Two questions we receive most frequently from our clients are: how to create a trading platform? And what are the best trading platforms? To answer these questions, we must remember that a trading platform is a program that allows you to trade different financial instruments such as stocks, currencies, CFDs, etc.
It is essential to know the trading platforms to incorporate them into your broker startup business model. To create or acquire the best trading platform is necessary to know technical aspects and market information to offer services that are in line with the needs of your customers.
This article is divided into two sections. In the first part, we focus on the steps on how to create a trading platform. In the second part, we mention the best trading platforms on the market and make a brief analysis of the subject. If you want to learn more, read on to the end.
How to create a trading platform?
To create a trading platform, you first need to consider some elements. In order to make it more pleasant for the reader, we present a step-by-step guide:
Step 1. Know your market
This first step is vital, because it allows you to know your target market. To do this, you will need to understand demographics aspects such as: age, gender, customer’s business, income level, country, etc. It is also important to benchmark the competitors in your industry to understand what they are doing well, what they are not doing well and how you can improve it.
By performing this segmentation, you have the ability to offer a tailored service to your customers according to their requirements, this is a fundamental step in the process of creating a trading platform.
Before moving on to the next point, it is important to mention that another basic aspect to create your own trading platform is to prepare a financial plan that will allow you to cover the expenses involved at the beginning of the project and to support yourself during the first months.
Step 2. Website
Once you have identified your target market, it is time to move forward in the design of a web page.
It will be easier for you to purchase forex trading software that usually charges you a fixed price and sometimes a small monthly fee for its use.
Another option is to rent a platform. Remember that for the best experience, the website design should be simple and easy to navigate, no matter what device you are using.
The third and most complex option is to do it on your own, dedicating time and money to learning. This may be the least friendly alternative to the main business, but if you don’t have the resources to hire someone to do it for you, it is a good option.
Once the website is ready, it is time to launch it and start promoting it.
Step 3. Registration
Registration of a brokerage company: To start receiving payments from your clients, it is important that you must have a bank account, which gives you the freedom you need to receive and manage the money from your business.
Step 4. Payment Services
Agreement with payment service providers (PSP). It is recommended to diversify your risks over several accounts in case the main PSP fails. In other words, you can make use of tools such as Paypal, bank account, wire transfers, etc. If any of them fail, you have a backup.
Step 5. Choose brokerage
You choose the type of brokerage. There are 2 types, and depending on your needs you can choose between: Market Maker, STP or both at the same time.
Best trading platforms
Now that you know the procedure to create a trading platform, we will focus on the best platforms in this second section. The most relevant in the market are:
- MetaTrader4. The most popular platform, owned by MetaQuotes. It has a market volume of more than 85% of the forex brokers MetaTrader4 is the best trading platform and focuses primarily on the Forex market, providing tools to investors such as:
- A large number of Expert Advisors
- More than 50 indicators
- Order limits
- 9 different types of time-frames
- Pending orders.
- MetaTrader5. This platform is mainly focused on stock CFD trading and belongs to the MetaQuotes family. When compared to MetaTrader4, this platform has improved features such as: faster trading, supports a larger number of orders, more indicators and other important improvements.
If you are still not sure which platform to choose, you can review the differences between MT4 and MT5 to find out. Once you have done this, the next step is to purchase a White Label license.
- This is the third one and is intended as a secondary Metaquotes platform for large brokers.
- ProRealTime. Developed by IT-Finance in France, it is one of the most advanced trading platforms in terms of technical analysis. Also, unlike other platforms, it is web-based, so you will not require downloads.
- Ninja Trader. It is a company created in the USA that offers advanced Forex charting software packages.
When comparing the various trading platforms, we concluded that this is a market led by MetaTrader with the MT4 and 5 platform versions.
The steps to create a secure platform and have an interactive interface are two of the most important features for clients. The guide presented in this article allows you to make better decisions when selecting a trading platform to offer to your clients.
Besides, you have first-hand information that allows you to choose the trading platform that best suits your business model and target market. The best trading platforms are undoubtedly those of MetaTrader, but depending on the characteristics of your market niche, you can choose the one that best suits you.