Forex trading has become more popular than ever. To meet the demand, more brokers are entering the industry. This has resulted in a proliferation forex trading platforms. Let’s read more about Best Trading Platforms 2023.
It is important to remember that the trading platform is the core of all forex trading activities by any broker.
How can you ensure that you select the best trading platform to meet your needs?
You can use these 6 criteria to help you decide if a forex trading platform is right for you, regardless of whether you are new to trading or an expert trader.
1. Timeliness. Is the forex platform one of the more advanced and well-established systems that uses sophisticated technology to give you real-time, up-to date quotes? This is vital as real-time streaming quotes platforms will enable you to monitor your account and position in real time. It’s also possible to do this 24 hours per day since forex trading doesn’t stop. Traders can have complete control over their funds with the real-time streaming quote platform.
The execution of orders can be slowed down by some brokers. This is a serious issue, as it will negatively impact your trades. The rate of the currency pair could change during this time, so you may have to enter the market at another rate than you intended.
2.Easy to use software- No need for downloading. It should be easy to use the software. Although there are desktop platforms or trading solutions, they do not allow for real-time information or control over trades.
3.Trading Rates-Some preferred trading platforms have a freeze system. This allows for selling and buying for a fraction of the rate you see, regardless of fluctuations in rates. This means that the rate that you see and freeze is what you receive, so fluctuations and lapses of even few seconds can not cause you to lose money.
4.Easy Money Deposits – Is it easy to make money deposits and have these reflected in my trading account instantly? 4.Easy Money Deposits – Are there easy ways to deposit money into your account? If so, are these immediately reflected in the trading account?
5. Competitive Spreads: Currencies cannot be traded through a central exchange like stocks or futures. Spreads can vary from broker to broker. A variable spread is used by some brokers. While it might seem nice and small when the markets are quiet, they can raise the spread when the market moves in your favor. This makes it more difficult to make profits. This is why you should always verify the information before choosing a trading platform or broker. Fixed spreads in the trading platform are good, especially if you use stop loss as part of your trading strategy. Otherwise, the broker may change the spread according to market conditions. You could find that your trades hit stop levels that they shouldn’t.
6. Technical Support – The forex market is open 24 hours. Your broker should provide support 24 hours per day for their trading platform. Ask questions about their support as brokers may not provide the same support for retail clients as they do for institutional clients.