by A decision needs to be made about which broker they will use to trade forex. Because there is a lot of competition in forex trading, it is essential that new traders conduct extensive research to identify a broker that offers a top-quality package. The cost of trading, the support offered by trader and what forex trading platform they use are all factors that can make brokers appealing to traders.
The trading platform is most essential element that any new trader must specify. It should be capable of performing all necessary tasks quickly and easily. Additionally, it must be safe and stable so that it does not crash or freeze when in use.
First, currency trading platforms should provide security for your deposited money, regardless of whether it is $100 or $10,000. It is also possible to stream real-time data for clients (though this is more relevant to stocks or commodities that trade on a physical exchange). The user should be able to easily find key data such as the listing of different currencies.
Making trades should be simple so that there are no chances of making mistakes and placing a sell order instead of a buy or vice versa. Then, exit the trade quickly with clear profit and pip readings for each trade.
A good software program should enable users to set up stop loss and make changes quickly, no matter if they are fixed or moved. Charting software is a nice addition to a trading platform. Charts provide the information traders need to base their decisions. The more precise calculations can be done, the better the charting platform. A charting platform should allow for both very short and long-term trading periods. The popular 4 hour chart is used for trading. A chart should also show information over a longer period of time, such weeks, months and years.
A few other features that are worth mentioning include platforms that can easily be accessed from mobile devices like PDA’s. This provides greater flexibility.
One type of software is called general. This means it was created by a company outside the forex industry and can be used by many brokerages. A popular example is MetaTrader 4. The second type, an in-house platform designed specifically for use by individual forex brokers. Many developers of additional forex trading programs, such as chart indicators packages or forex robots will have their products designed to work directly on generic platforms. However, there may be integration problems with in-house software. With the rise in popularity of advanced forex trading robots, these integration issues are decreasing.
You should also be aware that brokers may not allow U.S citizens trade with them if they are U.S citizens. This is due the SEC being extremely protective about its citizens. Unfortunately, this is not limited only to forex.
Use the free demo account offered by most online brokers. Test it and then decide if the account is worth your time.