Forex trading software comes in a variety of forms and performs a wide range of functions.
Forex trading platform software – This is perhaps the most common type of Forex software and it is readily available from most all online Forex brokers. Forex trading platforms can be either web-based or can reside on the trader’s computer to interface with the Forex broker’s data and order entry system. These days platforms are quite sophisticated and have the ability to display a wide variety of Forex charts and indicators. Forex platforms allow traders to place orders to enter and exit trades with varying levels of sophistication.
Forex trading platform software not only allows traders to place their trades in real time, but also allows them to track their trades in real time. This is particularly convenient as you can see your current total account value (equity) fluctuate with the markets price movement.
Forex technical analysis software – Today’s trading platform software is quite sophisticated and can allow traders to do all types of analysis, especially those that have a variety of built-in technical indicators. There is also another class of trading software that is designed specifically for the testing and evaluation of Forex trading systems. It allows a trader to test out their trading ideas on historical market data to see if those trading ideas would have been profitable.
Although anyone can purchase this type of software and begin to use it is really best when in the hands of someone who has experience in the development of trading systems. You may have heard some experienced traders say, “yes, it is easy to develop a trading system…but it is much more difficult to develop a trading system that actually works”.
Forex trading system software – This type of software has a built-in trading system is specifically designed to give the trader Forex trading signals. These signals are essentially instructions which tell the trader exactly which actions to take and when to take those actions.
Automated Forex trading software – Automated trading software can make trading decisions using a built-in Forex trading system. It can also place trades with the trader’s Forex broker without the intervention of the trader. This type of trading is grown tremendously in popularity these days and the prospect of making hands-free profits appeals to many new traders. This type of software also has another name and that is a, “Forex expert advisor”. You may also see it referred to as a, “Forex robot”, no doubt because it performs its tasks automatically and without human intervention in a mechanical fashion.
