How to Choose a Forex Trading Platform
Forex traders who are serious about maximizing profits must take the time to choose a forex trading platform that will allow them to do just that.
Since not all forex trading platforms are created equal, traders must take steps to ensure that the platform that they are using is able to help them produce the results that they are seeking.
Whether you are using the platform provided by your forex broker or are using a 3rd party platform such as MetaTrader4 or MetaTrader5, there are certain features which you need to look out for when making your selection. Here are a few features you need to bear in mind:
The Accuracy, Reliability and Speed of the Platform
- When it comes to forex trading, accuracy, reliability and speed are of the utmost importance. Since the quality of your trades are dependent upon the accuracy of the information upon which you make decisions, the platform that you choose should provide highly accurate price quotes. In addition, the quotes must be available in real time to facilitate swift trading action. A trader should be able to view prices and to act on that information as soon as the change occurs in reality. Minimum downtime is absolutely essential when choosing a forex trading platform. This will ensure that the trader can take advantage of all potentially profitable trading opportunities, without being placed at a disadvantage due to platform downtime.
Tools that Facilitate Both Technical and Fundamental Analysis
- The best forex trading platforms are those that support the trader with both technical and fundamental analysis tools. At the very least, the platform should allow traders to create trading charts and to access the most common trading indicators. In keeping with the accuracy and speed requirement above, the selected trading platform should allow the trader to see chart updates in real time, spanning several different timeframes. A high-quality newsfeed that provides reliable economic and market information, is also necessary.
The Security of the Trading Platform
- With cybersecurity becoming a very real and growing issue, it is important to choose a platform that is secure. The last thing that a trader needs to worry about while trading, is that the integrity of their personal information is being compromised. The forex trading platform that is used must observe standard internet security protocols and must have the ability to back up all account information. Refuse to conduct business on a platform that does not operate at the highest level of security.
The Option of Automated Trading
- Not all traders have the time or the willingness to sit around a trading screen waiting for the perfect opportunity to make a trade, or to take profits. Ideally, a trading platform should allow for the flexibility of automated trading, allowing the system to execute transactions automatically on the trader’s behalf.
When all is said and done, a forex trader is only as good as the forex trading platform that they choose. Therefore, choose your forex trading platform wisely!