This post shall cover some of the most important and Best Forex Trading Tools, a must have for traders.
Forex Market: The Pre-requisites
Foreign Exchange is the global marketplace where currencies of all the nations are traded. As the reach of trade is worldwide, Forex markets are considered to be one of the most liquid markets in the world.
So trading of Forex is easy but what is difficult is profitable trading. To make a trade profitable, you require a lot of research, variety of tools and know-how of the right techniques to be applied in different situations.
Basically you will need things like good trade journals to follow, some statistics (like volatility, margins, etc.), follow up of upcoming financial and economic events, currency conversion calculators and so on.
Therefore, to manage all these things you need some useful trading tools which will help you in analyzing the market, set parameters and make informed decisions to make your trade profitable.
What to Look for in a Forex Trading Tool? Features
Now this basic question arises in our minds: How to choose the right forex trading tools? What to look for in a Forex tool so that we can trust them and select our trades.
These tools can either be paid, or free of charge. Now, that’s also a crucial factor which affects our decision to go for them or not.
You may also like to explore Best Forex Blogs, Trading Strategies & News Sites
Now, let’s see what all things should Forex trading tools must include to become a right choice for us:
1. Forex Calendars:
Traders and Investors plan their trades according to the situation of the market. It matters a lot to them, what’s going on in the market and what can happen in future as these all sentiments derive the prices of the currencies.
So the events whether economical, financial or political become significant in Forex trading.
2. Live FX news:
Live news is another important aspect which impacts a trader’s choice. Here, many software provide you news but the challenge lies in providing accurate news timely with relevant facts.
3. Fundamental and Technical Analysis:
Fundamental analysis tells the broader picture and helps the traders to determine the intrinsic values.
Along with fundamental analysis and latest news, technical analysis also becomes a prime factor to identify good trading opportunities. Traders generate signals to buy and sell with the patterns formed in the chart.
You may also read Fundamental Analysis vs. Technical Analysis
4. Market Pulse:
By market pulse, we mean the current scenario of the market at a particular point of time. So the traders require all kinds of information, such as moments of under-valuations and over-valuations, volume of long and short trades, mini charts, correlation matrices for in-depth information and analysis.
Therefore, modern traders remain very keen to know heat maps and correlation matrices for decision making.
5. Forex Calculators:
Planning of profits and possibility of losses are always associated with any trading strategy. Therefore, traders require Forex calculators for calculating their expected profits/losses.
Calculating Forex profits/losses is challenging as traders need to consider various factors like trade volume, applicable leverage, currency of your account, spreads, swaps and the commissions charged by the brokers.
6. Advanced Forex tools:
When you use good Forex tools, your trading becomes more efficient and smooth. Today a wide range of great tools are available for free in the market which will save your time. For example- market sentiment widget, MT supreme edition, etc.
Traders also look for features like one-click trading, advance order types for a more smooth experience.
7. Trading Signals:
A Trading Signal is like a trigger which suggests you either to buy or to sell any security which is generated by software on the basis of analysis. Going according to signals is considered reliable to some extent.
Top 5 Forex Trading Tools: What’s available for Traders?
By now you know what all essential features you need to look into a forex trading tool so that we can rely on it. Bu, let’s further dig out what are the different types of tools which are actually available in the market.
1. Charting Software:
When it comes to trading of currencies, charts play a very important role. Charts help you to keep a track on market performance, examine the various patterns which are formed and observe the history of currencies.
Charts also helps you analyze the market in real-time which helps you see through the current market sentiments. Also, charting softwares also provides you various technical indicators and signals which will help you forecast the future move of currencies.
Charts really help you in successful trading and modern traders do not trade without observing chart patterns and movements.
2. Forex Trading Platforms:
Being a stock trader or a forex trader, you know that choice of trading platform matters a lot. Every forex trading platform has some of its pros and cons.
Traders always prefer the online portals which can track the market changes in real-time. Since you can observe changes in the market as and when you place an order.
As you change the trading platform, you will find changes in financial news feed. So, preferably traders choose the platform which can be customized according to their needs. Also, it is always convenient when your trades are automated so that you never miss any opportunity of earning.
Today, most of the people trade on mobile, thus when platforms provide user-friendly mobile versions and applications (apps), they are definitely preferred.
3. Technical Analysis Software:
Technical analysis appeals to modern traders a lot as it helps in identifying better opportunities. So there are plenty of software available in the market which can provide you in-depth technical analysis.
Have you heard of some of the popular technical analysis software? Admiral markets and MetaTrader 4 and 5 , Financial News Wire to mane a few.
4. Online Calculators:
Forex calculators are one of the primary tools required when you are trading forex. It helps you manage your risk and keeps you alert to your positions.
The most commonly used ones being the Volatility Tool and Correlation tool which help traders to see the movement of a pair of currency and to know the correlation between a pair of currency respectively.
Calculators provide traders a clear understanding of their profits and losses. Traders also use these to know the margin balance of a trading account. There are a variety of calculators available for different purposes.
Online Calculators List
Here’s an exclusive list, a bunch of calculators that can simplify your trading expedition:
- Forex Pip Calculator
- Fibonacci Calculator
- Forex Margin Calculator
- Position Size Calculator
- Forex Stop Loss Calculator
- Forex Lot Size Calculator
- Forex Profit Loss Calculator
- Forex Pivot Point Calculator
- Forex Swaps Calculator
- Forex Spreads Calculator
- Forex Profit Calculator
- All-in-one Forex Calculators
- Multi-target Calculator
- Risk Percentage Calculator
- Risk and Reward Calculator
5. Copy Trading Services:
As the name suggests, this technology helps you in copying the previous successful trades of other traders in the past and deploy the same method/strategy again in the market hoping that the same results would be there.
Obviously the situations are never identical but professional traders use these kinds of services to take opinions which proved to be successful in the past.
This new technology became popular in the last decade but it must be used in a very cautious manner.
Forex Trading Tools: Which one is Best?
Look around!! You’ll find hundreds of dominant tools available for Forex trading. To be successful and profitable in Forex trading, you need to learn using advanced Forex tools along with a lot of fundamental research. And, that’s not all! Your knowledge and experience also matter a lot.
Talking about right forex trading tools, it may seem diplomatic to you but that’s the truth that a perfect tool type totally depends on you, the type of trader you are, your trading style, the way you manage money, volume of trading, duration of investment and other things that describe or categorize you as a trader.
Disclaimer: A very high degree of risk is involved in trading and investing. The content on this site is solely for informational purpose only. BrokersGen is not an investment advisory service. The content given on this website should not be considered as a professional advice in any regard.
What are your views on the above collection of best forex trading tools? Have you tried any of them? Any trading software or app you wish to add, feel free to discuss in the comments.