This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
MetaTrader is the dominant platform for forex and CFD trading, but it is not the default choice for stock trading. The stock trader has a different set of needs (direct exchange access, Level 2 data, a wider range of order types, a larger product universe), and the MetaTrader platform was not designed for these needs. The comparison between MetaTrader and the native stock trading platforms reveals the trade-offs in each area.
The best platform for stock trading depends on the trader's product preference, the trader's strategy, and the trader's jurisdiction. The trader should not assume that the most popular forex platform is also the best stock platform.
The product range comparison
MetaTrader is available through brokers that offer CFDs and futures on stocks. The trader can trade stock CFDs (a leveraged contract on the stock's price) and single-stock futures (an exchange-traded futures contract on the stock). The trader cannot trade the stock itself on MetaTrader, because the platform does not have access to the stock exchanges.
A native stock trading platform (thinkorswim, Interactive Brokers, TradeStation, Fidelity's Active Trader Pro) offers direct access to the stock exchanges (NYSE, Nasdaq, LSE, Deutsche Börse, Euronext). The trader buys and sells the actual stock, not a derivative on the stock. The product range includes the stock, the options, the futures, the ETFs, the mutual funds, and the bonds.
The stock trader who needs direct stock access should use a native stock platform. The stock trader who is comfortable with stock CFDs or futures can use MetaTrader.
The data quality comparison
MetaTrader displays the data from the broker's server, and the data is aggregated data from the broker's liquidity providers. The data may be delayed (by a few seconds to a few minutes, depending on the broker), and the data does not include the Level 2 data (the order book depth) or the exchange-specific data (the market maker quotes, the dark pool data).
A native stock platform displays the exchange data in real time, with the Level 2 data, the time and sales data, the market maker quotes, and the dark pool data. The data is the raw data from the exchange, not the aggregated data from the broker.
The stock trader who needs the real-time exchange data for the day trading or the scalping should use a native stock platform. The swing trader who does not need the sub-second data can use MetaTrader with the broker's aggregated data.
The order type comparison
MetaTrader supports the standard order types (market, limit, stop, stop limit, trailing stop), and the platform does not support the advanced order types that are common on the native stock platforms (OCO, OTO, bracket orders, VWAP orders, iceberg orders, discretionary orders). The order types on MetaTrader are the same for forex, CFDs, and futures, and the order types are not specific to stock trading.
A native stock platform supports the full range of stock-specific order types, and the platform can route the order to the exchange, the dark pool, or the internaliser with the best price. The stock trader who uses the advanced order types should use a native stock platform.
The charting and analysis comparison
MetaTrader's charting and indicators are comparable to the native stock platforms. The charting is fast, the indicator library is large, and the custom indicators are available. The charting on MetaTrader is the platform's strongest feature, and the charting is competitive with the charting on the native stock platforms.
The advantage that MetaTrader has over the native stock platforms is the Expert Advisors (the automated trading scripts). The EAs are more integrated into the MetaTrader platform than the automated trading tools on the native stock platforms, and the EA ecosystem is larger and more active.
The cost comparison
MetaTrader is free to download and use, and the broker charges a spread and a commission on the trades. The cost of trading stock CFDs on MetaTrader is comparable to the cost of trading stocks on a native platform, with the difference in the spreads and the financing costs.
The financing cost (the cost of holding a leveraged CFD position overnight) is a cost that the native stock platform does not have for cash stock positions. The CFD trader pays the financing cost every day the position is held; the stock trader pays nothing for holding the stock position overnight.
Common questions about platform comparison
Is MetaTrader better for beginners? MetaTrader is easier to learn than many professional stock platforms. The interface is simpler, and the learning curve is shorter. The trade-off is the product range and the data quality.
Can I use MetaTrader alongside a stock platform? Yes, many traders use MetaTrader for the charting and the automated trading, and a native stock platform for the execution and the data. The accounts are separate, and the trader transfers the funds as needed.
Which stock platform do professionals use? Professional stock traders use platforms like Interactive Brokers' Trader Workstation, TD Ameritrade's thinkorswim, and TradeStation. These platforms offer the direct market access, the advanced order types, and the real-time data that the professionals need.
Related resources
Where to start
If you are comparing MetaTrader to other platforms, the most useful first step is to define your trading needs (the products, the data quality, the order types, the charting, the cost), and to compare the platforms on those needs. Our broker comparison lists the brokers by platform type and the available products, which together tell you what the platform looks like before you open the account.