The Right Forex Trading Software For You
With one of the most Liquids Markets in the World - FX Trading, you almost certainly need nothing less than the best trading software to give you the best possible chance of success at becoming a forex pro.We all know that a glider plane can fly without an engine, but I guess you wouldn't dream of flying one to the moon or even across oceans. That would be plain silly. A Rocket Scientist is not required to explain that it is important to use the right tools for the right job when it comes to Currency Trading. We are Dealing With Money!
To Trade Forex or any other markets successfully, it is imperative to use the right software.
In life you always have choices for most things. This applies to Currency Trading too. People expect choice. And choice they get. I will try and write about some popular Software Platforms used by Online Currency Traders the world over.
Common Forex Trading Software types.
Trading Platforms
Essentially used for the manual execution of fx trades and management.
Technical Analysis Software
These provide historical charts of exchange rates along with technical indicators.
Trading Signal Indicator Software
Purposed for the recommendation of initiation levels at which currency traders can open and close out positions.
Automated Forex Trading Software or Forex Robots
As the title suggest they execute trades automatically based on pre-programmed specific algorithms.
FX Trading Platforms
As an Online Forex Trader you will most certainly need a Trading Platform. There are many Fx Brokers and as I mentioned earlier, this means you get choice. You will find that most brokers often have their own software on their website. They will in most cases try to push you to use one of their Web Platforms for executing trades. This is absolutely fine and please find one that you feel comfortable with as you are dealing wih your hard earned money.
My Trading Platform of choice which can be downloaded from most brokers is the MetaTrader Platform. Currently I use the MT4. (currently MT5). I find this to be a great piece of software to trade with. Just remember that it is not the only option as stated above. There is choice.
With the emergence of smartphones, another popular choice for the trader on the move is Mobile Trading. You will be able to download trading apps for your Iphone or Android and of course browser based trading optimised for Blackberry and Other Mobile Devices.
Even if you trade using platforms such as MT4 or web platforms, it is essential to have an App for your mobile so as to keep tabs on any open positions you may have with your broker. You can do this at any time since Forex is a 24hr operation.
FX Technical Analysis Software
These are very handy. To become a good Forex Trader, you will need some Charts. Forex Charting Software can be found on most platforms including the MT4 now (MT5) platform mentioned earlier. If you wish, you may also download Automated FX Charting Software.
All trading markets from Forex to Stocks, require the use of Charting Software. This does not mean you cannot trade without Charting Software.
Later on in another Forex Article, I will introduce Fundamental and Technical Analysis.
Fundamental Analysts, can get away with not using charts, but I think it is still crucial. Technical Analysts as the name suggest, rely on Moving Charts and Trend Lines to determine Entry and Exit Points.
If you search online you will come across different Charting Software. If you are Registered with a Broker already, most trading software downloaded from them for use the pc or mobile should already have some charts to get you started. There are Advanced Charts and more Basic charts. Once you start learning currency trading, you most definitely get to know the differences with different charting software.
FX Trading Signal Generators
These often come as Automated or with Human operation. What you are essentially looking for here is reliability. Profits is the name of the game when it comes to Forex, and signalling software may help with this. Some people will tell you to stay away from them and some would not think of trading without a signalling software. I am mostly in between. I try to use everything at my disposal to determine if i should enter or exit a trade.
A Good Signalling Software should be able to:-
- Displays real-time trade notifications through your Trading Platform.
- Follow your trades and include Entry, Stop and Take/Profit prices.
- Quickly give you trade instructions with with easy to follow indicator lights.
Some Signalling Software gives indicators as to whether you should enter a trade or not and some gives you complete instruction from entry to exit. Often people with programming experience may develop their own indicators but this is not necessary as you can find a vast array of indicators across the web from Human services to Automated Robots.
If using a subscription service for Trading Signals, these are normally delivered automatically directly to your e-mail and by SMS to your mobile phone worldwide. Alternatively, you can see them live on your Trading Platform or online on your members area.
