Trading the Forex market is one of the best ways to develop an additional source of income and guarantee financial freedom for you and your family. As most experienced traders will tell you; comprehensive trader education and a good trading platform are the two main prerequisites for success in Forex trading.
A number of online Forex platforms are available in the market today. Some examples include the ubiquitous MetaTrader4 for retail traders, Currenex for institutions and high frequency traders and various proprietary broker platforms. Each of these platforms has their own advantages and Invexeo and they are generally built to target a particular type of trader (newbie, pro, technical trader, scalper etc.).
Since this can be very confusing, especially to newbies, let us take a close look at some of the main features which go into the making of an ideal trading platform.
- Speed and Reliability
The most crucial aspect of a good trading platform is its ability to display accurate price information on a consistent basis. Even a small lag in displayed prices can lead to trade re-quotes and losses. Similarly, a good platform should have minimal system downtime to allow for seamless and smooth trading activity without any major disruptions.
Use the demo version of a platform to see if the streaming price quotes and trade execution time are to your liking. Additionally, try to find out whether the Forex broker offers a “no re-quotes/no re-pricing” guarantee.
- Market Analysis
Most Forex traders use technical analysis to trade the Forex market. Hence, it is imperative for a good platform to have auto-refreshing charts which allow the trader to analyze market data on multiple time frames (1H, 4H, Daily, weekly etc.). Additionally, the trading platform should have a large number of popular preset technical indicators (RSI, Bollinger Bands, ROC, Moving Averages etc.) which are commonly used by traders.
On the fundamental side, an ideal Forex platform should also have a reliable live news facility from a reputed news wire service which would help traders take advantage of economic events. Finally, a platform that offers single click execution and also offers the ability to trade directly from a chart is a must for Forex traders who use a trading strategy based on scalping.
- Ability to trade Multiple Asset Types in Different Markets
Since the Forex market does not function in seclusion, it is obvious that there are a number of co-relations between various Forex currency pairs and other asset classes. For example, the Aussie Dollar (AUD) has a very strong positive co-relation to the S&P 500, the Canadian Dollar has a positive co-relation to the price of crude oil etc.
Keeping this in mind, it is very important to choose a Forex trading platform that allows you to trade seamlessly across multiple asset classes like equity, commodities, Forex, debt, options etc. IA platform which allows you to trade in highly liquid CFDs is an additional bonus.
Any trading platform that has all the above-mentioned features will make for a very good Forex trading platform. Utilize the free demo versions of various platforms to check for the above mentioned features before making your final choice.