Forex trading is no longer the exclusive domain of city dwellers and high-cost brokers. Thanks to the internet age, anyone with a penchant for investing can get involved in the forex market relatively easily. However, in practice, it is often not always that easy, because finding the best forex trading platform requires great care. When reviewing the options available, keep the following in mind:
Accurate and Reliable Quotes
In addition to fast execution, reliable and accurate quotes are the key to success in Forex trading. As a forex trader, you want to benefit from a platform that offers accurate quotes for all currency pairs you are interested in. If you trade fast, accurate, and reliable quotes, costly requotes may be avoided. The market environment can change at lightning speed, and therefore you need to be able to execute trades in a timely manner. This is exactly a feature that you shouldn’t miss when choosing the right Forex trading platform.
Reliable Transaction Execution
Forex trading, in particular, is about opening and closing positions, which is why reliable transaction execution is another indispensable feature when choosing the right forex trading platform. For example, if you inquire about CityIndex, you may be sure that from the moment the trade is executed as the platform ensures fast entry into all types of orders, including take profits, stop losses, trailing stops, OCOs, and many more. If a platform is too slow to execute the order, a slippage occurs where your executed price is worse than your originally requested price.
Account Management Options
It may seem obvious, but in reality, the convenience of real account management is not offered by every forex trading platform. However, you need to understand the control level when opening a position. When the market starts moving again, you need to be able to manage a forex trading position, monitor your account balance regularly, and track your trading results in real-time. Therefore, appropriate account management options are important if you want to maintain strict control over your trading activity.
Technical Analysis Tools
The criteria that distinguish tools from good or bad can be lengthy. It pays off if you put a Forex trading platform through its paces, but above all, what tools are available for technical analysis. This should include at least the chart display because you can use it to break down important trading data.
Fundamental Analysis Tools
Many traders swear by fundamental analysis, and for a good reason. Each time you review a forex trading platform, you should determine whether a platform provides access to high-quality live news, ideally linked to Reuters and/or AP/Dow Jones. Information from such sources keeps you up to date on the continuously changing economic situation, so that you are constantly one step ahead of other market participants.
Highest Data Security
Those who choose to trade Forex should never underestimate the importance of the security aspect. It definitely pays to thoroughly review the Forex trading platforms for the protection mechanisms of personal data, Internet security protocols, and incoming threats, as well as data loss. You should rightly expect that the security of your data always comes first.
Platforms Hosting Location
When choosing the right Forex trading platform, you also need to consider other factors related to data protection: the hosting location, especially the data center used. For platforms that operate, for example, through the highly respected Equinix NY4 data center, which is one of the leading in the entire Forex industry, you can be sure that they have received something like an industry-wide accolade.
Automated Trading Support
Automated trading has become an essential foundation for success in Forex trading. If your trading strategy focuses heavily on automation, make sure that your forex trading platform of choice also has the ability to support and maintain it accordingly. Regardless of whether you have an existing automated trading plan or use a commercial Forex robot, the platform should be able to integrate it as much as possible.
Minimal System Downtime
It has turned out to be a point of contention, and some trading platforms struggle with it when it comes to performance. Trading platforms simply cannot afford to give up their mind during busy times, as this is often the case when you want to close your position. System downtime can jeopardize a potential effective trading strategy, so users should use a platform that has a continuous uptime of almost 100 percent.
Find the Best Platform
The process of reviewing a forex trading platform is by no means as complicated as it appears on paper. The above functions are key features you should look for in a trading platform. Keep these points in mind when looking for the right trading platform that suits your ambitions, budget, and risk appetite.