The foreign exchange markets are some of the most technologically reliant financial markets in the world. As a trader, everything you do hinges on the equipment and tools you use, foremost amongst them your trading platform.
Unlike other financial markets, the currency exchange is devoid of a central trading arena. This means that your sole conduit to the markets is the platform that you choose, and thus a huge amount depends on how well it fits your needs. Indeed, it would be no exaggeration to say that, in the high-risk world of the currency markets, your success rests almost entirely on the choice of platform that you make.
So how can you get it right? Here are three top tips to help you…
Step One: Create a List of Your Needs
‘Fail to prepare and you prepare to fail’, as the adage goes, and this is never more relevant than when it comes to selecting a trading platform. In the fast-paced, adrenaline-inducing world of the currency markets, you have to be able to make split-second decisions that you can rely on, and to do that you need the best possible tools and equipment, and the most up-to-date data at your disposal. Your trading platform will be the key to unlocking these, so it has to meet every one of your needs to a tee. The best way to guarantee this is by sitting down, doing your homework, and drawing up a comprehensive list of your requirements to help you assess your various options.
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Step Two: Shortlist Platforms that are within Your Budget
Another key consideration is cost. Different brokers will charge different amounts, and even amongst an individual brokerage firm’s offerings, prices will vary according to the package and platform you choose. There is little use in viewing anything that’s out of your budget, so be careful to sit down and work out exactly how high this is. Remember, the aim of the game is to turn a profit, and paying more than you can afford to means that this will never happen.
Step Three: Demo a Variety of Platforms
Once you have a list of potentials, it’s time to try them out. The majority of brokers, such as OANDA, will allow you to trial their platforms before committing to anything, so take full advantage of this. Test as many options as you can, comparing each offering to the criteria on your list. Don’t be scared to be overly critical; there’s a lot hinging on the platform you choose, so it needs to be utterly perfect. After all, with so many options to pick from, you need never settle for second best.
Follow these three top tips to find your perfect trading platform today.