Forex trading is an excellent way to create additional income and financial freedom. High quality forex trading platforms and extensive trader education are prerequisites for Forex trading success.
There are many online forex platforms available today. MetaTrader4 retail traders can use, Currenex institutions and high-frequency traders can use Currenex and other broker platforms. Each platform comes with its own set of advantages and disadvantages. ). We understand that it can be confusing especially for newbies. So let us take an in-depth look at the main components of a good trading platform.
1. Reliability
The most important aspect to a good trading portal is its ability display accurate price information on consistent basis. Even small errors in pricing information can cause trade requotes or loss. A good platform should have minimal system downtime in order to facilitate smooth trading without major disruptions.
Try the demo version to find out if the streaming prices and trade execution time suit you. Check to see if the Forex broker offers an “no Re-quotes/no Re-pricing” guarantee.
2. Market Research
Forex traders use technical analyses to trade the Forex market. Auto-refreshing charts are essential for any platform that allows trader to analyze market data across multiple time frames (1H-4H, Daily/Weekly, Weekly, Daily, etc.). The platform must also offer a number of popular pre-set technical indicators (RSI Bollinger Bands Bollinger Bands ROC Moving Averages etc.). which are used frequently by traders.
A good Forex platform should offer reliable live information from a trusted newswire provider. This would enable traders and investors to take advantage economic events. Forex traders using scalping trading strategies need a platform with single-click execution that also allows them the ability trade directly from a chart.
3. Ability trade multiple asset types in different markets
Forex market functions in a context of interdependence. It is evident that many Forex currency pairs have co-relations with other asset classes. For example, the Australian Dollar (AUD) has a strong positive association to the S&P 500. The Canadian Dollar has a positive relation to crude oil prices etc.
This is why you need to make sure that your Forex trading platform can seamlessly trade across multiple asset class such as stocks, commodities, Forex, or options. It is a bonus to have an IA platform that allows you trade in highly liquid CFDs. Forex trading platforms with all the mentioned features will perform well. Check out demo versions of several platforms for all the features mentioned before you make your final decision.