A Guide to Types of Forex Trading Software

A Guide to Types of Forex Trading Software

Choosing the ideal forex trading software programs can get quite tricky, if you are a beginner. With numerous currency trading programs competing against each other, it is your caution, discretion, and research that helps you select the best one.
Forex trading is a booming market, and most of us are tempted to try our hand in this money game. As it deals with investments, a trader is required to be well-funded, and his success depends on several factors like the choice of software, choice of forex trading systems, understanding of the market, stock brokers, etc.

Forex trading software programs are those which help a trader in analysis and trade execution. It is difficult to name the best one because each forex broker has a system with different features. Selecting a trading software is always about personal preference, your technical skills, and trading style. The best part about currency trading is the opportunity to make money, even if the stock market is low, as there always is a variation between different currency rates.

Types

There are four types of these programs, and selecting one depends on your need and suitability. The convenience of use and implementation, high accuracy, good return for investment, and cost should be the important criteria to look for, while deciding the best software. It is important to understand what type of program is available for you. Following are the best types of this trading system:

Web-Based
This type of currency trading is done using a computer with an Internet connection from any location, and the trader needs to go online using a username and password. The main advantage of this software is that the user can access it from anywhere in the world, and there is no need to download it. It is a secure trading program, as your information is in an encrypted form and the software provider always has a backup of your data, in case of data loss. Easy Forex and eToro are some of the best examples of this type, if you wish to carry out online trading.

Computer-Based
This trading can be done using your local desktop or laptop computer. Though it is convenient for most people, there are a number of risks attached, like data loss and computer viruses. Make sure that you have a good Internet connection for fast data transfer, else it might have a negative impact on your work. Always create a backup file, keep the data password protected, and make sure your computer has a strong and genuine anti-virus software. MetaTrader and VT Trader are examples of such programs.

Automated
The introduction of this software has made trading easier, faster, and less taxing. It is quite inexpensive and takes less time to understand it. They are also known as day trading robots, as the trading is done by the program itself with minimum or no help from your end, and hence it is mostly used by beginners to learn the basics of trading. Forex Tracer, Forex Autopilot, and Forex Raptor, are some highly recommended and best automated trading software available in the market.

Managed Account
This is a program for those people who are interested in investing money in forex trading, but do not have the time or interest for trading by themselves. Thus, a trading expert manages your account on your behalf with the help of this software. This is also for those who have tried their hand, but do not have the required knowledge and skills for this job. Examples are CTS Forex, ZuluTrade, and dbFX.

Tips for Choosing

Since you are dealing with money, in a highly competitive market, there are more chances of loss, if you are not cautious enough. Trading simply means that one person's loss is another person's gain. So you don't want to be at the losing end, and want good returns for your investment. These are some tips to help you choose an ideal software:

Tip 1: Never buy a software before trying it. Most stock brokers offer a trial version of their program. So try out a few ones before you buy any of them.
Tip 2: Once you have tried some of them, select one which is fast and saves time.
Tip 3: Look for a user-friendly software. You do not want to waste most of your time in understanding its features.
Tip 4: Read reviews and comments online, about the program of your interest.
Tip 5: Always check if the trading program is compatible with your computer system. Otherwise, see if you have the flexibility to upgrade the system.
Tip 6: Check for technical support of the trading program. A good software should also have a good technical support staff, in case of emergency or any glitches.

How often have you come across websites, that vouch to make USD 1,000 to USD 1,00,000 for you, in four hours? Well, the numbers might differ, but the claims are still the same, to make you rich in just a small period of time. Don't get fooled by these claims, as you are not the only trader in the market; there are thousands of people with the same goal. Do not forget, there are Wall Street professionals that you are competing against. Whatever software you choose, according to your requirements, the best lesson in currency trading is to have realistic expectations. Don't expect a miracle by giving in four hours of your time, when there are people trading 24 hours a day. As trading software programs are an important part of this business, always know about their reputation before you invest your money.

Disclaimer: This article is for reference purposes only and does not directly recommend any specific investment and trading choices.
Advertisement