Global trading tools available

Many Japanese FX brokers offer several types of proprietary trading platforms (trading tools), and users can choose a platform based on their trading volume and ease of use. Depending on the platform’s performance, monthly usage fees may be charged if the trading volume does not reach a certain level.

When trading FX overseas, most brokers use the global standard platform called “MetaTrader”, which means that you can trade using a common operating method regardless of the broker.

MetaTrader is a trading tool developed by the Russian company MetaQuotes Software, and is equipped with high-performance functions such as various tools for chart analysis and plug-ins for automated trading programs. It is not a very familiar trading tool in the domestic FX world, but it has been extremely popular in the overseas FX world for a long time.

The main features of MetaTrader that have made it so popular around the world are as follows:

MetaTrader has released software compatible with a variety of devices and operating systems. For PCs, it has released Windows, Mac OS, and Linux versions, and for smartphones and tablet PCs, it has released iOS (iPhone/iPad) and Android versions, so it is compatible with a wide range of platforms. In addition, a web browser version is also provided, which does not require the installation of an application, and uses the same interface display and internal system as the PC and smartphone versions. The web browser version faithfully reproduces the same interface and operability as the Windows version, achieving high compatibility, so there is no confusion in operation due to differences in devices, and users can flexibly select the environment according to their environment and purpose.

In FX trading, you trade by predicting future price trends based on the trading price trends that are displayed as peaks and valleys on the chart, but short-sighted decisions can lead to unexpected losses. It is common that the 5-minute chart shows an uptrend, but the 1-hour chart shows a downtrend. The chart you should look at will differ depending on whether you are doing short-term trading or long-term holding like swing trading, and when trends differ depending on the time frame, you will need techniques to properly analyze the chart to know the exact trend.

“Technical analysis” is generally used as an analysis method for FX. Technical analysis is a method to predict future trends and fluctuation ranges by analyzing past exchange rate fluctuations and volume trends. Representative analysis methods include Ichimoku Kinko Hyo, MACD, and Bollinger Bands.

MetaTrader comes standard with over 60 indicators and graphic objects that are useful for technical analysis, which is said to be among the best of the many trading tools available. Display lines and color schemes can be configured in detail to suit the needs of the user, and multiple indicators can be displayed on one screen to perform more precise chart analysis from multiple perspectives.

In stock investment, it is common to trade using information on buying and selling called “depth information,” which shows how many orders currently exist at what price. MetaTrader has a function that utilizes this “depth information” to display interbank buying and selling information received from affiliated liquidity providers (LPs). “depth information” provides hints for reading investor sentiment and supply and demand, such as predicting a strong selling trend when the total number of selling orders exceeds the total number of buying orders, and checking how much circulation is currently in the market.

In addition, the new feature “Economic Indicator Calendar” allows you to view various economic events announced around the world every day, and displays the event details and importance, previous results, forecast values, and results in a timely and easy-to-read manner. Indicator results can also be checked on the chart, and color-coded flags are displayed at the time of result announcement, allowing you to visually judge the indicator results.

Trading tools provided by Japanese FX brokers may incur usage fees if your trading volume or frequency of use does not meet the required standards. However, MetaTrader supports over 30 languages, has a variety of high-performance tools, and is free to use, regardless of trading volume or frequency.

MetaTrader has various technical analysis tools and functions that are useful for trading, but using these tools to analyze huge amounts of historical data, clearly understand the logic that creates profits, and always make the right decisions is considered an extremely difficult task in terms of time and technology. Therefore, there are methods to turn these tasks into patterns and automate trading.

MetaTrader comes standard with an automated trading program called an “Expert Advisor (EA).” There are a wide variety of EA programs, including those that analyze huge amounts of chart data, classify them into certain types, and then trade systematically, as well as those that program and reproduce the trading methods of professional traders. EAs also make it possible to earn small profits by ultra-high-speed trading (scalping) in seconds, which is impossible for humans to do.

When using EA, it is necessary to select an EA that suits the user’s trading style and needs, and after installation, fine-tuning of the setting values ​​(parameters) called “optimization” is required. EAs process mechanically based on programmed logic and patterns, but they do not perform any work beyond the programmed information.

As the market is said to be a living thing, patterns and methods that have worked in past cases may not be permanently usable in the future, so the EA needs to be optimized and updated to fill in the gap between the market and the patterns it expects. Optimization involves fine-tuning by repeatedly backtesting and changing parameters, so analyzing the test results and setting the parameters requires a certain amount of know-how and time.

In recent years, artificial intelligence (AI) trading has been gaining attention as a new automated trading method to replace EA. AI trading not only analyzes and predicts future market trends from huge amounts of past chart data to make trading decisions, but also optimizes itself by learning from past data using machine learning functions to make the best decisions. And by repeating trades, further knowledge is accumulated and optimization progresses, leading to improved trading accuracy.

With the introduction of AI trading, all users have to do is deposit funds into their account, and the AI ​​will handle all subsequent transactions, making fully automated trading a reality. In the world of shogi, we have recently heard news of an AI defeating a professional player, and it is said that the time is fast approaching when AI will trade on behalf of humans in the world of FX as well.

Major securities companies and other corporations are already using AI for analysis and automated trading, but opportunities for even general investors to use AI trading are expanding. As third parties, primarily MetaTrader, are actively working to put AI to practical use and popularize it, there are high expectations for it as a new possibility.

MetaTrader has been adopted by many brokers since its release in 2005, and is widely recognized as a universal trading tool regardless of broker. Therefore, once you learn how to use the tool, you can switch to a different broker or compare trades with multiple brokers without having to learn how to operate the trading tool from scratch, allowing for smooth use.

In the case of domestic FX brokers, transactions are generally conducted using original FX trading tools and apps provided by each broker. Although each has its own original interface and functions, there is no compatibility between the tools, and the operation methods and functions are significantly different. Therefore, when switching to a different broker or comparing them, it becomes troublesome to have to learn how to operate a different trading tool from scratch again, and there are cases where people give up. In fact, when we investigate the trends of overseas FX users, rather than using only one broker for a long time, there seems to be a strong tendency to have accounts with multiple brokers and compare trading environments to find a favorite broker, or to use different brokers depending on the user’s trading pattern.