A trader and his broker engaging in Forex do their transactions through a software program called a Forex trading platform. It is the medium by which important data such as charts and quoted are made available to the trader. Through the interface that it comes with, orders may be entered which the broker carries out.
Sources of Forex Trading Platforms
The software for Forex trading platforms may be acquired from a number of sources. A trader can have a Forex trading platform software installed on his computer. Brokers use different systems for trading, which includes Linux, Mac and Windows, as well as software that is available online. This last option makes use Java in order to run on the web, which is an advantage for most people, since the only requirement is a computer with access to the internet.
A trader may use a Forex trading platform without paying for anything, although there are platforms that can be bought and that are allowed by a number of brokers for the higher functionality they offer at a price. On the other hand, traders who are more active are provided by their brokers several platforms that differ in functionalities.
A Closer Look at Online Forex Trading
Online Forex Trading is similar to any other type of trading in that it has the same set of requirements to be fulfilled by a trading platform. The latter will serve as the channel through which the retail broker and the trader perform their Forex transactions. “For the trader to make efficient transactions, the platform used for online Forex trading should allow him to place all types of orders as well as be able to supply him both historical and real-time information” stated by an analyst from MTrading.my – A Malaysia Forex trading broker .
Factors to Consider in Choosing the Right Platform for Online Forex Trading
Several factors are taken into consideration when choosing one: whether it is free of charge or if a fee is required; if analytic tools are available for charting data; the type of system it runs on; the types of orders that can be placed and the interface used; the ease with which the interface may be used; the availability of historical data as well as tools for backtesting; and if third party software is allowed. To support platforms with an application program interface (API), third-party software is used because it enables a third party or software to participate in transactions.
Ultimately, the surefire way of truly knowing which Forex trading platform works for a trader is for him to try each software made available by his broker on trial.