistance. These are programs stored on a blockchain system that automatically run when certain conditions are met. They run if-then condition checks so that transactions can be completed reliably. For example, a logistics company could set up a smart contract that automatically pays when goods arrive at the port.

Public key encryption

Public key cryptography is a security feature that uniquely identifies participants in a blockchain network. This mechanism generates two sets of keys for network members. A key is a public key shared by everyone in the network. The remaining key is the unique private key of each member. The private and public key codes work together to unlock the data in the ledger.

Example: John and Jill are two members of the network. John records a transaction encrypted with his private key. Jill can decrypt this transaction with her public key. In this way, Jill is confident that John has made the transaction. Jill’s public key will not work if John’s private key is forged.

How does blockchain work?

While the underlying blockchain mechanisms are complex, we will present a brief overview in the following steps. Blockchain software can automate most of the following steps:

Step 1 – Record the transaction

A blockchain transaction shows the movement of physical or digital assets from one party to another within the blockchain network. The transaction is recorded as a block of data and may include the following details:

  • Who participates in the transaction?
  • What happened during the transaction?
  • When does the transaction happen?
  • Where does the transaction happen?
  • Why did the transaction happen?
  • How much of the property is exchanged?
  • How many prerequisites were met during the transaction?

Step 2 – Reaching Consensus

Most participants on a distributed blockchain network must agree that the recorded transaction is valid. Depending on the type of network, the rules of agreement can vary but are usually established at the start of the network.

Step 3 – Linking the Blocks

Once the participants have reached a consensus, transactions on the blockchain are written to the block, the equivalent of a page in a ledger. Along with the transactions, a cryptographic hash is also added to the new block. The hash function acts as a chain that links the blocks together. If the contents of the block are intentionally or unintentionally modified, the hash will change, providing a way to detect tampered data.

Therefore, the blocks and chains are linked securely and you cannot edit them. Each re-added block enhances the previous block verification and thus strengthens the entire blockchain. This is like stacking blocks of wood to form a tower. You can only stack blocks on top, and if you pull a block in the middle of the tower, the whole tower will collapse.

Step 4 – Share Ledger

The system distributes the latest copy of the central ledger to all participants.

What types of blockchain networks are there?

There are 4 main types of decentralized or distributed networks in the blockchain:

Public blockchain network

Public blockchains do not require permissions and anyone is allowed to participate. All members of this blockchain have equal rights to read, edit and validate the blockchain. People mainly use public blockchains to exchange and mine cryptocurrencies like Bitcoin, Ethereum, and Litecoin.

Private blockchain network

A single organization controls private blockchains, also known as managed blockchains. This agency determines who can be a member and what rights they have in the network. Private blockchains are only partially decentralized because they have access restrictions. Ripple, a cryptocurrency exchange network for businesses, is an example of a private blockchain.

Hybrid blockchain network

Hybrid blockchains combine elements from both the private network and the public network. Companies can set up private, authority-based systems in addition to a public system. In this way, they control access to specific data stored in the blockchain while making the rest of the data public. They use smart contracts so that public members can check if private transactions have been completed. For example, hybrid blockchains can grant public access to digital currency while keeping bank-owned coins private.

Conjugated blockchain networks

A group of organizations that manage consortium blockchain networks. Pre-selected organizations share responsibility for maintaining the blockchain and deciding on data access. Industries in which multiple organizations share the same goals and benefit from shared responsibility often prefer blockchain networks. For example, the Global Shipping Business Network Consortium is a not-for-profit blockchain consortium that aims to digitize the shipping industry and strengthen cooperation between maritime operators.

What are blockchain protocols?

The term blockchain protocol refers to different types of blockchain platforms for application development. Each blockchain protocol adapts the underlying blockchain principles to suit a particular industry or application. Here are some examples of blockchain protocols:

Hyperledger Fabric

Hyperledger Fabric  is an open source project with a set of tools and libraries. Businesses can use this protocol to quickly and efficiently build their own blockchain applications. It is a general purpose modular framework that provides unique access control and identity management features. These features make the protocol suitable for a variety of applications, such as supply chain tracking and traceability, trade finance, loyalty and rewards programs, and clearing of accounts. financial assets.

Ethereum

Ethereum  is an open source, decentralized blockchain platform that anyone can use to build public blockchain applications. It Enterprise is designed for business use cases.

Rope

Corda is an open source blockchain project designed for enterprises. With Corda, you can build interoperable blockchain networks, doing business in a highly secure environment. Businesses can use Corda’s smart contract technology to conduct business directly, delivering value. Most of Corda’s users are financial institutions.

Quorum

Quorum is an open source blockchain protocol developed from Ethereum. This protocol is specifically designed for use in a private blockchain network, where only a single member owns all the nodes, or in a federated blockchain network, where many members own a single member. part of the network.

How has blockchain technology evolved?

Blockchain technology dates back to the late 1970s, when a computer scientist named Ralph Merkle patented a Hash or Merkle tree. These trees are a computer science structure for storing data by linking blocks using cryptography. In the late 1990s, Stuart Haber and W. Scott Stornetta used Merkle trees to implement a system in which a document’s timestamps could not be tampered with. This is the first case of blockchain in history.

This technology has continued to evolve over the following 3 generations:

First Generation – Bitcoin and Other Cryptocurrencies

In 2008, an anonymous individual or group of individuals known only as Satoshi Nakamoto built the “framework” for blockchain technology in its modern form. Satoshi’s idea of ​​the Bitcoin blockchain used a 1MB block of information for Bitcoin transactions. Many features of the Bitcoin blockchain system still play a pivotal role in blockchain technology to this day.

Second generation – smart contract

A few years after the first generation coins appeared, developers started looking at blockchain applications beyond cryptocurrencies. For example, the inventors of Ether decided to use blockchain technology in asset transfer transactions. Their significant contribution is the smart contract feature.

The third generation – the future

As companies discover and deploy new applications, blockchain technology continues to improve and evolve. Companies are tackling the limitations of scale as well as computing power, and in this ongoing blockchain revolution, opportunities abound.

What are the benefits of blockchain technology?

Blockchain technology brings many benefits to asset transaction management. Below, we list a few of those benefits:

Advanced Security

The blockchain system provides the high level of security and trust that modern digital transactions require. There is always a fear that someone will manipulate the firmware to create fake currency for themselves. But the blockchain uses 3 principles of cryptography, decentralization and consensus to create a highly secure firmware system that is almost impossible to tamper with. There is not a single point of failure that kills the system and a single user will not be able to change the transaction records.

Improve efficiency

Business-to-business transactions can be time-consuming and create operational bottlenecks, especially when third-party regulatory and compliance agencies are involved. Transparency and smart contracts in the blockchain make such business transactions faster and more efficient.

Check faster

An enterprise must be able to securely create, exchange, store and reconstruct electronic transactions in a verifiable manner. The records in the blockchain are chronologically immutable, which means that all records are always ordered chronologically. The transparency of this data makes the test processing much faster.

What is the difference between Bitcoin and blockchain?

Bitcoin and blockchain can be used interchangeably, but they are two different concepts. Since Bitcoin is an early application of blockchain technology, people have unknowingly started using Bitcoin to refer to the blockchain, creating confusion about the term. But blockchain technology has many applications beyond Bitcoin.

Bitcoin is a digital currency that works without any centralized control. Bitcoin was originally created to conduct financial transactions online but now Bitcoin is considered a digital asset that can be converted to any other global currency, like USD or euro. A public Bitcoin blockchain network that creates and manages a central ledger.

Bitcoin Network

A public ledger records all Bitcoin transactions, and servers around the world keep copies of this ledger. These servers are like banks. Although each bank only knows about the amount of money their customers exchange, the Bitcoin servers know about every Bitcoin transaction in the world.

Anyone with a spare computer can set up one of these servers, called nodes. This is like opening your own Bitcoin bank instead of opening a bank account.

Bitcoin Mining

On the public Bitcoin network, members dig cryptocurrencies by solving cryptographic equations to generate new blocks. The system broadcasts each new transaction publicly to the network and shares it from node to node. About every 10 minutes, miners collect these transactions into a new block and add them permanently to the blockchain, acting as Bitcoin’s final ledger.

Bitcoin mining requires significant computing resources and takes a long time due to the complexity of the software process. In return, the miners earn a small amount of cryptocurrency. Miners act as modern secretaries who record transactions and collect transaction fees.

All participants across the network reach a consensus on who owns which coins, using blockchain cryptography technology.

What is the difference between a database and a blockchain?

Blockchain is a special type of database management system that has more features than a regular database. In the following list, we describe some of the significant differences between traditional databases and blockchains:

  • Blockchain decentralizes control without compromising trust in existing data. Other database systems will not be able to do this.
  • Companies participating in a transaction cannot share their entire database. But in blockchain networks, each company has a copy of the ledger, and the system automatically maintains consistency between the two.
  • While in most database systems you can edit or delete data, in blockchain you can only insert more data.

What is the difference between blockchain and cloud?

The term cloud refers to computing services that are accessible online. You can access Software as a Service (SaaS), Product as a Service (PaaS), and Infrastructure as a Service (IaaS) from the cloud. Cloud service providers manage their hardware and infrastructure and provide you with access to these computing resources over the Internet. They provide more resources than just database management. If you want to participate in a public blockchain network, you will need to provide hardware resources to store your copy of the ledger. You can also use a server from the cloud for this purpose. Some cloud providers also offer a complete Blockchain as a Service (BaaS) from the cloud.

What is Blockchain as a Service?

Blockchain as a Service (BaaS) is a managed blockchain service that is provided by a third party in the cloud. You can develop blockchain applications and digital services while the cloud service provider provides the blockchain infrastructure and tools. All you have to do is customize the existing blockchain technology, making blockchain adoption faster and more efficient.

What are AWS Blockchain Services?

AWS Blockchain services  provide purpose-built tools to support your requirements. You can use these services to build everything from a centralized ledger that maintains an immutable record of transactions to a fully managed, multi-party blockchain network that eliminates intermediaries. AWS has a multitude of validated blockchain solutions from partners that support all major blockchain protocols, including Hyperledger, Corda, Ether, Quorum, etc. So you can develop applications. blockchain and ledger easier, faster, and more efficient with AWS. Here are some useful AWS Blockchain services:

Amazon’s Quantum Ledger Database (Amazon QLDB)  is a fully managed ledger database that provides transparent, immutable, and cryptographically verifiable transaction logs. The service has a built-in log to store an entry that accurately records every data change in sequence. Logs are writable only, which means users can add data to the log but cannot overwrite or delete data.

Amazon Managed is a fully managed service that makes it easy to join public networks or create and manage scalable private networks using Hyperledger Fabric and Ether. Start using by  creating an AWS account today.

 

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What Is a Buy-and-Hold Strategy in Investing?

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The buy-and-hold strategy is simple to execute. All you have to do is buy a security and not sell it.

Buy-and-hold investors prioritize owning shares of companies with strong business fundamentals. The investors are more concerned with how a company is performing than with short-term changes in the company’s stock price. As long as the company’s business continues to perform well, buy-and-hold investors are happy to continue owning the company’s stock.

That’s not to say that stock price is not important to buy-and-hold investors. Overpaying for anything can result in not enough value being generated to justify the price paid. Some buy-and-hold investors prefer to own value stocks, which trade below the prices that their business fundamentals suggest they’re worth. Other buy-and-hold investors focus on growth stocks, the shares of companies that are increasing their revenues and profits by pursuing attractive business opportunities.

Buy-and-hold investors typically make stock purchase decisions based on long-term investment theses about the companies of interest. As long as an investment thesis remains intact, the buy-and-hold investor continues to own the company’s shares.

Example of buy-and-hold investing

One of the biggest proponents of buy-and-hold investing is Warren Buffett. In his 1988 letter to shareholders of his asset management firm and holding company Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B), he famously wrote, “Our favorite holding period is forever.” In fact, the full excerpt from the letter reads, “When we own portions of outstanding businesses with outstanding managements, our favorite holding period is forever.” That’s a clearer picture of what a buy-and-hold investor aims to achieve — to own outstanding companies.

Buffett acquired a significant stake in Coca-Cola (NYSE:KO) for Berkshire Hathaway in the same year he penned that famous line. Buffett’s asset management business bought about 14 million shares for just under $600 million and added to the position in 1989. Coca-Cola has also split its stock four times since Berkshire established its initial position. The company currently owns 400 million shares worth around $25 billion. Berkshire’s cost basis for those shares is just $1.3 billion.

From the start of 1988 to the end of 2021, the price of Coca-Cola shares grew 25-fold, and the company reliably pays an appealing and growing dividend. (By comparison, the S&P 500 (SNPINDEX: ^GSPC) index increased about 19-fold in the same period.)

But Coca-Cola shares didn’t outperform the market throughout that entire 34-year period. For example, from the start of 1998 to the end of 2006, the price of Coca-Cola shares declined almost 28%, while the S&P 500 increased by more than 46%. Over the last half of the 2010s, from 2016 through 2020, Coca-Cola shares increased in value by just 28%, while the S&P 500 index gained 84%.

