A forex trading platform is a program that facilities the transfer of trading information between the broker and the trader. A trading platform offers information like quotes and charts. In addition, a trading platform allows you to enter orders which are then executed by your broker. The software for the trading platform can be based locally which means it is installed onto your computer. In order to use a locally based software program you will need to choose a broker that offers a downloadable software platform that is compatible with your operating system (Windows, Mac, Linux, etc). There are also web-based online trading software platforms available. These platforms operate with Java and can be accessed directly on your browser with no download required. These platforms are generally available for free but you may be able to purchase a version of the platform that offers increased functionality. Some brokers may offer overseas FX trading platforms with a number of different levels of functionality depending on the activity of the trader.
Online Currency Trading
When you trade currency online, you will want to have the same level of security you get from other financial transactions that you perform online. The online trading platform is the communication platform between you and you broker so it must be reliable. Most platforms also offer historical data and real-time data so you can see what is happening in the market. This will help you make the best possible trading decisions and will help you trade more efficiently. In many cases, a 3rd party currency trading platform can be integrated as many brokers have an API on their trading platforms.
Factors to Consider When Choosing a Trading Software Platform
There are some things you want to think about when you choose a trading platform including:
- Cost of the platform: Is the platform free? Is there a monthly charge to use the platform? What extra features do you get if you pay for the platform? You should ask these types of questions when choosing a platform.
- Indicators: You should know what technical indicators are available with the charting features of the trading platform.
- Compatibility: Is the software compatible with Mac, Windows or another operating system? Is it a web-based platform (HTML or Java)?
- Can you trade directly from the charts?
- Orders: You should be easily able to place orders and you should choose a platform that offers all of the order options you want or need.
- Historical Data: Can you access historical data through the software program?
- Graphical User Interface: The graphical user interface or GUI is the visual representation you see and it should be intuitive, easy to read and pleasing to look at. In addition, you want to verify if the GUI can monitor a great deal of information simultaneously.
- If you want to use a third party software program, you need to verify that the platform has an API that allows you to integrate that third party software into the trading platform.
Forex has become a very large industry in the UAE. Be sure to trust your broker and inform yourself on the best practices to invest wisely.