Foreign Exchange Platforms

 

A Foreign Exchange platform is computer software that serves as a channel for Forex market information used in online Forex trading. The software presents information such as the current exchange rates for currencies, charts, and data regarding the market. There are two types of platforms available. Historically the only option available was software you download onto your computer, that connected through a private network to display information. Although this option still exists, web-based platforms are becoming far more common. Most times you can download a web-based platform for free from various Forex websites, however some more advanced brokers may charge a minimal fee. Regardless, a Foreign Exchange platform is beneficial to those with internet access, and highly convenient for those not wishing to leave their homes.

FACTORS TO CONSIDER WHEN CHOOSING FOREX PLATFORMS

1. DOWNLOAD CHARGE

As mentioned previously, you can download some Forex platforms without a charge. However, those platforms that do have charges generally have additional features that can enhance your trading session. This is something to keep in mind when trading.

2. COMPATIBILITY

As with any computer program, it is important you check the system requirements before downloading, to be sure you computer can run the platform. Pay special attention to which operating system the program is designed for. Web-based trading platforms can generally be run on any operating system, however they may prefer a specific web browser. Review the download page thoroughly.

3. HISTORICAL DATA

When looking for a platform that fits your needs, consider the importance of your platform keeping a record of all transactions. An exact history of every trade is a must-have in this industry. Not only do you need these on a daily basis for real-time trading, but also on a long term basis so you can review mistakes.

4. TECHNICAL INDICATORS

The inclusion of technical indicators can be of great value when searching for the proper platform. It will show you all previous prices of a given currency, giving you extended knowledge when trying to predict the future value of a currency.

5. GRAPHICAL USER INTERFACE (GUI)

The platform you select should be pleasant to look at, and simple to operate. Any tools included in the platform should be easy to find, and utilize.

6. BACK TESTING

Back testing is a Forex strategy where traders are allowed to simulate past trading strategy based on previous data, to see its effectiveness in the future. Check to see if the platform you are considering supports back testing, as it can save you a great deal of money that may be lost in trial and error.

GETTING STARTED WITH FOREX PLATFORMS

Most of the Forex programs on the market today offer free trial periods so you can test their software, and it would be wise to download a few of them to take advantage of this. You can open up a demo account before you start trading with real money. This is a great opportunity to put your skills to the test to see if you come up with favorable trades.

When you feel that you are confident enough to trade for real money, start up with a micro or mini account with small leverages. Start from the bottom and work your way to the top. That way, you can almost guarantee yourself profit with minimal loss.

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