Forex Trading Platforms

Written by Jacey Harmon
Bookmark and Share

In order to access the $1.4 trillion traded daily in the currency market, individual currency traders must use a trading platform. A trading platform is a trader's window to the currency market. Through a trading platform a trader can: execute trades, manage margin, and perform research. There are a plethora of platforms available for traders to choose from, but not all are created equal.

Choosing a Forex Trading Platform

There are two main types of trading platforms: browser based and downloadable. A browser based platform is one that you access through a web browser such as Internet Explorer. These platforms can be accessed from any location with internet access. Downloadable platforms are software programs that are downloaded directly to your computer. Other than access there aren't any notable differences between the two types of platforms. Personal preference and needs will be the determining factors when you choose a platform.

Quotes are essential if you are going to trade currencies. Platforms will provide you with real time quotes--streaming quotes in some instances. If you plan on trading several pairs you will want to choose a platform that can give you multiple pair quotes. I've seen platforms that boast they provide quotes for up to 60 pairs. Personally, that seems a few too many. A lower number--say ten to 13 pairs--will likely be sufficient. Charts are also necessary for currency trading as they help traders identify buy and sell points. Choose a trading platform that offers the ability to create charts for your preferred currency.

Fortunately for traders, you don't need to lock yourself into a trading platform without testing it first. A vast majority of Forex trading companies will offer an opportunity to preview the platform before committing. This is a benefit that you should take advantage of. You can evaluate various platforms without risking any capital while you find a platform that meets your needs. Once a platform has been chosen, you are ready to join the worldwide Forex market.


Bookmark and Share