Buffett has held his shares of Coca-Cola for the whole time and maintains his conviction that the beverage giant will continue to produce solid returns over the long term.

Pros and cons of buying and holding stocks

The positive aspects of investing include:

  • Simplicity: Investors don’t need to constantly monitor their investments every hour of every trading day to make buy and sell decisions. Once a security is in your portfolio, you usually only have to pay attention to key news and documents such as quarterly earnings reports.
  • Minimal risk of investor error: Since buy-and-hold investing is so simple — buy shares, then don’t sell — there’s very little risk that the strategy will fail due to a tactical error on your part. While active investors attempt to time stock purchases and sales with the market’s peaks and valleys, buy-and-hold investors don’t make nearly as many decisions.
  • Tax efficiency: Not selling stocks enables you to avoid owing capital gains taxes on stock sales. When they do sell stock, investors can do so in ways that minimize their tax liabilities. Unlike active investors, buy-and-hold investors are generally not in a hurry to exit their positions.

However, there are some disadvantages to buy-and-hold investing:

  • Higher likelihood of poor risk management: Some investors neglect to implement simple risk management strategies such as rebalancing their portfolios to keep their assets appropriately allocated. Investors who completely ignore price when making buy or sell decisions are susceptible to the risk of buying high and selling low. Some buy-and-hold investors are overly willing to accept risk as an unavoidable part of investing.
  • No way to profit from market volatility: Some of the best times to buy more shares occur when the stock market is experiencing volatility. A sharp dip in a stock’s price could be a great buying opportunity for investors. But if you’re already fully invested with a strategy, then you don’t have much capital to spend when short-term buying opportunities present themselves.
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What Does “Investing” Mean?

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You’ve heard investing can change your life — but what does that mean?

Investing can be one of the best ways to improve your financial future, but it’s important to have a sound understanding of just what it means to invest. So, what exactly is investing?

positive trending line chart float above seedlings and a lit lightbult

Source: Getty Images

The word “invest” can be defined as follows:

  1. Devoting time or other resources toward achieving a goal.
  2. Using money or capital to buy an asset with the hope that the value of that asset will increase and give you the opportunity to sell at a profit. Common assets for investment include stocks, bonds, real estate, and precious metals such as gold and silver.

Everyday-life examples of investing

Most people make investment decisions on a daily basis — even if they aren’t putting money into assets like stocks or real estate. If a person pays college tuition and attends classes with the hope of gaining knowledge and skills that will benefit them in the future, that person has made a decision to invest in themselves. They are devoting time and money with the goal of gaining new knowledge that will be rewarding — financially or otherwise.

Even putting money in a savings account that pays an interest rate can be thought of as an investment, as you will get a return on the money you have in the account. In most cases, the interest rate will be very small, but it’s still investing. Investments that come with the potential for big profits usually come with greater risk. Savings accounts are very safe, so they typically pay a very small interest rate.

Time plays a crucial role in successful investing

Building the foundation needed to make well-informed investment moves can take a lot of time. If a person is considering college to gain a particular skill, that person should be looking at the salaries of professionals in their field and thinking about whether demand for their chosen profession is likely to increase. The person may also want to consider if the time and money put into attaining a degree will bring them fulfillment in other ways. Acquiring a college degree may have big payoffs down the line, but there is also the risk that the time and money invested in attaining the degree won’t produce the desired results.

Devoting time to ensuring you’re making moves that have a good chance of success holds true in the world of financial investing, as well.

Let’s say that a company’s stock catches your eye, and you think buying shares (basically, buying a very small stake in the business) could be a worthwhile opportunity. Researching the company and its industry, weighing growth opportunities, and estimating whether its current valuation are likely to increase is crucial to making an informed investment decision. You’ll also want to keep up-to-date on how your investment is performing and how its market opportunities are evolving over time.

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Even if your investment thesis (the reasons you believe an asset will increase in value) proves correct, it may take longer than anticipated to come to fruition and bring about your desired profit. No one knows exactly what the future holds, and there are many unpredictable factors that can influence the valuation of stocks, real estate, and other assets.

Because of the time it takes to research investments and the possibility that it will take a while for the value of your assets to reach the desired level, most people are best served by taking a long-term approach to investing. With regard to stocks, this usually means trying to identify strong companies to invest in, then buying shares with the expectation that you plan to hold on to your investment for years to come.

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11 Best Forex Brokers In 2022 For Traffic

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We have summarized the best forex brokers, looking at FX pairs, pricing, maximum leverage, and trading platforms, among other features. Our market trends will also provide you with quick insights into the whole forex market while the comparison table is there to help you make quick decisions.

    The foreign exchange (forex) market is the largest and most liquid market in the world, with more than $5 trillion traded daily. You can trade in this market from anywhere in the world, 24 hours a day, five days a week.

    But to trade forex, you need a forex broker. Forex broker is a firm that provides currency traders with access to a trading platform that allows them to buy and sell foreign currencies. While there are many forex brokers available,

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    Best ECN Brokers Compare ECN Trading Platforms

    Posted on by dev1703

    While there is a huge range of brokers available, many are lackluster in terms of features, spread, and order execution. However, using the ECN broker can eliminate these issues.

    Throughout this guide, we’ll be taking a detailed look at the best ECN brokers, discussing exactly what an ECN broker is, and explaining the benefits of using this type of broker versus a market maker or dealing desk. Let’s get started.

    Below, we’ve included a quick description of the top 10 best ECN brokers. Investors looking for detailed reviews can find them in the next section.

    • Pepperstone – Overall Best ECN Broker
    • Interactive Brokers – Award-Winning Broker
    • FXTM – Popular Broker with a Plethora of Educational Resources
    • IC Markets – Low Fee ECN Broker
    • Vantage FX – Well-Known Broker with High Leverage 
    • InstaForex – Trustworthy Broker with Low-Cost Deposits
    • HF Markets- Hybrid ECN Broker
    • FP Markets – ECN Broker with Huge Range of Assets
    • ForexMart – Solid MetaTrader Compatible Platform
    • Dukascopy – Trusted Broker with Banking Services

    Best ECN Forex Brokers Reviewed

    Now that we’ve taken a brief look at the best ECN brokers for forex, it’s time we delve into the details and take an in-depth look at the top contenders.

    1. Pepperstone – Overall Best ECN Broker

    Founded in 2010, Pepperstone is a global broker providing investors with tight spreads and powerful tools. It boasts over 2000 tradable assets and is regulated by the Finance Conduct Authority (FCA), the Australian Securities and Investment Commission (ASIC), as well as a further three tier 2-3 bodies.

    pepperstone website

    Since its release, Pepperstone has grown exponentially and now provides millions of users around the globe with access to financial products. While Pepperstone is an ECN forex broker, it also offers access to the commodity, ETF, stock, index, and cryptocurrency (not available to UK residents) markets.

    The platform supports cTrader and is consistently regarded as being one of the 10 best MT5 brokers. One of the main draws to Pepperstone is its industry-leading market research tools. The broker provides a host of video and written news and analysis, designed to appeal to a broad range of investors. Furthermore, Pepperstone provides its users with access to various tools including pattern recognition and risk management software.

    As the best ECN broker, Pepperstone offers its users incredibly tight spreads. While fees can vary based on the instrument traded, they remain some of the lowest in the industry, helping to cement Pepperstone as the best ECN forex broker. For investors looking for a customizable, low-cost platform, with a huge range of tools, it’s difficult to beat Pepperstone.

    Broker Currency Pairs Max Leverage Other Assets Pricing Spread (USD/EUR) Platforms Accepts US Residents?
    Pepperstone 60+ 500:1 (professional) 200:1 (retail) Commodities, ETFs, Stocks, Indices, Crypto Spread-Based + Commission (only on Razor accounts) 0.17 pips spread$0.04 commission Web-based, Mobile app, MT4, MT5, cTrader, TradingView No

    What We Like

    • Best Overall ECN Broker
    • Integration with leading platforms
    • High leverage
    • Low fees
    • Excellent market research

    2. Interactive Brokers – Award-Winning ECN Broker

    Founded in 1993, Interactive Brokers is a big name in the forex space. The platform is famous for its lightning-fast order execution, informative market research, and low-cost trading. With Interactive Brokers being rather popular, it’s often mentioned alongside the 11 best low-spread forex brokers.

    interactive brokers website

    Out of all the platforms  we’ve mentioned, Interactive Brokers offers perhaps the greatest range of tradable assets. Users can trade stocks, options, futures, crypto, bonds, ETFs, and gold. Using the ECN system, interactive brokers aggregates prices from 17 of the largest FX dealers in order to provide its users with the lowest possible cost trades.

    Interactive Brokers offers its users the ability to heavily customize the platform to their needs. Every investor with an Interactive Brokers account also has full access to a trove of educational material and market research. Furthermore, with the Interactive Brokers Pro platform, traders have access to over 100 different order types and algorithms.

    All in all, there’s a reason why Interactive Brokers is considered to be one of the best ECN brokers on the market. It offers low fair fees, a huge range of instruments, and supports investors from all over the globe. While it doesn’t offer leveraged trading, its margin trading features offset this problem.

    Broker Currency Pairs Max Leverage Other Assets Pricing Spread (EUR/USD) Platforms Accepts US Residents?
    Interactive Brokers 100 Variable Margin, Typically 25% Maintenance Requirement Stocks, Options, Futures, Mutual Funds, Commodities, Crypto Spread + Commission 0.1 pip + Volume-Based Commission Two Mobile Apps, investor + Trader Web Platforms Yes

    What We Like

    • Low fees
    • Huge range of assets
    • Low margin requirements
    • Platforms suited to beginners and experienced traders

    3. FXTM – Popular Broker with a Plethora of Educational Resources

    Launched back in 2011, FXTM or ForexTime has quickly built up a loyal following thanks to its expansive range of features, low fees, and transparency. It’s one of the best CySEC forex brokers on the market and is also regulated by the FCA, highlighting the legitimacy of the platform.

    fxtm website

    FXTM is one of the top ECN forex brokers and has been attracting a fair amount of attention recently. The platform is intuitive to navigate and presents key information in a clear and concise manner.

    Like the fees, different accounts on FXTM are available based on capital. A ‘Micro Account’ supports MT4, boasts a $50 minimum deposit, and offers forex as well as commodity CFDs. Whereas, the Advantage and Advantage Plus Accounts support MT4 + MT5, has a $500 minimum deposit, lower spread fees, commission, and stock/index CFD support.

    In addition to boasting a wide range of order types and in-built charting tools, FXTM is one of the best brokers on the market in terms of educational resources. The platform hosts regular webinars/seminars dedicated to forex trading and even provides eBooks and entire guides dedicated to trading strategy. Unlike some ECN forex brokers, FXTM has a clear focus on educating investors.

    All in all, while FXTM could be regarded as the best ECN broker for education, it lacks the leverage and number of asset classes offered by Pepperstone.

    Broker Currency Pairs Max Leverage Other Assets Pricing Spread (EUR/USD) Platforms Accepts US Residents?
    FXTM 62 1:30 Commodities, ETFs, Stocks, Indices, Crypto Spread-Based + Commission Variable based on funds in account and trading volume Web-based, Mobile App, MT4, MT5 No

    What We Like

    • Excellent educational material
    • Simple to use
    • Good range of assets
    • Plenty of account types

    4. IC Markets – Low Fee ECN Broker

    IC Markets is an Australia-based broker, handling more than $15 billion in trades each day. It’s regulated by CySEC, the FSA, and ASIC, so there’s nothing to worry about in terms of safety.

    ic markets website

    The platform offers some of the lowest fees in the industry. Some spreads are as low as 0.0 pips, although, it’s important to note that for these trades a commission fee of $3.5  will be charged. In addition to its raw spread account, IC Markets also offers a regular trading account as well as an Islamic trading account.

    In order to assist beginners making their first foray into the world of trading, IC Markets features a well-designed demo account that uses real-world prices to provide investors with an accurate experience. On top of this, the platform features social trading capabilities, with users able to automatically mirror the trades of more experienced users through ZuluTrade.

    With a good range of assets and 1:500 leverage available, IC Markets is one of the best high-leverage brokers right now. While it could benefit from TradingView integration, it’s a well-rounded platform with a lot to offer.

    Broker Currency Pairs Max Leverage Other Assets Pricing Spread (EUR/USD) Platforms Accepts US Residents?
    IC Markets 61 1:500 Commodities, ETFs, Stocks, Indices, Crypto Spread + Commission 0.1 pips + $4.50 MT4, MT5, cTrader, ZuluTrade, Web-Based, Mobile App No

    What We Like

     

    • ZuluTrade (copy trading)
    • High leverage
    • Good range of assets
    • Supports MT4, MT5, cTrader, and more

    5. Vantage FX – Well-Known Broker with High Leverage

    Another Australian broker, Vantage FX has grown to become rather popular thanks to its low fees, easy deposit/withdrawals, and simple account creation process. The broker is regulated by the FCA and ASIC, meaning that the platform is safe and making Vantage FX is one of the best forex ECN brokers available.

    vantage fx website

    While Vantage FX does offer a reasonable range of currency pairs (40) it lacks the variety of assets offered by brokers like Peppertrade. However, Vantage’s various platforms help to make up for that. The broker allows investors to copy trade, integrate with MetaTrader, and trade on the go. For investors that like customizability, this could make vantage quite an attractive option.

