By Lily Asis
Forex trading – it seems that everyone is at it, and the list of smartphone apps and AI robot brokers is getting longer and longer. This is leading still more people to dip a tentative toe into the murky waters, and so the wheel keeps turning and the list of apps gets longer still.
Little wonder, then that the whole Forex scene seems like something of a free for all, and inevitably, there are more people throwing themselves, and their life savings, into Forex with little or no thought, and living to regret the experience.
Trading takes strategy and skill
It’s possible to make a success of Forex, and the market is so huge, that there is more than enough room for everyone. However, following the lemmings is only going to end one way, so let’s take a step back and a deep breath. The reason Forex is now so accessible is through technology. If follows, then, that if you are to make your Forex trading successful, the first step is to get to grips with the different types of software out there.
Finding the most effective Forex trading software for you means experimenting with a few different options, so you could consider downloading a few, and returning the ones you don’t need within the trial period. Here, we take a look at some of the different types of software you will encounter, along with what they do.
A trading platform is used to execute Forex transactions with an online broker. Naturally, you will need a good internet connection, and they typically run on Windows or Mac.
There are a host of platforms out there, from the rudimentary to the advanced. Features might include the capacity to handle multiple accounts, various charting capabilities, AI support and the facility to operate a demo account.
Charting software is used to review and analyze exchange rates and the behavior of currency pairs. They will show trends and produce Forex indicators such as the moving average, RSI, MACD and the like.
The more complex the software, the more in-depth the mathematics. Some trading platforms come with charting software already installed, so it is a case of working out just how much detail you want to go into. If you are just starting out in Forex trading, you will want to keep it simple at first, but as you gain more experience, make sure you have the software to evolve with you.
Signal Generating Software
Signal generators provide important information to the trader on when currency pairs behave in a certain way or hit a predetermined level at which the trader might enter or exit a particular market.
Again, if you invest in a reasonably advanced trading platform, it will come equipped with all the signal generators you need.
Automated Trading Robots
As the name suggests, this is type of trading software that does all the leg work for you. All you need to do is enter in your trading parameters, and the software will do the rest. Not only do algorithmic trading robots save time, they also ensure you stick to your strategy, no matter what. They will not panic in the heat of trading battle, or suddenly adopt a high risk strategy to chase a loss.
Some might say this takes all the fun out of trading – but if your objective is to make money as opposed to having fun, then it is seriously worth considering.
Keep in mind the following:
- Check the refund policy
Most Forex software will come with a satisfaction guarantee, which essentially means that if you don’t like it you can return it for a refund. Always check the terms, though, to avoid being caught out.
- Is your OS up to speed?
Forex software is typically designed to work on Windows. Most also have Mac versions, but if you are operating on an old version, or on some other operating system, you’ll need to check carefully to make sure it is compatible.
- Beware of rogue robots
Forex trading robots are among the most popular and high-growth areas of Forex trading software. Inevitably, this means there are some so-called solutions out there that are of indifferent quality. If you use a recognized name like MetaTrader 4 as your trading platform, they suggest some reputable sources, and you can always run the robot in demo mode for a period of time to check it really knows what it is doing.
- Customer service
There’s an old saying that you get what you pay for, so read everything three times if you see what looks like a super bargain software option. In particular, don’t stint on the support. It’s worth paying a few more dollars to know that help is at hand when you need it – because sooner or later you will, and in the world of Forex, time is money.