NEW YORK (ForexNewsNow) – Every online forex broker offers its own suite of trading software platforms with its own set of advantages and disadvantages so it’s important to know what to look for in a forex trading application before deciding to invest with this forex trading broker or that one.
Thankfully, almost all foreign exchange brokers offer free demo accounts so you can test drive the car before buying it.
In this article, we will review forex broker trading software and discuss what to look for in a trading platform.
Download vs. Web-based
Most forex trading brokers offer a set of platforms designed to cater to an audience that would like to access their trading accounts via different channels: a PC, a Mac, an iPhone, a tablet, etc.
In order to do this, almost all foreign exchange brokers offer both a downloadable trading platform and a no-download web-based trading interface.
The most popular downloadable forex trading platform is most likely MetaTrader, which is one of the most widely used trading applications. The advantages to the downloadable trading platform is that it’s typically more stable, offers more complex and in-depth charts and graphs, features more indicators and, in general, is a more robust platform that provides a broader variety of financial data. If you think about it, in order to be able to support a heavy stream of data, it’s almost necessary to download and install a trading application; providing all of this information via an Internet-based platform is not easy.
However, there are many advantages to an online forex trading platform as well. Firstly, web-based forex trading applications enable Mac users to trade forex and since we are Mac users, that point must be underlined. A Web-based platform also allows traders who are traveling or at work (though we don’t recommend trading forex at work!) to have easy access to their forex trading brokers’ services at anytime via the Internet. Some may also feel that there is also something to be said about “keeping it simple” in your forex trading and, in that case, a web-based forex trading platform does help achieve this goal by just providing the necessities needed to trade: charts, instrument index, rates and order execution windows.
Of course, each downloadable and Web-based forex trading platform differs from one another: Markets.com’s MetaTrader4 is different than FXCM’s Trading Station; ForexYard’s online Web Trader (powered by Leverate) is different than Plus500’s Web Trader, etc. But, as mentioned above, the great thing is that a trader is free to test each one out first before deciding which to go with by creating a free demo account.
One thing to look for in your prospective forex trading broker is whether or not the brokerage offers automated trading. Many online forex brokers, such as ForexYard for example, offer a trading platform that is designed to enable traders to trade in an automated fashion by either employing predetermined trading strategies or mirroring other traders’ decisions. One such platform which is widely used is Tradency’s MirrorTrader platform, which one can access by trading with ForexYard. This automated trading platform allows traders to view, analyze and evaluate signals from experienced forex traders and execute the signals in their account. MirrorTrader offers users flexibility by giving them the choice of either automatically mirroring all the trades of the selected strategies or viewing the strategies’ signals and mirroring only selected trades.
Automated trading can be attractive for newbie traders who would like to borrow strategies and tactics from more experienced traders; however, one must exercise caution when using automated trading to make sure one is employing the right strategy and mirroring the right people.
Alerts and Signals
One thing that can really help increase your trading profits is knowing when to enter and exit a forex trade. In an effort to help traders obtain this information, many forex trading platforms offer forex signals and mobile alert services that will notify you of a potential upcoming forex setup.
Some foreign exchange brokers only offer these alerts to “VIP” users or may require that traders subscribe to these services. In any case, it may be worth inquiring with your potential forex trading broker to check whether or not this service is offered.
If the signals are accurate, this can make a huge difference in your trading bottom line.
There is a long list of features, services, tools, data, and much more that one should look for when selecting a forex trading platform: Does the platform allow scalping? Do they offer trailing stop orders? Can traders trade directly from charts? Do they offer one-click trading? And the list goes on…
The most important thing to do is to test drive the forex platforms for yourself and determine what you do and don’t like and what is essential for you to have in your forex trading platform.
To conclude, make sure to take your prospective forex trading broker’s platforms on a long test drive before investing with real money. After all, finding the right tools to use in order to extract money from the financial markets is half the battle.