    In addition to its raw and professional ECN accounts, Vantage FX also offers a regular STP account and a demo account with unlimited funds. The platform comes bundled with a number of useful tools to help investors calculate things like profit and fees. Furthermore, less-experienced investors can take advantage of Vantage FX’s impressive range of reading material.

    Although Vantage FX might not be quite as asset diverse as some other brokers, its huge range of platforms and tiny fees (even by the best ECN broker standards) helps to ensure that Vantage FX is a rock solid platform and one of the better forex ECN brokers.

    Broker Currency Pairs Max Leverage Other Assets Pricing Spread (EUR/USD) Platforms Accepts US Residents?
    Vantage FX 40 1:500 Stocks, Commodities, Crypto Spread + Commission 0.1 pips + $3 Mobile app, Web Trader, MT4, MT5, ZuluTrade, Vantage Copy Trading No

    What We Like

    • Extremely low fees
    • Huge range of platforms
    • 1:500 leverage
    • Transparent fee structure

    Best ECN Forex Brokers Compared

    Below, we’ve included a simple-to-understand table detailing key points of the top 10 best ECN brokers for forex.

    Broker Currency Pairs Max Leverage Other Assets Pricing Spread (USD/EUR) Platforms Accepts US Residents?
    Pepperstone 60+ 1:500 (professional) 1:200 (retail) Commodities, ETFs, Stocks, Indices, Crypto Spread-Based + Commission (only on Razor accounts) 0.17 pips spread$0.04 commission Web-based, Mobile app, MT4, MT5, cTrader, TradingView No
    Interactive Brokers 100 Variable Margin, Typically 25% Maintenance Requirement Stocks, Options, Futures, Mutual Funds, Commodities, Crypto Spread + Commission 0.1 pip + Volume-Based Commission Two Mobile Apps, investor + Trader Web Platforms Yes
    FXTM 62 1:30 Commodities, ETFs, Stocks, Indices, Crypto Spread + Commission Variable based on funds in account and trading volume Web-based, Mobile App, MT4, MT5 No
    IC Markets 61 1:500 Commodities, ETFs, Stocks, Indices, Crypto Spread + Commission 0.1 pips + $4.50 MT4, MT5, cTrader, ZuluTrade, Web-Based, Mobile App No
    Vantage FX 40 1:500 Stocks, Commodities, Crypto Spread + Commission 0.1 pips + $3 Mobile app, Web Trader, MT4, MT5, ZuluTrade, Vantage Copy Trading No
    InstaForex 120 1:1000 CFDs, Indices, Futures, Crypto Spread + Commission 3 pips + 0.03-0.07% MT4, MT5, Multiterminal, WebTrader, FastTrader, Mobile App No
    HF Markets 50 1:30 Commodities, ETFs, , Indices, Bonds Spread + Commission 0.1 pips+ lot size-based commission MT4, MT5, Web-based, Mobile App No
    FP Markets 60 1:500 Stocks, Bonds, Indices, Commodities, Crypto Spread + Commission Variable (around 0.1 pip) + $3 MT4, MT5, Web-based, Mobile App No
    ForexMart 61 1:500 Stocks, Commodities, Crypto Spread + Commission 0.1 pips + $6 Web-based, MT4, Mobile No
    Dukascopy 23 1:200 Stocks, Commodities, Crypto, Bonds, Indices Spread + Commission 0.2 pips + $0.5 Web-based, MT4, Mobile, JForex No

    What is an ECN Broker?

    It can be difficult to work out the differences between broker types but it’s crucial for anyone serious about trading.

    An ECN or electronic communication network broker essentially acts as an aggregator for other market makers. When somebody places a trade with an ECN broker, the platform will automatically search for the best possible deal on the market and execute the order with that provider.

    While this allows investors to get the best possible price, it isn’t without a downside. While many brokers will offer commission-free trading at the expense of spread fees, an ECN broker will offer the lowest spread but will tack on a commission fee. As such, it’s important to consider things like expected volume and lot size before partnering with a specific exchange.

    Another common type of broker is a market maker. These platforms will typically fulfill trades themselves while taking an opposite position to the user. While a market maker will generally offer higher spreads, they tend not to charge commission.

    So while an ECN broker simply matches a trade between other platforms, a market maker will fulfill the order themselves and take an opposite position in order to manage risk.

    Benefits of Using an ECN Broker

    When it comes to deciding which type of broker is best suited to a particular investor, it’s important to look at what benefits are offered. In order to make this as simple as possible, we’ve outlined a few of the most prominent benefits to the best ECN broker.

    Transparency

    One of the biggest advantages of trading with an ECN broker is transparency. As these brokers use a network, every platform has access to exactly the same information at the exact same time. This means that any ECN broker should offer precisely the same prices for an asset at a given time (although spread and commission can still vary).

    Fairness

    As everyone has access to the same information and price history, it’s easier to analyze market trends. In theory, this helps to reduce market manipulation and puts traders on even ground.

    Price

    Perhaps the most important benefit to trading with an ECN broker is getting the best possible price. When using an ECN-based platform, a trade should always execute at the best price on the market. Considering forex trading often involves taking advantage of small price movements using high leverage, this can end up making a big difference.

    Conclusion

    Throughout this guide, we’ve reviewed the best ECN broker on the market and taken a look at what an ECN broker is and how they work. However, while each of the platforms we’ve reviewed is packed full of features and provides a lot of key trading tools, there was one particular platform that stood out from the crowd.

    FAQs

    What are ECN brokers?

    ECN or electronic communications network brokers are designed to aggregate other market participants in order to provide investors with the best possible prices. This comes with the benefit of added transparency and reduced spreads.

    Are there true ECN brokers?

    The term ‘true ECN broker’ can mean a couple of different things. Firstly, some brokers will use multiple order execution processes. Whereas, others will simply promote the platform as ECN while fulfilling trades themselves. However, some brokers like Pepperstone could be considered a ‘true ECN’ broker.

    Are ECN brokers good?

    Like everything, ECN brokers are both good and bad. They can provide traders with greater transparency, more data to analyze, the best possible prices, and extremely low spreads. However, most ECN brokers will charge a commission for their services so it’s important to look into fees before committing to a particular platform.

    Which is the best ECN Broker?

    While each of the platforms we’ve looked at is good, Pepperstone offers the greatest range of assets, lowest fees, and best features. However, for those unsure whether an ECN broker is right for them, Capital.com is an excellent alternative option.

    Guides

    The Best MT4 Brokers List Compare Metatrader 4 Platforms in 2023

    Posted on by dev1703

    MetaTrader 4 (MT4) remains one of the most popular third-party programs for forex traders, thanks to its advanced features and excellent back-testing capabilities. Due to this, many forex brokers now offer seamless integration with MT4, allowing traders to open and close positions directly through the application.

    This guide will review a selection of the best MT4 brokers available to FX traders, highlighting their fees, features, and asset selections, before presenting an in-depth walkthrough of how to place a forex trade with one of these platforms – without paying any commissions.

    The Best MT4 Brokers List

    Many of the best forex brokers allow traders to link their accounts to MT4 and conduct trading activities through the platform. Below are ten brokers that offer this functionality – each of which will be reviewed in the following section.

    1. Axi – Award-Winning MT4 Broker Offering Copy Trading
    2. XTB – Popular Alternative Station to MT4
    3. Vantage – Access over 3,200 Professional Signals with MT4
    4. Pepperstone – Best MT4 Broker with a Dedicated ECN Account
    5. AvaTrade – Popular MT4 Forex Broker with Added MT5 Support
    6. Skilling – Popular MT4 Broker with Low Spreads
    7. Forex.com – Leading MT4 Trading Platform for Automated Trading
    8. Oanda  – One of the Best MT4 US Forex Brokers for Advanced Investors
    9. IC Markets – Great MT4 App with Raw Pricing and Fast Execution
    10. FxPro – Best MT4 Broker for Micro Lot Trading
    11. FP Markets – Excellent MT4 Trading Platform with Copy Trading Features

    We review the above forex brokers in great detail in the following sections. This will help you choose the best forex broker in the USA for your skillset and trading goals.

    Best Forex Trading Platforms Reviewed 

    There are dozens of forex brokers that allow US clients to buy and sell currency pairs with the best MT4 brokers offering full access to the MetaTrader suite.

    No two forex brokers are the same though, so you’ll want to do some research surrounding supported markets, commissions, account types, minimum deposits, trading tools, and other important factors.

    The overall 10 best forex brokers in the market right for are discussed below:

    1. Axi – Award-Winning MT4 Broker Offering Copy Trading

    Axi isn’t just another broker offering the MT4 platform — it has won several awards for providing an outstanding service on this platform. By using MT4, Axi has won awards for the best forex broker, best CFD provider and best EMEA region broker.

    Before going live, traders can sample Axi’s MT4 platform by opting for the demo account. It’s valid for 30 days and offers practice trading of up to $50,000. Traders can access forex, stocks, indices, precious metals and commodity markets. The demo account enables traders to test out their advanced tools to incorporate into their trading strategies.

    Axi has made the MT4 app compatible for PC, Mac, iPhone and Android. Also available with Axi is MT4 web trader. The platform provides live pricing and to view market data with live charting options, as well as automated news updates to follow the latest trading trends.

    One of the things that separates Axi from most brokers is the in-depth MT4 video tutorials. They’re free and cover key topics such as how to install MetaTrader 4, managing open trades and types of orders. Traders using MT4 on Axi can also connect it to their CopyTrading app, enabling them to copy the trades of professionals.

    Number of Currency Pairs 70+
    Other Asset Classes Offered Stocks, commodities, precious metals, indices
    Pricing Structure Spreads
    Spread for EUR/USD 0.1 pips
    Platforms Offered xStation 5 and xStation mobile
    Accepts US Traders? No
    Max Leverage 1:30
    Broker Type CFD

    What We Like:

    • Connect to CopyTrading app
    • Fast execution platform offering access to various markets
    • Offers $50,000 demo account

    2. XTB – Popular Alternative Station to MT4

    Traders looking for convenience while optimizing their charts with advanced tools will find the two platforms XTB offers to be ideal. XTB enables traders to choose between xStation 5 and xStation mobile. Traders can opt for the web trade platform, mobile app or desktop app.

    This platform enables fast executions and some of the lowest forex spreads in the business. A popular pair such as EUR/USD carries an average spread of 0.1 pips. On top of that, XTB platforms enable traders to use leverage up to 1:30.

    “Starting from 9th November 2020, XTB clients will no longer be able to open new accounts and sub accounts on the MT4 platform. Trading accounts opened before this date remain fully operational and supported.” But the Station 5 platform on XTB offers great features and is the ideal MetaTrader4 alternative.

    The platform enables access to 2100 global markets in cryptocurrencies, stocks, indices, commodities and ETFs.

    Number of Currency Pairs 48
    Other Asset Classes Offered Stocks, commodities, ETFs, indices, crypto
    Pricing Structure Spreads
    Spread for EUR/USD 1 pip
    Platforms Offered MT4 for PC, Mac, iPhone and Android
    Accepts US Traders? No
    Max Leverage 1:30
    Broker Type CFD

    What We Like:

     

    • Web, mobile app, desktop platforms
    • Fast execution platform and a great MT4 alternative
    • More than 2100 global markets

    2. XTB – Popular Alternative Station to MT4

    Traders looking for convenience while optimizing their charts with advanced tools will find the two platforms XTB offers to be ideal. XTB enables traders to choose between xStation 5 and xStation mobile. Traders can opt for the web trade platform, mobile app or desktop app.

    This platform enables fast executions and some of the lowest forex spreads in the business. A popular pair such as EUR/USD carries an average spread of 0.1 pips. On top of that, XTB platforms enable traders to use leverage up to 1:30.

    “Starting from 9th November 2020, XTB clients will no longer be able to open new accounts and sub accounts on the MT4 platform. Trading accounts opened before this date remain fully operational and supported.” But the Station 5 platform on XTB offers great features and is the ideal MetaTrader4 alternative.

    The platform enables access to 2100 global markets in cryptocurrencies, stocks, indices, commodities and ETFs.

