February 19th, 2021 | Updated on May 10th, 2023
There’s no doubt that Forex trading is a great avenue for new investors. The prospect of big wins with just a bit of capital invested was always going to perk up ears.
However, under capitalisation can spell doom for a lot of traders. Plus, there’s the need to keep an eye on the market as well as economic news and events.
All this might mean that it might not be accessible as it seems. And that’s where the help of a good Forex trading software comes in.
What Is Forex Trading?
Forex trading stands for ‘Foreign Exchange Market’.
It is the process of changing one currency into another. This means that you’re always trading currency pairs. This means selling one currency while buying another.
Why Is Forex Trading So Popular?
Unlike other stocks trading, Forex is straightforward. The fact that it’s available online also has its benefits.
This means that almost anyone can get involved in Forex trading. Plus, whilst Forex trading can be volatile, it’s also a great short-term investing strategy.
What Does Forex Trading Software Do?
So with its ease of access, why do you need Forex trading software, and what does it do?
Are you looking to move away from investing in:
Then Forex trading may be for you. With a trading software, you’ll have an intuitive algorithm informing your trades.
Forex software will monitor macroeconomic events to help you make decisions (and money!). You’ll even be able to watch live trades from your phone.
Forex trading software will run algorithms in line with your MetaTrader 4 platform.
Your software may use indicators like:
- A relative strength index.
- A bespoke MACD indicator to predict market trends.
This will be run at real-time with timeframes as concise as one-minute cycles. You can expect some Forex trading software to even:
- Use direct market access to identify brokers’ pricing trends.
- Trade EUR/USD on the hour chart to take advantage of the European session.
These two strategies do focus on volatile market strategies, however. But, with the greater risk associated also comes greater profit margins.
Moreover, choosing a reliable Forex broker is critical to gain access to the right Forex trading software. It’s important to ensure that the broker you select provides a platform that satisfies your trading needs. Additionally, you can keep yourself informed of the most recent Forex broker news by perusing reviews of well-known Forex brokers.
For instance, you can check out the Etoro brokers review to assist you in making well-informed decisions when choosing a broker for your trading journey
What Do I Need From Forex Trading Software?
To run Forex trading software, you will need your MetaTrader 4 platform set up. From your Forex trading software, you should also expect:
- A self-sufficient trading strategy. This is where it stops losses and takes profits with each trade.
- A dedicated support centre.
- The ability to trade 24/5 in-line with the market.
Whether you’re saving for a new house or want to raise capital in the short-term, Forex trading could be the answer.
This form of trading currency pairs is an accessible online market. It’s best leveraged, though, with the help of trading software. With the draw of being able to trade with investments starting as low as £10k, it’s no wonder it’s so popular.
But a strategy for a quick, global market requires the support of good trading software.
You’ll need an intuitive software informing your trades. Then you can minimise market exposure and capitalise on trends.
About the author: Harry Patté-Dobbs is a content writing and PR expert at Pearl Lemon! He’s written for blogs, news, and media outlets and loves films, food, and wellness. You can usually find him either reading or writing.