Experts state that a venture into foreign exchange can change the course of your life. If someone does their trades in the right manner, then possibilities of financial achievements are endless. In the field of forex trading having good forex trading platforms can make all the difference between conducting good trades and reaping its benefits and carrying out rash trades and not getting any return on your investments.
They are an important aspect not just for new traders but also for those who have been in this venture for a while now.
This article will present a comprehensive discussion about forex trading platforms. So if you are one of those who is starting off and are confused about how to start off with your trades and which platform to opt for, then you have landed in the right place.
What are forex trading platforms?
In simple terms, these are platforms which prove to be an adequate conduit between a currency trader and a foreign exchange broker.
With the use of a forex trading platform, you as a trader will get quotes, charts and also the right interface for placing orders which he/she wants their broker to trade. The fact why such platforms are such a pivotal part of currency exchange is because it allows you to conduct your trades with a proper strategy.
To round off its definition, a forex trading platform gives you the power to conquer the market. Their actionable insights about the forex market enable you commit fewer mistakes, manage your risks and trade with complete precision.
Types of forex trading platform:
There are 2 types of forex trader platform
Local platforms and web based trading platforms.
Web-based platforms are operated by Java languages and are responsive to any given operating systems available over the web. They do not need to be installed on your desktop or any such compatible device.
On the other hand, a local forex trader platform is that forum which is provided by a currency exchange broker. They have to be installed into your preferred machine. They are supported by Mac, Linux, Windows and Android OS.
Which one is the preferred one?
Though this is a tough question to answer as it depends on the trader, however, if one takes advice from experts, they recommend using web based forex trade platforms.
The reason being quite simple, you do not have to pay any extra commission to brokers, and you can also avail certain features such as copy trading. Plus you can refer to forex trading forums and ask for suggestions from some of the best exponents of the venture to increase your personal knowledge about this field.
Tips for finding out the right currency trading platform
One thing which you have to understand is that a trading platform which might prove to be beneficial for one trader might not work for another. While there are some traders who understand the basic aspects of the venture easily, there are some traders who prefer having all technical issues and indicators in their hands while conducting their trades.
In the market, you will find no shortage of forex trading platforms. Each platform comprises of different packages hosting variable features. Hence, for this reason, they differ in their prices.
However what is important for you is selecting a trading forum which suits your style of trading.
So here lies the question- How do you pick one?
The easiest way of finding a reliable podium would be to develop a thorough understanding of all the trading tools as well as have a fair idea about the forex market. Plus along with that, you will also have to understand all the methods and decide which one will suit your trading style.
Having a clear idea about all these aspects will help you filter your search and get the platform which offers tools and conveniences as per your needs.
The second step while selecting a forex trade platform is checking out the profitability of the trading podium. Experts state that this is also an important aspect as there is no point opting for a platform which does not give you the returns or results which you are seeking for.
What you should do is make proper use of real-time demonstrations which are offered by these podiums. The majority of them top podiums do offer demonstrations and so you should not face any issues concerning that.
Do a thorough analysis of the complete system. Check forex trade platform from head to toe. This will assist you in understanding the system nature as well as its complete capabilities. Make yourself familiar with the system and also try to make the system optimally work according to your trading style.
The third step is establishing your expectation out of the chosen podium, i.e. in terms of profits over an elongated time frame.
You can make use of the formula for calculating your expectancy-
Winning probability multiplied by win averages minus losing likelihood multiplied by loss averages. Doing this math will give you your profit trade average.
Higher value means more profit likelihood, but if you come across a negative figure, then this is a clear indication that your chosen forex trade platform is not suited to your needs and you need to shift over to the next one.
Plus another thing here is thinking how often you will be using the podium. Simply multiply your each trade profit average with your scope factor and doing so, will provide you with an idea of how much gain you are planning on acquiring.
The most important thing is to check if the podium gives you a demo account to practice your trades. Demo accounts are extremely important both in a case of perfecting your personal trading skills as well as understanding the efficient of trading podiums. Indeed with a demo account, you can easily check out all the options which are available in the system.
These trail versions are what determines whether the system is tailored to your trading needs of not.
So a word of advice would be when checking out different forex trading platforms, be sure to try out the podium’s trail period account. That will assist you in determining its excellence.
Along with these aspects there are other points which you have to consider looking at:
You will have to check whether the chosen podium is free or are there any nominal charges applicable. Plus along with that, you will also have to check if there are any extra features which are added.
You will also have to check the kind of trading charts which are offered with the system
You will need to check if the system which you are choosing allows for strategy back-testing
You will need to check if the GUI or graphical user interface of the platform is pleasing to the eyes and whether it is easy to use or not.
Also along with the above point, you also have to check if the system makes way for monitoring a lot of information all at the same time.
Properly check the order interface of the system and also the order variants which are available.
Also, check if your chosen system comprises of an API which makes way for extra software programming or not.
Lastly, when checking for a suitable forex trading platform, make sure to check out their MT4 or Meta Trader terminals. The preferable ones would be the podiums which give you MT4/MT5 terminals for your trades.
These are some crucial aspects which you need to consider when searching for quality forex trading platforms.
Now that you have all the information about such podiums, it’s time that you get started with forex trading! Use the aforementioned information to get the right trading platform and attain the benefits which this venture has in store for you.