    Number of Currency Pairs 48
    Other Asset Classes Offered Stocks, commodities, ETFs, indices, crypto
    Pricing Structure Spreads
    Spread for EUR/USD 1 pip
    Platforms Offered MT4 for PC, Mac, iPhone and Android
    Accepts US Traders? No
    Max Leverage 1:30
    Broker Type CFD

    What We Like:

    • Web, mobile app, desktop platforms
    • Fast execution platform and a great MT4 alternative
    • More than 2100 global markets

    3. Vantage – Access over 3,200 Professional Signals with MT4

    Vantage logoLaunched in 2009, Vantage is a popular CFD trading platform for Forex pairs, cryptos, commodities, shares and indices. With the Raw ECN account, investors can access the popular EUR/USD pair at low spreads, starting at 0.2 pips. Moreover, the STP account on Vantage offers commission-free trading on CFDs.

    Vantage makes its trading platform available with MT4 trader – which offers high-speed trading on FX pairs. Allowing investors to gain an edge in the global markets, the MT4 brokerage gives investors access to over thousands of charting & customization options with Vantage. On this popular trading platform, MT4 is made available on the web, desktop, as well as Vantage app – which can be accessed on iOS and Android.

    MT4 on Vantage

    For traders lacking the time to open manual trades, MT4 offers an automated trading feature in the form of a forex robot – known as Expert Advisors. By designing a state-of-the-art optic network which connects with the platform’s global servers, Vantage leverages MT4 to execute trades accurately and securely with 99.99% uptime.

    Offering over 3,200 trading signals, MT4 on Vantage allows investors to leverage the best possible strategies to open FX trades.

    Number of Currency Pairs 44
    Other Asset Classes Offered CFDs on Stocks, commodities, indices, crypto
    Pricing Structure 0% commission + high spreads on STP account/ Low commissions + low spread on ECN account
    Spread for EUR/USD 1.1 pips on STP account/0.2 pips on ECN account
    Platforms Offered Web trader + mobile app  + MT4 + MT5
    Accepts US Traders? No
    Max Leverage 100:1 (500:1 for traders with higher equity)
    Broker Type STP and ECN

    What We Like:

    • ECN and STP accounts are available
    • Integrates with MT4, MT5
    • Up to 100:1 leverage for retail traders
    • Forex robots for automatic trading with MT4

    4. Pepperstone – Best MT4 Broker with a Dedicated ECN Account

    Pepperstone logoTraders looking for the best MT4 broker with an ECN account may wish to consider Pepperstone. The Pepperstone ‘Razor’ account offers spreads as low as 0.0 pips for EUR/USD. However, since a commission is levied on each position, traders looking for the most cost-effective option may wish to use the ‘Standard’ account, which incorporates all fees into the spread.

    Pepperstone MT4

    Users can trade over 60 FX pairs using Pepperstone, with an MT4 download available through the broker’s website. Pepperstone also provides 28 forex indicators on MT4, along with several Expert Advisors (EAs), making it one of the best automated trading platforms on the market. Finally, with regulation from the FCA, ASIC, and BaFin, Pepperstone can be considered one of the most reputable options on our list.

    Number of Currency Pairs 60+
    Other Asset Classes Offered CFDs in: stocks, commodities, indices, crypto, ETFs
    Pricing Structure Variable spread on Standard account; commission on Razor account
    Spread for EUR/USD Average of 0.77 pips on Standard account; as low as 0.0 pips on Razor account
    Platforms Offered Web trader + mobile app + cTrader app + MT4 + MT5 + TradingView
    Accepts US Traders? No
    Max Leverage 30:1 (500:1 for professional traders)
    Broker Type STP and ECN

    What We Like:

    • ECN account available
    • Best forex broker for PAMM accounts
    • Integrates with MT4, MT5, cTrader, and TradingView
    • Up to 500:1 leverage for professional traders

    5. AvaTrade – Popular MT4 Forex Broker with Added MT5 Support

    AvaTrade logoOur pick for the best MT5 broker with added support for MT5 is AvaTrade. AvaTrade is a well-known CFD broker, offering over 50 FX pairs to trade as well as the best forex VPS. The platform has been in operation for over 15 years and is regulated by several leading bodies; most notably, the Central Bank of Ireland.

    Like most MetaTrader 4 brokers that focus on CFDs, AvaTrade incorporates its trading fees into the bid/ask spread and charges no commissions. Spreads can be as low as 0.9 pips for EUR/USD, with functionality for up to 30:1 in leverage. AvaTrade also makes it simple for users to fund their accounts, with no deposit fees levied and support for bank transfers, credit/debit cards, and several e-wallets.

    AvaTrade MT4

    AvaTrade offers a free MT4 download for all users, although it does not support MT4 for Mac. Once downloaded, users can begin trading immediately, requiring a minimum deposit of only $100. Finally, AvaTrade also offers the MT5 trading application, which will appeal to users who wish to trade other asset classes.

    Number of Currency Pairs 55
    Other Asset Classes Offered Stocks, ETFs, commodities, indices, crypto, bonds
    Pricing Structure 0% Commission + Spread
    Spread for EUR/USD Average of 0.9 pips
    Platforms Offered Web-based platform + mobile app + MT4 + MT5
    Accepts US Traders? Yes
    Max Leverage 30:1
    Broker Type CFD (Market maker)

    What We Like:

     

    • Heavily regulated broker
    • Offers options trading
    • Free deposits and withdrawals

     

     

    6. Skilling – Popular MT4 Broker with Low Spreads

    Skilling logoSkilling is a MetaTrader 4 broker popular due to its low spread offering. Due to this, many consider Skilling to be one of the best algorithmic trading platforms, as more than 70 FX pairs can be traded through the low-fee ‘Premium’ account. Although this account charges low spreads, it does set a commission on each trade.

    Skilling MT4

    Alternatively, users can opt for the ‘Standard’ account, with spreads averaging around 1.2 pips for EUR/USD. Skilling also offers full integration with MT4, allowing users to employ ‘Expert Advisors’ to automate the trading process. Finally, Skilling even provides ultra-fast execution speeds, averaging just 0.05 seconds per position.

    Number of Currency Pairs 73
    Other Asset Classes Offered Stocks, ETFs, commodities, indices, crypto, bonds
    Pricing Structure 0% Commission + Spread
    Spread for EUR/USD Average of 1.2 pips (from 0.1 pips for Premium account)
    Platforms Offered Web trader + cTrader app + MT4
    Accepts US Traders? No
    Max Leverage 30:1
    Broker Type STP

    What We Like:

     

    • Supports micro lot trading
    • Premium account offers spreads from 0.1 pip
    • Regulated by CySEC

     

     

    7. Forex.com – Leading MT4 Trading Platform for Automated Trading

    forex.com review US-based investors looking to use the MetaTrader 4 app may wish to partner with Forex.com. Forex.com has a stellar reputation within the FX industry, boasting over 90 pairs to trade. Users can choose from a selection of account types, although the ‘STP Pro’ account provides access to deep liquidity – meaning spreads can be as low as 0.1 pip for highly-traded pairs.

    Forex.com MT4

    Forex.com is also one of the best Islamic brokers to partner with, offering a dedicated ‘swap-free’ account type. Like the other options on this list, Forex.com offers seamless integration with MT4, with an added Reuters newsfeed and various research resources. Finally, Forex.com even offers a free MT4 demo account, which is excellent for beginners who are trading for the first time.

    Number of Currency Pairs 91
    Other Asset Classes Offered Stocks, ETFs, commodities, indices, crypto, bonds
    Pricing Structure 0% Commission + Spread (commission on STP Pro account)
    Spread for EUR/USD Average of 1 pip (as low as 0.1 pips for STP Pro)
    Platforms Offered Web trader + mobile app + MT4 
    Accepts US Traders? Yes
    Max Leverage 50:1
    Broker Type Offers DMA and STP accounts

    What We Like:

     

    • Over 90 currency pairs to trade
    • Offers a ‘swap-free’ Islamic account
    • Parent company listed on the NASDAQ

     

     

    8. Oanda – One of the Best MT4 US Forex Brokers for Advanced Investors

    Oanda logoOanda is one of the best MT4 brokers for US-based traders and is regulated within the country by the CFTC and the NFA. Users can trade 69 currency pairs on Oanda, with all fees built into the spread. Notably, Oanda provides full support for micro lot trading and offers up to 50:1 leverage on the platform’s tradable currency pairs.

    Oanda MT4

    Oanda has no minimum deposit threshold and supports nine base currencies. There are no deposit or withdrawal fees to contend with, and Oanda also accepts funding via PayPal, Neteller, and Skrill. Finally, Oanda offers integration with MT4 for Mac, Windows, and smartphone devices – along with ‘depth of market’ pricing, ensuring the tightest spreads possible.

    Number of Currency Pairs 69
    Other Asset Classes Offered Commodities, bonds, cryptos
    Pricing Structure 0% Commission + Variable spread
    Spread for EUR/USD Average of 0.9 pips
    Platforms Offered Web-trader platform + mobile app + MT4 + MT5
    Accepts US Traders? Yes
    Max Leverage 50:1
    Broker Type Standard

    What We Like:

     

    • Accepts US-based clients
    • Heavily regulated platform
    • Extensive research and analysis resources

     

     

    9. IC Markets – Great MT4 App with Raw Pricing and Fast Execution

    IC Markets logoAnother option for the best MT4 broker is IC Markets due to the fact that it is a low-spread forex broker. IC Markets is policed by ASIC and offers spreads from as little as 0.0 pips on the ‘Raw’ account. Over 60 currency pairs are available to trade through IC Markets, with micro lot trading and fast execution providing a seamless user experience.

    IC Markets MT4

    Deposits are free to make with IC Markets, although the minimum deposit threshold is slightly higher, set at $200. By using the MetaTrader 4 app in conjunction with IC Markets, professional traders can receive leverage of up to 500:1. Finally, IC Markets also ensures no minimum order distance, which is excellent for scalpers who thrive on small price movements.

    Number of Currency Pairs 60+
    Other Asset Classes Offered Stocks, ETFs, commodities, indices, crypto, bonds
    Pricing Structure 0% Commission + Spread (commission on Raw account)
    Spread for EUR/USD From 0.0 pips on the Raw account
    Platforms Offered Web-based platform + mobile app + MT4 + MT5 + CTrader
    Accepts US Traders? No
    Max Leverage Up to 500:1 for professional traders
    Broker Type CFD (ECN account offered)

    What We Like:

    • Raw spread account offered
    • Accepts PayPal, Skrill, and Neteller deposits
    • One of the best Neteller forex brokers
    • Super-fast execution speeds

    10. FxPro – Best MT4 Broker for Micro Lot Trading

    FxPro logoTraders looking to robot copy on MT4 may wish to consider FxPro, as this platform offers 70 FX pairs to trade, with full support for micro lot trading. FxPro has been in operation and is regulated by the FCA, ensuring high credibility. The minimum deposit threshold is $100 with FxPro, and users can choose from an array of account types – including ones that integrate with MT4 and MT5.

    FxPro MT4

    Deposits can be made for free via bank transfer, credit/debit card, and e-wallet (e.g. PayPal). Withdrawals are also free to make, although a fee will be charged after six months of inactivity. Finally, FxPro also supports MetaTrader 4 for Mac and Windows, offering a Virtual Private Server with no downtime.

    Number of Currency Pairs 70
    Other Asset Classes Offered Stocks, commodities, indices, crypto,
    Pricing Structure 0% Commission + Variable spread
    Spread for EUR/USD Average of 1.70 pips
    Platforms Offered Web-trader platform + mobile app + MT4 + MT5 + cTrader
    Accepts US Traders? No
    Max Leverage 30:1
    Broker Type CFD (NDD and ECN accounts offered)

    What We Like:

    • Negative Balance Protection (NBP) feature
    • Offers micro lot trading
    • No Dealing Desk (NDD) execution

    11. FP Markets – Excellent MT4 Trading Platform with Copy Trading Features

    FP Markets logoRounding off our list of MT4 brokers is FP Markets. FP Markets is the best MT4 broker for copy trading, as the platform allows users to automatically copy the trades placed by other FP Markets traders. Notably, this feature integrates with MT4 and MT5, allowing users to tailor their risk level accordingly.

     

    FP Markets MT4

    FP Markets’ ECN account will appeal to frequent traders as it offers ultra-low latency, designed to reduce (or remove) slippage. Spreads on this account can be as low as 0.0 pips, although a commission will be charged. Finally, FP Markets even allows users to buy cryptocurrency (and other asset classes), making it easy to create a diversified portfolio.

     

    Number of Currency Pairs 60+
    Other Asset Classes Offered Stocks, indices, commodities, crypto
    Pricing Structure 0% Commission + Spread (Commissions on ECN account)
    Spread for EUR/USD As low as 0.0 pips on ECN
    Platforms Offered Web-based platform + mobile app + MT4 + MT5 + CTrader
    Accepts US Traders? No
    Max Leverage 30:1 (500:1 for professional traders)
    Broker Type DMA and ECN

    What We Like:

    • Regulated by ASIC and CySEC
    • Spreads as low as 0.0 pips on ECN account
    • No non-trading fees charged

    Best MT4 Forex Brokers Compared

    The section above has reviewed ten of the best MT4 brokers on the market, touching on all the factors that must be considered before making a trading decision. To help streamline the decision-making process even further, the table below compares all of the platforms on our MetaTrader 4 brokers list – making it quick and easy to find the best option:

    Trading Platform

    Number of Currency Pairs

    Other Asset Classes

    Pricing Structure

    Spread for EUR/USD

    Platforms Offered

    Accepts US Traders?

