How to Choose a Forex Trading Platform

Sun, Jan 11, 2015

Financial Advice

Forex is a complex and little understood field. Many people choose to invest in more traditional areas due to their own ignorance, but for those who take the time to do their research and gain experience, it can offer great rewards as well as great risks.

One of the keys to becoming a successful forex trader is choosing the right trading platform. A trading platform is a type of software that functions as an information conduit between traders and brokers. Many investors now conduct their trades online, and the platform they use must contain the same sort of information as its more traditional alternatives: quotes and charts, for instance, as well as an interface for entering orders. In addition, they require real-time and historical data for the trader to analyse.

The choice of forex platforms is extensive, but all good platforms share a few things in common.

 

Accurate Quotes

One of the most obvious and fundamental features of a good trading platform is that the quotes for the currency pairs you are working with are accurate. This is absolutely vital in order for you to spot prime opportunities and risks as they arise.

 

Reliable Deal Execution

When you execute a trade, the platform you use should do this quickly and reliably, using the figures you’ve been quoted. Platforms that function slowly or update figures as they transact prove ineffective at best, and costly at worst.

 

Useful Order Placement

Take a look around different platforms before you make your decision, to ensure that they are optimised for the quick and efficient entry of all the order types you will be using, such as take profits, stop losses and trailing stops.

 

Optimised Account Management Functions

Forex moves quickly, so you need to know that you can keep track of your account in terms of balance and profit on a real time basis in order to properly manage your portfolio.

 

Useful and Efficient Tools

The best trading platforms, like those available from ThinkForex, should include a whole host of analytical tools, technical and fundamental, for you to use, such as charting apparel, popular indicators and live news feeds. These should be accurate and reliable, with charts, graphs and figures updating on a real time basis.

 

Data Security

Your trading platform is likely to have access to private and confidential personal and financial information, so it’s really important that this is kept safe. The platform you choose ought to conform to all relevant internet and industry standards, and account information should be backed up to guard against data loss.

 

A Reliable System

System downtime should be minimal, with trading platforms available almost infinitely. Any truly necessary updates or improvements to the system should be implemented outside of key trading periods to prevent any disruption to deals and missed windows of opportunity.

 

The prevalence and popularity of forex trading platforms means that there are many different options and brokers to choose from, giving you the leeway to find one that really complements your needs and your strategies. Do your research thoroughly and choose the right one, and you could one day number amongst forex’s many success stories.

Leave a Reply

CommentLuv badge