What is a Web-Based Forex Trading Platform
As Forex trading has become a trend in the trading industry, brokers and companies who offer trading opportunities to traders have started to think of easy ways of providing trading opportunities.
Forex trading is meant to be done with the involvement of a third party – which is the Forex broker – that offers security, protection, and many other features to traders. Most Forex brokers nowadays require traders to install software and an application to be able to foreign currency pairs. These applications can only be accessible if they are installed on a certain device; however, when people do not have access to their devices, they cannot trade, and an opportunity for profit will pass by. To solve this issue, many Forex Brokers started the transition toward creating platforms where people can access them through any device without any prior installation needed. So, web-based trading platforms were created, where anyone with access to a digital device and internet connection can check their account and make trades. One of these platforms was MetaTrader 4 (MT4), which introduced MT4 WebTrader to traders alongside providing them with all the necessary tools and features to trade; click to choose the best MT4 Forex brokers.
Thus, web-based Forex trading platforms made the process of trading with foreign currencies easier. Nevertheless, as with any innovative idea, these platforms have pros and cons.
Pros:
1- Available at any Moment
As mentioned above, the idea of creating a web-based trading platform is to make Forex trading available for traders at any moment. This helps traders not miss any trading opportunities by giving them a chance to trade without having to sit in front of their devices 24/7.
2- Ability to Trade Using any Electronic Device
Web-based trading platforms are accessible as long as an electronic device has access to the internet and a web browser. A trader can open a browser page and log in to their Forex trading account. By logging in, they will have access to buy, sell, and trade with currency pairs.
For instance, when a trader does not have access to a computer or a mobile device, they have the chance to use a smartwatch to trade when they use web-based Forex trading platforms. Even though the usage of small screens is not suggested in Forex trading, people will still have the possibility of trading with a smartwatch.
Nevertheless, it is important to mention that not all smartwatches will allow users to trade Forex – as it depends on the device’s model.
3- Fast Trading
By using a web-based Forex trading platform, people will enjoy the benefit of trading faster since most transactions happen without delay on these platforms. Additionally, since people will be able to access the platform easily, it adds to the benefit of fast trading.
On the other hand, web-based trading platforms are known to provide some of the most up-to-date foreign currency exchange rates.
4- Ability to Trade with Global Trading Platforms
Some Forex Broker applications are accessible only in certain locations, so when a trader travels to a place where their broker does not operate, they cannot trade. However, this isn’t the case regarding web-based trading platforms, as they can be accessed from anywhere in the world – making it a global trading platform.
Cons:
1- Risk to Security
When using a web-based Forex trading platform, the risks of losing data and bank information are much higher compared to applications. Since applications can only be accessed when a device has the trading application, they are less risky; however, with web-based platforms, some people might be desperate and log into their accounts using non-personal devices, which can save their login information.
2- Depending on the Internet
Nowadays, almost all trading platforms require internet connectivity. However, with a web-based platform, if internet connectivity is lost for a few minutes and a transaction takes place, the transaction might be lost. So, the risks of losing currency pairs due to internet connectivity are higher with a web-based platform.
3- Risks of Getting Hacked
As mentioned above, some people might use non-personal devices to access their Forex trading accounts. Additionally, many people who access web-based trading platforms are likely to use the public internet. All of these increase the risks of a trader’s username being leaked to other parties who will be able to hack and get into a trader’s account.
Conclusion
To conclude, the types of Forex trading platforms are increasing as the days pass in order to provide the best user experience to traders. The web-based Forex trading platform is one of the newest forms of trading that allows users to access their accounts from any device. However, before transitioning to a web-based platform, a trader needs to be aware of the advantages and risks of conducting trades on these platforms.