    Max Leverage

    Broker Type

    AvaTrade

    		 55 Stocks. ETFs, commodities, indices, crypto, bonds 0% Commission + Variable spread Average of 0.9 pips Web-trader platform + mobile app + MT4 + MT5 Yes 30:1 CFD (Market maker)

    Skilling

    		 73 Stocks. ETFs, commodities, indices, crypto, bonds 0% Commission + Variable spread Average of 1.2 pips (from 0.1 pips for Premium account) Web trader + cTrader app + MT4 No 30:1 STP

    Pepperstone

    		 60+ Stocks, commodities, indices, crypto Variable spread on Standard account; commission on Razor account Average of 0.75 pips on Standard account; as low as 0.0 pips on Razor account Web trader + mobile app + cTrader + MT4 + MT5 No 30:1 (500:1 for professional clients) STP and ECN

    Forex.com

    		 91 Stocks. ETFs, commodities, indices, crypto, bonds 0% Commission + Spread (commission on STP Pro account) Average of 1 pip (as low as 0.1 pips for STP Pro) Web trader + mobile app + MT4 Yes 50:1 Offers DMA and STP accounts

    Oanda

    		 60 Commodities, bonds, cryptos 0% Commission + Variable spread Average of 0.9 pips Web-based platform + mobile app + MT4 + MT5 Yes 50:1 Standard

    IC Markets

    		 60+ Stocks, indices, commodities, crypto, bonds 0% Commission + Spread (commission on Raw account) From 0.0 pips on the Raw account Web-based platform + mobile app + MT4 + MT5 + cTrader No 30:1 (500:1 for professional traders) CFD (ECN account offered)

    FxPro

    		 70 Stocks, indices, commodities, crypto 0% Commission + Variable spread Average of 0.70 pips Web-based platform + mobile app + MT4 + MT5 + cTrader No 30:1 CFD (NDD and ECN accounts offered)

    FP Markets

    		 60+ Stocks, indices, commodities, crypto 0% Commission + Spread (Commissions on ECN account) As low as 0.0 pips on ECN Web-based platform + mobile app + MT4 + MT5 + cTrader No 30:1 (500:1 for professional traders) DMA and ECN

    Best MT4 Brokers – Conclusion

    In conclusion, this guide has taken an in-depth look at a selection of the best MT4 brokers on the market, highlighting their fees, features, and asset selection. By reviewing the information presented in this guide, users can find a platform that suits their needs and begin trading with MT4 immediately.

    Our pick for the best broker for MetaTrader 4 is Axi – click below to learn more.

     

     

     

     

     

    Guides

    Best ASIC Regulated Forex Brokers of 2023 Reviewed

    Posted on by dev1703

    The Australian Securities and Investment Commission (ASIC) is widely recognized as one of the world’s top-tier financial regulators. Investors can rest assured that the best ASIC regulated forex brokers are under close scrutiny and follow all best practices to protect customer funds.

    In this guide, we’ll review the 9 top rated ASIC forex brokers for 2022. We’ll explore what makes each brokerage stand out for traders and explain how to choose the right brokerage platform. Read on to start trading forex today.

    The Best ASIC Regulated Forex Brokers in 2023

    Let’s dive straight into our list of the 9 best ASIC regulated forex brokers for 2022:

    • eToro – Overall Best ASIC Broker with 49 Forex Pairs
    • AvaTrade – Best MetaTrader 5 ASIC Broker
    • Pepperstone – Top ASIC Regulated Forex Company for New Traders
    • Admiral Markets – Lowest Spread ASIC Forex Broker
    • Oanda – Best ASIC Forex Broker for Trading Bonuses
    • IC Markets – Best ECN Forex Broker with ASIC Regulation
    • Eightcap – Top Trading Tools for Forex Trading
    • IG – Best ASIC Broker for Forex Trading Signals
    • XM – ASIC Forex Broker with Advanced Research Tools

    Best ASIC Regulated Forex Trading Platforms Reviewed

    Now that we’ve covered our full ASIC regulated brokers list, it’s time to take a deeper dive into each of these best forex brokers. We’ll cover everything from account types to trading fees to analysis platforms to help traders find the best ASIC regulated forex broker for their needs.

    1. eToro – Overall Best ASIC Broker with 49 Forex Pairs

    eToro is another top ASIC regulated forex broker with a lot of features to offer traders. The brokerage supports trading on most major and minor currency pairs with spreads starting from 0.9 pips. eToro never charges a commission for forex CFD trades. New traders can get started with as little as a $10 minimum deposit.

    eToro is one of the best ASIC regulated copy trading platforms in the world. With copy trading, users can automatically copy the moves of more experienced forex traders. So, it’s relatively easy to actively trade the forex market without spending all day staring at charts. Users can see a trader’s performance and recent trades when deciding whether to copy. The minimum investment for copy trading is $200 per trader.

    eToro Forex

    eToro has numerous other features, including a custom technical charting platform and a market news feed. The trading platform is available on mobile as well, making it easy for forex traders to stay engaged with the market on the go.

    Check out our full eToro review for more details.

    What We Like:

    • Supports copy trading
    • Custom technical analysis platform
    • $10 minimum deposit
    • One of the best low spread forex brokers on the market
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    49 Spread $10
    • Copy trading
    • Mobile trading platform
    • Market news feed

    2. AvaTrade – Best MetaTrader 5 ASIC Broker

    AvaTrade is our top pick for forex traders who want to use MetaTrader 5 while trading with an ASIC regulated forex company. It offers both MetaTrader 4 and 5 alongside its own proprietary trading platform. AvaTrade also offers platforms for copy trading and vanilla forex options trading including a PAMM trading account, making this brokerage very flexible for traders who want to approach currency trading from several directions.

    AvaTrade Forex

    This MetaTrader 5 broker offers 55 currency pairs with spreads starting from 0.9 pips and no commissions. Leverage is available up to 400:1, making this brokerage a good option for high leverage forex trading. Forex options are limited to major currency pairs and a few popular minor pairs.

    Traders also have access to an economic calendar and daily market analysis. However, AvaTrade doesn’t give traders a full market news feed or access to automated charting tools like Autochartist.

    What We Like:

    • Offers MT4, MT5, and a custom trading platform
    • Supports copy trading
    • Trade vanilla forex options
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    55 Spread $100
    • MetaTrader 4 and 5
    • Vanilla forex options trading
    • 400:1 leverage

    3. Pepperstone – Top ASIC Regulated Forex Company for New Traders

    Pepperstone is a capable forex brokerage that offers more than 60 currency pairs with spreads starting from just 0.6 pips. It’s a strong contender for beginner forex traders because it offers simple pricing, tons of educational resources, and a variety of different trading platforms.

    Pepperstone

    At Pepperstone, traders can choose from MetaTrader 4 or 5, cTrader, TradingView, or Capitalise.ai to trade. All of these platforms have their own advantages, and traders are free to try out more than one. Pepperstone also offers daily market analysis and access to Autochartist for automated technical charting. In addition, Pepperstone’s customer support team is available 24/7 by phone and email.

    One thing to keep in mind at Pepperstone is that the trading platform users choose will determine their fees. Pepperstone charges a combination of spreads and commissions. The pricing is a little more confusing than at other ASIC regulated forex brokers, but fees are generally below the industry average.

    Check out our full Pepperstone review for more details.

    What We Like:

    • Wide selection of trading platforms
    • Spreads from 0.6 pips
    • 24/7 customer support
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    60+ Spread and commission None
    • MT4 and 5, TradingView, cTrader
    • Daily market analysis
    • No minimum deposit

    4. Admiral Markets – Lowest Spread ASIC Forex Broker

    Admiral Markets is one of the top ASIC regulated forex brokers for low trading fees. At this brokerage, standard accounts come with spreads starting from just 0.5 pips. ECN trading accounts come with spreads from 0 pips and commissions from just $1.8 per lot. Traders will be hard-pressed to find low spread forex brokers that can match these fees.

    Admiral Markets Forex

    The drawback to Admiral Markets is that this brokerage only offers trading on 45 currency pairs. However, this won’t be a problem for the majority of traders focused on major and popular minor pairs anyway. Retail traders can apply leverage up to 30:1 and all accounts come with negative balance protection.

    Admiral Markets offers access to MetaTrader 4 and 5 as well as a custom forex trading app for trading on iOS and Android devices. Traders also get daily market analysis, an economic calendar, and a global market news feed. In addition, Admiral Markets offers 24/7 customer support by phone, WhatsApp, and email.

    What We Like:

    • Ultra-low forex trading fees
    • Supports MT4 and MT5
    • 24/7 customer support
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    45 Spread or commission $100
    • Spreads from 0.5 pips
    • MetaTrader 4 and 5
    • Daily market analysis

    5. Oanda – Best ASIC Forex Broker for Trading Bonuses

    Oanda offers a variety of bonuses for new and loyal forex traders that can add up to a significant amount of money. First, new traders can qualify for a $5,000 welcome bonus when they open an account and deposit $50,000. For traders with less capital, there’s a $500 bonus for depositing $500.

    OANDA

    After that, traders can earn up to a $15 rebate per $1 million in volume traded. Oanda has multiple volume-based loyalty tiers with varying rebate offers.

    There’s lots more to Oanda than just bonus cash, of course. This ASIC forex broker offers trading on 70+ currency pairs with spreads starting from 1.2 pips. Traders can apply leverage up to 50:1 and access top trading platforms like MetaTrader 4 and TradingView. Oanda also has its own powerful trading platform for web, desktop, and mobile.

    Oanda also gives traders access to daily technical analysis, a market news feed, an economic calendar, and more.

    What We Like:

    • Welcome bonus and rebate offers
    • Offers MetaTrader 4 and TradingView
    • No minimum deposit required
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    70+ Spread or commission None
    • MT4 and Tradingview
    • Custom trading platform
    • Welcome bonus up to $5,000

    6. IC Markets – Best ECN Forex Broker with ASIC Regulation

    IC Markets is a popular ASIC regulated forex broker with an attractive ECN trading account. Traders with this ECN broker can take advantage of spreads starting from 0 pips and flat commissions of $3.50 per lot per side. Major forex pairs trade with leverage up to 500:1 and orders are executed in milliseconds.

    IC Markets

    IC Markets offers trading on more than 60 major and minor forex pairs. Traders have access to MetaTrader 4 and 5, as well as cTrader for building automated forex trading strategies. IC Markets also offers integrations for ZuluTrade and Myfxbook, plus has its own mobile app for forex trading on the go.

    This forex broker offers 24/7 customer support and has helpful educational guides for new traders. IC Markets also offers a market analysis blog, an economic calendar, and a forex calculator. The minimum deposit to get started is $200, but traders can test out IC Markets using a free demo account as well.

    What We Like:

    • Up to 500:1 leverage
    • ECN trading with zero spread
    • Supports MT4, MT5, cTrader, and ZuluTrade
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    60+ Spread or commission $200
    • Wide range of trading platforms
    • Myfxbook integration
    • 24/7 customer support

    7. Eightcap – Top Trading Tools for Forex Trading

    Eightcap is another one of the top ASIC regulated forex brokers for 2022. This brokerage offers trading on 40+ major and minor forex pairs with spreads starting from just 1.0 pips. The platform also offers ECN trading accounts with spreads from 0 pips.

    Eightcap

    Eightcap stands out for its excellent selection of trading tools, especially for automated trading. The brokerage supports popular trading platforms like MetaTrader 4, MetaTrader 5, and Capitalise.ai, the latter of which is designed to build no-code trading automations. Eightcap also offers access to The Amazing Trader, an algorithmic charting platform, as well as a virtual private server (VPS) for forex trading.

    Traders can try out Eightcap through a free demo account. The brokerage offers 24/7 customer support by phone, email, and live chat, and it only takes a $100 deposit to open an account.

    What We Like:

    • ECN trading with zero spread
    • Automation with Capitalise.ai
    • Offers a forex VPS
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    40+ Spread or commission $100
    • Supports MT4 and MT5
    • Access to The Amazing Trader
    • Capitalise.ai integration

    8. IG – Best ASIC Broker for Forex Trading Signals

    IG is one of the world’s most popular forex brokers and it brings a lot of features to bear for forex trading. To start, IG offers its own proprietary trading platform, ProRealTime, that easily matches the capabilities of platforms like MetaTrader 5. It’s packed with technical analysis tools and customization options. Of course, IG also offers traders access to MetaTrader 4 for forex trading.

    IG Forex Broker

    IG supports trading on more than 80 forex pairs with spreads starting from 0.8 pips. Leverage is available up to 50:1 and high volume traders can qualify for monthly rebates.

