Best Brokers For Third Party Trading Software

Finding the best brokers for third party trading software can be crucial whether you are new to trading or just looking to upgrade your methods. Brokers can be divided into those with integrated platforms and others that support third-party trading software. This article will explain the differences between the two and detail the advantages and disadvantages of third party trading software. Read on to discover significant factors and features that the best brokers for third party trading software offer.

Brokers With The Best Third-Party Trading Software

Our experts have ranked the 5 brokers with the best third-party tools based on usability, features and accessibility:

#1 - AvaTrade

Why We Chose AvaTrade

AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for day trading, from CFDs to AvaOptions and now AvaFutures, alongside a comprehensive education center and multilingual customer support.

"AvaTrade offers the full package for short-term traders. There is powerful charting software, reliable execution, transparent fees, and fast account opening with a low minimum deposit."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Crypto, Spread Betting, Futures
  • Regulator: ASIC, CySEC, FSCA, ISA, CBol, FSA, FSRA, BVI, ADGM
  • Platforms: WebTrader, AvaTradeGO, AvaOptions, AvaFutures, MT4, MT5, AlgoTrader, TradingCentral, DupliTrade
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail) 1:400 (Pro)

#2 - OANDA US

Why We Chose OANDA US

OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available for short-term traders, alongside flexible contract sizes and automated trade executions.

"OANDA remains an excellent broker for US day traders seeking a user-friendly platform with premium analysis tools and a straightforward joining process. OANDA is also heavily regulated with a very high trust score."

- DayTrading Review Team
  • Instruments: Forex, Crypto
  • Regulator: NFA, CFTC
  • Platforms: OANDA Trade, MT4, TradingView, AutoChartist
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:50

#3 - Exness

Why We Chose Exness

Exness is a Cyprus-based forex and CFD brokerage established in 2008. With over 260,000 clients, several awards and reputable licensing, the broker has maintained its position as a highly respected global brand. Active day traders can access the popular MT4 and MT5 platforms, raw spreads and multiple account types.

"Exness remains an accessible broker for all experience levels, though experienced day traders will particularly appreciate the ultra-low commission rates, fast withdrawals and high-quality charting software."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, Crypto
  • Regulator: FSA, CySEC, FCA, FSCA, FSC, CBCS
  • Platforms: Exness Trade App, MT4, MT5, TradingCentral
  • Minimum Deposit: $10
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:2000

#4 - Pepperstone

Why We Chose Pepperstone

Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for day traders at all levels.

"Pepperstone stands out as a top choice for day trading, offering razor-sharp spreads, ultra-fast execution, and advanced charting platforms for experienced traders. New traders are also welcomed with no minimum deposit, extensive educational resources, and exceptional 24/7 support."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto, Spread Betting
  • Regulator: FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB
  • Platforms: MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade
  • Minimum Deposit: $0
  • Minimum Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:500 (Pro)

#5 - XM

Why We Chose XM

XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.

"XM is one of the best forex and CFD brokers we have tested. The flexible account types will suit a variety of short-term trading styles while the $5 minimum deposit and smooth sign-up process make it easy to start trading."

- DayTrading Review Team
  • Instruments: Forex, Stock CFDs, Turbo Stocks, Indices, Commodities, Precious Metals, Energies, Shares, Crypto, Futures
  • Regulator: ASIC, CySEC, DFSA, FSC, FSCA
  • Platforms: MT4, MT5
  • Minimum Deposit: $5
  • Minimum Trade: 0.01 Lots

What Is Third-Party Trading Software?

To decide on the best brokers for third party trading software, it is useful to learn what this encompasses. When trading on forex, cryptocurrency and stock markets, a trading platform is an interface that allows interaction between users and the markets. In most cases, there will be a financial intermediary between a trader and the market, known as a broker. Brokers deal with financial transactions like buy and sell orders and options contracts on behalf of traders, either in exchange for fees or valuable data on trading patterns. To facilitate the communication of information like real-time asset prices, trading charts and order books with traders, brokers will employ trading platforms.

Many brokers create bespoke trading software for their platform, often designed to be uncomplicated and easy to use and aiming not to overwhelm or intimidate traders. Other brokers allow traders to choose their preferred trading software from a range of third party providers. Numerous brokers offer both options, allowing traders to progress from a simpler, in-house platform to trading with more advanced third-party software.

