When choosing a forex trading platform, traders should consider their approach, data reliability, software type, brokerage fees, and account size. Computerized trading systems require reliable and fast software interfaces. Chart pattern analysis traders should try different software and find a brokerage that interfaces with their preferred program. Costs are important, and hidden fees should be considered. Position traders should be aware of monthly brokerage income requirements, and large account holders should ask about interest-bearing accounts.
Considerations when choosing a forex trading platform include what the trader’s approach is, how reliable the data is, what type of software the broker provides, what the brokerage fees are, and how large an account the trader will open. If the trader plans to use a computerized trading system, the first requirement is that the trader’s software be able to interface with the broker’s order placement software, and that the interface be reliable and fast. Some brokerage reporting systems are unreliable and do not report a portion of the transactions that take place. Unreported transactions can cause a profitable computerized trading system to lose money.
If chart pattern analysis is the approach used by the trader, you will want to try the software provided by each brokerage you are considering and see if the software meets your needs. The trader may own a software program that he likes, and if so, he might be interested in finding a brokerage that interfaces with his software. Most brokerages support interfaces to at least some commercially available software, so the trader is likely to find a brokerage where he can use what works for him. The trader should also verify that the forex trading platform provides the right speed and reliability for the trader’s needs.
Costs are an important factor in choosing a forex trading platform because the higher the costs of the trader, the more difficult it is for him to make a profit. A fee-based brokerage provides a cost structure that is easy to assess. Finding the actual costs if the broker does not charge fees, but instead uses a spread against actual market prices, is not simple. Many traders can easily calculate the costs of a two pip spread. The trader can certainly calculate the costs of, say, a two-pip spread, but if using a pip-based broker delays trade execution or prevents accurate data flow to the trader, you should consider moving to a brokerage. different.
A forex trading platform may have other hidden costs, including brokers who charge free data fees as part of the price for using their software. The trader needs to ask specifically about all the data that he considers important. Some brokerages rack up fees but introduce them little by little, forcing the trader to ask about exchange fees, brokerage fees, data fees, and any other costs to find out the actual costs he is paying. . Position traders should be aware that if a trading account does not generate enough monthly brokerage income, almost any forex trading platform will charge a fee. A trader opening a large account should ask if the brokerage has interest-bearing accounts.
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