To trade forex online, one must first decide which broker to use. It is vital that new traders research the broker they want to use. The forex market is competitive and there is always a need to attract new customers. Brokers can appeal to traders by offering low trading costs, good trader support, and a choice of currency trading platforms.
The trading platform is one of the most critical elements that a new trader will need to identify. They need to ensure that the platform can meet all their requirements, whether it is speedy and easy or stable.
Currency trading platforms need to offer security for your deposits, no matter how large or small. Another important feature is the ability stream real time data to clients. This applies more for stocks and commodities trading on an actual exchange. This data must be presented so that users can locate key information quickly, such as listing different currency pairs.
Trade execution should also be straightforward so that you don’t make mistakes like putting in sell orders when there should have been buy orders. After the trade, you can easily exit the trade with a profit or pip on each trade.
Good software should not only allow for all the main functions but also make it easy to create and modify stoploss quickly and easily, whether they’re fixed or moving. Charting software adds a valuable feature to any trading platform. Charts are critical in providing the data traders use to make their trading decisions. The more precise the calculations, the better the charting software on the platform. A charting program should have the ability to display trading periods of very short duration. The most popular trading chart period is the 4-hour chart. Charts should also allow for information to be displayed over a longer time frame, such months or years.
Other features worth mentioning are platforms which can be accessed using mobile devices such PDA’s. They allow for greater flexibility.
You can choose to have the software developed by a third party and used by several brokerages. MetaTrader 4 currently stands out as a popular example. While the first type is generic, it is designed and built by an individual forex brokerage and is intended for their use. Many companies that make additional forex trading programs like chart indicator packages or forex bots have built their products to work with generic platforms. In-house software can sometimes have integration issues. Nevertheless, advanced forex robots are proving to be more popular than ever. This means that integration issues can be solved easily.
If you are a U.S. citizen, you need to know that some brokers won’t allow U.S. citizens to trade with their broker. This is because the SEC is overprotective of its citizens. Unfortunately, it isn’t just forex.
The free demo account provided by many online brokers is a great idea. First, test it out to see how it works. Then you can decide if this is the right platform for you.