Finding the Best Forex Trading Software – FAQ
Forex trading software intended for the personal forex trader comprises a rapidly-growing segment of the forex industry. A number of different types of forex trading software have found their way into widespread usage among personal forex traders.
Common forex trading software types include:
Trading Platforms – allow for the manual management and execution of forex trades.
Technical Analysis Software – provides charts of historical exchange rates and technical indicators.
Trading Signal Generators – provide recommended levels at which forex traders can initiate and close out positions; and
Automated Forex Trading Software or Forex Robots – execute trades automatically based on a pre-programmed trading algorithm.
How do you go about finding the best forex trading software? Well, perhaps the best idea would be to download a few representative programs and try them out within their return period to see what works best for your needs. If the software does not suit your purposes well, then submit a refund request. Another way to do some advance research on forex trading software would involve reading online product reviews and discussion forum postings from users of the software.
To assist you further in the process of finding the best forex trading software, the FAQ terms defined below provide a useful list of items that you can take into consideration when shopping for forex trading software online.
Forex Trading Platforms
In general, forex trading platforms offer their users the ability to manually enter and execute forex trades with an online forex broker. They generally require a reliable Internet connection to operate efficiently, and if they require a software download, they usually run on Windows-based computers.
More advanced trading platform features might include: the ability to manage multiple trading accounts, charting functionality, and algorithmic trading support with back-testing capabilities.
Forex Charting Software (Technical analysis software)
Forex charting software can encompass a variety of computer programs that facilitate the review of foreign exchange rates using technical analysis methods. The more basic programs of this type will usually allow you to plot the progress of exchange rates over time for several time periods, to overlay some of the more popular technical indicators like RSIs and Moving Averages, and to draw trend lines.
More sophisticated charting software generally offers some support for traders using Elliot Wave Theory to analyze exchange rate movements that would include calculating Fibonacci retracement and projection levels. Additional advanced forex charting software features might include: more advanced line-drawing options that include channels and Gann lines, computing and displaying Pivot Points, as well as providing a wider range of increasingly-complex technical indicators.
An even higher level of charting software often includes some form of pattern-matching algorithm that identifies forming chart patterns, along with their trigger points and measured move objectives. Other software based on Elliott Wave Theory might count wave progressions.
Forex Signal Generating Software
Forex signal generating software or forex signal generators generally do not trade automatically for a user. Instead, they provide levels at which a trader can enter the market and usually have a means by which to alert the trader to such opportunities.
Such signal generators also usually provide suggested stop-loss and take-profit levels so that the trader can appropriately try to manage any losses or gains on any positions they take based on the signals generated by the software. Please note that there is no guarantee that a stop order is filled at the stop price and the same caution applies to these products as the robots.
Automated or Algorithmic Trading Software
Automated trading software operates according to a pre-defined trade plan or algorithm without the need for manual intervention. They also sometimes go by the name of Expert Advisors or EAs and often run as such on the popular MetaTrader4 trading platform. The so-called forex trading robots available on the commercial forex market generally fall into this category, as do personalized trade plans that traders program or have programmed themselves.
Often, this automation helps traders by taking the emotional and discretionary component out of trading a particular system, and once set up, they can also help a trader save considerable time. Furthermore, these systems can sometimes offer assistance to beginning traders who wish to learn how to trade like experts.
Forex Trading Robots
Forex trading robots make up one of the main types of automated trading software currently available to personal forex traders. Most of them install quickly and run as Expert Advisors on the popular MetaTrader 4 trading platform. Many of these robots are scams and even if they are not, they don’t live up to the promises they make in the sales pitch. In general, stay away from this type of forex products, but if you do consider using one, be very careful and do not trust the historical performance.
Other things to watch out for with forex trading robots is that their vendors often provide profitability numbers based on back-tested trading results over periods for which the robots are optimized to perform well. This means that future trading results might differ substantially, and usually do.
It therefore pays to test such robots in a demo account before setting them trading on live funds. Also, seek out unbiased Internet reviews and check online discussion forums for user comments about any forex trading robot software you might be considering buying.
Furthermore, since most of these forex software products sell via Clickbank, you will usually have 60 days to return them for your money back if you are dissatisfied with their performance. Be sure to have done your testing by then in case you need to take advantage of this offer.
In other words, be really careful and do your research – most of these products are not what they say they are!
In the list below you’ll find our reviews of some softwares on the market, read them and give your own review if you have experience from them!
Purchase and Refund Policy
Most forex trading software available for sale and download online comes with a satisfaction guarantee. While terms of such guarantees do vary and should be checked before purchase, this usually means that you just need to contact the vendor or sales agent to request a refund if dissatisfied for any reason.
Many forex trading software products sell online via Clickbank which generally offers a standardized 60-day money-back guarantee for software sold via its secure online interface. Nevertheless, requesting too many refunds can get you into trouble with them, so keep that in mind when shopping.
