To trade on an exchange, both stock and cryptocurrency, a trader needs a trading terminal. Of course, you can trade on the stock exchange through a mobile application, and on the cryptocurrency through the exchange website. But this is inconvenient and not suitable for traders who trade professionally.
Trading terminals for trading can be roughly divided into four categories – universal terminals, scalper drives, algorithmic trading platforms and analytical platforms. Let’s talk in more detail about each of the POS categories.
Universal trading terminals
Universal terminals are mainly used for trading on the stock exchange. For trading in the stock market, such terminals are provided by brokers when opening a brokerage account. This is usually free. Through them, one could speculate, manage portfolios, trade options and create trading robots for algorithmic trading. In the 2000s, brokers followed two paths. Some have integrated ready-made trading terminals, others have created their own. Most brokers preferred to integrate the QUIK trading terminal. Subsequently, brokers with their own terminals began to provide it to clients. QUIK’s closest competitor is MetaTrader5.
Today, the minus of universal terminals is obvious. They can do everything, but due to the pile-up of functionality, they are simply inconvenient. This led to the emergence of specialized trading terminals for specific tasks. Today scalping drives are used for scalping, algorithmic platforms for algorithmic trading, and analytical platforms for analytics.
Scalping drives
Scalping drives are used for scalping. Initially, they were not independent platforms and worked only through the broker’s terminal. Own therefore traders and christened them drives.
Scalpers are traders who make a large number of transactions within one trading session. These traders are called either scalpers or day traders. Scalping requires special functionality and interface. Therefore, full scalping is possible only through scalping terminals.
Today scalper drives have become independent terminals. They connect to the stock exchange through the broker’s server systems. But scalping terminals do not need an “intermediary” to trade on cryptocurrency exchanges. They connect directly to the exchange.
Some scalping terminals can be used to trade on both the stock exchange and cryptocurrency. Among such terminals, it is worth highlighting the free CScalp and TigerTrade.
Algotrading platforms
Algorithmic trading platforms are designed to automate trading. With their functionality, traders can design trading robots and launch them into trading. Trading robots are used both to implement the trader’s own strategies and to sell them. Algorithmic traders often write trading robots to order.
Algorithmic trading platforms are aimed both at ordinary traders who do not have deep knowledge of programming and at professional programmers. For the first, the terminal for algorithmic trading is a good opportunity to learn something new and try out certain strategies. For the second, this is an additional source of income.
Analytical platforms
Analytical platforms can be used by traders as additional tools for trading, and as independent trading platforms with advanced volume analysis capabilities. For example, SBPro is used to collect and then analyze data for several trading instruments. The user can test strategies through the terminal, but cannot trade through it. ATAS, TradingView and VolFix have much wider opportunities as analytical platforms. The functionality of these terminals is not limited only to analysis, it is possible to trade through them. In TradingView, for example, you can trade directly from the chart.
Which terminal should you choose?
Only the trader himself can answer this question. Some are closer to scalping, others to algorithmic trading. Analytical platforms with all their rich analytical functionality may simply not be needed by a particular trader. Some are more than satisfied with traditional trading terminals (some of them can even be used to construct robots, but scalping will not work). A mobile application may be enough for a trader to invest. Some traders can use a terminal from any given category at the same time.
Therefore, the choice of a trading terminal depends only on a specific trading style, on specific needs and tasks. Connect to a broker, start trading, understand what is really yours in trading and whether your trading at all, and then choose a specialized terminal.
