Forex trading software
Progressive evolution of forex trading software has brought the currency markets to the internet, allowing individuals to participate. Forex software can be classified into 4 groups namely; (i) Trading Platforms, (ii)Forex Signaling Software, (iii) Forex Charting Applications and (iv) Expert Advisors. Each software serves a unique purpose in the value chain.
Trading platforms
The most common reference to forex software is the trading platform that is used to perform the actual trade. While some of the larger forex brokers have their proprietary platforms, most forex brokers use the Meta Trader some customizations. As a result MetaTrader is now the industry standard in online forex trading. Other software systems used include Currenex and Web Trader. The best way to test a trading platform is to open a demo forex trading account will give you access to the trading platform.
Forex signals software
A forex signal is a suggested behaviour for a currency pair made by a human analyst or automated forex robot supplied to a subscriber. Basic forex signal service usually comes with a paid forex trading account. However advanced signals and trading indicators give you a competitive edge and can be subscribed from 3rd party experts.
Forex charting software
Forex charts are the blood-line of trading. Almost all technical analysis begins and ends with interpretation from charts. Powerful forex charting software is a necessity. All forex trading platforms come with built in charting applications, there are limited in sophistication. Typically full-fledged charting application come at a extra cost.
Expert Advisors
Expert Advisor is a computer program that will help decide on a buy or sell based on technical and fundamental indicators. Built initially to take out the physiological factors that affect humans in trading, they today are marketed as automatic and auto-pilot forex trading solutions. Unfortunately, Forex scams have leveraged expert advisors, marketing them as breakthrough methods to 100% returns or more in a year.
Its true value lies in implementing forex trading strategies that involve many trades within a matter of minutes. Automation removes the human error factor.
Risks in Automated Forex Trading Software
At Forexbite.com, we do not completely write-off the role of automated trading systems or forex robots in forex trading software. Some of them have shown remarkable results over varying periods of time. However, in our experience these methods are short-term focused and pose high risks should the algorithm fail. In most cases it is likely to work for a few months and when market conditions change, underlying parameters also change, leaving the software vulnerable to failure. So if you are interested in these softwares, use them with caution! It is High Risk - High Return! As quickly as they can double your money they can also take it away.
Forex Tools Articles & News
There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...
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