Choosing your forex trading platform
How to choose a forex trading platform
It can be intimidating to choose a forex trading platform when you first start trading; Here are some features that any good forex trading platform should have:
Security
Does the forex broker offer information about the security measures of its platform? Your business and personal data must be encrypted, so your money and identity are safe, whether you pay and receive payments through PayPal or online bank transfers.
The forex broker should also offer advice on how to increase your online security. I would be very suspicious of one that didn’t because they could take responsibility if there is a problem.
Also, are there backup systems where your information can be stored in the event of an IT problem?
reliability
When can you use the forex trading platform? Since Forex is a 24/5/5 market, look for something you can use constantly. Even when the market is closed, you want to be able to place orders to open when the market does.
The trading platform must also be efficient; if it’s slow, the prices you trade at may be out of date. A good forex trading platform should update several times a second.
One-click trading
If a forex trading platform is unreliable, slow, or prone to outages, a trader can miss out on a quick opportunity. A platform that offers one-click trading will allow you to buy or sell forex contracts with a single click, meaning there is no need to hand out a ticket and you won’t miss out on the price you want.
Business style suitability
Does the trading platform follow your trading style?
Is it easy to understand, or can it only be interpreted by a Wall St retiree? Find a platform where
easy to search for your market and if you want to trade more than just forex, look for one that also allows you to trade stocks, options and indices.
Where are you trading from? If you use a Mac, can you use the platform on it? Also, the program can be accessed using different browsers and different smartphones.
Basically, does it do what you need? A good forex trading platform should be customizable to follow your trading strategy – does it allow automated trading and allow you to micro-manage each trade? The trading platform should be able to alert you to good trading opportunities, as well as accept complex orders, including the various stop and profit that the forex broker offers, so that you can easily minimize your risk and maximize your profit.
Graphics
Does the forex trading platform have a separate charting platform and how easy is it to navigate? And, if you want to trade from your iPhone or Blackberry, can you access these from your phone? And can you trade directly from the charts or do you need to deal a ticket?
Depending on your level of experience, you may want a charting package with a pattern recognition tool that will monitor the markets on your behalf and might even let you know when chart patterns indicate trading opportunities.
And, if you want to trade forex around the clock, it is essential that the charts update in real time.
Market analysis
Does your forex broker offer market analysis? Is it available using your trading platform or do you need to visit your website?
A good forex trading platform should include market analysis tools, including news feeds, internal research, and third-party research. Because information is power, you want to be able to access as much of it as possible and have access to it without scouring the internet for the information you need.
Any trade that offers market analysis should also have historical data available, so you can see how forex was affected when a similar situation occurred.
Price
Is the platform free? Many online forex trading platforms offered by reputable brokers are free, and your only costs will be if you make a loss.
If the forex trading software is not free, or if it has a nominal charge, find out what the additional benefits are. And, if it’s not free, is there a money back guarantee if you’re not happy with the software?
price, 2
Does the trading platform offer the same pip spreads that the broker has advertised, or do you need to phone to get the best deal?
A pip is a currency unit of 0.0001, and the pip spread is the difference between the bid and ask price of your currencies, so if AUD/USD is trading at 1.0578/1.0579, the ask price is 1.0578 and the buy price is 1.0579. For any margin, the price of the coin must make up the margin difference before you can make a profit. So in the example, if you buy at 1.0579, the AUD only needs to go up two pips from 1.0578 to 1.0560 for you to make a profit. If there is a spread of three pips, the coin would have to move 4 pips before you make a profit.
Customer Support
Is your forex broker only interested in getting an account for you or do you provide ongoing support for clients using the trading platform?
You should be able to email or phone your broker with questions ranging from making trades to the button on your trading platform not doing what you want.
demo account
No matter how many questions you ask customer support, it’s hard to know how well a forex trading platform is right for you without being able to try it out, so go online and see which companies have demo accounts available. The demo account must have all or almost all the functionality of the full account.
My recomendation
One of the companies I currently trade with, IG Markets, has a great trading platform called PureDeal. I have found their customer service, charting packages and market information to be very good and their interface quite customizable.
You can also open a free demo account through their website, with $20,000 of play money to play with, so why take my word for it? Try it yourself.