The upside of brokers with third party trading software support is that the external software often supports far more advanced options for tracking and trading on markets. Traders may be provided with a more complete picture of history and patterns and can compare these in real-time. Importantly for high-level traders, the best brokers for third party trading software can offer support for expert advisors, known as EAs, for automated trading.

Types Of Third Party Trading Software

When using the best brokers for third party trading software support, clients will look for different types of software to support their specific desires. Some third-party software will bundle these together but many traders opt for specific tools for each purpose.

Standalone Trading Platforms

The fundamental piece of third party trading software is the trading platform. The platform is responsible for displaying current market prices and charts and executing trades quickly and without issues. Advanced features such as backtesting trading strategies and comprehensive market scanning set these apart from the more basic integrated platforms.

Individual trading platforms will be designed for different assets or markets, with separate areas of trading often requiring unique features and data presentations. Specialised software is available for cryptocurrencies like Bitcoin and Ethereum, commodities like gold and oil and e-mini options trading. Platforms may only function in specific regions, such as the Indian or Canadian markets.

Many trading platforms encompass some of the features of more specialised software, such as signals generators or EAs. While good for reducing cost, this may come at the price of accuracy or speed compared to individual software options. Two of the most popular external trading platforms are MetaTrader 4 and MetaTrader 5 and many of the best brokers for third party trading software will offer one or both of these.

best brokers for third party trading software
MetaTrader 5 Trading Platform

Signals Software

This third party trading software aims to analyse data from the market and recognise patterns and trends to alert users to opportunities. These are called “signals” and project future price movements in assets. Particularly popular in forex trading for their simplicity, signals provide traders with suggestions as to buy and sell prices, as well as stop-losses to manage risk.

Signals range in accuracy and reliability depending on the software used to generate them. Often, the more expensive a signals generating software is, the more precise their predictions may be. Nonetheless, a lower or medium cost software could still yield significant profits for traders. The best brokers for third party trading software will provide integration support for good value signals products.

Arbitrage Software

When trading forex or cryptocurrency, it is possible to profit from the lack of a centralised exchange. Arbitrage involves exploiting discrepancies in the price of an asset between exchanges, allowing you to turn the difference into profit. Trading without software is a high-risk and inefficient strategy, as arbitrage trading opportunities tend to exist for a very short period.

To monitor and trade on as many markets and exchanges as possible, a trader requires reliable and powerful hardware to run this software. Arbitrage software needs to be fast to place these trades where seconds can mean the difference between profit and loss. The software will also need to run in conjunction with as many exchanges as possible to maximise potential profits. The best brokers for third party trading software in terms of arbitrage software may also provide a free virtual private server (VPS), from which the package can be run quickly and consistently.

Journalling Software

This form of third party software does not take part in any trading activity, instead comprehensively recording trades within a digital logbook. This tool is essential for full-time traders that need to keep accurate records of profit and loss to comply with local taxation rules. A journaling software that can distinguish between taxable and tax-exempt profits can save traders valuable time and ensure the accuracy of reported figures.

This type of third party trading software also serves another important purpose. Analysis of trading performance is a crucial element when looking to optimise a trading strategy. To this end, journaling software allows users to review past mistakes and successes, helping to understand the advantages and pitfalls of their approach.

Technical Analysis Software

Some of the best brokers for third party trading software provide additional analysis tools, which aim to provide traders with the relevant information and data required to make informed decisions. Where traders can be influenced by emotions such as excitement or anger, technical analysis takes away these factors, empowering data-based trading. This software is designed to provide greater breadth and depth to market monitoring compared to integrated platform solutions.

Technical analysis software help traders by quickly evaluating and flagging trading patterns before suggesting specific entry and exit points for a trade. Third-party technical analysis software can include dynamic watch lists that enable real-time, simultaneous monitoring of stocks and assets and customisable indicators that track fundamental data and social media for trading opportunities. Any trader needs capable and extensive technical analysis if looking for extended success in the market. Competent technical analysis software should be a priority for those considering the best brokers for third party trading software.

