RainbowLab RainbowLabTrading platforms or charting platforms? Get an overview to identify their similarities and differences, and find out which one you need to add to your trading tools.
Read time: 5 min
You’ve probably already heard about trading platforms and charting platforms. At first, they might seem quite similar, but they’re actually distinct tools, each with its own unique features. Let’s explore what each platform does, spot the differences, and understand how they fit into the world of trading. Ready? Let’s dive in!
In a nutshell, trading platforms are your trading command center, providing all the necessary tools and info for effective trading. They’re like your personal assistant, helping you place trades, manage your account, and keep you in the loop with the latest market dynamics.
They offer various types of orders for trade execution, such as market orders, limit orders, stop orders, and more. This gives you the freedom to execute trades that best match your trading strategy and risk tolerance.
These platforms provide real-time quotes, making sure you always have access to the most recent market prices. Plus, they keep you updated with news feeds, alerting you about key events that could affect your trading decisions.
But wait, there’s more! Trading platforms also come equipped with charting tools. These tools let you visualise market trends and price movements, helping you in your market analysis. The ability to overlay various technical indicators and drawing tools further enhances these charting capabilities, allowing you to conduct a complete technical analysis.
Well-known examples of trading platforms include Interactive Brokers, eToro, and Robinhood, just to name a few. These platforms are famous for their user-friendly interfaces and comprehensive trading tools. They offer a variety of features, including automated trading capabilities, advanced charting tools, and a wide array of technical indicators.
A great feature of trading platforms is the range of risk management tools they offer. You can use features such as stop loss and take profit orders to manage your risk and secure your profits. This makes trading platforms not just a place to make trades, but also a crucial tool for managing your overall risk exposure.
Contrasting with trading platforms, charting platforms are specialised tools designed specifically for detailed market analysis. They provide a wide array of chart types, from simple line charts to more complex candlestick and bar charts. You can tweak these charts to fit your style, giving you a unique window into the market.
Charting platforms also come loaded with technical indicators. These indicators can help you identify trends, patterns, and potential trading opportunities in the market. If you’re looking for more advanced options, some platforms even let you create your own custom indicators. This means you can shape your market analysis to fit your specific trading strategy like a glove.
Notable charting platforms like TradingView and NinjaTrader stand out for their sophisticated and customisable charting capabilities. They offer more advanced charting options than most trading platforms, and are often used in conjunction with trading platforms to develop and fine-tune trading strategies. Plus, they let you backtest your strategies, offering precious insights into how well your strategies might work.
While both types of platforms provide valuable tools for trading, their primary functions and uses are different.
Most of the time, a trading platform includes some charting features, but a charting platform doesn’t include trading features.
Think of a trading platform as your personal command center. Here, you’re in control, executing trades, managing them, and keeping an eye on them. Plus, it’s your all-in-one place for managing your account, keeping tabs on your profits and losses, and putting your risk management strategies in action.
Now, imagine a charting platform as your very own research lab. It’s your go-to place for in-depth market analysis, studying price patterns, and developing your trading strategies. Consider it your playground of exploration, analysis, and strategy development. It’s all about planning here, rather than execution.
In the real world, the application of trading and charting platforms often goes hand in hand. Imagine using a charting platform to explore historical price data, unveiling insights that guide your strategies. As your plan takes shape, it finds its home on a trading platform.
Consider this scenario: you, as a trader, dive into the intricacies of a charting platform, dissecting historical data for a chosen asset. With newfound clarity, you spot opportunities, devise a trading plan, and bring it to life on a trading platform. Here, you keep a watchful eye on your trades, manage risks, and eagerly anticipate the rewards of your market foresight.
In this ever-shifting trading landscape, it’s not just about the trades; it’s about you adapting to the latest tools and platforms. Both trading and charting platforms evolve continuously, introducing new features to enhance your experience. Stay personally connected to these developments, tailor your strategies, and let the journey of trading unfold uniquely for you.
There are loads of trading and charting platforms out there, each of them having their specificities. We won’t dive into a never-ending list because, let’s face it, what’s a pro for someone might be a con for another. It’s a mixed bag! These platforms cater to various markets, countries, and strategies, not to mention their unique interfaces and features. It would be too long and difficult to mention them all in this post.
At RainbowLab we’re all about freedom in choosing the tools that suit you best. Our mission is to equip traders like you with technical indicators and trading tools, helping you to develop your own strategy. Our indicators and tools are available on our website and on the charting platform TradingView.
Trading platforms are very often proprietary tools and we have no control whatsoever on the way they work and the features they offer. While they may have some charting features, they’re usually limited to the basics – forget about using custom indicators there!
We also think that it’s not our role to provide news feeds. We’ll leave that to the pros. There’s already a bunch out there for you to choose from.
To wrap things up, it’s clear that both trading and charting platforms play a key role in the trading world. In fact, having the right tools can make a significant difference.
However, even if technology plays a crucial role, remember that your knowledge, strategy, and discipline will determine your success in the markets.
The best trading and charting platforms are those that align with your needs and trading style, and provide you with the tools you need to implement your strategies effectively.