    One of the most noteworthy features of IG is its forex signals service. The platform issues automatic alerts about setups for the forex trading pairs a user selects, ensuring that no opportunity goes unnoticed. IG can also issue fundamental alerts for things like economic releases. All alerts are available on IG’s mobile app in addition to web and desktop platforms.

    What We Like:

    • Powerful ProRealTime trading platform
    • Technical and fundamental forex signals
    • Leverage up to 50:1
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    80+ Spread $250
    • ProRealTime and MT4
    • Forex signals service
    • Rebates for high trading volumes

    9. XM – ASIC Forex Broker with Advanced Research Tools

    XM is another ASIC regulated forex broker with a lot to offer traders. This brokerage supports trading on more than 55 currency pairs with spreads starting from 1.6 pips. XM also has ECN trading accounts with zero spreads.

    XM Forex Broker

    XM offers traders access to MetaTrader 4 and MetaTrader 5 to trade forex. Both platforms include web, desktop, and mobile apps, although XM doesn’t have its own trading platform or app. To help traders, XM offers daily forex trade ideas, market analysis, weekly trading webinars, an economic calendar, a forex calculator, and more. The selection of research tools is quite outstanding.

    XM offers 24/5 customer support by phone, email, and live chat. It only takes a $5 deposit to open a new account. Plus, XM charges no fees for deposits or withdrawals to the platform.

    What We Like:

    • Supports MT4 and MT5
    • Daily forex trade ideas
    • Only requires a $5 minimum deposit
    No. of Forex Pairs Pricing System Minimum Deposit Top Features
    55+ Spread or commission $5
    • MetaTrader 4 and 5
    • ECN trading available
    • Market analysis and education

    How We Select the Best ASIC Regulated Forex Brokers

    There are a lot of factors to consider when choosing the best ASIC regulated forex brokers. Traders need to think about everything from what forex pairs are available to pricing to analysis tools.

    Here, we’ll break down some of the key features we considered in our ASIC broker reviews.

    Regulation

    ASIC brokers are regulated by the Australian Securities and Investments Commission, one of the most widely trusted financial regulators in the world. Many are also regulated by authorities in other countries, giving traders even more certainty that they can trust their forex brokerage. For example, some of the top ASIC brokers are also among the best CySEC forex brokers.

    Range of Forex Pairs

    The number of forex pairs that each broker offers can differ widely. Some offer only major and popular minor pairs, while others, like eToro, offer a huge selection of exotic pairs. In general, having more forex pairs available to trade is a good thing for traders because it gives them more trading opportunities.

    Conclusion

    ASIC is one of the world’s foremost financial regulators, so traders can feel confident they’re protected when using one of the best ASIC regulated forex brokers.

    eToro stands out as the best ASIC broker for 2022 because of its huge selection of forex pairs, low spreads, and top-notch trading tools. Open a eToro account today to start trading currencies.

    Guides

    What is Bid-Ask Spread

    Posted on by dev1703

    If you’ve ever come across the term ‘bid-ask spread’ and just never fully understood what it was, you’re in the right place! In this article, we’re going to cover all you need to know as a beginner about the bid-ask spread: what it is, how it’s calculated, its role in the market, and more, so if you’re eager to find all that out, read on!

    The Definition of Bid-Ask Spread

    Bid-ask spread is the difference between the prices quoted for an immediate sale and an immediate purchase for a stock, currency pairs, or futures contract. In other words, it’s the amount by which the ask price for a market asset exceeds the bid price. Or, you can say it’s the difference between the highest price a certain buyer is willing to pay for an item and the lowest price a certain seller is willing to take is known.

    Source: https://commons.wikimedia.org/wiki/File:What_is_the_bid-ask_spread.png

    The bid price is offered by those who want to buy, while the ask price is offered by those who want to sell. When a potential seller offers to sell the stock at a lower price or a potential buyer offers to buy the stock at a higher price, the spread closes.

    A spread trade’s range is exclusive to that single security market, and it’s not the same for all. If a stock’s bid price is $24 and its ask price is $25, then the bid-ask spread for that stock is $1. It can also be expressed as a percentage of the lowest sell or ask price. In terms of percentage, the bid-ask spread for the stock in the same example would be $1 divided by $1 (the bid-ask spread divided by the lowest ask price), yielding a bid-ask spread of 4% ($1 / $25 x 100).

    Note: Bid-Ask Spread trades are commonly used in forex, commodities, and interest rate yields, but they may be done in practically any asset.

    The Role of Bid-Ask Spread in the Market

    You can think of the bid-ask spread as a gauge of supply and demand for a specific asset. The ask represents supply for a stock, while the bid represents demand. Therefore, when these 2 prices diverge, the price action signals a shift in supply and demand.

    Source: https://commons.wikimedia.org/wiki/File:Market_Depth.jpg

    To be able to wrap your head around why a bid and an ask even exist, you must consider the 2 key players in any market, which are the trader (price taker) and the counterparty (market maker). A market maker offers to sell assets at a specific price and also bids to buy a security at a specific price. When Investors make trades, they’ll accept 1 of these 2 prices. This is dependent on whether they want to purchase or sell the security.

    The depth of the bids and asks can affect the bid-ask spread significantly. When fewer market players place limit orders to purchase an asset (resulting in lower bid prices) or fewer sellers place limit orders to sell, the spread may widen dramatically.

    Spreads are the main transaction costs, which are collected by market makers   through the natural flow of processing orders at bid and ask prices. If brokers say their revenues come from traders crossing the spread, they’re referring to this.

    Assets that have a narrow bid-ask spread are usually in great demand. Assets with a broad bid-ask spread, on the other hand, may have lower demand, which causes wider price differences.

    When trading spreads, we don’t recommend that you employ a ‘market order,’ as this will result in the spread opportunity being missed. Instead, we recommend you use a ‘limit order,’ which allows you to choose the entry point.

    Bid-Ask Spread and Liquidity

    As we know, price takers demand liquidity, while market makers provide it. The bid-ask spread is widely used as a metric for market liquidity, as its size fluctuates from an asset to another mostly due to the liquidity of each asset. Some markets have more liquidity than others, and their lower spreads reflect this.

    Wide bid-ask spread means risky and less liquid securities. When there’s a high spread, trades may not execute as frequently, and if they do, the price can swing quickly if compared to stable securities that just move a little bit.

    Bid-ask spread can also indicate how risky it appears to a market maker to offer a trade.  Options and futures contracts, for example, can have bid-ask spreads that account for a substantially bigger percentage of the price than they do in equity trades or forex trades. It’s true that the spread’s width can be determined by liquidity, but it can also be determined by how quickly prices can move.

    Due to a variety of factors, the bid-ask spread can be rather high. Liquidity is crucial; the spread will be tighter when there’s a substantial level of liquidity in a certain market for a security. Stocks like Apple, Microsoft, and Google, which are actively traded, will tend to have lower bid-ask spreads. On the other hand, a bid-ask spread to unpopular assets may be wide on a given day. Small-cap equities, for example, may have smaller trading volumes and lower demand.

    A very liquid market for any security is required, or else there may be no optimal exit point to book profit in a spread trade. A demand-supply friction should be present in that security, as this increases the odds of a wider spread.

    Usages of Bid-Ask Spread

    Bid-ask spread is used when you buy the futures of a security with a certain expiry on an exchange and sell the same security contract with a near-expiry on another one, which is known as an inter-market spread. Another usage of bid-ask spread is when you buy the futures of a security with a certain expiry on an exchange and sell the same security contract with a near-expiry on another one, which is known as an inter-market spread.

    Not only that, but it’s also used when a security contract that has 1 expiry date is bought and another contract with a different expiry date is sold on one exchange, which is known as a calendar spread.

    The Bottom Line

    When it comes to bid-ask spread, there are ways to avoid them, but the majority of traders are better off trading under the tried-and-true system, even if it costs them a small portion of their profit. Don’t forget to study the ins and outs of the bid-ask spread. Also, look for spreads in either percentage or absolute terms for each security. If the trade is on margin, it’s better to use the spread percentage.

    While advanced strategies are meant for experienced traders, that doesn’t mean that novices can’t use them, but they’re probably better off sticking to the basics.

    Guides

    What is Metatrader 5? Where to download MT5?

    Posted on by dev1703

    In today’s article, let’s learn all about MetaTrader 5: What is MT5 software? Should I use MT4 or MT5?…

    We are sure you will find a lot of useful information in this MT5 user guide from A to Z whether you are a new trader or a pro!

    What is MT5 software? Where to download MT5? How to use MetaTrader 5

    In this article, Admiral Markets not only explains what MT5 is, but also answers some questions that are of interest to many traders such as:

    “Is the MetaTrader 5 platform free?” The Meta Trader 5 platform is completely free.

    “Is MT5 any good?” Of course Yes. MT4 is considered the standard trading platform and MT5 has some of the same features as MT4, among others.

    If you have decided to sign up for MT5 and download the platform instead of using the web option, then let’s learn how to use MetaTrader 5 with us now!

    What is MT5? What is MetaTrader 5?

    Before trading with MT5 software, traders need to understand “What is MT5? What is MetaTrader 5?

    MetaTrader 5 (MT5) is a Forex and CFD trading platform trusted by many traders in financial market analysis and investment. The MetaTrader 5 software allows traders to access advanced trading features quickly and securely. As a result, MT5 has become a popular trading platform in the world. All traders have to do is download the MT5 software and start using it!

    In today’s article “MetaTrader 5 User Guide”, Admiral Markets will guide traders on how to download and register MT5 for more convenient stock trading.

    MT5 Download: MT5 Registration Instructions

    1. Go to the Download MetaTrader 5 page
    2. Fill out the MT5 registration form completely
    3. The download will be done automatically

    Depending on whether the trader downloads MT5 on a computer or a mobile device, the site will recommend the respective MetaTrader 5 versions: Android, Apple iOS, or Windows. We also have instructions on how to download and register MT5 for Linux operating systems.

    Instructions to download MT5 for Windows computers

    Traders go to the MetaTrader 5 for Windows site and download the file. Then, find the installation file on the download bar, below the browser, or in your computer’s downloads folder.

    1. Click on the file mt5setup.exe.
    2. Follow the installation instructions for MetaTrader 5 for Windows.
    3. Select location, folder to install.
    4. Press the finish button once done.

    After the installation is complete, the trader can click on the newly created icon on the desktop and start the MT5 software.

    Instructions to download MT5 software on Linux

    In this section, we will learn together how to download and register MT5 on Ubuntu distribution. Why use Ubuntu again? Because this is the most popular distribution today.

    To download MetaTrader 5 for Ubuntu, traders need Wine – a free software used to run programs written for Windows on Linux operating systems.

    When using Wine, traders should note the following two main points:

    • Wine works unstable. As a result, some features of applications running on Wine may crash when used or not work at all.
    • Traders should download the latest Ubuntu and Wine versions. Updating to the latest versions of these two systems will help the meta trader 5 software work most stably.

    To install Wine, enter the following command into the command line (in Ubuntu, it’s called “Terminal”):

    sudo apt-get install wine-stable

    After entering the above command, the trader will be installed the latest and most stable version of Wine.

    However, before entering this command into Terminal, double check that it is the latest command. Newly released or upgraded versions of Ubuntu will often also change the way commands are written. Finally, download MetaTrader 5 and register MT5 for desktop via Wine.

    How to create a MetaTrader 5 account?

    1. Go to Trader ‘s Room page and login
    2. After logging in, go to the Dashboard tab.
    3. Click “Open Real Account” or “Open Demo Account” with Meta Trader 5.
    4. Retail and Professional accounts have different trading features and conditions. Learn more about Account Types here .
    5. With each account type, stock investors can access different trading tools. Trade.MT5 offers a wide range of CFD trading tools .
    6. Select and track the currency associated with the trading account.
    7. Select the leverage ratio you want to use.

    To activate an MT5 account , Admiral Markets will send traders an email containing the necessary account verification steps and start trading!

    MetaTrader 5 User Guide: How to Fund a Trading Account

    To trade with an MT5 account, how much is the minimum deposit required?

    MT5 software is used by stock exchanges to make trading more convenient. Therefore, it does not stipulate a minimum margin, but the stock exchanges are the ones who make this regulation,

    To trade stocks, Trader must deposit money into the account. On the transfers tab of the Admiral Markets website, traders will see a list of options for transferring funds from a bank account to a trading account.

    Instructions for depositing money into MetaTrader 5

    After completing the verification process and depositing money into the trading account, the trader is ready to invest in stocks! Stock traders can trade with the desktop Meta Trader 5 platform, or WebTrader.

