Choosing a forex trading platform can be daunting for novice traders. Here are some elements that should be included in any reliable forex trading platform.
Are there details available concerning the forex broker’s platform’s safety features? Whether you’re sending or receiving money through PayPal or an online bank transfer, it’s important that both your trading data and your personal data be secured for safety’s sake.
If the forex broker doesn’t provide any guidance on how to better safeguard your online transactions, I would be very wary about working with them.
And in case there’s an IT glitch, do you have access to any backup systems?
When is the FX trading platform available? Because foreign exchange (Forex) trading occurs around the clock, 5.5 days a week, it’s important to find a strategy that can be implemented consistently. Your goal should be to be able to make orders even while the market is closed, with the expectation that they will be executed when trading resumes.
It is also important that the trading platform be quick and reliable; otherwise, you risk trading at out-of-date pricing. Currency trading platforms that are worth their salt will refresh many times each second.
Easy, one-click trading
Missing a swift chance is one consequence of using a forex trading platform that is unreliable, sluggish, or interrupted frequently. You may purchase or sell a forex contract with a single click using a platform that supports one-click trading, eliminating the need to deal a ticket and guaranteeing that you will not lose out on the price you were hoping to achieve.
Congruence between trading methods
Is the trading platform convenient for you?
Can everyone grasp it, or is it something that only a Wall Street veteran would get? Find a site that makes it simple to zero in on your desired market, and if you’re interested in trading in more than just forex, be sure that you can do so using the site.
Which location are you trading from? Can you access the platform from a Mac? It’s important to know if users from all walks of life, armed with a variety of browser and mobile device preferences, will have access to the program.
Will it fulfill your requirements? The best forex trading platform will provide you the flexibility to tailor it to your trading style, answering questions like whether or not you can use automatic trading and how much control you have over each deal. So that you may simply minimize your risk and maximize your earnings, the trading platform should be able to notify you to excellent trading chances and accept complicated orders, such as the numerous stops and profits that the forex broker offers.
What kind of charting capabilities does the forex trading platform offer, and how user-friendly are they? And, can you use your iPhone or Blackberry to make trades? How about chart trading; is it an option, or do you have to deal a ticket?
A charting program with a pattern recognition feature that watches the markets and alerts you when the patterns on the charts indicate trading possibilities may be useful, depending on your degree of expertise.
Furthermore, real-time chart updates are necessary for day-long forex trading.
Analyzing the Market
Do you have access to market analysis on your forex broker’s trading interface, or do you have to go to their website for such information?
Market analysis tools, such news feeds, internal research, and external research, are essential on any serious forex trading platform. Since knowledge is power, it’s important to have ready access to as much of it as possible without having to trawl the web in search of it.
If you want to examine how the forex market reacted the last time something similar happened, you should look for a trading platform that provides market research alongside access to relevant historical data.
Are there no fees to use the service? Most respectable brokers provide free online forex trading platforms; the only expense will be any losses you incur.
If the forex trading program you’re considering isn’t free, or if it costs a few dollars, you should definitely learn about the additional features. Is there a money-back guarantee if you’re not satisfied with the program (if it’s not free)?
Is it necessary to call the broker to receive the best price, or do the pip spreads listed on the trading software match what the broker offers over the phone?
If the AUD/USD is reported as 1.0578/1.0579, the sale price is 1.0578 and the purchase price is 1.0579; this is the pip spread. A pip is equal to 0.0001 unit of currency. In order to turn a profit on a spread, the underlying currency’s price must rise by an amount equal to the spread. In this case, the two-pip increase in the AUD’s value from 1.0578 to 1.0560 would be enough to turn a profit on a purchase made at 1.0579. With a 3-pip spread, you’d need a 4-pip currency rate shift to break even.
Assistance to Clients
Does your forex broker care only about opening an account, or do they also offer assistance after you begin trading?
Whether you need help placing trades or figuring out why a certain button on your trading platform isn’t functioning as expected, you should be able to contact your broker by email or phone.
It’s difficult to determine if a forex trading platform would fit you without trying it, no matter how many questions you ask a customer care representative. All of the features included in the paid version should be available in the free trial version as well.