You will need Forex trading software when you trade currencies at the Forex market. The software is primarily used to analyze the market and as a tool to open and close transactions. You cannot participate in the Forex market if you do not have one.
Trading software is usually free. It comes as a free service when you open an account with a Forex broker. This is usually called as Forex trading platform. As a platform, it contains the most basic tools you need to successfully trade at the market.
There are also trading applications that you may have to purchase. These are specialized proprietary trading applications that can function as trading analysis and strategy tools. These types of trading applications are usually standalone and can work side by side with your Forex platform.
Some Forex brokers can offer a platform and separate specialized Forex software. The platform would be free but you have to pay for the special software to activate it. There are also brokers that offer free Forex platforms only so you may need to purchase other applications from third party developers.
Some of the top Forex brokers however can offer integrated software. The platforms of these brokers are normally packed with everything including important charting analysis tools, strategy and system builders, news aggregators, and other services that you may need.
With so many trading applications available now, it could be quite confusing to choose which one would best for your needs. So here are some of the most important features of Forex trading software that you should look for.
Ease of Use
Your trading software should be easy to use with simple but highly functional interface. Simplicity of the trading software is very important especially if you are just beginning to learn Forex trading.
The software should allow you to easily find the rates of currencies in real time. The Buy / Sell buttons should always be near the currency rates so you can quickly open or close transactions without shifting from one window to another.
You should also look for several charting tools in your Forex trading software. When you trade currencies, you will heavily rely on Forex charts to analyze prices movements. That is why this feature is important in any Forex software.
It is also best if the charting tools of the software can be customized into different time range. This means the charts should have 30-minutes, hourly, daily, and monthly figures.
Risk Management Features
You Forex software should also have several features that will allow you to effectively manage risks at the market. It is important therefore for your trading application to have Stop-Loss and Profit Taking features. The capability of the software to automatically close your trade when your reach your loss limit is critical. This feature could prevent big losses in currency trading.
If you want to succeed at the Forex market, choosing the best Forex trading software is critical. There are different types of trading applications. Before you use one, you have to test it to determine if it would be suitable for your trading needs.