    How to login MetaTrader 5

    1. Launch the MetaTrader 5 . software
    2. Click on the File menu at the top left hand side
    3. Select ‘Login to Trade Account – Login to trading account’
    4. Enter your MT5 account ID and password as needed
    5. Select the server sent to the confirmation email
    6. Click OK
    MetaTrader 5 User Guide: What is MT5 Login

    How to Log Out of MetaTrader 5

    To log out of MT5, click on the File menu, then select ‘Exit – Exit’

    If you don’t want MetaTrader 5 to save your login information, uncheck ‘Save Account Information’ on the login screen.

    Compare MT4 and MT5: Should you use MT4 or MT5

    Although MT4 and MT5 are both the most popular trading platforms in the world, it is undeniable that MetaTrader 5 has many outstanding advantages:

    1. MT5 is simpler, easier to use and has a very user-friendly interface.
    2. Time units can be customized and new measurement methods updated.
    3. Integrated economic calendar inside Meta Trader 5 software.
    4. Automated trading history summary on indicator chart.
    5. Review transaction history on the stock market (same as order book).
    6. With Admiral Markets, stock investors can access over 7,000 trading instruments, including trading CFDs for difference with over 3,000+ stock investment products integrated in their Trade.MT5 account, At the same time, traders can also invest traditionally with stocks and ETFs on more than 4,000+ trading instruments.

    MT5 software has improved performance and optimization over MetaTrader 4:

    1. The connection speed to the server is faster and more stable.
    2. The trading platform is more stable than MT4.
    3. Faster and more accurate transaction execution.
    4. Allows hedging to close positions and preserve profits.
    5. Available on PC, Android and any supported browser.

    The MetaTrader 5 trading platform is not only newer but also has many advantages over the currently widely used MetaTrader 4 version. MT5 has more advanced features thanks to the technical innovation that the developers at MetaQuotes have developed. Basically, EA stock investors prefer the MT4 trading platform, while the traders who do their own research and trade prefer MT5.

    If you cannot find the answers to your questions with this MetaTrader 5 User Guide, contact us today.

    How to use MetaTrader 5 to trade

    1. Open the ‘Market Watch’ window from the ‘View’ tab or press Ctrl+M.
    2. Double click on the trading instrument of your choice.
    3. Press the ‘Buy – Buy’ or ‘Sell – Sell’ button

    The easiest way to open a trade on MetaTrader 5 is to use the ‘Order’ window and place an order with your chosen stock investment instrument.

    Once the trading chart is displayed on the MT5 platform, the trader can open a new position using the shortcut on the upper left toolbar called ‘New Order’.

    Click the ‘New Order’ button on the toolbar, or open a new order using the keyboard shortcut F9. Here, traders can easily enter the number of transactions they want.

    To open a trading position, the trader needs to specify the desired trading volume in lots, in the volume box, and then click Buy or Sell. The ‘Market Execution’ option allows stock investors to place trading orders with MT5 instantly.

    Alternatively, traders can use the ‘One Click Trading’ option displayed when right clicking on the trading charts in MT5. This is an extremely fast method of opening positions, suitable for day trading and scalping – the only parameter you need to estimate is the number of lots. that I want to achieve when taking profit.

    With Metatrader 5 software, placing take-profit and stop-loss orders for trading positions is also very simple. Once the trade is in place, click and drag the input line up or down based on the trade trend.

    Instructions for using MT5 with Trailing Stops

    The trailing stop order automatically adjusts the stop loss according to the price trend expected by the trader, in order to minimize the risk of going in the wrong direction. To set up a trailing stop order, stock investors only need to:

    1. Right click on the trade line you have open.
    2. Select ‘trailing stop’ in the menu displayed.
    3. Select the point to stop, and click on it to validate.

    In addition to the above, stock investors can also set up a stop-loss order as follows:

    1. Open the ToolBox with the keyboard shortcut Ctrl+T.
    2. Go to the ‘Trade – Trade’ tab. Then, right click on the trading line where the trader is opening a position.
    3. Select ‘trailing stop’ in the menu displayed.
    4. Select the point to stop, and click on it to confirm
    Trading line on MT5

    Trader wants to maintain a winning position (returning profit) for as long as possible?

    Stop Follower is the tool every trader is looking for.

    This tool will closely monitor stock prices and indexes in real time. Then, freeze the trading position when the stock market moves in the opposite direction of the trading trend that the trader expects.

    • For buy orders, the MetaTrader 5 trading platform will remove and freeze trades when the stock price drops. If the stock/index price falls to the stop loss, it will automatically close the open position.
    • For a sell order, the instrument will follow the downtrend and freeze the trade when the stock/index price starts to move up.

    One-click trading with MetaTrader 5

    One-click trading is a quick and somewhat intuitive option to open a position. It is available in a price chart and is represented by a dotted line so that stock investors can review their trading positions.

    Many of the features on MetaTrader 5 are accessible by simply moving the cursor over a chart like the one above. Left click to open a trading position. Right click and select close to leave.

    Traders can also use the Edit option here to:

    • Change current Stop Loss value
    • Change current Take Profit value

    In addition, stock investors can adjust their trading positions by directly clicking and dragging the red line representing the input value on the chart.

    For buy orders:

    • Scroll down to adjust Stop Loss . value
    • Drag up to adjust the Take Profit value

    For sell orders:

    • Scroll down to adjust the Take Profit value
    • Drag up to adjust Stop Loss . value

    With these options, stock investors have more control over their trading positions.

    Instructions for adding indicator MT5

    The forex trading market usually follows a certain trend under a few specific conditions. This behavior repeats itself, meaning that some trends and price patterns that have already occurred may happen again. Forex trading indicators are responsible for finding and identifying these price patterns. As a result, we will have a trading advantage.

    To add the indicator to the trading platform:

    1. Load the indicator from the Market tab in the Toolbox window.
    2. Install the indicator yourself from the Indicators folder in the MetaTrader 5 installation directory.

    Choose from 3 types of indicators available in the MetaTrader 5 trading platform with features tailored to the needs of each stock investor. Add indicator, expert advisor plugin or create and add your own tools. You can find and download custom tools compatible with the MQL5 language on the internet

    If you want to learn more about the available indicators, stock traders can visit the MetaTrader 5 forum. The MT5 user community is extremely active and is creating new plugins and indicators every day.

    How to use MetaTrader 5 to save patterns

    MetaTrader 5 allows stock traders to save trading chart templates. As a result, traders can easily and quickly access the charts and trading tools they use most at any given time.

    An example of a sample chart that stock traders might like is a Forex currency pair with 3 technical indicators – 3 simple moving averages (SMAs), the Heiken Ashi indicator on MetaTrader 5, and the Heiken Ashi indicator on MetaTrader 5. RSI indicator on MT5.

    To create a chart template on MetaTrader 5, stock investors need:

    1. Design charts with all the indicators and plugins you want.
    2. Click on the Charts – Charts tab, and select the template – template.
    3. Click on ‘Save Template.’
    4. Name the template and save it.

    With just 4 simple steps as above, traders already have a sample chart!

    After saving the graph template, the next time the trader just needs to open the sample chart, the entire trading system with indicators is ready for you to use. To download a sample model, stock investors only need to

    1. Go to the Charts tab.
    2. Click on ‘Templates.’
    3. Choose the model that suits your needs at the time.

    Instructions for saving profile on Meta Trader 5

    Stock investors can keep a profile on Meta Trader 5. With it, traders can instantly access their favorite trading tools without having to search for them every time they use them.

    Here is an example that illustrates the features of the profile:

    Let’s say you trade Foreign Exchange (Forex) in the morning, and trade indices (index) on the US stock market (US) in the afternoon. In the morning, you download the profile for your Forex trading account and it will show all your favorite currency pairs, the indicators you use along with the trading strategies that come with the advisor plugin. Then, in the afternoon, you download the profile for your US market index trading account. At this point, you will only get the charts and trading tools that suit your index investing needs.

    To keep a profile on MetaTrader 5, stock traders need:

    1. Select the asset or trading instrument you want to use.
    2. Add indicator for each chart.
    3. Go to the ‘Files’ tab and select ‘Profiles.’
    4. Click on “Save As.”
    5. Name the profile and click ok to save.

    The filing system in MT5 allows you to memorize and store your favorite securities products with indicators and analysis tools suitable for each type of trading. All are encapsulated in a single file.

    Instructions for viewing chart information on MT5 software

    1. Move the cursor to an indicator – indicator for its content and information.
    2. Alternatively, one can use the ‘Data Window’ window from the toolbar at the top left to view all the information stored in the existing trading chart. The keyboard shortcut to open this window is Ctrl+D.

    The range of data and information that stock investors can derive from a chart is quite extensive. If you find this information yourself, it will take a lot of time. Therefore, the data window is an extremely useful tool that you need to get used to.

    The following example will show traders how useful the data window is:

    Let’s say you use the RSI to trade, and have to wait for the Relative Strength Index line to be greater than 50 to start placing a trade. It’s a lot simpler to read data with exact specifications than to make predictions based on charts– this is especially important with volatile value stock investment instruments.

    How to show the timeframe on MetaTrader 5

    Do traders already know that they can set their own timeframes?

    In addition to the timeframes commonly used for certain trading instruments, MetaTrader 5 can also display analytical charts on many other timeframes.

    In contrast to MetaTrader 4, which only displays a certain number of time frames for each chart, MT5 allows stock investors to set their own time such as:

    1. M2 for 2 minutes
    2. M3 for 3 minutes
    3. M4 for 4 minutes
    4. M6 for 5 minutes
    5. M10 for 10 minutes
    6. M12 for 12 minutes
    7. M20 for 20 minutes
    8. H2 for 2 hours
    9. H3 for 3 hours
    10. H6 for 6 hours
    11. H8 for 8 hours
    12. H12 for 12 hours

    To install the timeframe, traders should follow these steps:

    1. Use the toolbar at the top right hand side of the MT5 trading platform.
    2. Right click on the chart, go to ‘Timeframes’, and select change unit of time.

    Instructions for displaying the Spread on MT5

    In Forex trading, the keyword ‘ spread ‘ refers to the difference between the Buy (or Bid) price and the Ask (or Ask) price of a currency pair. For example, if the Bid price of EUR/USD is 1.16909, and the Ask price is 1.16919, its Spread is 1 pip . If the Bid price is 1.16909 and the Ask price is 1.16949, the spread will be 4 pips. When trading forex, traders make a profit from the price movement of currency pairs. However, trading is only really profitable when the price of the currency exceeds the spread.

    To view spreads, stock investors can:

    1. On the trading chart, find the bid and ask lines.
    2. From the Market Watch window, find the Difference column.
    How to use MetaTrader 5 to see spreads

    How to view commissions on Meta Trader 5

    With a Trade.MT5 Trading Account , the only commission a trader has to pay for trading CFDs is the swap. This is the interest paid to hold positions overnight. This cost is shown with any associated trading positions.

    In this respect, day CFDs or scalpers have a slight advantage with low spreads.

    If the trader actually holds day trading positions, displaying the fees charged on MetaTrader 5 will help them better understand the transaction costs. As a result, stock investors will manage transactions more efficiently.

    To view commissions and swaps on MT5, stock investors can follow these steps:

    1. Use the keyboard shortcut Ctrl+T to view the MT5 Toolbox.
    2. In the Trade – Trade tab, you can view the trades that are in open positions.
    3. In the Exchange column, you can see the commission rate applied to open trades.

    How to display tick chart on MT5?

    If you are a seasoned stock trader and need to see charts other than the daily chart, MT5 gives you access to other charts such as tick charts and control charts. range chart. To install the tick chart, we need:

    1. Click on the Market Watch shortcut.
    2. Click on the ‘Ticks’ tab at the bottom.

    Once the tick chart is available, stock investors can move the Market Watch window in any direction: Up, down, left or right.

    How to display Range chart on MetaTrader 5

    1. Add the Admiral MiniChart indicator to the trading chart.
    2. Go to ‘Input Settings.’
    3. Find and select trading timeframe/chart type.
    4. Select a range of values ​​for the chart, from Standard to Stacked.
    5. Enter the trading range for the candlestick pattern.
    6. Click Ok.

    Here are examples of different ranges:

    • If you choose 10, a new candlestick range will be created whenever the stock market goes up/down 10 points.
    • If you choose 3, a new candlestick range will be created whenever the stock market goes up/down 3 points.

    This option is only available on the MetaTrader 5: Supreme Edition trading platform

    How to display Renko chart on MetaTrader 5

    A typical price chart will record the price level in a particular time frame. In contrast, the Renko chart is only interested in the price level, not the time – it only shows the price change when a minimum level is reached. Price changes that do not meet the above conditions will be ignored. This helps stock investors eliminate small price movements and focus on large price movements.

    1. Add the Admiral MiniChart indicator to the trading chart.
    2. Go to input settings.
    3. Find and select trading timeframe/chart type.
    4. Choice of Renko chart, choose between Renko (Standard) or Renko (Expand with highs and lows).
    5. Enter the trading range for the Renko, Renko/Range/Kagi candles.
    6. Click Ok.

    Eg:

    • If you choose 10, then a new Renko candle will be generated whenever the stock market goes up/down 10 points.
    • If you choose 3 then a new Renko candle will be generated whenever the stock market goes up/down by 3 points.

