While choosing the best forex trading platform is important, the key is to not set any kind of unrealistic expectations before you begin trading. A lot of people do not understand that currency trading is not a get-rich-quick scheme.
What is a Forex Transaction?
Foreign exchange also is known as Forex, is a decentralized global market where all the currencies of the world trade. The average daily transactions exceed $5 trillion in volume, which also makes it the most liquid market in the world.
All forex trades have two currencies betting on its value against each other. Did you know that the currency trade is based on what you think is the actual value and where it is headed in the near future? The possibility of trading a currency ‘up’ and ‘down’ is very easy. If you think the value of a particular currency will increase in the future, you can buy it check best currency exchange rates here, but if you think the value is likely to decrease, you can easily sell it.
The forex marketplace requires a precise balance between high risks and rewards. To execute a good deal it is important to choose a platform that has the best analytical tools, technical indicators and supports automated trading strategies
Guidelines to choose a Forex Trading Platform
- Reliability: Check and ensure that the trading platform gives accurate information. Verify the speed of data transmission and order execution. The information should be in real-time and the platform should be accessible at all times when the market is open.
It is also important that the platform does not crash or freeze often, especially during the time of a global event or news.
2.Security: Your personal information and funds should be protected at all times. A good platform will have the right measures in place to ensure complete security of personal information along with back up.
Make sure to check the type of data encryption that is used by the platform.
Good trading platforms have separate synced servers for data storage, for complete recovery of data, in the event of any loss.
3. Account Management: You should be able to manage your trades and your account independently as well as with your broker’s assistance. This will ensure that you have access to the market all the time to capitalize on maximum opportunities.
4. Market Analysis Tools: A good forex trading platform should have the latest tools for all technical and fundamental analysis. Trades are also based on technical indicators, and complete access to such information within the trading platform is essential.
The platform should also be able to analyze your past trades and give you a future forecast.
5. Trading Function Automation: Forex trading can open a position, set automated stop loss to take the profits that close the trade.
A good sophisticated platform has this inbuilt functionality to conduct such trading strategies on your behalf, once you define the parameters. Automation like this eliminates the need for constant monitoring.
6. User Interface: The overall navigation on the platform should add to the user experience. The charts and graphs should be easy to access, grasp and apply. The platform should be optimized enough to open multiple graphs at the same time for quick analysis.
7.Regulation: The forex broker should comply with all necessary regulations. Good forex platforms have the required licenses for forex trading. It is good practice to research other platforms as well before making a selection.
8.Markets on Offer: Forex market does not function in seclusion, there are co-relations between various forex currency pairs and other assets.
Make sure to choose a trading platform that does not hinder your trade across multiple assets like equity, debt, forex etc. To avoid this use the free demo versions offered across various platforms before making the final choice.
9.Trading Platform compatibility: As mentioned earlier it is important to check and verify all the trading tools the platform is offering. It is equally important to make sure the trading platform is compatible with different browsers and computer operating systems.
Don’t forget to read online reviews to get the correct picture about a platforms reliability and responsiveness to customer challenges.
When you trade with a sound and robust platform you have a definite winning edge. Getting a demo version is a great idea to get a taste of services offered.