By Richard M. Davieess
Understanding the differences between the types of Forex
trading software and Forex trading platforms can help to make
you a better trader in a number of ways. Choosing the trading
software that most closely matches your needs can make your
journey to Forex profitability much smoother and easier.
Online Forex brokers give clients access to information about
market prices and the ability to make trades via their forex
trading software offerings. Online Forex trading is fairly well
established so there is general agreement amongst brokers about
what kind of software is optimum for these purposes. The major
division of the software is between client based and web based
examples.
Of course, a primary need is for real-time, second-by-second
access to market information. Forex trading is very fast paced
and there is no room for a lag in delivery of information so
that trading decisions can be properly made. Despite the claims
of all Forex dealers that their particular software will perform
speedily there are many things that can delay the receiving of
data.
Having a newer computer, with adequate power and speed, is one
critical consideration. Another is to have an Internet
connection that is high speed so you can take advantage of all
that your broker's software can offer you. Since distance from
the broker's servers is another important point it is wise to
have a broker in the same general area as you are. Having a
broker half-way around the globe may cause you critical delays
during times of rapid trading. This, of course, may be less of
an issue as trading technologies advance.
A Choice: Client Based or Web Based?
Client based software offerings are those where critical
portions of the software resides on your own computer. Web based
packages run over the Internet and you can access your account
on your broker's website from any computer with a web
connection. Is one preferable? The trend is toward web based
packages because these are much more convenient and reliable. If
your computer is down for any reason you can still conduct
business through a another computer. With client based software
you would be restricted to the one computer.
Because the web-based software resides on the broker's system
there is much greater security. The broker can secure the data
by high-strength encryption so transmissions are always
protected. A single trader's computer, on the other hand, is
much more vulnerable to hackers, viruses, and other such
security breaches.
The most basic features of a Forex trading software package is
allowing a trader access for buying a selling and seeing
real-time price information. So, of course, all packages should
offer this ability. The trader can see up to the minute quotes
for those currency pairs most often traded and can manage their
accounts, either buying or selling by price or using stops and
limits to enter and exit the market. Charting functions
integrated right into the software are also very desirable.
Most brokers will offer a basic software package for free but
there are higher-level, more capable programs also offered for a
monthly fee. These more capable programs give you access to a
large range of analytical functions and allow you to trade
directly from the chart withing the Forex trading platform.
Since the heart of these systems are the data servers, Forex
brokers' servers must be secure, with all transactions processed
correctly and all data integrity maintained. Since every
computer system can be crippled by events outside of the control
of individuals there should be separate backup servers in
different locations. This means that a natural disaster, or even
a simple loss of power supply, does not cripple the operation.
Data backups at regular intervals will also go a long way toward
assuring that client data is preserved in an accurate state no
matter what.
About the Author: Effective Forex Trading is your guide to
profiting in the Forex market using leading edge Forex trading
systems, technical analysis, swing trading strategies and much
more! Trade Forex with confidence with our free Forex Trading
newsletter available to you at
http://www.effectiveforextrading.com
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