Forex platforms are among the most essential tools for currency trading, with each platform having its own set of pros and cons. Some platforms offer better signals or news pertaining to the forex markets, while others provide pricing at a faster rate or more ways to secure an order.
Finding the right platform that will suit your particular trading needs and preferences enhances your trading success. With the kind of volatility the market is known for, a reliable platform will allow you to focus on the more important aspects of trading such as trend analysis and mitigating the risks.
Following are some tips on how to find and compare trading platforms that may work for you:
Request for a Demo
When evaluating trading platforms, it is recommended to request for a demo so you can try the system first, and this is usually free. Choose at least 3 platforms to set up demo accounts with. Compare features of each platform. Determine which one is convenient enough for you to use and one that you think you are most comfortable working with. Reputable forex brokers and dealers provide this service for free; otherwise, be wary.
Find out how flexible the platform is
This is in terms of placing orders. Determine the types of orders you are allowed to input. These include market, stop, and limit orders. A good trading platform to consider is one that is extremely flexible and provides as many options as possible.
Check if trading directly from the currency charts is allowed or you need to separately place an order
There are available forex platforms that are already integrated, meaning you can place an order coming straight from a chart. On the other hand, some charts only allow placing of orders upon leaving the currency chart.
Review the available technical indicators
There are various trading signals and indicators to look for, the most common of which are moving averages, trend lines, and volume and momentum overlays. You can find a lot of others on forex trading websites. A good platform offers many of these indicators.
Find out if the system will allow you to back-test strategies
Historical data plays an important role in forex trading. It will be to your advantage if you can view a representation of past trends and data in charts.
Check out the delivery of fresh market news
If new market news are streamed on the same page where the charts are, the better. It will help save you time compared to having to navigate to another page just to read the current news reports. The better systems provide a customizable news window that you can set up depending on your particular preferences.
Follow these tips and you will never get lost on your way to finding the best forex trading platform for you to use.