Trading currency pairs is one of the most profitable activities on the global financial sky, and as a matter of fact – the Forex market is by far the largest trading sector in the world. Some estimates say that trillions of dollars are exchanging hands on an annual basis in the Forex market, and that is why a lot of people are interested in joining this exciting area. However, it is always best to be prepared before embarking on an adventure into the unknown, and our guide on best Forex platforms can significantly help in providing you with the necessary tools to steer your ship away from the murky waters and dangerous rocks that await those who are not skilled enough.
Forex trading is a fast-paced and ultra-competitive environment, and prospective investors need to be alert at all times. Also, you need to have access to the right information at the right time, and only by using the proper software can you reach your trading potential and maximize the profits. Of course, we all want to increase our revenue, and that is why investing in good software solutions seems like a reasonable and shrewd business move.
The role of software in Forex trading
As in any other areas of human activity, computer programs can significantly improve our productivity and our results, and that is why we rely so much on various gadgets and devices. Modern technologies are allowing us to have quicker access to relevant information, and this is crucial when it comes to trading with currencies that are always fluctuating in prices. The role of software in Forex trading is immense, and there are various types of products that can improve our performances and enhance our trading portfolio. Brokers use the best Forex Trading Platforms to help individual traders achieve better results by having access to a broad range of assets and trading instruments, but other tools and methods can also be of assistance.
Types of trading software
Besides trading platforms, which are the dominant and integral part of any broker website, traders can use all sorts of software packages to improve their results. For instance, analysis software is usually very helpful, and these programs can present you with trend lines and projections based on the history of prices and numerous other factors. Similarly, signal generators are often incorporated into the trading platforms, and these services will send alerts to traders when analysts find a potentially profitable investment opportunity. Not all traders have the time to scan the markets all day, and these messages can help them make the trading process faster and more efficient. The same principle stands behind the use of automated trading software or trading robots, which are also incorporated into the majority of modern platforms. Some traders and brokers refer to these services as Expert Advisors (on the popular MT4 trading platform), and “robots” can save a lot of time by placing the trades in a predetermined plan and following your money-management strategy.
How to find the best Forex Platform
The Forex market has a bad reputation of being susceptible to scams and frauds, and this notorious image comes from the fact that these types of malicious activities have, in fact, been present in this sector over the last couple of years. That is why it can be a bit challenging to differentiate the “good” brokers from the “bad” ones, but when it comes to platforms and trading software – this becomes relatively easy. In other words, you just need to make a checklist of everything that a good platform should contain, and then you only need to do a little bit if research.
The research process usually starts with gathering information about a potential platform that has good characteristics and useful features, and the best source of relevant and unbiased information are your friends, colleagues, or family. The chances are that someone in your social circle has had some experience with brokers and their trading portals, and that is why you should value their insights and appreciate their impressions about a particular platform. Reading the reviews on the Internet can be useless and misleading activity, and most of those texts are not reliable and professional. However, the most important thing you should do before signing up with the broker is to test the platform, and that is why trial periods and demo accounts are a blessing when it comes to starting your trading career in the Forex market.
Most important features of top Forex Platforms
It is a perfectly reasonable human reaction to require the best possible service for our money, and no one wants to see their hard-earned funds just going down the drain. The same principle applies to the process of selecting your trading platform, and we all want to invest and make deals in a pleasant and efficient trading environment. Here are some of the essential characteristics that your preferred trading portal should have:
Low spreads and fast execution
Time is of the essence here, and trading with currency pairs requires quick reactions and prompt responses to the changes in the market. That is why you need to find a software solution that offers fast execution, and at the same time – low spreads will allow you to make more profits in a shorter period. Reliable platforms will enable you to cut your losses when things turn south, or when the prices start to drop, and that is why a responsive interface is vital when it comes to choosing a broker house.
In case your preferred platform is not web-based, you will have to perform the download of necessary files and install the software package onto your desktop computer. The vast majority of modern software solutions are using Flash technology, which means that they are web-based and can be accessed instantly in the browser. For those of them who are not, you should inquire about the length of the installation process and the complexity of the procedure, and also about the process of installing potential updates and upgrades later on.
Having someone by your side to help you with your first steps in an unknown terrain can mean the world to you, and it can significantly affect your development. That is why customer support is of immense importance when it comes to Forex trading, and a helpful and friendly staff is a must for any broker company that plans to build a reputation in the trading world. In other words, best Forex trading software always comes with a lot of manuals and educational material, including e-books and instructional videos, and there should be an e-mail or phone which you can use to contact the supplier of the software in case you experience any problems.
Additional features of Forex platforms
When it comes to some other characteristics that Forex platforms should have, it is important to note that all traders are different and they require different services. Our individuality makes it impossible to create a universal set of “rules” that could be used to define the best FX platform in the world, but here are some of the elements that are considered necessary by most traders in the current market.
The quality of the interface is perhaps the most important feature of the software, no matter what type of software package we are talking about since this element is in direct contact with the users. In other words, they see and interact with this segment, and that is why it is critical to “get this thing right.” When it comes to Forex platform, most traders will agree that the front-end of the trading portal needs to be ergonomic and intuitive, i.e. it should be easy to use. Furthermore, the platform should be customizable and versatile, and above all else – it simply has to be responsive and efficient.
Charting and other tools
All top rated Forex trading platforms will offer some additional services as well, sometimes free of charge, and some of these tools can be very helpful and functional. For instance, charting is a part of technical analysis that can provide you with information about technical indicators. Similarly, market news feeds and economic calendars can deliver the necessary information about the current state of affairs in the global market directly to your browser, and this information can be of great use when dealing with prices that are continuously going up and down.
The final word
In our guide about the best FX platforms in the world, we covered all the fundamental elements that you should know about when signing up with a broker and using a particular software solution. Platforms come in all shapes and sizes, and that is why you should take your time to perform the necessary research and compare several of those trading terminals before putting your name on the dotted line.
Looking for the best forex platform? Browse through this list and find out the best one for yourself!