How To Choose The Best Forex Trading Platform?
The Forex market is one of the most liquid markets and has attracted many traders. Even though many brokers are in the market, it is quite challenging to choose the best forex trading platform online.
Forex trade has been booming since the early 2000s. Many traders have made quite a lot of money ever since. As everyone is shifting to smartphones within the market, trading on personal computers has shifted to smartphones. Now everyone can enjoy and trade online and make a lot of money. So what is the best forex trading platform?
How To Choose The Best Performing Forex Trading Platform?
Many trading platforms are available online that are compatible with smartphones. The internet is filled with many brokers, each competing with the other. It can be quite challenging to select a trading platform that can cater to your needs.
Most brokers offer a demo account for you to try their trading platform. However, it is advisable to try different platforms before settling.
We have narrowed down a few tips that will help you choose the best forex trading platform.
1. Responsiveness
If a trader places a stop-loss order and high-volatility event results in a gap, the order may be executed at a lower value. Due to the heightened volatility, such orders will be executed at the next available value rather than the desired value. There are always chances of some difference between the prices that we overlook.
However, if you are trading with a good broker, slippage could benefit you by taking the profit order (positive slippage) along with the stop-loss order (negative slippage).
For example, if you have selected to trade EUR/USD pairs and decide to go long at 1.4000, you place your stop-loss at 1.3950 and a take-profit order at 1.4050. This corresponds to a remark by European Central Bank President Mario Draghi and makes the cross quite volatile.
As a result, the value of EUR/USD drops toward your stop-loss order making a gap that shortly lies between 1.3955 and 1.3940. Thus, you lose ten pips as the stop-loss order will get executed at 1.3940 instead of 1,3950 as the former appears to be the next possible value.
Suppose we were to consider positive slippage. If the EUR/USD price surges towards take-profit order and suddenly opens up a gap between 1.4045 and 1.4060, then considering the latter is the next possible value.
In that case, the order will get executed at 1.4060 instead of 1.4050. Thereby a profit of ten pips is gained. You can also avoid massive slippages with your existing broker by not trading during high-impact news or low-volume hours.
2. Reliability
A reliable and best forex trading platform ensures that it does not crash or freeze frequently. Traders require stability, especially during periods of global/economic news or events. Therefore, the reliability of a platform should take precedence over its appearance. Instead of looks and feel, traders should consider the platform’s reliability.
A stable platform that never or rarely crashes is also quite ideal for aggressive traders who enjoy large and frequent trades. However, passive and conservative traders are likely to be more flexible as they often do not watch the market.
3. User-friendly Interface
In trading terms, user-friendly refers to the ease at which the order is placed, the trade is closed, and management of stop-loss, limits, and other order types are the advantages a trader would like to have in a trading platform.
Another feature that a trader would enjoy is how easily charts, technical analyses, and other tools can be assessed. Navigating through the platform should be easy. It should be effortless to access the option to open multiple charts at once. This is a crucial point to consider for aggressive traders (scalpers) who solely depend upon the platform.
4. Analysis Tools
It is a good idea if the trading platform gives you a report on how you have conducted your trade. This can be used for your analysis to learn from your mistakes and success. The best Forex trading platform should have such features as it helps you improve your trading strategies.
Most of the best forex trading platforms online have robust analytical features. Unless you are not having these, the trading will be much tougher. Sometimes the parts of the calculation become so tough that you can not actually know what will be the next phase of the trading.
5. Automatic Trading
Some brokers offer algorithms that give you suggestions while you trade. The automated best online forex trading platform gives investment-related suggestions as well as allows you to enter your own algorithms, which automatically place an order when certain preloaded conditions are met.
First, however, you should double-check and see if it allows you to make a profit. Once satisfied with the results, you can then re-invest, and the algorithms will do the work for you.
6. Security Of Data
Security issues arise where your data is involved. Your personal data mustn’t get compromised while trading online. Therefore the trading platform must be secure.
You should look into the type of data encryption that your platform of choice provides, as this will give you an idea of how well your data will be safeguarded while it travels across the internet.
The best Forex trading platforms that are reputable have firewalls set up on their server. They also store the data on two distinct synchronized servers, allowing any lost data from one to be recovered by the other.
7. MT4
Many traders consider MetaTrader 4 or MT4 the best forex trading platform. This platform is ideal for beginners as well as seasoned traders. It is a powerful trading platform that requires some time to get accustomed to.
One of the greatest strengths MT4 has is API, which is designed for traders to implement their automated trading strategies. As a trader, you may want to have a technical person create your trading techniques so that they may be implemented automatically on the MT4 platform.
Most Forex brokers offer customized MT4 trading platforms. However, if MetaTrader appears too complicated for you or time-consuming to learn, there are web-based alternatives, and some are even mobile-based.
Conclusion
As a Forex trader, you have to consider what works best for you. You should consider all the pros and cons and settle for the one which has been trusted by a lot of traders out in the market. In the quest to search for the best Forex trading platform, choosing a reputable platform is the best choice as they are reliable.
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