There is a lot to consider when choosing the best trading software. You will have to look through many trading apps to find the right one. You can do that or, you can read this guide and find out about the best forex trading software like Autochartist and the Margin calculator, among others. If you are new to the world of forex trading, you can also look through the forex broker reviews; we have to find the best forex broker.
Trading software is an integral part of any trader's arsenal when it comes to the forex market. You will always have to make sure that you have the best trading app on hand to help with all the logistics. We have examples like Autochartist, margin calculators, and others.
In addition to this, always look for the best forex brokers in our forex broker reviews. You will find that one of the things we focus on is how many tools they provide. As you will find out, good trading software will make the difference between success and failure.
Yes, they may not be everything, but you cannot do without the trading apps and software. The importance of picking the best trading software cannot be understated.
With the advent of computer trading apps, it is easy to automate trade, especially when you engage in short-term activities like day trading. As you will come to find out, trading software is prevalent.
In addition to learning proper usage of the trading software, you will need to pick the right types. We will go through all the major ones, what they are used for, and how they can make your trading much more comfortable.
What You Will Learn
In this segment, we are going to take you through the different types of trading software. Let’s condense the primary lessons you should take with you when this is over:
- The trading software, mostly used by day traders, combines order entry platforms and tools that allow a trader to have consistency and efficiency in how they trade.
- The platforms usually have automated trading parameters that you can set by yourself. This will allow for your orders to be executed quicker than if you were doing it all by yourself.
- Picking out the right trading apps can have an impact on how you trade. Because of that, you must understand the cost and benefits of each of these trading apps, and if you understand them, you can take their functionality to a new level.
Typically, the trading apps are common among day traders, as they use them more frequently than other types of traders. Let’s get to it.
What Are The Trading Software Like?
Typically, they consist of computer programs that are given to traders by the brokerage firms they use. That is why we insist that to get the best trading apps; one should look for the best forex broker in our forex broker reviews.
The trading apps automate the analysis of the market and enter the traders on their own (based on pre-set parameters), and that enables you as a trader, to get profits that would be harder to get if you were to use your brain and regular human observation.
If you are a trader, without a trading app, you may find it very hard to follow two trading indicators. There could be 60- or 180-day moving averages on three different assets of your choice.
With automated trading software, you can do this quickly and set when you want to move in and when you want to exit. It is all about knowing how to place the criteria and then letting the trading software do its thing.
Understanding How Trading Software Works
The trading software is excellent to use, but it won’t be of much use to you if you do not know how it works. For that reason, we are going to look at that before we get into the trading apps themselves.
- The functionality will allow you to set up a trading strategy. Most trading strategies are based on technical indicators, recognition of patterns, the news, and trading signals.
- The automated order-placing function normally has direct market access and will place the order for you when the criteria you set are met.
- The analysis tools will asses the holdings you have in existence, any new developments in the market, and decided on how to act in response to changes.
As a trader, using apps like Autochartist and margin calculator will combine the strategy you have and the way you use the apps you possess. You will need to set up a trading strategy with limits, plug the system to access live data, and let it execute trades according to how you would like them done.
The Characteristics of Good Trading Software
To know the best trading software you can use, you must first understand what the characteristics of useful trading apps are. When picking out apps like Autochartist and margin calculator, among others, look out for the following things:
- Do They Have Platform Independence?
Unless you are using highly complicated algorithms in your trading activities, you will need high-end computers dedicated to this one task. It is usually better to use the web-based trading software. They can connect into the network from anywhere with the internet, you do not need to do manual installations, and there are no costs for maintaining or upgrading. If you choose to use complex algorithms, you should use advanced computing equipment, installable software, and be prepared to fork out some money for it.
- What Are Your Needs?
Not every trader wants the same thing as the other one. You have your own way of looking at things, and how you make decisions is not the same as another guy. You will need to have a strategy that outlines what you want to do.
You need to decide whether you need something like a forex feed or if you need specific data for things like binary options alone.
Do not trust what the broker companies tell you completely. Ask for trials of the trading software to know if they are compatible with the needs you have. After you have done a thorough assessment, then you can accept it only if the trading app works as you want it to.
- Any Additional Features
It is always good to have trading apps like Autochartist or the margin calculator. However, just like you look for the best forex broker in a forex broker review by checking for extra features, do the same when picking trading software.
