What You Need To Know About Forex Trading Platforms

Forex trading platforms serve as the interface between the Forex trader and the Forex broker.  A Forex platform is also called Forex trading software and is downloaded from your Forex broker. These platforms are what make online Forex trading possible.

Different brokers have different platform options.  Fortunately for today’s Forex trader just about every broker offers a free Forex demo account.  This is your broker’s way of allowing you to see the many features of their trading platform as well as get a feel for its ease of use in day to day trading.

Here are some of the features available in many of today’s Forex trading platforms.

Up-to-the-minute equity status — You can see your account balance in real time as the market changes.  It’s not important to watch your account balance constantly, but it is nice to know that you can find out exactly what it is at any moment during the day or night.

One click order placement — Many platforms allow you to simply click on the currency pair you wish to trade as either a buy or sell to enter a position. This is especially convenient and allows you to enter or exit a trade virtually instantaneously.

Trailing stops — For those traders who use trailing stops this is an especially useful feature.  Rather than having to watch the market you are able to set trailing stops to lock in your profit as your trading position goes in your direction.

Automated Forex trading — Certain platforms have the ability to place trades for you automatically based upon the Forex trading system you have chosen.  This is the ultimate in hands-free Forex trading.  Quite naturally, when using such a system is wise to make certain that it works the way you expected by using a Forex demo account first.

Forex charts — It’s very common for today’s Forex trading platforms to have Forex charts included. Trading using charts, especially candlestick charts, has become the standard of many successful Forex traders.

We just covered a few of the numerous features available in today’s Forex trading platforms.  Before deciding on one platform feel free to take advantage of the many free Forex demo accounts available to you.  Remember that finding a trading platform that you are comfortable with is an important factor in your success as a Forex trader.

What You Must Know Before Opening A Forex Account

In order to trade Forex you will need to open a Forex account with a Forex broker. There are wide range of Forex brokers available for you to choose from. Here are a few tips to keep in mind when opening an account with a Forex broker:

Check with the Commodities Futures Trading Commission — Before you consider opening an account with any broker check their status with the commodity futures trading commission to see if there are any complaints against them.  You can also find out about the financial strength of a variety of Forex brokers at the CFTC website.

Forex account types — Most brokers will offer the following account types.

Forex demo account — A practice account with “virtual” money. Forex demo accounts are offered by most all Forex brokers at no cost to the Forex trader. This is the perfect place to practice your trading without any financial risk.

Forex micro account — An account that can be opened with as little as $25 and where the pip size can be as small as $.10

Forex mini account — A mini account can be opened with as little as $400.

Forex standard account — A standard account allows you to trade where each 1 pip move is the equivalent of $10.  Standard accounts can be opened for as little as $2000.

Forex managed account — This account type differs from the previous ones in that you do not trade it yourself.  A Forex money manager is assigned to your account and decides how your account is to be traded and executes these trades on your behalf.

Now that we’ve reviewed some Forex account types let’s take a look at some other features that we might like to have as part of our Forex trading account.

Good Forex trading platform — A fast and reliable trading platform will make a world of difference in the speed and ease of executing your trades.  Check out a couple of different trading platforms then select the one that feels best to you.

Lowest possible Forex spread– Since the Forex spread will basically be our costs in the Forex trade it’s wise for us to choose the lowest possible spread to keep our transaction costs at a minimum.

Customer service — It should go without saying that we want to have a Forex account with the best possible customer service. Check the website of the Forex broker you are interested in to see how easy it is to contact them. Call them on the phone and ask questions. Email them questions and see how long it takes for them to get back with you.  These are just a few things that you can do prior to opening an account to give you an idea of how responsive the company is.

Fees — It may or may not come as a surprise to you, but there may be some fees involved with your Forex account that you aren’t immediately aware of. As an example, there are Forex brokers that charge you a fee for you to withdraw money from your account. Just make certain you know and understand the fee structure prior to opening an account.

We’ve covered some Forex account basics. Your next step is to check out the brokers that you’re interested in and contact them. If you can, open a Forex demo account with several different brokers to get a feeling for how their platform works. Keep good notes on the pros and cons of each Forex broker account you are considering. Once you’ve evaluated your notes you should easily be able to select the Forex account that’s right for you.

Learn Forex Trading The Fast, Fun, And Easy Way

You don’t have to have a dual Ph.D. or be a rocket scientist to learn to trade Forex successfully.  A few of the key ingredients are discipline and a burning desire to succeed. 

You see, Forex trading doesn’t have to be complicated, but there are several reasons beginners think that it is. One of the reasons beginning Forex traders believe that it’s difficult to learn Forex trading is because of the hype that surrounds many of the Forex trading products available. We’ve all seen the ads for the Forex trading systems that took some unknown number of scientists many years and millions of dollars to create.  Well don’t believe the hype. You can start learning Forex trading today and start to trade successfully much sooner than you might think possible.

If you are truly interested in learning to trade Forex there is one key point to keep in mind. Do not be greedy and do not view Forex trading as a get-rich-quick scheme.  If you can be patient and not rush into things and you will be miles ahead of many Forex traders.

There is a wealth of information available to help you get started.  Here is a list of some of the places that you can go that will aid you in learning to trade Forex:

Forex brokers — Many Forex brokers have a free educational material available to their clients.  Often times they will also have both free Forex training as well as more advanced Forex trading courses for a fee.

Forex trading books — When you have a free Saturday afternoon take a trip to your local bookstore and look around at some of the Forex books that are available.  You can also check your local library, but it is more likely that your bookstore will have a greater variety of Forex trading books for you to choose from.

Forex forums — Forex forums can be an excellent source of Forex trading information.  The good thing about forums is that there will usually be some seasoned Forex traders there who are willing to share their trading experiences with those who are just starting out.

Forex trading websites — There are many, many Forex trading websites for you to choose from.  Look for those with a more conservative approach that also discuss the risks of Forex trading.  Avoid any websites which showcase products that look too good to be true or look like a get-rich-quick schemes.

Successful traders that you know — If you happen to know someone who is a successful Forex trader that would be the perfect person to point you in the right direction.

Forex demo account — Using a demo account can be a fun and educational way to learn Forex. Demo accounts are available free from most every Forex broker.  Most all demo accounts include free Forex charts, free Forex indicators, as well as free daily Forex advice in the form of the brokers commentary. One of the nicest things about using a demo account is that you get to try out your Forex trading system ideas to see how they might work…and you can do this all without any financial risk.

As you can see there are a number of ways to go about learning to trade Forex.  Start off with any of the methods above so that you can get your feet wet.  Just remember to take your time,  enjoy the learning process, and keep things simple.