Just about all forex trading software intended for use by personal forex traders will provide a download option. Sometimes you can purchase CDs containing the software or have it sent via an e-mail attachment, but most often a download link will be provided once you pay for or give the required information necessary for the forex trading software provider to permit you to download the software.
Clicking on this link will usually start the transfer of a working version of the software from the Internet down to your personal computer. This download process can take anywhere from a few seconds up to an hour, depending on the size of the program and the speed of your Internet connection. You will also want to scan any downloaded software for viruses using your anti-virus software, and you may need to activate it in some way. Just follow the provided directions, and contact customer support if problems arise.
Also, most forex trading software is written to run on personal computers running a relatively recent version of Windows. You will want to keep that in mind when looking around for forex trading software in case you do not have a compatible operating system or emulator available on your computer.
If you do not have the ability to run Windows-based software, then be sure to check with the software product vendor to make sure your operating system is supported and how.
Many of the higher-end forex trading software products will provide free updates to the software for life or for a specified time. These updates can be important because they might correct existing problems or provide new and useful functionality.
Having software updates included in the cost of software can therefore be a valuable feature. Most software updates are either installed automatically by the software or require a new version of the software to be downloaded from the Internet and manually installed on your computer.
Online or Web-Based Platforms
Online or web-based trading platforms remove the download time factor and possible installation frustration out of running forex trading software. To use most online platforms, you just need to log in using a username and a password you have chosen to maintain your information’s privacy.
The main advantage of this type of trading platform is that you can generally use it anywhere you can get access to an Internet connection and compatible Web browser. They also permits use by operating systems other than Windows, which can really help Apple Mac OS and Linux users get started trading forex.
In general, client-side platforms consist of those forex trading platform products which require that the software be downloaded onto the trader’s personal computer or onto a remote server that the trader then pays a fee to use space on and access. This term is often used to contrast such downloaded platform installations with web-based forex trading platforms.
When you need to access or provide personal and private information over the Internet, such as credit card numbers, bank account data and trading account information, the security of your data from unwanted prying eyes who might misuse it becomes paramount. In addition, if you store key data online, you will want that information to be is backed up regularly by the host.
Make sure that your forex trading software, especially if web-based, and your forex broker use appropriate data security measures to protect your data. These might include operating duplicate data farms and using SSL-encryption technology to protect any personal data entered into online forms.
Real Time Exchange Rates
The best forex trading software displays colse to real-time exchange rates that change along with the market as it ticks up and down over time. Naturally, the best type of real time exchange rate is one you can deal on. This way, when you go to enter a trade or an order using your forex trading platform software, you do not get surprised about where the market really is trading.
Remote servers provide a useful service for those running downloaded or client-side forex trading platforms. This is especially the case when they require around-the-clock market-monitoring and execution capabilities, which can be essential for running an automated forex robot or trading algorithm profitably.
Most remote servers charge a fee for both hosting the forex trading software in its storage space and for allowing the software to use its always-on Internet connection to execute trades through. Such services usually offer a very high degree of reliability in terms of providing 24/7 Internet access to software installed on their servers.
The trading interface is what the user of the forex trading software interacts with in order to execute forex trades. Such an interface needs to be both ergonomic and generally acceptable for your purposes. Most trading interfaces can be customized, but to what extent generally depends on the software. Adjusting window placement and display colors are common trading interface changes that most platforms permit.
Many forex trading platforms provide a built-in charting capability with the most common technical indicators. One or more of these indicators are used by technical analysts when determining how to trade the forex market, and also in generating objective trading signals. If you need to use a particular technical indicator for your trading strategy, make sure that any platform under consideration includes this indicator.
Customer Service and Support
Once you purchase or decided to use a particular forex trading software package, you will want to make sure that it provides a suitable level of customer service and support just in case problems arise in its use. This becomes especially important for beginners who do not know how to use computers well or how to trade forex, or both.
Naturally, if a software package is provided free of charge, you might reasonably expect that less customer support will be offered. Also, you will probably want a greater degree of support to be available for essential software like your trading platform.
Most forex trading software packages come with an explanatory Users’ Manual often in the form of a separate PDF document or incorporated into a help function within the software itself. This manual should provide you with all the information you need to get started using the software, as well as how to use all of its more advanced features. The manual should also provide troubleshooting information, as well as who to contact in case additional support is require
Forex trading software packages increasingly come with helpful instructional videos that can be downloaded or played using your Internet browser. These videos usually contain screen shots of the software being used along with any audio or text necessary to describe how the software should be used and for what purposes.
Forex trading platforms often provide access to high-quality news feeds from professional forex market information sources that might include Reuters, Associated Press, Bloomberg or Telerate. Check to see that the news your trading platform provides is suitable for your needs, especially if you have a strong interest in trading based on fundamental factors.