Best Forex Trading Platform – How to Choose the One
- Forex Trading Platforms – How to Choose the One
Forex trading is one of the smartest ways to build a supplemental income. You don’t need a lot of money to begin trading and you can trade during any time of the day on the five weekdays. The market has a huge profit potential and you can place your trades directly. The flexibility of online trading makes it possible for you to learn forex at your own pace. Once you have gained the confidence, you can start trading with real cash and realize profits. The success of forex trading hugely depends on the trading platform you choose for yourself.
In order to trade currencies, you have to register with a licensed and approved forex broker. The forex broker will provide you with a trading platform that you can use to actually trade currencies. You can also purchase third-party trading platforms if you want to customize the platform for your needs. The forex brokers provide you with a demo account with dummy cash so that you can practice trading. Once you fund your forex account, you can use the trading platform to trade for real cash. You should always analyze the trading platform provided before you choose a forex broker.
- Ease of use
All trades are carried out through the trading platform and it should be easy to navigate. If you are not comfortable with the portal, you will find it difficult to enter and exit trades. You should be able to execute your trades quickly and easily. The trading platform should enable you to set up trades without any mistake.
- Unhindered accessibility
The forex market stays open all the time on five days of the week and your trading platform should be accessible at the time of need. You may live in a different time zone than that of your forex broker. However, you should be able to use the trading platform whenever you want without any problem. The trading platform should have a customer support team to help you with problem resolution at odd hours. There should be no downtime because you may miss the market for a few seconds and your profit can easily become a loss.
- Accurate quotes
You have to make trading decisions based on the currency pair quotes. The trading platform should provide you with real time accurate quotes to eliminate all kinds of guessing. If the quote is not accurate, you will result in making a losing trade without even realizing it. The trading platform should always stay online to provide you with the exact quote during any time of the day.
- Trustworthy deal execution
The forex dealer should provide you with a trading platform that provides reliable execution of trades. The deals should be opened and closed at accurate times to avoid re-quotes. The re-quotes can be potentially dangerous because the forex market is extremely volatile and missing a deal by even a few seconds can be expensive.
- Options for long and short trades
In the forex market, you can either go long or short depending on how you want to trade. The trading platform should allow you to clearly define and execute your trade. You should understand how to navigate the trading platform for both long and short trades. You should require minimal training to use the trading platform according to your convenience.
- Options for order types
To minimize loss and maximize profits, you can execute multiple order types in the forex market. The trading platform should allow you to place multiple order types such as stop loss, take profit, trailing stops at a minimum, One Cancels Other (OCO), etc. These will help you to predict your loss and close the trade before wiping out your entire investment. There should also be an option to close all open positions if you want to exit trading right away.
- Availability of technical tools
Before trading for real cash, you have to analyze and understand the forex market thoroughly. Forex trading involves a lot of research using which you can predict the market conditions. The trading platform must be equipped with an array of technical analysis tools that present the results in terms of easy to comprehend charts. There are numerous indicators for currency pairs and the trading platform should be updated on real time basis. Only the latest analysis details will help you to make better trading decisions. Apart from the technical analysis, the trading platform should also provide you fundamental analysis results. Reputable new feeds must be supplied directly by the trading platform for accurate understanding of the market.
- Account management features
The forex trades are directly tied up with your forex account. Using the trading platform you should be able to seamlessly manage your accounts. There should be options to connect your forex account to the trading platform to deposit and withdraw funds whenever you want. Account integration will make it possible for you to respond quickly to margin calls. In most of the cases, you have to make trading decisions depending on the amount you have in your forex account.
- Assurance of data security and integrity
You share your highly sensitive financial and personal data with the trading platform and it must be kept secure at all times. Any software is prone to failure and breach and the trading platform must provide protection against all attacks. The account information and trading instructions must be stored in a secure backup location to prevent potential data loss. Appropriate and accurate internet security protocols should be employed to protect your data.
- Support for Autobot integration
Modern day forex Autobots help you to automate your trading plans. Depending on the trading strategies, you can enter and exit trades automatically by configuring the automation software. These Autobots run on top of the trading platform executing trades on your behalf. The trading platform you use should allow for this integration and you should be able to test it with the demo account first. You should, however, understand that there is a huge risk for failure when you use Autobots to execute trades in the highly volatile forex market.