One of the great things about trading Forex online is the amount of support software that is available, but choosing the right Forex software can be overwhelming. This information-based article will help you understand what options are out there.
There’s a number of online Forex trading tools you can incorporate into your trading strategy that can help you trade more effectively, so we’ve listed a few of the most effective and worthwhile ones here:
Forex Signals Software: Much like other markets and financial environments, the Forex market often provides signals or indicators of an impending change. These can be changes in economic sentiment, aggressive fiscal policy changes, announcements in major markets and significant weather events.
When one or more of these factors occur, small changes occur in trading markets or behavioral shifts occur which signal an impending change in exchange rates. Sophisticated Forex software can read these “signals” as reliable indicators of exchange rate changes and interpret them in a way that gives you a “heads up” as to what’s likely to happen in the market soon.
By using these signals to inform your trades, a trader can keep one step ahead of changes in the market and make effective trading decisions.
Good Forex trading signals software can act like a brief glimpse into the future and many online trading platforms include signal indicators as a standard feature. Dedicated signal software however is often more precise and more reliable, so getting a piece of dedicated software can be a good idea.
Automated Forex Trading Systems: These are highly complex pieces of Forex Software that can perform the entire range of Forex trading actions on behalf of the user. Many managed Forex trading companies incorporate automated Forex trading software into their wider trading system. However, the software they use is customized to their trading platform and broker experiences and isn’t publicly available.
These automated systems can trade effectively entirely on their own with no human intervention at all. There are, however, a number of commercially available pieces of automatic trading software – usually designed by professional traders – that perform well.
While an automated Forex trading system can do it all for you, you can also set your own trading parameters or work off suggested defaults, and the quality of the software is of paramount importance.
Forex Demo Accounts: The advent of the Forex demo account is one of the key reasons that online Forex trading is so popular. With demo accounts you can experience live Forex trading in a risk-free environment. You can also trial different Forex trading platforms by using the free demo accounts they provide before signing up to a live account to make sure you’re comfortable with the format, tools, layout and controls.
Forex demo accounts give you a free “test drive” of any system and are independent pieces of software in and of themselves. A must for new traders who want to learn forex trading.
You can open a free Forex demo account with eToro, one of the leading Forex platforms, quickly and easily.
Forex trading Platorms: The business end of Forex. This is where the online Forex magic really happens. Live trades conducted instantly around the world thanks to the currency trading software you’re using. This is your direct interface with the FX market and how you transact your business. Without a piece of Forex trading software, there’s no online trading! There are many options when it comes to Forex platforms, but two of the most popular choices are eToro and Easy-Forex both of which are suitable for both novice and experienced online traders.