How to Evaluate Forex Trading Systems
A forex trading system is perhaps one of the most important tools for forex trading. Each trading platform has its advantages and disadvantages. Some provide better news related to forex markets, other provide faster pricing or additional ways to place an order. The best way to test the trading platform in order to find the best one for you is to request a demo. Platforms are usually free to forex traders.
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Instructions
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Select three forex trading platforms to demo. There are a variety of trading platforms to choose from. The best way to evaluate them is to compare by actually opening up a virtual trading account. Any reputable forex dealer will allow you to demo its platform for free. If it doesn't, be wary.
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Determine if you can trade straight from the charts or if you have to place a separate order. Some forex platforms are so integrated that you can trade directly from a currency chart. Others only allow you to place an order after leaving the chart.
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Review the technical indicators available. See Resources at the end of this article for a comprehensive list of indicators to look for. The most common are trend lines, moving averages, and momentum or volume overlays.
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Find out which types of orders can be inputted, that is, what kind of flexibility you have when placing orders. The most common are market, limit, and stop orders. The more options a platform gives you, the better the trading software.
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Determine if the platform allows for back-testing strategies; that is, whether you can view historical data in charts.
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Determine how new market news is delivered. The best news is streaming on the same page as the chart. This way you don't have to go to another section of the platform in order to look up current news reports. The best platforms have a news window which can be customized on the screen according to your preference.
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