Forex trade would not be possible without appropriate software. This software has enabled traders to open, close and manage market positions – to analyze the market, place trades and monitor your account. This makes trading platforms indispensible in modern markets. Needless to say, these forex trading platforms are a growing part of forex markets. They are usually offered by brokers either free of charge or at a discount, as long as you maintain an account with them and make a pre-determined number of monthly trades.
Brokerages entrust creation and maintenance of their trading platforms only the most competent programmers with degrees in computer science and programming, proficient with various operating systems and programming languages, as well as web servers.
Currency trading platforms
Currency trading platforms are of particular importance, as they apply directly to forex markets. They are designed to assist currency traders with their forex trading and analysis. Their properties and costs vary to a large extent. Their features should include functionality, fee structure, charts etc. Forex traders usually offer a free demo version of their trading software, so make sure you try everything out, get familiar with as many different trading software products as possible so you can determine which one suits your financial needs best.
Types of trading software
Forex trading platforms enable their users to type in and execute forex trades through their broker. You generally need little more than a stable Internet connection and a Windows-based operating system. Some of them feature multiple trading accounts, charts and some form of trading support.
Forex technical analysis software is a generic term for a number of computer programs that enable you to review foreign exchange rates through various charts tracking exchange rates over several time periods (in order to analyze their performance history) and using various technical indicators. Basically, they help you draw trend lines. More advanced versions will involve Fibonacci retracement and projection levels, as well as advanced drawing options (Gann lines), Pivot points and various other technical indicators. Some can even identify chart patterns and count wave progressions.
Forex trading signal generators alert traders if a trading opportunity has been identified. They indicate recommended levels at which forex traders can initiate and close out positions, effectively managing profits and losses.
Automated forex trading programs operate on an algorithm which executes trades without trader’s involvement, and are a common feature on MetaTrader4 and similar platforms. Not only are they a time-saving feature which can double as an educational tool, but they also eliminate the emotional factor which would otherwise prove a hindrance. It is important not to confuse automated software with forex robots, as the latter are usually a scam (they always underperform). Furthermore, their future trading results are unreliable at best. If you eventually decide to try out a forex robot, make sure you test it thoroughly before trusting them with actual money. Independent reviews also help differentiate promising and useless ones.