Forex trading is no longer the exclusive realm of city slickers and high-cost brokers. Thanks to the internet, anyone and everyone who has a penchant for investing can engage in the forex market with relative ease. That being said, it’s not always easy to put your best foot forward, as finding the very best forex trading platforms requires plenty of due diligence. When you review the available options, keep the following considerations in mind.
Accurate and Reliable Quotes
Speed, alongside reliable and accurate quotes, is often key when it comes forex trading. As a forex trader, you’ll want to make use of a platform that utilises accurate trading quotes for all of the currency pairs you hold an interest in. When you are able to deal in fast, accurate, and reliable quotes, you are able to avoid what can be costly requotes. The market changes in a flash, so you need to be able to initiate trades in a timely way, which is a feature the forex trading platforms you are considering should certainly have.
Dependable Deal Execution
Opening and closing positions is what forex trading is all about, which is why dependable deal execution is a key element to consider as part of your forex trading platform review. From the moment you opt to execute a trade, you want to be sure the platform allows for the quick entry of all types of orders, including take profits, stop losses, trailing stop, OCOs, and more. A platform that is slow to execute trades will often result in slippage, where your executed price is worse than the one you originally requested.
Account Management Options
It may seem like something of a given, but direct account management isn’t always a luxury that a forex trading platform affords you. You need to understand the level of control issued when a position is opened. With a forex trading position, you’ll need to be able to manage it, keeping track of your account balance and trading profits on a real-time basis as the market moves. Therefore, suitable account management options are important, should you wish to maintain tight control over your trading activity.
Technical Analysis Tools
Tools can go a long way in separating the good from the bad. When conducting a forex trading platform review, it pays to look at what technical analysis tools are available. This should include charting as a minimum, as it allows you to break down important trading data.
Fundamental Analysis Tools
Many traders stand by fundamental analysis and for good reason. Helping implement related information, any forex trading platform review you conduct should involve determining whether a platform has access to high-quality live news feeds, which ideally links to Reuters and/or AP/Dow Jones. Information from such sources allows you to keep on top of daily economic shifts, which should in turn allow you to stay one step ahead of the curve.
High-Strength Data Security
Those who choose to trade forex should never at any point underestimate the importance of safety and security. It pays to look extensively at how the forex trading platform operates in regard to personal data protection, internet security protocols, and data loss prevention. What you should rightfully expect is protection at every turn, with absolutely no exceptions.
Platforms Hosting Location
A forex trading platform review must also consider another factor related to data security: the hosting location, specifically the data centre used. For example, any platform hosted through the highly respected Equinix NY4 data centre, which ranks among the top across the entire forex industry, is sure to receive an industry-wide stamp of approval.
Automated Trading Support
Automated trading is now absolutely crucial to forex trading success. If your trading strategy has a strong automation focus, ensure your forex trading platform of choice has the ability to both support and accommodate it. No matter whether you have an existing automated trading plan in place or use “off the shelf” forex trading robot software, the platform should be able to incorporate it to the fullest extent possible.
Minimal System Downtime
It has become a point of contention for many, with some trading platforms struggling when it comes to performance. Trading platforms simply can’t afford to slip, even during “off-peak” times, as that might be when you’ll be looking to close a position. System downtime can potentially unravel any effective trading strategy, so any platform worth using has an uptime record that approaches 100 percent.
Finding the Best Platform
The forex trading platform review process is by no means as complicated as it may seem on paper. The aforementioned features are key elements to look for in a trading platform. Keep them in mind to find one that can match your ambition, budget, and risk approach.