Forex Trading Platforms

Forex Trading Platforms

When deciding to begin trading on the forex market the most important tool you need is a trading platform this will be your portal on to the forex market enabling you to place your trades. Most trading platforms are provided by your selected broker and usually come with opening an account at no extra charge. There are other platform types which are supplied by independent software developers such as the popular Metatrader 4 (MT4) or Metatrader 5 forex trading platforms.

Overall, operating through an easy to use efficient trading platform via a good forex broker will often provide you with the tools to increase your trading profitability.

When assessing a trading platform, you will want to look for useful features that can help enhance your trading experience. You may also want to see if the broker offers a free demo account, this enable you to evaluate their platform offering without any risk.

These might include the following:

A trading platform has to provide accurate trading quotes for all of the currency pairs that you are interested in trading. You need to avoid the risk of re-quotes and not knowing when the market has changed, this will enable you to initiate trades in a timely way and monitor your risk adequately. Forex trading platforms which are available to personal traders all operate via the Internet, so you will also need to ensure that you have a stable and reliable high speed Internet connection to assure the fastest possible transmission of pricing data.

A trading platform should execute deals quickly and reliably without the need for re-quotes which can be potentially costly.

A platform should offer a simple interface to allow you place all of the order types that you intend to use in a quick fashion. The order types would typically include take profits, stop losses and trailing stops at a minimum, with an OCO or “One Cancels the Other” feature as an added benefit to avoid the execution of multiple orders for the same position.

Once you have opened a forex trading position, you will need to manage it and keep track of your account balance and trading profits on a real time basis as the market moves. An ideal forex trading platform will therefore offer suitable account management functions for you to watch over your trading portfolio and manage your risk.

All good trading platforms will provide a full featured set of technical analysis tools that include charting and a good range of popular indicators for the currency pairs that you are thinking of trading. Charts should be updated on a real time basis for a variety of time frames, and a useful additional feature is to be able to trade directly from your charts.

If you trade using fundamental analysis good quality live news feed from a reputable news wire like Reuters or AP/Dow Jones should be integrated into the platform.

As you will be using online payment to fund your account it is essential to know that the platform operates under the appropriate internet security protocols to ensure that all your personal data is safe.

It is essential that the trading platforms is not taken offline during market trading hours due to the risk that you will not be able to close out a trading position at the appropriate time. Look for a trading platform that operates with minimal downtime. Any good trading platform needs to have an up time record during forex trading hours that approaches one hundred percent.

Essentially all traders require different functions from a trading platform so it is essential that you carefully evaluate any platform to ensure it has the required features for your particular trading style.