One of the best things about forex trading is the fact that it is decentralized. There is no central regulatory agency that handles the buying and selling of foreign exchange. Thus, there are multiple places where you trade forex. All of these are called platforms or stations. All companies that deal with forex, be it banks or traders will have their own platform where you can buy or sell forex. They also take it one step forward and give you a software platform that makes your life a whole lot easier. How, you ask? Well, to begin with, they give a lot of statistical information and data that help you make trading decisions, data such as technical and fundamental analysis. They also present the data in a manner which is easy to understand. For instance, a table of data is unlikely to make any sense to anyone, but when this data is presented in, say, a pie chart, people are more likely to make sense of it. This is one of the most important advantages of a forex platform.
In most platforms, there is something called a real time ticker line, which in real time provides the rates of currencies as they change through the day, and it usually updates itself every second. This is an invaluable tool that helps you find the buy/sell rates of many currency pairs. Another tool provided by these platforms are the currency spreads that remain constant irrespective of the changing financial market.
Another thing that must be kept in mind is that, the better the credit rating of a forex trader is, the more likely it is to have access to market information and thus provide more competitive pricing. This is also seen in the trading sessions utilized by subscribers and investors. Better institutions also have better access to interbank rates and thus the trades performed are also better. The software that comes with every forex trader’s platform also provides linking to a currency margin account which provides you with the ability to purchase more with a smaller investment. You can also immediately confirm the purchase and the sale of currencies, which is reflected in your account in real time. Not only this, but the software platforms also have the ability to show your profits and losses in real time, so you can base your decisions on whether to sell, buy or wait in a given period of time.
One of the things that must be kept in mind when using a third party software is to go through the terms of service agreement in detail and also look at the regulations and the details of the agreement between the client and the subscriber. I learned all this when I was a student with the Academy of Financial Trading and it’s helped me a lot. I check their LinkedIn page on a regular basis because they offer frequent updates in the market status.
Some of the other facilities these software provide is the ability to generate reports of what you have traded over a period of time. Using the records of your past experiences you can base your later investments on them such that they are more fruitful and less open to risks.