Do you need news charts in addition to getting Autochartist? Do you require level 2 data? Do you need exclusive connections to specific markets like OTC? Well, if you need anything else, look for it. Make sure that you have all the tools and that they work well together.
With that being said, let’s talk about the software now.
The Most Helpful Trading Software Used By Forex Traders
The most helpful trading software are the ones that make it easy for you to get work done in a fast and accurate way. We are going to talk about Autochartist, depth of market software, the margin calculator software, automatic pivot point calculator, and forex news or squawk boxes.
This trading software is a pattern recognition tool that has been in use for more than 10 years now. It comes as a plug-in for the Meta Trader 4 and Meta Trader 5 platforms. There is also a standalone Autochartist for those who want one.
The standalone Autochartist will allow you to see the patterns appearing on the chart in different time frames. With time, Autochartist has become better and will enable you to have accurate detection of the patterns you need to trade.
Experienced traders will tell you that Autochartist is more than just a trading software for pattern recognition. You can now use it to detect the support and resistance levels, do a volatility test, and trace the Fibonacci levels and calculate risk as well.
Autochartist comes in two versions. There’s one for brokers and one for traders. When using the trader version, you can attach it to the MT4 and MT5 folder, and use it as a custom indicator.
2. Depth of Market Trading Software
Mostly found on the MT5 platforms and institutional trading platforms, the Depth of Market tool is one used for indicating the open interest on the sell and buy side for a forex currency pair. With it, you can get information on the volume of buyers and sellers, currently on a currency pair or any asset available.
If you have experience as a trader, you can use this information to know where the orders flow to and how they will change the prices in the market. Institutional traders have the most significant volume, and they tend to push the market in whatever direction they choose.
Knowing this is very important for any trader. That is why the Depth of Market tool is instrumental, in anticipating what will happen so that you can position yourself correctly. Know where the money is headed and which side smart traders should be on.
3. Margin Calculator
Whenever you need to know how much of the account balance you can use to set up a trade, the margin calculator is what you’ll need. All you have to do is choose a lot size of the trade volume to make the calculations work.
Margin calculators will help you conform with the smart way of trading. Worldwide, most traders will confirm that no more than 3% of the account size, should be tasked with controlling positions you take in the market.
Risk management practices are the reason why the margin calculator is essential. Recently, there have been leverage caps places on how much leverage a trader can have in the UK and the EU.
For that reason, you need the margin calculator to tell you exactly what the maximum amount you require to hold a position, should be. It factors in the leverage, just to make sure you do no wrong.
4. The Automatic Pivot Point Calculator
Knowing the potential support and resistance areas on your charts will need more than Autochartist or the margin calculator. This tool will show you possible support and resistance areas, by factoring the high, low, and close prices for every day. That means that they have to be recalculated every single day.
When using MT4 or MT5, you will just download the software and load it into the indicators subfolder in the MQL4 or MQL5 main folder and restart the program to get it running. You can change the time frame you need the recalculations to happen by switching the time frame from an hour to daily.
5. Squawk Boxes/ Forex News
Updated forex news is essential when you want to anticipate what will happen to the market at any given time. News moves the way that the traders feel about the market. That is the reason why we encourage you to stay ahead of the news.
The squawk boxes or forex news sources are usually free. All you need to do is sign up and get a pro package (if you can afford it) and then learn how to interpret what the news will do to the market. There are several trading software for squawk boxes and news sources that you can get, specifically for forex purposes.
2020, for example, is a year full of events and announcements that shift the market prices significantly. We have a pandemic, the upcoming presidential election of the most influential country on earth, and other important events.
When it comes to trading software, there are many avenues to explore. Just like you will find the best forex broker in our forex broker reviews, so will you find the best trading apps here. The systems continue to be automated every day, and you can benefit from this.
Mistakes are easy to make; you can also forget some things and sometimes maybe even react too slowly.
Having the trading software that is proper in place, will mean that you can respond faster, know when to get in and get out and be able to eliminate mistakes that are attributed to human errors.
However, you should understand that trading software is not impervious to mistakes, and sometimes, we get anomalies that are associated with the automation of trading systems. If you can clearly understand the day trading, know how to use an app, and be able to follow a strategy, you will find them to be very useful.
This list is not exhaustive. There is a lot more for you to learn, and many trading software types that you will encounter. This is a way for you to get started and know which ones you should pick and where to look for them and what they should have.