If you’re setting out as a forex trader, you’re in good company.
An estimated $5.3 trillion is traded each day on the foreign exchange, for example, while there are ample opportunities to profit either in the short or longer-term.
If you’re going to be successful in this market, however, you need to leverage the technology and innovation at your disposal. Make no mistake; forex brokers offer various technologies to help empower their clients, and utilising these to their full potential will be central to your success.
What Technologies are Available to Traders?
Traders have benefitted from a significant market shift over the last three decades, as the technology that was once reserved for exchanges and institutional traders has been improved and made accessible to the wider market. The forex broker revolution has played a pivotal role in this shift, breaking down the barriers to entry that once surrounded the marketplace.
The emergence of all-electronic markets has created this level playing field, essentially creating a virtual network in which all investors can benefit from direct access trading. Modern-day brokers have subsequently developed online and mobile trading platforms, enabling investors to leverage these advantages and ultimately execute informed orders.
Modern trading software offers three main advantages, as everyday investors can utilise programs to perform real-time (and historical) market analysis, complete back-testing procedures and execute orders. With the former, today’s platforms offer direct access to a comprehensive range of analytical tools, while they also allow users to customise price charts and display love quotes. From a back-testing perspective, this is a now a commonplace feature that lets investors accurately appraise their systems and core trading strategies.
Above all else, however, contemporary trading platforms tend to have at least one, order-entry interface, although the diversity and complexity of these will vary from platform to platform. As the available technology continues to evolve, however, it’s fair to say that the vast majority now support concepts such as trade automation, while they also allow for the deployment of advanced risk management strategies such as stop losses.
In some instances, you may even identify platforms that allow you to utilise a fully automated trading strategy, although this also requires detailed and comprehensive of the marketplace.
The Last Word – What Else do you Need?
From an individual standpoint, you’ll also need other, more basic examples of technology to make your mark as a forex trader. Your computer should have a fast processor and viable amount of memory, for example, while you’ll also need a strong Internet connection that lets you operate online at all times.
We’d also recommend that you embrace the mobile trading revolution, by utilising comprehensive apps that are compatible with your choice of online broker. The MetaTrader series offer a relevant case in point, as this offers access to a huge range of advanced features while its various iterations can also be used with a diverse array of trading platforms.