Best Forex Tools for Forex Trader - ( Update 2020 )
Forex analysis tools are designed to allow traders to quickly analyze the forex market easily to help them with their trading decision-making. Without having the proper forex tools, trading currencies can be quite challenging for both expert and new traders. Tools can help traders to augment their skill to have success in trading. Besides, these tools can help a trader to facilitate and understand entry and exit options.
Forex trading tools can be paid on a subscription base or come with the brokers as free. However, it is essential to know using almost all the tools. Proper knowledge of different tools will help a trader to set their strategies for better trading opportunities.
On the other hand, the availability of the tools also depends on online trading platforms. MetaTrader 4 is a good example where you may get all the tools in one place. Perhaps, it will teach all the tools and make a trader ready for the market with their educational tools. So, it is better to check out the brokers on what forex trading tools they offer.
We have listed all the available tools here. This list contains all the famous and useful forex trading tools that can ease your trading. Trading with the right tool can give immense profit within a short time. However, you have to know using the specific tool. The following forex trading tools list will provide you with a comparative idea about different forex tools. Read on to see every detail so that you can apply when you come across them in a broker account. Besides, those tools will give you an insight of your forex broker.
Pivot Points Calculator - Forex Trading Tools
In forex, a pivot point is an indicator in technical analysis, calculations and is used in determining the overall trend of the market over different time frames. The pivot point is just the average of the high, low, and closing prices from the previous trading day.
The pivot calculator helps you in calculating the pivot points for forex and SBI FX, forex options, commodities, bonds, stocks, options, futures, options, and other investment securities with a high, low, and closing price, during a given period.
They can be used to measure market sentiment as well. As a trader, the pivot points calculator is a valuable tool.
Pip Value Calculator
Using this tool, a trader can know the actual value of a pip in the currency that they choose. Typically, all you need to do when using the calculator is:
- Set the pip amount
- Choose the currency pair for the trade
- Select the number of lots you wish to trade
- Choose the currency you want the pip value to be displayed in
The currency pair define the pip value that you are trading, the size of the trade, and the exchange rate of the pair. The pip value calculator will divide one pip (normally 0.0001) by the current market value of the forex pair.
Fibonacci Calculator - Forex Tools
The Fibonacci levels are a concept in technical analysis. They are used as indicators of the forex exchange market. Traders use them to determine the points in the graph where the breakdowns and the rebounds will happen.
The Fibonacci calculator will let you know where this will happen when you are doing an analysis. All the information you will get goes to helping you set the stop-loss, the take-profit, at the Fibonacci levels. With that, your chances of success increase.
Position Size Calculator
The position size calculator will work when you enter the size of your trading account and the percentage of the account you are willing to risk on each trade. You will then choose the currency pair that you would like to trade, and the calculator will give you the appropriate position you need to go with for that particular trade.
Position size simply refers to the number of units you invest in a particular security. As always, you should take into account the size and the risk tolerance for appropriate position sizing. That is why the calculator is essential.
The Risk and Reward Calculator
As a trader, you will need to calculate the position’s best targets and their risk-to-reward ratios. The calculations done here are based on the Fibonacci retracements from the local peak and the bottom. A calculator is a handy tool that will help determine the potential risks before you enter any position.
When you start, you will calculate the Fibonacci retracements to form the entry, target, and stop-loss levels. It is usually wise to enter positions only when the current price is close to the Fibonacci level. You will reduce the risk significantly.
Gain and Loss Percentage Calculator
The calculator will quickly tell you what percentage of the account balance you have won or lost. You will also get an estimate of the percentage of the current balance that you will require to reach the breakeven point again.
The tool is excellent when you want to understand even better how much you have won or lost in your trade. If you had a losing trade, you would know what is needed to get back to breakeven. With a winning trade, you know how much you can afford to lose before you return to the starting point.
Forex Trading Strategies
When you are a trader in the forex market, you will need to have forex strategies that work. To understand this much more comfortable, you need to know the top 5 strategies that are useful and frequently used;
- Position trading
- Swing trading
- Day trading
- Transition trading
Each of these has merits that will work for or against you. All of it depends on your analysis skills and understanding of the market. It is advisable to know the forex trading strategies and apply them appropriately for maximum profits and lessened risks. For that, you will need extensive forex education.
