When it comes to making important trading decisions, one of the key things to consider is the charting platform to do your analysis, and even more important is the accuracy of the data.
Which is the best trading platform for beginners?
If you are trading futures like gold or crude oil, then clearly the best data will come directly from the exchange. You will want to look at the continuous contract and any good platform (like Tradestation for example), will provide this for you.
You can, of course, use a derivative like a CFD (or spread betting if you are based in the UK), however, the accuracy and value of the data is a lot less.
For example, if you study volume then you will only be able to get this off the futures contract. Also, although the charts will look similar, small details can make all the difference when conducting your analysis.
If you are trading of wrong or bad information, then you are very unlikely to produce a positive outcome.
Forex Trading Platforms
When it comes to Forex Trading the data you get is not directly from an exchange as Forex is decentralized. This makes having good FX data a lot more challenging as you are never really seeing the whole market.
As a rule of thumb, it is best to choose a data provider that uses no dealing desk. This means that your data is coming from the real interbank rate rather than artificially created quotes from market makers. This will ensure that your data is more accurate.
If you decide to use a charting platform like Mt4 then this will provide you with many options as most brokers will link with this charting software. This is a big advantage as its generally better to trade through the software rather than separating charting with trade execution.
Having said this, if you are looking for more professional software then you could use something like Tradestation instead of Mt4. But be careful as this type of desktop software does use up a lot of resources and will require a power computer to run efficiently.
If you are looking for software which is really good but also low on resources then I can also recommend Tradingview, (as this is a web-based platform).
Best Trading Platforms for Beginners
If you are tempted to chart with the brokers own charting, I would be very careful. Often the data provided is artificially made (e.g. spread betting), and the tools available and length of historical information, can be very limited.
If you are from the UK you may be interested in using a trading platform that allows you to trade tax-free. This is absolutely fine. However, for your analysis, I would recommend that you do this with a professional data provider.
Whatever you decide, it is worth doing some research and comparing different data providers and charting platforms to ensure you are trading of the best information possible. To learn more about Trading Programmes & Platforms visit our Trading Academy Page.