Several types of trading analysis software are being used in the trading of financial instruments, including forex. The software comes pre-loaded with technical analysis and scripting features that allow users to create their own trading strategies and indicators, besides allowing automation of strategies. Some of the popular options include the MetaTrader software, Amibroker and Ninjatrader. All of them offer a reasonably good package of charting tools which are simple to use and quite user friendly, but a choice between them will depend on an individual trader’s preference and the instrument a trader wishes to trade in.
Amibroker is a leading charting tool that was built especially for traders using technical analysis to predict price and volume of stocks in the market, but it is now also being used for forex trading. This software allows users to create detailed graphs of the stock price and volume, and then carry out an analysis of the same. It uses AFL or Amibroker Formula Language to create indicators and logic on the platform. Although this programme was mainly designed for historical data analysis, many traders use it for algorithmic trading too.
Amibroker is ideal for trading stocks and performing custom researches. The main features of this software are:
MetaTrader is primarily used for automated trading and is highly popular amongst traders dealing in currencies. More than 90% of forex traders around the world use this charting software for its direct live data server connectivity and easy to use interface. This software uses MQL scripts (similar to C/C++ programmes) and is available in two versions, MT4 and MT5. Most forex brokers use MT4 because of its powerful features, such as auto trading, and an array of indicators useful for carrying out forex trading.
Developed by MetaQuotes Software, MT4 is provided to traders by their brokers. This software comprises two components, a server component and a client component. While the former remains with the broker, the latter allows customers to place orders and manage their accounts by watching live streaming prices and charts. Some important features of this software are:
Looking at the excellent features of these two charting softwares, it may be a difficult decision to choose one of them. Although Amibroker has multiple database support, data directly from the server is not possible and this often leads to delays in getting the data. This is not good for professional and regular traders. To avoid this situation, many traders use an MT4 plugin to stream real-time data from MetaTrader to Amibroker. This enables them to employ the power of Amibroker to chart, back test and generate signals, while using MT4 data.
The bottom line is that the choice for the best charting software will depend on a trader’s individual trading style and needs.
If you liked this educational article please consult our Risk Disclosure Notice before starting to trade. Trading leveraged products involves a high level of risk. You may lose more than your invested capital.