The 4 Best Tools For Trading Forex
If you’re looking to become a financial trader, you have many options. There are stocks, bonds, commodities, derivatives, and even cryptocurrencies. Among these, forex is one of the most appealing.
Since it deals in the world’s fiat currencies, the foreign exchange market is the world’s largest and most liquid. As of 2022, it has a whopping daily turnover rate of $6.6 trillion (£5.44 trillion) — and PRNewswire reports that its size is expected to grow by a further $1.94 trillion (£777 billion) by 2026. This means that the forex market can be accessed remotely 24/5. Arguably the best part is that you only need a small amount to get started.
As with everything new you try, though, there’s bound to be a learning curve. Having a few tools handy can soften this curve so you get the experience you need to make bigger and more profitable trades. We dive into a few of the best forex trading tools below. Visit RoboForex for more forex knowledge.
Trading platforms
If you are looking for a trading platform, the best mobile forex trading app is provided by forex brokerages so traders can access the forex market. Many come with additional features that give you more control over your trades. The MetaTrader 4 platform stands out in this regard. It helps you analyze forex charts, automate your trades, and even copy trades from successful traders. There’s a risk-free practice account you can use to hone your skills before actually starting to trade on the market. Forex brokerage FXCM adds that MetaTrader 4 is easy to download for on-the-go trading. You can get it on Mac, iOS, Android, Windows, and even Linux.
Economic calendar
Multiple factors affect currency value: interest rates, inflation, political events, economic health, and central bank policy decisions. These factors all fluctuate constantly and can affect the value of your trades, especially if you live in a rural area. With high-speed internet, you can access economic calendars online so you can keep track of events that may affect your trades. The economic calendar provided by online forex resourceS incorporates the latest financial news from around the world — so you’re never kept out of the loop. You can also consult with some experienced forex trading brokers who can give you useful forex trading advice. You can also participate in online forex trading communities. There you can meet other people who are into forex trading.
Time zone converter
Previously, we mentioned that the forex market is open 24/5. This is primarily because trading centres are spread out across different time zones. This offers added convenience to traders like yourself. However, it also poses an additional challenge: there’s a best time to trade particular currency pairs. These hours can be difficult to pinpoint if the currency pairs you trade don’t involve the currency of the country you hail from. A time zone converter can help you determine the best hours to trade in accordance with your own local time so you don’t lose your step.
Trade journal
Unlike the tools above, this is one that you’ll have to make for yourself. Even so, it can play a significant role in helping place your trades. A trading journal lists all the trades you’ve made. This way, you can keep track of your trading goals and glean valuable lessons for the future. For example, it can teach you to avoid trading during certain market events or help you decide how much to risk with each trade. Though keeping a trading journal can be hard work, it will ultimately make you a better trader in the long run.
Trading forex can be rewarding. These tools should help streamline the process so you can place the best trades possible.