These Signal Generators usually suggest stop-loss and take-profit levels so that the trader can appropriately try to manage any losses or gains on any positions they take based on the signals generated by the software. Be warned that there is no guarantee that a stop order is filled at the stop price and the same caution applies to automated Software Robots.
FX Automated Software or Robots
Very popular with some Traders both Institutional and Individual are Software Robots. Question is, 'Can you trust a robot with your money?'
Difficult question to answer really. I personally tend to stay away from these, but this is not to say they are not profitable. Programmed right, they can indeed take the hassle away from Emotional Trading. In your trading journey, it may be wise to try out some Automated Robots at some stage just to see if it they work or not.
You will find a lot of companies and individuals who sell these automated robots online. The are sometimes called EA's (Expert Advisors.) Beware of many Forex Scams Online in relation to robots and expert advisors on the internet. I will be writing a post on this topic on a future date. If you visit the Forums at ForexFactory.com, you might be able to find some genuine people with genuine Automated Robots.
Automated EA's can be used in conjuction with your Trading Platforms and they open and exit the trades on your behalf. Just a note with EA's as with signalling software, that there is no guarantee that a stop order is filled at the stop price. If you trade liquid pairs with a good broker, this is generally not an issue.
Other Factors To Consider With Forex Software
Demo Trading
This is the most important factor to consider with any Trading Software. You should be able to play with Virtual Money first before using your Own Money. Even if you are a Pro Trader, you will find that different software has different controls. As a newbie, this extremely paramount and you should always demo trade first. Never deviate from this rule as you may get some nasty surprises.Downloads and Web Based Platforms
Majority of Currency Trading Software for personal use by traders will give you a Download option.Very rarely you may purchase a CD of DVD with the software or it may come as an email attachment. I have heard of these, but have never used any personally. I would suggest the Download Option.
Fx Online Browser Based Platforms remove the download factor and any installation issues that you may face if you are not confident you are able to install software on your computer. With these, you will just need to log in using your given username and password. The main advantage of these types of Trading Platforms is that you can generally use them anywhere you can get access to an Internet Connection and compatible Web browser. You may also other operating systems other than Windows, like OSx and Linux.
Client Side Platforms And Remote Servers
Remote Servers provide a useful service for those using Automated Robots and Client-Side Forex Trading Platforms. This is especially the case when they require 24hrs Market Monitoring and execution of trades. Most Remote Servers charge a fee for both hosting the Forex Trading Software in its server storage space and bandwidth connection. The reliability factor is very good with servers and they rarely have issues. The server providers are quick to sort out any issues. You should be able to find remote server companies dedicated to Forex Software, but any server provider will do. This is very technical and you should seek some expert help if you intend to use a remote server.Real Time Exchange Rates and News Feeds
Good Fx Software from your broker should provide close to Real-Time Exchange Rates that react to what is happening in the market. Needless to say, you will need to know what is happening in the market rates in order to make Good Trading Decisions. The same applies to the News Feeds which are crucially important to Fundamental Trading.Good Forex Trading Platforms often provide access to high quality news feeds from Reuters, Associated Press, Bloomberg and others. In general, most software and brokers have reliable news feeds.
Your Data and Security
Personal and Private Information over the Internet, should be treated with caution. Credit card numbers, bank account data and trading account information is the target for most Online Fraudsters. The security of your data from unwanted prying eyes should be paramount. Make sure your computer has the most up to date virus and malware software to protect against such attacks. If using online platforms, make sure your Fx broker uses appropriate data security measures. These should include SSL-Encryption technology to protect any personal data entered into online forms.Expect Good Customer Service Support, User Manuals and even Videos
All Service Providers in any industry should provide Excellent Customer Experience and you should expect nothing less from your broker. If at any time you feel they are not up to the job, by all means find another broker. There are Plenty of Forex Brokers. After all, they need you to keep going, so never feel like you need them.Most users are not technical so you should expect Good User Manuals and Videos to help you understand your Trading Software so as to make correct decisions.
Always remember knowing your tools is very important when it comes to trading. You do not want to place a wrong trade by mistake because you did not know how to use your software.