How to Compare Forex Platforms
A Forex trading platform is simply a piece of software that serves as the pipeline between the trader and the broker. One of the most important decisions that a Forex trader will make is choosing a trading platform that best suits their personal trading style.
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Trading Platform Costs
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Most Forex brokers will provide a trading platform completely free of charge to their clients. In addition, they typically provide a demo platform that can be downloaded by prospective clients. The demo serves as a test drive so traders can choose a platform more easily.
Execution of Orders
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As traders begin downloading and evaluating various Forex trading platforms, they will quickly discover how easily most of these platforms can handle complex market orders. Since the Forex market is open 24 hours daily throughout the workweek, it is important to have a platform that will allow traders to capitalize on market moves that may occur while they are sleeping. For example, many of these platforms allow a trader to enter a market position when a currency pair hits a specific price while simultaneously placing a stop loss order.
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Capabilties
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Another function that may or may not be available on broker provided trading platforms is the ability to backtest various trading strategies. Access to historical data is required for this type of service. Some platforms may offer this function as an add-on for a monthly fee.
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References
- Photo Credit International Finance: currencies from around the world image by Vladimir Melnik from Fotolia.com
