Once you enter online forex trading world it demands certain computer knowledge whether you like it or not. As a forex trader you are faced with computer tasks, one of which is installing and using forex trading software.
How to Choose Forex Trading Platform?
Many of us just follow the instructions of a forex broker to install and download the trading software without thinking twice, but do we really know what the term software means?
A simple example might help. When you rent another episode of Sopranos on DVD you actually bring home software that is stored on that DVD. Your DVD player, on the other hand, can be called a hardware device which reads the software from your Sopranos DVD and shows it to you via TV screen.
In our case, your computer is the hardware and forex trading software is a program with all kind of trading applications and features. Once the software is downloaded and installed your computer is able to open the program and you can enter the trading market.
Who creates forex trading software and how is it done? Professional programmers write Forex trading software using programming languages such as Java, C++ or others. Online forex trading platform is designed to meet the needs of forex traders. The platform has all the necessary components, brokerage services and trading features.
One of the widely used forex trading software is called MetaTrader 4.This trading platform is complex enough to have all the broker services in one place and hundreds of forex brokers are using this particular software as their forex trading platform.
Some forex brokers create their own forex trading software. Many have an option of web-based trading platform, meaning that you don’t have to download and install a thing. You just log into your account using your username and password and aula!!
The main features of all forex trading software, whether MetaTrader 4 or “homemade”, are live quotes, graphs and charts, trading tools, technical indicators, profit and loss, margin, open positions, current P&L, trading history and more.
Some of the forex brokers can go even further with their forex trading platform and create all kind of special features for their traders, such as chat rooms, special inside indicators, gaming features and competitions! For example, Easy Forex broker has a very interesting trading feature called “InsideView” – it shows which currency is favored by all the traders of Easy Forex.
You can make your decision based on popularity of selected currency pairs! Another example is eToro with its magnificent game-like trading software. No doubt that we are all very serious and professional forex traders, but a touch of a game, especially when it comes to trading competition makes forex trading much more interesting! What can I say, I am a computer geek!! If you loved “Diablo” or even “Mario”, gaming trading features are very welcomed!
Whether you choose a forex broker with MetaTrader 4 forex platform or a broker that provides his own trading software make sure to check every feature before you make a deposit. The best way to familiarize youself with a particular trading platform is of course try the demo.
Do your homework and forex trading will be like spreading butter on a piece of bread!