There are tons of software involved in trading the forex market, from the software serving as the backbone of trading platforms to the programs that allow hands-free, automated trading. It’s important to know, however, that not all trading software are created equal. There are automated systems that work well during trending environments but then crumble during ranging cycles. There’s trading platforms that are stable during most of the trading hours but then get frozen once economic reports get released. Read on further as we discuss forex trading software – which one to choose?
Trading forex online requires the same tools from a trading software that are necessitated for trading in any other type of financial asset and market. The platform bridges the retail trader and their respective broker. Without this piece of software, orders cannot be executed efficiently. There are still traders who phone in their orders to their brokers but this outdated method tends to be a far less efficient method of trading and maximizing profits than its more modern counterpart.
Standard software for trading forex must provide both real-time and historical price data to the trader. It should also give traders access to all types of trade orders available to trade the market proficiently. This includes Buy Limit and Buy Stop, Sell Limit and Sell Stop. Third-party programs are also commonly utilized, as many broker platforms have an API that allows traders to integrate proprietary software and third-party programs into their primary trading platform.
Factors to Consider
Price is of course one of the key factors to determine. Is it free? If there is a monthly or onetime charge involved, what additional features can you hope to gain access to? Some trading software are worth the charge if it adds an edge to your trading, whether that edge comes from advanced technical indicators unavailable from other brokers or faster refresh rate of price feeds and economic reports.
User interface is another factor to consider. How simple it is to place entry or market orders and navigate across multiple price charts? Perhaps the most straightforward platform currently used today is MetaTrader 4 or MT4. Most of the tools you’ll need to manage trades are located on the left top portion of the MT4 display screen.
When considering forex trading software – which one to choose, price and user interface are not the only factors that merit your attention. Yet for beginners, it is prudent that you start your search here.