How to choose a forex trading platform
It can be intimidating to choose a forex trading platform when you first start trading – here are some features that any good forex trading platform should have:
Does the forex broker offer information about the security measures of its platform? Your trading and personal data should be encrypted, so that your money and identity are secure, whether you are paying and being paid through PayPal or online bank transfers.
The forex broker should also offer advice on how to increase your online security – I’d be very suspicious of one that didn’t because they might be making themselves liable if there are any problems.
Also, are there backup systems where your information can be stored in case of an IT problem?
When can you use the forex trading platform? As forex is a 24-hour a day market, 5.5 days a week, look for something that you can use constantly. Even when the market is closed, you want to be able to place orders to open when the market does.
The trading platform should also be efficient – if it is slow then the prices at which you are trading might be out of date. A good forex trading platform should update several times a second.
If a forex trading platform is unreliable, slow or prone to interruption, a trader can miss a quick opportunity. A platform that offers one-click trading will allow you to buy or sell forex contract with one click, which means there’s no need to deal a ticket, and you won’t miss the price you want.
Trading style suitability
Does the trading platform suit your trading style?
Is it easy to understand, or can it only be interpreted by a Wall St retiree? Look for a platform where it is
easy to search for your market, and, if you want to trade more than forex, look for one that also allows you to trade on shares, options and indices.
Where are you trading from? If copy trading you use a Mac, can you use the platform on it? Likewise, can the program be accessed using different browsers and different smart-phone handsets.
Basically, does it do what you need? A good forex trading platform should be customisable to suit your trading strategy – does it allow automated trading, and does it allow you to micromanage every trade. The trading platform should be able to alert you to good trading opportunities, as well as accept complex orders, including the various stops and profits that the forex broker offers, so you can easily minimise your risk while maximising your profits.
Does the forex trading platform have a separate charting platform, and how easy is it to navigate? And, if you want to trade from your iPhone or Blackberry, can you access these from your handset? And, can you trade directly from the charts, or do you need to deal a ticket?
Depending on your level of experience, you might want a charting package with a pattern recognition tool that will monitor the markets on your behalf, and could even let you know when the chart patterns are indicating trading opportunities.