Forex Trading Softwares – Picking the Right One
The advent of automated forex trading software represents a quickly advancing forex world to new and exciting possibilities. As the name suggests, this type of software gives you the ability to engage in forex trading without you having to be there to make decisions based on analysis and other factors. Automated trading software’s are designed to do all the work for you with minimal or absolutely no intervention based on parameters that can be set by either you as a trader or preprogrammed by the software designers.
To keep it simple, forex trading can be as simple as activating the software, getting off the office table and mind other equally important business while the computer is handling the trading for you.
How Does The Software Go About Doing This?
Forex trading software, or forex signals software in colloquial terms, uses a program that functions through algorithms that enable it to analyze price charts and market activity over a period of time. In essence, the program tracks signals in order to pinpoint currency pairs that have the highest advantageous trades. These signals include price trends, discrepancies and news that may have significant impact on the forex market.
In other words, upon setting your criteria as a user, the software recognizes a currency pair trade that satisfies the criteria, which then triggers an alert for buying or selling which is then followed by an automatic trade.
The Advantages Of Forex Trading Software
The greatest advantage that automated software’s afford is providing a strict and logical method of trading. It is common knowledge that most forex traders fall prey to sometimes 'emotional decisions' when plying their trade which can be a genuine threat to the invested capital. Automated software’s get rid of the possibility of these decisions being made thus keeping the trading processes consistent and logical.
The second advantage of automated software’s is that they provide great advantage to traders who focus on currency spreads to earn profits. Focusing on currency spreads implies an uncompromising focus on price discrepancies. The software’s provide the required analysis in an ultra-effective way which is then followed by an immediate trade, thus making sure the appropriate actions are done in a timely manner.
Apart from price fluctuations, the automated software also uses a myriad other indicators to trigger alerts. These include average crossovers, chart configurations and other indicators of support and resistance levels.
Another advantage associated with automated software’s is that they allow traders to manage several accounts at once. This is quite a difficult feat to achieve when a manual approach is employed especially when using one computer.
The last and most obvious advantage these software’s offer is that they come in handy for the kind of folks who are constantly on the move or preoccupied with something else. Mastering and profiting from forex implies a lot of time and practice which can be something next to impossible when the trader is ”too busy” with other equally important interests. Automated software’s can solve this problem by providing a 24 hour and reliable way of being ever-present in the business.
Choosing The Right Automated Software
If you delve into the automated software market to pull out one of your own, you will soon realize that there is a few thousands to choose from. However not all of them can provide you with the best experience because the fact is that quality of software’s range from mediocre to excellent. Let’s have a few minutes to look at the key points in choosing the right automated software for your needs.
1. Make sure it fits with your needs.
Automated software’s are different based on a number of aspects including usability, performance and speed. Depending on your preferences, make sure you choose the best forex software for your needs.
When it comes to usability, newbies may want to settle for something that keeps it simple at first thus they may go for a program that provides more of a plug and play system which will just let the user to set the criteria, activate the system and let it do the remaining work. Those with a fair share of experience may settle for those programs which go an extra mile to incorporate other features like producing reports and special market orders.
If you are someone who travels on a frequent basis, the remote access feature can be an essential in the software of your choice. An automated program that is web based is ideal for those who simply don’t have a lot of hours to spend in front of a computer as it can function through the use of Wi-Fi thus helping the trader to keep up with the trading.
When it comes to Wi-Fi, it is also important to give Virtual Private Server hosting a try if you are into forex trading full time. This service comes with the advantage that it provides great speed and keeps the system isolated for security concerns.
2. What sort of fees/warranties/guarantees are involved?
Transparency and accountability are key to ensuring that you are using a product from brands that are committed to provide high quality. Credible products always come with a clear and well explained statement on the associated charges to make sure there are no confusions. Most automated software’s provide commissions and other fees that you need to understand before you make any decisions. Make sure you get something that is reasonable according to your pockets and also make sure that any other additional fees won’t render havoc on your profits.
Another factor worth considering is the kind of guarantees provided by the software company. This is important because it tells you more of the seller’s commitment to providing you the highest possible quality. Software Company’s provide a wide range of guarantees spanning different periods of time from which you can choose from. It pays dividends to consider the involved guarantees along with other factors to come up with the best.
3. Test the software
Great automated programs come with a price for the obvious reason that these are more of forex machines that make your work easier a dozen fold, which in time can translate to delightful profits. Therefore, it always pays to get as much information as possible regarding the functionality of the program. Credible firms usually have videos that feature their product being used in the actual market. Once the choice is made, always go through the tutorials or training that may be found in the software and make sure you are clear on most of the questions you may have in mind regarding the software. In case there are issues to clarify, always check if there is a responsive support service in place with which you can handle some of the concerns and issues.
Apart from the help and support services, other software’s come with a trial software to give the trader the familiarity they need and see if it is appropriate for their needs. Much as it may appear a bit of a delay to some experienced traders, going through the test software isn’t a waste of time at all as it prepares you for some of the unforeseen circumstances you may encounter on the way.
4. Make sure it’s not a scam
Employing software’s in forex trading comes with an expected threat of scams which are a perpetual curse on the internet today. Avoiding scams is a matter of ignoring the ‘buy-and-get-started' urge that comes with having the resources to buy the software. There are websites that are devoted to keeping you safe through updates on the latest trends relating to scams and a database for registered software’s. As a serious trader, you need to make sure you sign up and check regularly to avoid being the victim. The websites include the Commodity Futures Trading Commission and the National Futures Association.
Automated forex trading software can be a huge asset in any traders experience through providing a simple and yet practical solution to efficient and effective forex trading. However, much as they are as useful and easy to use as they may appear, it is important to be aware that they are not necessarily faultless and may not translate to a streak of successful trades.