Saturday, June 18, 2011

How to select a foreign exchange trading platform|Questions to ask before selecting a foreign exchange trading platform}

It can be


intimidating to pick a forex trading platform when you


start trading - here are some features


that any good foreign exchange trading


platform should have :

 Security

Does the foreign exchange broker offer information about the security measures of its platform? Your trading and


personal data should be encoded, so that


your cash and identity are secure, whether you are paying and


being paid through PayPal or online bank transfers.

The foreign exchange broker should also offer


guidance on how to


increase your online security I'd be particularly


suspicious of one that did not because they may be


making themselves liable if there are any issues.

Also, are there


backup systems where your information can be stored in case of an IT problem?

Reliability

When are you able


to use the foreign exchange trading platform? As


forex is a Twenty four


hour a day market, 5.5 days every week, look for something you can use at any


point. Even when the market is closed, you want to be able to


place orders to open when the market does.

The trading system should


also be efficient if it is slow then the prices at which you are trading


might be outdated. A good forex trading platform should update several times a


second.

One-click trading

If a forex trading platform is unreliable, slow or


susceptible to interruption, a trader  can miss a quick opportunity. A


platform that offers one-click trading will permit you to sell or buy forex contract with one click, which means


there's no need to deal a ticket, and you won't


miss the price you would like.

Trading style compatibility

Does the trading platform suit your trading style?

Is it simple to understand, or is it able to


only be understood by a Wall St retiree? Look for a platform


where it's not hard to search for your market, and,


if you'd like to trade more than forex, look for one that also permits you to trade


on shares, options and indices.

Where are you trading


from? If you utilize a Mac, can you use the


platform on it? Likewise, can the programme be referenced utilizing different browsers and different


smart-phone handsets.

Essentially, does it do what you want? A good forex trading platform


should be customizable to suit your trading


technique does it permit automated trading, and does


it permit you to micromanage every trade. The trading platform should be able to warn you of good trading opportunities , alongside accepting complicated orders, including the


various stops and profits the forex broker offers, so you can simply


reduce your risk while


increasing your profits.

 Charts

Does the


forex trading platform have a separate charting


platform, and how straightforward is it to navigate? And, if you'd like to trade from your iPhone or Blackberry, can you access these from your handset? And, can


you trade straight from the charts, or is it necessary to deal a ticket?

Depending on your level of expertise, you


might want a charting package with a pattern recognition tool that can monitor the markets on your behalf, and could even


tell you when the chart patterns are indicating trading


opportunities.

And, if you'd like to trade forex


throughout the day, it's crucial the charts are updated in realtime.

Market Analysis

Does your forex broker offer market analyses, and is this


available using their trading system or is it necessary to visit their website?

A good


forex trading platform should include


market research tools, including news feeds, in-house research and


third-party research. As information is power, you need


to be able to access as much information as


practical and to have access to it without


crawling the web for the information you want.

 Any trading that


offers market research should also have


historical information available, so you


can see the way in which the foreign


exchange was influenced when a similar event


occurred.

Price

Is the platform free?


Many online foreign exchange trading platforms offered by


reputable brokers are free, and your only costs will be if you make


a loss.

If foreign


exchange trading software isn't free, or if there's a


nominal charge, learn what the extra


benefits are. And, if it isn't free, is there a


refund guarantee if you aren't satisfied


with the software?

 Price, part two

Does the trading platform offer the same pip spreads as the


broker has advertised, or is it necessary to telephone to


get the top deal?

A pip is a 0.0001


unit of currency, and the pip spread is the difference between


the purchase and sell price of your


currencies so if the AUD / Dollars is quoted at 1.0578 / 1.0579, the


sell price is 1.0578 and the buy price is 1.0579. For any spread, the price of the currency wants to make up the difference of


the spread before it's possible to turn a


profit. So, in the example, if you purchase at 1.0579, it is only necessary for the AUD to rise 2 pips from 1.0578 to


1.0560 for you to make a profit. If there's a 3 pip spread,


the currency would need to move by 4 pips before you


turned a profit.

Client


support


Is your foreign exchange broker just keen on getting


you an account, or will they provide ongoing support for


clients using the dealing system?

You might be


able to email and / or telephone your broker with questions


starting from placing trades to the button on your trading platform that isn't doing what


you want.

Trial account

Regardless


of how many questions you ask a customer support, it's hard to


learn how well a foreign exchange trading


platform will suit you without having the ability to try it, so


get online and see which corporations have demo accounts


available. The trial account should have all the


functionality of the full account, or close to it.     










Improve your knowledge of the currency markets and how to place a fx trade with extensive education tools - open a free demo account to start trading forex today. Remember CFDs and forex are geared products and may result in losses that surpass your first deposit. CFD trading might not be suitable for everyone, so please make sure you understand the risks.

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