Forex trading can help you generate extra income and financial freedom learn more here. Forex trading requires both a solid trader education as well as a good trading platform.
There are many Forex platforms online. There are many choices, including MetaTrader4 available to retail traders; Currenex available for institutions and high-frequency traders; and a range of proprietary broker platform options. Each platform has pros and cons. They are targeted at certain types of traders (newbies to professionals, technical traders and scalpers), ).
For beginners, this can be confusing. Let’s have a closer look at what makes a trading platform so great.
1. Speed and reliability
A trading platform that is reliable must be able display accurate prices on an ongoing basis. A small delay in prices can lead to trade requotes, or even loss. A platform that is reliable and has minimal downtime should allow trading to continue without interruptions.
You can use the demo version to evaluate whether streaming price quotes or trade execution time are right for your needs. Also, make sure to check if the Forex broker offers a “no-re-quotes/no-re-pricing” guarantee.
2. Market Analysis
Forex traders often use technical analyses to trade in Forex markets. A platform that offers auto-refreshing charts should allow traders to see market data in multiple times frames (hour, hour, daily, weekly). You should have a variety of pre-set technical indicators (RSI, Bollinger Bandss, ROC, Moving Averages, etc.) on the platform. These are the most popular indicators used by traders.
An ideal Forex platform must offer reliable, real-time news from a trusted newswire provider. This would allow traders the opportunity to benefit from economic developments. For Forex traders who employ scalping strategies, it is crucial that a platform provides single-click execution along with the ability for trades directly from charts.
3. Trade Multiple Asset Types in Different Marketplaces
Forex is not an open market. This means there are many interactions between Forex currency pairs and other asset classes. The S&P 500 has a strong positive association with the Aussie Dollar(AUD), while the Canadian Dollar has a positive relation to the price of crude oil, etc.
You should ensure that your Forex trading platform allows for seamless trades across multiple asset classes like equity, commodities, Forex, and even debt. The IA platform also allows you to trade CFDs with high liquidity. A Forex trading platform with all the above features will make a great platform. Be sure to check out demos of the different platforms before you finalize your decision.