Often newbies find it hard to decide the entry point of trading forex. Well, the simplest method to do is by deciding on a reliable trading platform. Now, as a trader, you may ask the needs of a trading platform as you are habituated in trading forex through your broker. Then, before you decide on the best platform to trade forex, the first step is to get some insight into its workings.
Forex trading platforms – an overview:
Whether you are in New York, Shanghai, Melbourne or London, a trading platform is a software through which investors and brokers can perform currency trading from anywhere around the globe. It helps investors with trade execution and forex trading analysis. Similar to trading platforms use to deal in stocks or futures, FX trading platforms vary widely depending on the features and cost.
Best platform to trade forex– a live example:
For instance say, John is an investor who trades forex through is broker. Whenever he checks for some crucial news or data release, he informs his dealer and places his currency order. Suppose, he trades in EUR/GBP which is currently running at 1.1200.
However, a sudden political outbreak takes place in Great Britain. This will take EUR/GBP to 1.1209. As a result, John’s first step will be inform his broker to set his stop loss at 1.208. However, due to delay in phone calls and other procedures he loses a total of 3 pips gaining only 6 pips in the process. In such a scenario, the best platform trading forex comes in handy.
Choosing your trading platform:
A horde of trading platforms roam the market, but the primary things to look out for are product quality, fees structure, functionality and other features such as charts. In addition to this a reliable trading platform should offer the following features:-
Maximum visual representation with multiple real time charts and predictions based on other technical as well as fundamental analysis.
Position monitoring and real tie margin.
Economic calendar and authentic market news.
Accurate trade execution within minimum time.
Transparency, security, performance and simplicity.
Demo and live market accounts that allow trading from charts through back testing.
Other notable features:
The best platform to trade forex must be designed to execute currency trades most effectively resulting in maximum returns. In order to test buy and sell rules, most trading platforms are equipped with strategy testing and unique analysis features. Based on these analyses a trader should be able to modify or change his trade in order to minimize any potential loss.
Who can benefit from a trading platform:
Be its veteran or a new trader; trading platforms are useful to one and all. For new traders, it provides an opportunity to get a feel of the forex market through demo accounts. It prevents any accidental or unintentional money loss and helps a trader choose the broker offering the best service.
Seasoned traders, on the other hand, can use this platform to strategize their trades. Whether they want to trade with charts or through candlesticks; the best platform to trade forex will offer every such possibility.
A forex trading platform not only helps a trader to deal his currency pairs nut also saves time and increases accuracy. However, one should opt for the best platform to trade forex to avoid any fallacy or redundancy in trade.