    This is also a feature exclusive to MetaTrader 5: Supreme Edition.

    How to view all financial assets on MT5 software

    Traders can view all assets in Meta Trader 5 in the Market Watch window located on the upper left hand side of the MetaTrader 5 trading platform.

    1. Click on the Market Watch shortcut located on the upper left side of the Meta Trader window (Ctrl+M shortcut key combination)
    2. Review the list of stock markets that your Admiral Markets account allows to trade.
    3. For trading instruments that are not on the list, traders can add them using the name field at the bottom of the list.
    How to use MetaTrader 5 with the Markets Watch window

    Source: MetaTrader 5

    CFDs available on MetaTrader 5?

    With Admiral Markets, you can trade using the following stock investment instruments on your Trade.MT5 account:

    • Forex (e.g. EUR/USD, GBP/USD, USD/JPY) with 37 currency pairs.
    • Trade CFDs on 26 stock indices (e.g. DAX30, CAC40, DJI30)
    • Trade CFDs on 15 commodities (e.g. Gold, Crude Oil)
    • Arbitrage on more than 3,000+ equity (e.g. Total SA group, BNP Paribas, Facebook)
    • Trading CFDs on ETFs (Portfolio Swaps) – 300+

    To be able to view a CFD trading instrument on MetaTrader 5, stock investors should:

    • Right-click in the Market Watch window.
    • Select the ‘Symbols’ tab.

    This is the simplest and fastest way for traders to view and select the trading tools available on their MT5 account. You just need to find your favorite stock investment tool and double click on it.

    Let’s say you choose the DAX30 index from ‘Cash Indices 1’. It will be immediately added to your list of trading instruments. To open a trading chart, simply click and drag it into the trading window or right click and select ‘Open Chart’.

    If the DAX30 CFD index cannot be found in the list of trading instruments, right click and select ‘Show All’. This way you will see all available stock investment tools in a single window on MetaTrader 5.

    Trade stocks with Admiral Markets

    Are you a new trader and want to start your own stock investment career? Create a trading account with Admiral Markets to invest in stocks on 15 of the world’s largest exchanges and thousands of trading instruments such as stocks and ETFs. Don’t wait any longer! Start trading today with just 1 click on the banner below!!

    Using a real account on the Meta Trader 5 platform with Admiral Markets

    How to use MetaTrader 5 to trade stocks

    With MT5, traders not only have the ability to view and analyze stocks (shares), but also trade with them!

    Stock investors have access to more than 4,000 stocks and 200 ETFs through CFD trading.

    A list of financial instruments is available on the Admiral Markets website. Currently, Admiral Markets offers some more top stocks that are traded on 15 of the world’s largest stock exchanges, such as:

    • France (Euronext)
    • Germany (Xetra)
    • Netherlands (Euronext)
    • Spain (BME)
    • Sweden (NASDAQ)
    • Switzerland (SWX)
    • United Kingdom (LSE)
    • United States (AMEX, NASDAQ et NYSE)

    Along with its predecessors, the Admiral Markets exchange has become one of the world’s largest online service providers with a wide range of financial products. Together with MetaTrader 5, we offer extremely attractive and competitive trading conditions to traders and stock investors.

    Here are the trading conditions when investing in securities on MT5 with Admiral Markets:

    • Margin rate: 1:1
    • Commission fee (according to unilateral transaction agreement):
      • European Union (EU) – from 0.12%, as low as 5 EUR
      • UK – GBP 8 for equity; 0.07% for ETFs, and as low as GBP 8 for both
      • United States – from 0.01 USD, as low as 1.0 USD
    • Dividend: 100% (paid)
    • Tax payable:
      • UK – Stock Transaction Tax (SDRT): 0.5%;
      • France – Financial transaction tax: 0.3%. Invoiced for other specific actions.
    • Expenses incurred: none.

    Please note that tax treatment depends on the circumstances of each client and may change in the future.

    At MT5, stock information is updated every minute in real time and real trading accounts have FREE access to these. With a virtual account (demo), the market data will be about 15 minutes slower.

    Backtesting Guide with MT5

    There are many ways to help traders test historical data to determine the effectiveness of a stock investment strategy on MT5:

    • Manual testing:
      • After identifying the trading instrument and having a clear stock investment strategy, the trader can review the previous data with the smallest price movement.
      • The F12 key will help you compare candlesticks to better understand the price action.
    • Automated testing via Expert Advisor :

    After installing the Expert Advisor plugin, a trader can select and deploy the backtesting tools integrated on MetaTrader 5 at certain intervals to evaluate the feasibility of a stock investment trading strategy.

    The MQL5 trading strategy testing tool has been greatly improved, easier to use but gives more accurate results. This is a tool to help stock investors analyze data in detail.

    For stock investors with a programming mindset, the MQL5 language is much more prominent than MQL4:

    • Programming is easier.
    • Higher performance and speed.
    • When downloading applications, there is less burden on the computer’s CPU.
    • Optimize and test faster.
    MQL5 programming language with MetaTrader 5

    How to use MetaTrader 5 Strategy Tester to test a trading strategy (historical test)

    1. Open MT5 Strategy Tester.
    2. Select indicator or EA (Expert Advisor) to execute the test.
    3. Select the timeframe in which you want to test the trading strategy.
    4. Select trading instrument for historical test.
    5. Select the start and end date of the test.
    6. Select execution mode.
    7. Enter the initial trading volume and desired leverage.
    8. Enable or disable display mode.

    Traders can choose to display visual mode if they want to see buy or sell positions on the chart using the EA while the test is in progress.

    MetaTrader 5 User Guide for Android

    1. Download the MT5 app from Google Play.
    2. Open the app and login with your Trade.MT5 . account
    3. Click on the + icon located at the top right of the MT5 application.
    4. Select the desired trading instrument on MetaTrader 5.
    5. Select lot volume.
    6. Set the desired stop loss (optional). Select an acceptable loss level.
    7. Set the desired take profit point (optional). Specify the desired profit margin.
    8. Place a sell order using the Sell by Market button.
    9. Place a buy order (long position) using the Buy by Market button.

    To place a trading order on the stock market, traders need to fill in the above criteria and press the Sell or Buy button. Simple and intuitive navigation buttons have made MetaTrader 5 the most preferred trading platform on mobile devices.

    MetaTrader 5 User Guide for iPhone

    1. Download the MT5 trading platform from the App store.
    2. Open the app and login with your Trade.MT5 account.
    3. Click on the + icon located at the top right of the MT5 application.
    4. Select the trading instrument you want to use from the drop-down list.
    5. Select lot volume.
    6. Set the desired stop loss (optional).
    7. Set the desired take profit point (optional).
    8. Place a short position using the ‘Sell by Market’ button.
    9. Place a buy position using the ‘Buy by Market’ button.

    To place a trading order on the stock market, traders need to fill in the above criteria and press the Sell or Buy button.

    What’s the difference between MT4 and MT5?

    To conclude today’s article, Admiral Markets will answer the question that many traders are interested in “What’s the difference between MT4 and MT5?”

    Basically, MetaTrader is the standard trading platform. Therefore, many people think that MetaTrader 5 is not a new version of MetaTrader 4. If MetaTrader 4 has no problem, why fix it? The reason that traders can choose MT5 over MT4 is because it offers Depth of Markets from stock exchanges.

    MT5 Web Trader

    WebTrader is a version of Meta Trader that can be used on a web browser, allowing traders to trade stocks without downloading any software.

    This is a convenient solution for stock investors who are often on the go, or do not want to install the MT5 trading platform on any computer.

    WebTrader MT5 allows traders to trade securely anywhere within seconds.

    Stock investors can fully use the web browser on their smartphones without having to download memory-hungry applications to their smartphones!

    Invest in stocks with Admiral Markets

    Admiral Markets offers professional traders an enhanced version of the MetaTrader 5 software, which enhances the trading experience of stock investors with much higher returns. One of the prominent benefits that traders can enjoy with MT5 is the Market HeatMap chart. Thanks to it, stock players can easily compare currency pairs and find the most profitable investments, as well as stay up to date with the latest trading data, stock market information and much more.

     

    Guides

    Stockbroker

    Posted on by dev1703

    What is a Stockbroker?

    Stockbroker are individuals who buy and sell stocks and other securities for retail and institutional clients, through a stock exchange or over the counter, in return for a fee or a commission. Institutional stockbrokers work with fund managers and other financial institutions, but there are also retail investors.

    Financial Analyst Working on a Computer with Multi-Monitor Workstation with Real-Time Stocks, Commodities and Exchange Market Charts. Businessman Works in Investment Bank Downtown Office at Night.

     

    How are they regulated?

    Stockbrokers are governed under the Securities and Exchange Board of India Act 1992, Securities Contract Regulations Act, 1956, and also the Securities and Exchange Board of India (Stockbrokers and sub-brokers Regulations), 1992. Stockbrokers are also regulated under other rules, regulations and bylaws that SEBI may issue from time to time. Every stockbroker in India needs to be a member of stock exchanges and also requires to be registered with SEBI. Stockbrokers display their registration details on their websites and even on official documents. One can also visit the Sebi website and find details of registered stockbrokers.

    What skills does a Stockbroker need?

    • The ability to work in a fast-paced environment
    • Excellent communication and interpersonal skills, including strong negotiating and presentation skills
    • The ability to use your initiative
    • Ambition and determination
    • The ability to accept criticism and work well lots of under pressure
    • A natural sales ability
    • Customer service skills
    • Strong numeracy skills
    • Analytical and research skills, as well as the ability to process and retain information quickly
    • Time management skills
    • Knowledge of economics and accounting
    • The ability to build lasting relationships
    • A disposition for taking risks
    • The ability to persuade people and strong negotiation skills
    • Decisiveness and the ability to solve problems.

    How to Become a Stockbroker

    While there are no specific schooling requirements for becoming a stockbroker, certain degrees or coursework can give you an advantage in the job.

    Education

    You might want to consider a bachelor’s degree in business. Many stockbrokers also have a master’s in business administration (MBA) or a master’s in finance. It also helps if you have some education in math, statistics, and analysis.

    Experience

    Stockbrokers often start working for a firm or bank in a role other than broker. Some even begin as college interns. That is where they gain know-how while they are on the job. To become a broker, they must show a deep understanding of money markets, laws, rules, and accounting practices.

    Exams

    Brokers need to pass the General Securities Representative Exam, commonly known as the “Series 7” exam, administered by the Financial Industry Regulatory Authority (FINRA). To take the exam, a person must be sponsored by a FINRA member firm or a member of a similar self-regulatory organization (SRO).

    The Series 7 exam is hard and consists of 125 multiple-choice questions in 225 minutes. It combined with a separate Securities Industry Essentials Exam, which consists of 75 questions and lasts 105 minutes.

    These exams will permit a broker to buy and sell most securities, but there may be other exams required to trade certain things. For example, someone who wants to buy and sell municipal bonds may have to take the Series 53 exam.9 There are also other required exams, including the Series 66 and Series 63 exams, to be registered in various states.

    Stockbroker Types

    Broker

    Define

    Full-Service Brokers

    • These firms charge higher commissions or a percentage of assets. They offer the largest assortment of diversified financial services and usually assign a licensed individual broker to each client. These firms tend to have their own investment banking and research departments that provide their own analyst recommendations, products and access to initial public offerings (IPOs)

    • Clients have the option of calling their personal broker directly to place trades or use various other platforms including online and mobile. Full-service brokers have physical offices and locations.

    Discount Brokers
    • Discount brokers have narrowed the gap with full-service brokers in terms of financial products and services by providing independent research, mutual fund access, and basic banking products. As the name says, discount brokers became popular by offering smaller commissions for trades. Usually, the commissions would range from $4.99 to $9.99 per trade ticket. As of 2019, most of the discount brokers started offering zero-commission trading.
    • The platforms tend to have more trading and research tools than full-service brokers since they cater to active investors and day traders. Many of the larger discount brokers provide their own direct-access trading platforms and physical office locations throughout the country.
    Day Trading Brokers
    • Day trading brokers, or direct-access brokers, cater to active day trading clients with the smallest commissions often priced on a per-share basis, which is needed when scaling in and out of positions. These firms provide direct-access platforms with charting and routing capabilities with access to electronic communication networks (ECN), market makers, specialists, dark pools, and multiple exchanges.
    • Speed and access are the top benefits of direct-access brokers, often allowing for point-and-click executions and programmable hot-keys. The heavy-duty platforms often carry a monthly fee composed of software fees and exchange fees.
    App-Based Brokers
    • App-based brokers are brokers that are focused on simplicity. While these brokers may also offer web-based trading (or even desktop platforms), they are primarily designed for casual investors who want a simple way to buy and sell stocks from their mobile devices.
    • These brokers generally offer commission-free trading and easy-to-use mobile apps. They do not offer many advanced features, such as desktop trading platforms, research reports, etc.