The first thing a person should do when they want to start trading forex is choose the right online broker. As there is so much competition in the quality forex market, it is crucial that new traders do their research and find a broker that will provide them with top-notch service. A trader’s main considerations are the price of trading, their support and the quality of their platform.
A trading platform is perhaps the most crucial element that a new trader needs to specify. The platform must meet all requirements quickly and efficiently, and be stable and safe.
Currency trading platforms should offer security for your funds, no matter how small or large. The ability to stream real-time data to the client is another valuable feature. However, this only applies to stocks and commodities that trade on an actual exchange. These data should be displayed in a way that the user can quickly and easily locate key data.
Also, it should not be difficult to trade. You won’t make an error by putting in a sale order when you should have put in a buy order. Once the trade is completed, you will be able to easily exit it with a clear profit or pip reading.
Software should have all the basic functions. However, it should also allow users to easily set up and manage stop losses. Charting software is another great feature of a trading platform. Charts are vital in providing traders with the data they need to make their decisions. The platform should have a charting package that allows for precise calculations. A charting package must be capable of displaying both short-term trading periods. A 4 hour chart is a very popular trading chart period. Charts should also be capable of showing information over longer periods, such as weeks or months.
Additional features worth noting are platforms that can also be accessed through mobile devices like PDAs. This gives you greater flexibility.
Software can be either generic, meaning it was created by a third-party company and used by different brokerages. MetaTrader 4 is one example. Another type is an in house platform that is specifically designed to be used by forex brokerages. The majority of forex software developers, including chart indicator packages and forex brokers, will have created their products to work on standard platforms. There may be integration issues with proprietary software. However, integration problems are getting better with the increasing popularity of advanced forex bots.
A second aspect to remember if you’re a U.S citizen, is that not all brokers will allow you to trade with them. This is due to the SEC being too protective of its citizens. Unfortunately this is not only limited to forex.
You can use the demo account that is available from most online brokers for free. It is a good idea to test the platform and see how it performs. Once you’re satisfied with the experience and feel you can use all features efficiently, then you can decide whether you are ready to trade.