The trading software represents a computer program that enables trade execution and includes real-time technical analysis tools for a wide range of financial assets. Forex trading software is a computer program designed for Forex traders. It covers all the necessary features and trading tools essential to execute trading orders on the Forex market and support your trading strategy.
Today, Forex traders can start trading on Forex by using online brokers’ services, also known as ECN brokers (brokerage companies that operate using Electronic Communication Networks). These brokers dispose of their Forex trading platforms and websites. The Forex broker company can either provide their own Forex trading software or rely on a third-party Forex trading software.
Understanding Trading Software
This piece of software comes as a downloadable program suitable for various devices such as mobile or desktop. It’s also ideal for different operating systems like Linux, Windows, or Mac. On the other hand, some softwares are only web-based, meaning it’s available through the specialized Forex trading websites. Forex traders can also buy third-party trading softwares to complement the trading tools provided by the brokerage platform they choose. It means that if you have chosen a specific brokerage platform because of a low-fee structure, but you are not satisfied with the software they offer, you can go for third-party software, such as MT4, MT5 or CTrader.
To link two kinds of trading softwares, you may need a set of programming codes called API. This set of code enables you to link two pieces of software to make them function as one. It’s not always necessary to have API since you can efficiently trade by using several different programs even if they are not communicating with each other.
Common Forex Trading Software Features
We can see the constant emergence of the new Forex software every day due to the increasing number of retail Forex investors. Each Forex software tends to cater the most streamlined trading experience to its customers. Naturally, each has its perks and downsides. However, there is some standard to meet.
Here are the common features of every Forex trading software:
- Availability on mobile, desktop, and various OS
- Precise up to date currency pairs quotes and trading signals
- Automated trading feature
- Reliable and efficient trade execution
- Strong data security
- Fundamental analysis features
- Technical Analysis charts
- Minimal System downtime
- Excellent customer support
Most Popular Forex Trading Software
MetaTrader 4, or simply called MT4, is by far the most popular trading software for Forex. This highly reliable and robust trading software comes from MetaQuotes Software, a leading company for trading software development. The software was launched in 2005 and is still a favorite of foreign currency traders worldwide. Many Forex brokers use this software which consists of several terminals. The most important terminals are client and server trading terminals. The server component is used by the brokerage company. The client terminal is for the Forex broker’s clients, who use it for placing orders, charts, account management, and live streaming prices.
Metatrader 4 Mobile Trading
MT4 particularly comes in handy when you are not near your desktop computer. Its mobile application enables you to perform your trades “from your pocket” whenever you are. MT4 mobile app is available to iOS and Android users. The mobile version of MT4 comprises many charts, a full set of analytic tools, and trading orders.
Moreover, there are additional functionalities for chatting with other fellow traders and receiving trading signals. In that way, you can automatically and in real-time copy trades executed by other traders if you haven’t enough time for trading.
If you are in algorithmic trading, MetaTrader 4 is excellent software for you. MetaTrader 4 includes automated software, which is one of its most remarkable features. The Automated Forex Trading software allows you to develop, test, and implement Expert Advisors and eliminates the obstacles in trading activity. As a trader, you can also publish your indicator analyses in the MetaEditor section, market them, and earn from that work.
It’s one of the main advantages of this Forex trading software. Analytical tools of Metatrader 4 encompass 23 analytical objects and 30 technical indicators. Forex traders have a technical indicators library consisting of many categories: volume indicators, trend indicators, reversal indicators, and so on. Also, the software offers a set of indicators developed by financial experts.
Talking about the most popular Forex trading software, we cannot miss stressing the importance of Metatrader 5. As we already outlined, Metatrader 4 is specifically designed for Forex traders. MT5 represents a multi assets trading software. It supports foreign trading currencies, stocks, as well as future contracts.
MT5 was launched in 2010 as another milestone for Metaquotes company. It’s the all-in-one trading software to go with, given the fact that its assets’ diversification is the best shield from losing money when trading. It goes beyond the necessary features and software trading standards, offering outstanding technical tools and trading possibilities. Like Meta trader 4, it’s accessible on whatever device or OS you use, with real-time trading signals and technical indicators, robot trading options, and more.
However, for traders focusing on the Forex market, Meta trader 4 is still the software of choice, meeting and exceeding all their expectations regarding Forex trading software features.