When it comes to online trading, choosing the right platform is crucial for your success as a trader. With numerous trading platforms available in the market, two of the most popular options are MetaTrader and Trading 212. Both platforms have their own set of features, advantages, and limitations. In this article, we will conduct a comprehensive comparison between MetaTrader and Trading 212 to help you make an informed decision about which platform best suits your trading needs.
Introduction to MetaTrader and Trading 212
MetaTrader
MetaTrader, developed by MetaQuotes Software, is one of the oldest and most widely used trading platforms in the world. It was first released in 2005 and has since gained popularity among retail traders and professional investors alike. MetaTrader offers two main versions: MetaTrader 4 (MT4) and MetaTrader 5 (MT5). MT4 is primarily used for forex trading, while MT5 supports a broader range of assets, including stocks, commodities, and cryptocurrencies.
Trading 212
Trading 212, on the other hand, is a relatively newer platform, launched in 2013 by the fintech company Avus Capital. It quickly gained traction due to its user-friendly interface and commission-free trading services. Trading 212 caters to a diverse range of assets, making it an attractive option for both beginner and experienced traders.
User Interface and Ease of Use
MetaTrader
MetaTrader’s interface is known for its comprehensive charting tools and technical analysis capabilities. While it offers a wide array of features, it can be overwhelming for beginners. The platform’s learning curve can be steep, particularly for those new to trading. However, once users become familiar with the platform, they can efficiently navigate through its various functions.
Trading 212
Trading 212 takes pride in its intuitive and user-friendly interface. Its clean and modern design appeals to traders of all experience levels. The platform provides a seamless user experience with easy access to charting tools, analysis, and other essential features. This simplicity makes Trading 212 an excellent choice for beginners or those who prefer a more straightforward trading platform.
Asset Selection
MetaTrader
As mentioned earlier, MetaTrader 4 is mainly focused on forex trading, making it the preferred choice for forex traders. It offers an extensive selection of currency pairs from various global markets. On the other hand, MetaTrader 5 expands its horizons, allowing users to trade not only forex but also stocks, commodities, indices, and cryptocurrencies. This broadens the asset selection for traders who want to diversify their portfolios.
Trading 212
Trading 212 stands out in this category, offering a diverse range of assets across multiple markets. From forex and stocks to commodities and cryptocurrencies, Trading 212 provides a one-stop-shop for traders looking to explore various financial instruments. This wide asset selection gives traders the flexibility to adapt to changing market conditions and explore new opportunities.
Execution and Trading Costs
MetaTrader
MetaTrader is known for its fast and reliable execution speeds, crucial for active traders. However, the platform’s pricing structure may vary based on the broker’s fees and spreads. Some brokers offer commission-based trading on MT4 and MT5, while others offer commission-free trading but charge wider spreads. This can significantly impact the overall trading costs, especially for high-frequency traders.
Trading 212
Trading 212 takes pride in its commission-free trading model. The platform offers zero-commission trading for a vast majority of assets, making it an attractive option for cost-conscious traders. This eliminates the need to factor in commissions while calculating profits and losses. However, keep in mind that Trading 212 may include the cost of trading within the spread, which might be slightly wider compared to commission-based platforms.
Technical Analysis Tools
MetaTrader
MetaTrader is renowned for its comprehensive technical analysis tools. Traders can access a wide variety of indicators, charting tools, and graphical objects to analyze price movements and make informed trading decisions. Additionally, MT4 and MT5 support algorithmic trading through Expert Advisors (EAs) and custom indicators, allowing traders to automate their strategies.
Trading 212
While Trading 212 offers essential technical analysis tools, it may not match the depth and complexity of MetaTrader’s offerings. Traders can still access popular indicators and charting tools to perform technical analysis. However, the platform lacks advanced features like custom indicators and algorithmic trading capabilities, which could be a limitation for seasoned traders who heavily rely on automated strategies.
Mobile Trading
MetaTrader
MetaTrader provides dedicated mobile apps for both Android and iOS devices, allowing traders to stay connected to the markets on the go. The mobile apps offer a significant portion of the platform’s features, including real-time price charts, trade execution, and access to account information.
Trading 212
Trading 212’s mobile trading app is highly regarded for its intuitive design and functionality. It provides a seamless experience for traders who prefer trading from their smartphones or tablets. The mobile app offers a variety of features, including real-time quotes, easy order placement, and portfolio monitoring, making it a convenient option for mobile traders.
Regulation and Security
MetaTrader
Since MetaTrader is a trading platform, the regulation and security primarily depend on the broker that provides access to the platform. Therefore, it is crucial to choose a reputable broker with a robust regulatory framework to ensure the safety of your funds and personal information.
Trading 212
Trading 212 is regulated by the Financial Conduct Authority (FCA) in the United Kingdom, which adds an extra layer of trust and security for users. The platform adheres to strict regulatory standards and client fund segregation, offering peace of mind to traders concerned about the safety of their investments.
Customer Support
MetaTrader
MetaTrader’s customer support largely depends on the broker through which you access the platform. As such, the quality of support can vary significantly between different brokers. Users might face challenges in receiving timely assistance or resolving technical issues due to the decentralized nature of support.
Trading 212
Trading 212 maintains an in-house customer support team that can directly address user queries and concerns. This approach typically ensures more consistent and reliable support for users, which is essential for traders, especially during critical market situations.
Educational Resources
MetaTrader
As a trading platform, MetaTrader itself does not provide educational resources for traders. However, some brokers that offer access to MetaTrader might provide educational materials to their clients. Traders need to look for educational resources from their chosen broker.
Trading 212
Trading 212 offers a range of educational resources for traders of all levels. The platform provides articles, video tutorials, webinars, and a demo account to help beginners understand the basics of trading and improve their skills. This comprehensive educational offering makes Trading 212 an excellent choice for those looking to enhance their trading knowledge.
Conclusion
In conclusion, both MetaTrader and Trading 212 have their own strengths and weaknesses, making them suitable for different types of traders.
MetaTrader is a solid choice for experienced traders who value advanced technical analysis tools, algorithmic trading capabilities, and a wide range of tradable assets. On the other hand, Trading 212 is more appealing to beginners and cost-conscious traders who prefer a user-friendly interface, commission-free trading, and a diverse selection of assets.
Ultimately, the best platform for you depends on your individual trading style, preferences, and long-term goals. It is essential to consider factors like asset selection, execution speed, trading costs, and educational resources when making your decision. Remember to choose a reputable broker with regulatory compliance regardless of the platform you opt for. Happy trading!
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
