Forex Trading Platforms
Forex trading is a pursuit which can cover a wide range of techniques aimed at tackling this complex market. Forex analysis can be based on technical tools and on fundamental analysis. Fundamental analysis tends to be based on data and the effect this will have on Forex pairs. Technical analysis is based on a range of technical tools, from technical indicators, to pattern analysis such as those based on candlestick charts and charting pattern formation.
The idea behind technical analysis is that pattern like events in the market tend to be repeated and the trader can look for the formation of these events and try and trade them (based on past outcomes). Fundamental analysis is based on analysis which aims to glean the potential effect of data on Forex pair valuation. There is an element of repeated event based analysis here as well, for example in news trading the assumption that a surprise result will have a directional effect. While this kind of analysis can be wrong, it can also be helpful in that it provides a rationale for making a Forex trade. The trader can supplement their analysis from sources such as social trading tools and crowd trading tools.
As technical and fundamental analysis is a core part of Forex trading, the trader may wish to focus on this kind of analysis, which requires an online trading platform with a range of charting tools (which is the basic format). To start with technical analysis the trader may wish to study technical analysis and indicators and then try using a popular indicator (such as RSI and MACD) on a demo account. The trader may wish also to study candlestick analysis and apply this on a demo account. Candlestick analysis requires only a chart price type known as candlestick charts, which can be found on a typical platform, along with knowledge of how these patterns are supposed to work.
The trader may be interested in using robots. Robots are computer programs which execute programmed instructions, called algorithms. Robots trade on behalf of the trader and trade without tiring. Robots can also execute rapidly and without the kinds of errors which human traders may fall prey to when executing multiple trades (for example when trading on the shorter term). Robots however can also rapidly produce losses in the trader's account and perhaps might be considered when the trader understanding how to trade. At this point it may become clearer why to use a robot and which robots to use (for example a robot could be used which executes a strategy used by the trader at times they cannot trade).
Best Forex Trading Platform
The pick of 'Best Forex Trading Platform' is FOREX.com's Advanced Trading Platform. FOREX.com offers 90+ Forex pairs on a platform which features a range of charting tools as well as the capacity to use and program charting signals (i.e. providing possible entry and exit points on a chart). The Advanced Trading Platform has evolved through a number of iterations and supports a range of CFD markets as well as Forex pairs. The Advanced Trading Platform is relatively user friendly, though the trader may want to learn how to use it first on a demo account.
The Advanced Trading Platform supports both FOREX.com's standard account and its DMA account, for more advanced traders who want to trade Forex and Metals pairs (thus the trader can advance their Forex trading on this platform from demo to advanced). As well as this platform, FOREX.com offers a user friendly web trader and MT4. On MT4 FOREX.com supports trading automation with robots, including the use of a Virtual Private Server (VPS), which will run robots (called Expert Advisors or EAs or MT4) even when the trader is disconnected from the broker. The demo account sign up lets the trader test out all of FOREX.com's platform.
