What is Currency Trading Software
Currency trading software helps currency traders with forex trading analysis and the execution of trades. Currency trading software provides charts and order-taking methods, which are usually free of charge when a trading account is opened with a forex broker. As with trading software used for trading other securities like stocks or futures, most platforms differ greatly in functionality.
BREAKING DOWN Currency Trading Software
It is hard to determine which software is best because the currency trading software from each retail forex broker is so different. As such, the answer is very individualized, according to a trader's needs. Most forex brokers allow you to open a demo account prior to funding a full account or mini account. It is best to try out a variety of currency trading software during the trial periods to decide which forex trading software best suits a trader's needs.
Whatever specific currency trading software a trader decides to use, currency trading software must be a reliable go-between currency trader and currency broker. Platforms must also provide real-time and historical data to the trader and provide the him or her with access to all of the types of orders that need to be available to trade currencies efficiently.
Third-party forex trading software is also often used, as many retail forex brokers' platforms have an application program interface (API), which allows traders to integrate third-party or even proprietary software, extending the capabilities of their currency trading software.
Choosing the Right Currency Trading Software
Some factors to consider when considering currency trading software are:
- Is it free? Do extra features cost extra money?
- What technical indicators are available in the charting component?
- Is the operating system is required
- Can you trade from the charts?
- What is the order interface? What types of orders are available?
- Is historical data made available through the software?
- Does the platform allow for backtesting of strategies?
- Is the graphical user interface (GUI) pleasing to look at?
- Is the GUI conducive to monitoring a lot of information at once?
- Does the platform have an API that allows additional software or programming?
Widespread availability of currency trading platforms from online forex brokers and independent software developers has allowed just about anyone with a computer and an internet connection the chance to trade currencies. The software a trader chooses is an important decision, as a trader will want to select software that has all of the features they will need at an affordable price.