There is a plethora of trading platforms to choose from and although it is good for competition that you are almost spoilt for choice, it can make it much harder to pick the right one for your particular needs.
The forex broker that you choose to have an account with needs to be able to offer you the trading platform you are looking for as this acts as an important conduit between the trader and their broker.
Trading platform basics
The trading platform you are using should provide fundamental data such as quotes and charts, and it should also include an interface that gives the opportunity to enter orders that you then want to be executed by the broker.
There are many different types of trading platform software and some are more commercially successful and therefore more commonplace than others. If the software is locally based, it means that it is installed on your PC and will be compatible with whatever operating system you happen to be using such as Windows or Mac.
You will also find that some brokers offer you web-based software. The majority of these platforms use Java web language and they do offer flexibility as the software can then be used by almost any computer, provided it has internet access.
You will probably find that a percentage of trading platforms are offered free of charge as part of your account package. These platforms often have basic functionality and if you want more dynamic features and options, you will most likely have to pay a fee for access to a technically more superior trading platform.
Using a platform for forex trading
The trading platform that you use for forex trading is essentially the same as you would use for trading in any type of stock or security.
The platform acts as an intermediary between the forex broker and the forex trader. The platform is also expected to be able to supply real-time as well as historical data, as well as having the ability to offer the trader access to every type of order that you need availability to, if you are going to be able to trade forex efficiently and profitably.
Try before you buy
A good number of forex brokers do often allow their customers to open a demo account prior to going live and funding a full or mini account.
It is always advisable to take advantage of this offer when it is available and take the software for a test-drive so that you can determine which forex trading platform software is the best for your requirements and also whether you feel comfortable working your way around the system.
Check to see whether the trading platform you are considering offers features like the ability to trade directly from the charts you are viewing and whether it offers you the facility for backtesting of strategies that you are considering.
Picking the right trading platform can be a little like going on a blind date. It can either be the start of a long-lasting relationship or little more than a marriage of convenience, so choose wisely.
Spencer Dawson is a successful Forex trader, but he didn’t start out that way. After much reading and learning, he has finally found his way and loves to share his story on many financial and investing blog sites.