All the major forex currency pairs are volatile, active, event-driven and hence highly vulnerable to any significant news release that can take in any part of the day. Forex traders prefer to have a constant hold on the market quotes, news and price charts. This has made a forex trading application very prevalent among currency traders around the world.
Trading apps are available via the play store in Android and App store in Apple. One needs just to download and install it on their device. They are convenient, easy to use and provide one-click trading services. However, before one goes for a trading app, it is worthy to consider the following questions.
- Is the app free? Alternatively, does it charge for services?
If you open the play store and type in words “Forex app” a horde of application will adorn your smartphone’s screen. Most of them will be free while some will charge a nominal amount.
Free apps will provide basic functionalities such as opening or closing a trade, check for news updates and set stop losses. A paid forex trading application, on the other hand, will allow traders to implement strategies and analyze the market technically using indicators. Experts recommend going for a paid app that comes with a few extra bucks but provides a litany of services.
- What type of technical indicators does the app provide?
A reliable forex app should allow his user to perform a technical analysis of historical prices using market indicators. It helps to determine the market pattern and potential price fluctuations. An investor will not be able to place his trend without identifying market trends. Therefore, technical analysis is crucial.
- Does the app support back testing?
To ensure the prominence of their strategy, traders often perform back testing. A reliable forex trading application will allow a trader to strategize their moves based on historical data and provide them with accurate results.
- Can you trade from charts?
Any well-designed forex app will allow investors to trade currency using all the three types of charts – Line Charts, Bar Charts and Candle Stick charts. The primary function of a chart is to record the price fluctuations over a period. It also demonstrates open and closing prices for a particular currency pair.
- Is security ensured?
A trader’s account is his asset. Leakage of account information or probable intrusion can be detrimental. Whether free or paid, any forex trading application should ensure complete security and encryption of his trading account. This includes privacy of account balance, trading strategies, and personal information.
An overall summary:-
A trading application is designed to facilitate a smooth and seamless trading experience. It is not worthy to choose an app that does not serve the basic purposes of forex trading. However, whatever may be the forex trading application, a reliable internet connection is a must for hassle free trading. For traders looking to shift their trading platform to mobile devices should consider the above questions before choosing a particular app.