Trading the forex market is one of the best ways to develop an additional revenue stream and guarantee financial freedom for you and your family. As most experienced traders will tell you; comprehensive investor education and a good trading platform are the two main requirements for success in Forex trading.
A number of online Forex platforms are you can find today. Some situations add the ubiquitous MetaTrader4 for retail traders, Currenex for institutions and high frequency traders and various exclusive broker platforms. Trading platform Each of these platforms has their own advantages and drawbacks and they are generally developed to target a particular type of investor (newbie, pro, technical investor, scalper etc. ).
Since this is very confusing, especially to newbies, let us take a close look at some of the main features which type in the making of an ideal trading platform.
Speed and Reliability
The main area of a good trading platform is its capacity to display accurate price information on a regular basis. A good small lag in displayed prices can lead to trade re-quotes and losses. Similarly, a good platform should have minimal system downtime to allow for seamless and smooth trading activity without any major interferences.
Use the demonstration version of a platform to see if the buffering price quotes and trade performance time are to your choice. Additionally, try to find out whether the Fx broker offers a "no re-quotes/no re-pricing" guarantee.
Most Forex traders use technical analysis to trade the forex market. Hence, it is imperative for a good platform to have auto-refreshing graphs which allow the investor to handle market data on multiple time frames (1H, 4H, Daily, every week etc. ). Additionally, the trading platform should have a large number of popular set technical indicators (RSI, Bollinger Bands, ROC, Moving Averages etc. ) which are popular by traders.
On the fundamental side, an ideal Forex platform should also have a reliable live news facility from a most respected news cord service which will help traders take advantage of economic events. Finally, a platform that provides single click performance and also offers the ability to trade directly from a chart is a must for Forex traders who use a trading strategy based on scalping.
Capacity to trade Multiple Asset Types in numerous Markets
Since the forex market does not function in seclusion, it is obvious that there are a number of co-relations between various Forex currency twos and other asset classes. For example, the Aussie Dollar (AUD) has a very good positive co-relation to the S&P 500, the Canadian Dollar has a positive co-relation to the price of primitive oil etc.
Keeping this in mind, it is very important to choose a Forex trading platform that allows you to trade faultlessly across multiple asset classes like fairness, items, Forex, debt, options etc. IA platform which allows you to trade in highly liquid CFDs is an additional bonus.
Any trading platform that has all the above-mentioned features will make for a good Forex trading platform. Utilize the free demonstration versions of various platforms to check for those features before making your final choice.