MetaTrader VPS Hosting
VPS means Virtual Private Server and VPS hosting is one of the most popular ways you can host your website or a platform like MetaTrader. Some brokers offer the service as part of their platform, and others will want you to pay for it or do some things to get the privilege.
With VPS, you can have automated trading strategies with Expert Advisors. You can tailor the EAs to your specs and have as much flexibility, oversight, and control, as you like. The thing about VPS is that you get all this in real-time.
Elliott Wave Videos
The Elliott Wave principle proposes that the collective investor psychology or market sentiment oscillates between optimism and pessimism. All of this happens in natural sequences. The mood swings create patterns, of which price movements of the market are evidence.
At every degree of a trend of time scale, you will see the Elliott Wave. In trading, you can use the information coming from the wave patterns to know if the price movement is impulsive, or a retracement. You get to do all this before the price changes the overall structure as sentiment changes.
Forex Report Analysis Tool
The main aim here, when using this tool, is to get the help you need when analyzing the trading strategies. With it, you can see multiple metrics for several currency pairs and various periods. It sounds very similar to the trade tracking service myFXbook gives.
Others who offer this service include FXStat and ForexFactory. However, they only analyze the reports without connecting to your specific trading account. In MetaTrader 4 and 5 and Oanda as well, the .html reports generated are interpreted by the tool and the metrics provided to you for further analysis.
Interest Rate Table
The interest rate is the amount a lender will charge you for using his/her assets. An interest rate table is a tool you can use to break down the math and know what you have to do to pay back. The interest table expresses this as a percentage of the principal.
The interest tables are prepared in many forms. The variations are usually on the level of detail offered and refinement of things like the decimal places, time intervals, and other things that may or may not be useful to you. The tables allow you to stay ahead on payments and such.
Currency Strength Meter
The currency strength meter is a visual representation that guides you through the information regarding the strongest and weakest currencies at any given time. For instance, to know the strength of the US dollar, the currency strength meter will calculate the strength of all pairs that contain the USD.
The meter will then put these calculations together to determine how the dollar performs overall. The thing about measuring the currency strength meter is that you need the latest tech because older tech like MT4 might freeze, and your CPU will be forced to work at 100% continuously.
Also known as an economic calendar, a forex calendar is a valuable tool that tells you about upcoming events that can shape the fundamental analysis you may be doing for your trades. With it, you can get information about the GDP, the consumer price index, and the non-farm payroll report, among others.
There is a lot of central bank intervention happening in the world today, and with the fiscal cliffs thrown into the mix, you will need to have the information about when events take place that could change the market, so you are not caught off-guard.
In trading, a pip is a price in a given exchange rate. When you are a trader, you will need to know the change in the value of pips, which is where the pip calculator comes in. Without pips, you will not have reference to gains or losses.
The pip measures the amount of change you have in the exchange rate for a currency pair. This amount is calculated to the last decimal point. Because the significant currency pairs are priced to four decimal places, minimal changes are calculated using pips (the equivalent of 1/100 of 1%). Pip Calculator helps every trader to calculate this.
Forex Profit Calculator
This calculator is one of the best tools you can have when you want to stay on top of what you have gained and to see what you have lost. The profit calculator will let you know how much you have and how to make sure that you do not dip below your principal amount.
With a forex profit calculator, you will always have a way to know how much money is available and how much you can afford to lose when you are trading. Management of funds is one of the tenets every forex trader must learn to survive.
Most of the forex trading tools we have discussed above can be obtained for free online. However, you can get some of them via your forex broker or news websites. On the other hand, the rest of the premium tools can subscribe through the developer's website.
Trading with constant profitability is challenging, which means loss is inevitable. But, one can reduce the loss by using forex tools properly. A comprehensive trading strategy with a proper trading tool can increase success. At the same time, it will also work as a loss reduction.
Over the past few decades, the forex trading industry has changed dramatically. As internet users have increased and forex becomes accessible to all. Its tremendous profitability also attracts most people. However, only a few expert traders can survive in the race. You can use different forex tools properly.
A trader might have to call the brokers from time to time for a market tip in the past. But, nowadays, those tips have become available through different tools. So, there are no alternatives to learn trading tools and become a master. While most active traders depend on brokers' provided tools, some advanced trade subscribes advanced tools to benefit in the long run.
The bottom line is the proper use of a tool can get you to the forex trading peak, while ignorance can ruin your investments. To become a successful trader, learning a tool is essential for better trading.