For many years, hedge funds and the world’s most prominent investment corporations have relied on automated trading to manage complicated investment strategies. Consumer trading robots have come a long way since their induction into the retail markets. More and more retail traders are trusting automation to generate profits that humans could not, taking advantage of the speed and scalability of automated trading.

One form of automated trading is copy trading, which follows the trades of a preset market leader. Copy trading is regularly marketed towards new traders as an opportunity to use anothers’ experience and insight to profit. However, you often have little to no agency over the trades themselves and are left vulnerable to potentially costly mistakes of another person. Many firms support integrated copy trading functionalities, though the best brokers for third party trading software will also allow the integration of external packages.

Copy trading service
Social Trading Software

More experienced traders look to expert advisors and robots as an implementation strategy. They set parameters based on their approach to produce an algorithm without human input. These parameters will be as simple or complex as the code behind them, with entry and exit prices, stop-losses and trailing stops generated based on multiple factors set by the trader. These algorithms can enact many trades nearly simultaneously while working round the clock in markets that facilitate it.

Pros Of Third Party Trading Software

Here are some of the best reasons for favouring brokers suitable for third party trading software:

Cons Of Third Party Trading Software

Despite the abundance of features and options provided by the best brokers for third party trading software, there are some notable disadvantages to consider:

Next Steps

Now that you are familiar with the details of third party trading software, you may be looking to get started. There are two main elements to this decision: selecting a, or multiple, suitable packages for your needs and finding the best brokers for third party trading software to trade with.

How To Choose Trading Software

When deciding on which third party trading to use, it is a good idea to demo a particular tool before committing to a purchase. Here are some attributes that you can use to refine your trial list:

How To Find The Best Brokers For Third Party Trading Software

There are many brokers with third party trading software support, so traders will be spoilt for choice when it comes to selecting one. However, here are some attributes that best brokers for third party trading software will excel in:

Final Word On The Best Brokers For Third Party Trading Software

Finding the best brokers for third party trading software depends entirely on the requirements of the trader, while some may be completely fine with the integrated options offered. However, external software can open up opportunities for new profits, strategies and markets, while enhancing capacity to predict trends and make orders. When it comes to the best brokers for third party trading software, there are several elements to consider. Traders should prioritise finding a trusted and reliable broker, also taking into account variables like fees and availability of a range of assets and markets. Following this guide, you should be able to find trading software well suited to your needs and identify the best brokers for integrating third party trading software.

FAQs

Should I Use One Of The Best Brokers For Third Party Trading Software?

While using purely integrated broker trading software is often adequate for beginner traders and those who trade sporadically, more experienced traders should consider third-party trading software. Access to advanced features and the ability to create unique indicators are valuable assets to serious traders. Automated trading also increases efficiency and can result in enhanced profits for traders.

Can I Trade Cryptocurrency With The Best Brokers For Third Party Trading Software?

Third-party trading software can be used to trade across many markets, including worldwide major stocks and shares markets, forex, cryptocurrency, penny stocks, e-minis and commodities. Different tools will often be optimised for different markets and assets, so no matter what you wish to trade, there will likely be a third party software solution for you.

Are Many Brokers Compatible With Third-Party Trading Software?

The best brokers for third party trading software will often support a range of tools and packages, though some firms may limit their availability. If you wish to build or commission custom trading software, it is important to make sure your chosen platform supports an open API.

Can I Create My Own Custom Trading Software?

The wide range of customisability opportunities in third party trading programs is suitable for many traders but some may want to create bespoke software for their own specific needs. If you cannot code it yourself, bespoke software will often be expensive to commission. Custom software will likely have more bugs than thoroughly tested commercially available software. However, the complete control over the features included as well as the ability to create a personally intuitive layout will appeal to some traders.

Should I Automate My Trading With Third-Party Trading Software?

There are lots of advantages to automating your trading with some of the best brokers for third party trading software. Perhaps the greatest is the speed of trading, with external trading software able to seize momentary opportunities by completing trades in fractions of a second. The capacity to complete multiple trades at any one time also cannot be understated, alongside the reassurance of backtesting your automated trading strategy.

However, some traders could be reluctant to hand over complete control of their funds to an algorithm. Robots are not immune to errors in perception or execution and, left unchecked, a malfunction could prove costly to a trader.