As forex trading becomes more and more popular today, there are more and more forex brokers getting into the industry to service the demand, and thus leading to a proliferation of forex trading platforms in the market today.
As the trading platform is the backbone of the forex trading activities of any forex broker, it is one of the most important factors to consider when you wish to start a trading account with a broker.
How can you ensure you are selecting a trading platform that can best meet your needs, bearing in mind that an unsuitable trading platform can be disastrous to the way you trade and in fact to the eventual trading outcome- whether you are profitable or losing money in the trades?
Irregardless of whether you are just beginning to trade and are looking around for a suitable forex trading platform, or whether you are already trading, but would like to review the suitability of the trading platform, here are 6 selection criteria that can be used to determine the suitability of the forex trading platform.
Timeliness - Is the forex trading platform a high-edge system that employs the established but highly sophisticated technologies in order to provide you the real time, up-to-date quotes? This is very important, as a real time streaming quote platform will allow you to check your account and positions in real time, and more importantly 24 hours a day, as forex trading never ceases. Best webtrader
With real-time information via the trading platform, you as a trader can be in full control of your funds whenever you wish.
Some brokers also slow the execution of the orders. This is really a big issue as this will impact negatively on your trades because the rate of the currency pair would change during this period of time, causing you to enter the market at a different rate than the rate you wanted.
Easy to use software- Preferably, no software download. Look for a platform that enables users to start deals immediately, without the need to download proprietary software, or to spend weeks to learn how to use an unwieldy possibly outdated system. You should not have to install any software on your own computer, and you should be able to log in from any computer that has an internet connection. There are also desktop solutions or trading platforms, but unless they allow you real time information and the ability to be in control of your trades, they are not desirable.
Trading Rates - Some preferred trading platforms have a freeze and trade system involving a "freeze-the-rate you see" for buying and selling for a few seconds, irrespective of rates movement. This means that the rate you see and freeze is the rate you get, and there is no lag that can cause you to lose out due to fluctuations and lapse of even a few seconds.
Easy Money Deposits - Are there easy mechanisms for payment of money deposits into your account and are these immediately reflected in your trading account? Some preferred trading platforms allow you the possibility to make money deposits for margins and pay premiums using credit card, so that you are not hindered from making physical deposits, or have to attend to make deposits at your local bank. This is a real time saver and allows you to trade immediately without delay after a deposit or payment has been made.
Competitive Spreads: Currencies, unlike futures and stocks, are not traded through a central exchange. Thus, the spread can be different depending on the broker.
Some brokers adopt a variable spread, which might appear to be nice and small when the market is quiet, but when things get busy they can widen the spread which means the market must move more in your favor before you start to make a profit. This makes it harder for you to be in profits. So always check this out before selecting such a trading platform and broker. Fixed spreads built into the trading platform is good for you especially if you are using stop loss in your trading strategy because if the broker changes the spread according to prevailing market conditions, you may find your trades hitting their stop levels where they should not.
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