FX Trading Platforms

One of the key elements required in order to establish a home-based retail foreign exchange currency market (Forex) trading business is trading software, commonly referred to as a FX Trading Platform.

There are many from which to choose, some offered by software developers who have no stake in Forex trading other than the desire to have traders use their software, others are proprietary to the brokers that offer them.

In either case, it is seldom necessary for the trader to purchase a FX trading platform, since brokers make them available free of charge to their clients.

Many brokers offer their platforms in one version where application files are downloaded and stored on the trader’s hard drive and another version that is web-based, stored on the brokers servers.

Platforms that reside on the trader’s hard drive may have some slight advantage in terms of reliability, but broker server-based platforms permit the trader to access their account and perform Forex transactions from any Internet connected device.

Choices abound and finding a trading platform is one of the more pleasurable aspects of the process of setting up a Forex trading business.

Virtually all brokers permit prospective clients to test trading platforms. It is important to do this testing in as near as possible to anticipated actual trading conditions. Computers all have their individual idiosyncrasies and a platform that exhibits sterling performance on one may encounter glitches or even crashes on another.

Beyond possible technical issues, it is essential that the platform be easy to navigate and intuitive to use. Price conditions in the Forex market can change rapidly and unpredictably. The last thing any trader needs is a platform that hinders rather than assists the decision making process.

By far the most widely used FX trading platform is MetaTrader (MT). It is the standard by which all others are judged and the model on which all others are based.

Most Forex brokers continue to offer MT 4 since so many traders are familiar with it and others are migrating to MT 5, which came along in beta form early in 2011.

In a nod to the platform developers, the two versions are basically similar in terms of the general design interface, meaning that traders moving from MT 4 to MT 5 are able to do so seamlessly.

MetaTrader can be used for discretionary trading, where the trader manually supplies all commands, but it is primarily designed with automated trading in mind.

This characteristic is a definite benefit for traders who do not want to closely monitor and manage every trade.

The primary reason why MetaTrader is a sound choice for a FX trading platform is that with so many brokers offering it, having multiple trading accounts with several or more brokers is very simply accomplished.

One feature of MetaTrader that contributes greatly to its dominance amongst FX trading platforms is the Expert Advisors (EA). A trader can pick one or more of these to address virtually any trading scenario that will ever be encountered, or they can develop their own.

FX trading platforms make excellent use of the computing power of modern PCs and high-speed Internet connections.

The choice ultimately resides with the trader, being primarily a matter of personal preferences. Sample as many as possible and choose the one that best facilitates concentration on the critical and rapid decisions inherent to Forex trading. To learn more about FX trading platforms be sure to visit LucrorFX today.

 

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