It is not a secret that success in Forex trading heavily depends on the tools that the trader has at their disposal. The main instrument comes in the form of software, which should have all the features needed to analyse the market processes in real time, so you can make informed decisions in a split second.
There are many different types of Forex trading software available on the market nowadays, including trading software, social trading platforms, news aggregators, and even automated Forex trading programs, which execute trades on Forex without any input from the user. When combined together, top Forex trading software would be a complete toolbox that allows brokers to open positions on the market, to analyse a whole trading environment and, as a result, make successful investments.
Considering each user has different levels of experience, specific time frame and risk profile, the best software for one Forex broker may not be the best for another. For example, if you are already an established broker, then you will probably be focused on expanding your client list and boosting your profits. On the other hand, if you are just now launching your business, you would need to be focused on setting up the trading process so that you have a solid base to progress from. So, different goals will need different brokerage solutions in order to be achieved.
There are four main types of Forex trading software that every broker should know about. These are:
- Trading platforms are the top priority Forex programs, which allow opening, modifying and closing trades to occur. Known as the most popular and trading platform, Meta Trader 4 (MT4) offers all the necessary business functionalities in one place. MT webtrader, which provides trading online without any installation, and the mobile version of MT4 are also available on the market, offering a versatile platform that allows you to trade on almost any device.
- Automated trading software comes in the form of a small program, which runs inside your trading platform and analyses the market in order to make independent trading decisions. This means that this type of Forex software will open and manage the positions by itself, so may need to be manually monitored from time to time.
- Trading signals software is an automated trading technology, which helps investors to create their trading strategy.
- Mobile Forex trading software enables a broker to access his accounts and charts, verify quotes, browse news and place orders in an instant.
Further in this article, we’ll take each of these different Forex trading software options and explain the benefits and drawbacks of using them to help you make your own choice. We will also show the advantages of purchasing the full broker’s solution from PopcornTec, which provides a broker with all of the key instruments needed to make their business prosperous in today’s trading world.
In 2019 the majority of orders executed in Forex were made by automated software. For instance, about 70% transactions per day are conducted by automatic trading programs in the US. They can be used to trade in a wide range of markets, including Forex, stocks, cryptocurrencies, commodities, and others.
Automated trading systems rely on short lines of code that are executed within a user`s trading platform, such as MT4 or MT5. Thus, you would need to install it on a Forex trading platform. The purpose of this software is to analyse market conditions and make buying and selling decisions on particular currency pairs without any input from an investor themselves. This way, every task would be done automatically, including the analysis process, opening, managing, and closing positions.
Automated trading software in Forex is usually grouped into two categories called Expert Advisors (EAs) and Forex robots. Their work based on algorithms designed by programmers that analyse trends on the market and perform trades in line with the set process. The difference between the two programs is that EAs do not vigorously make trades, unlike Forex robots. While EAs provide users with trading signals and give opportunities to manually decide whether or not to open a particular trade, Forex robots take care of the whole trading process automatically.
Why do more and more new brokers prefer automated software in Forex rather than trading on their own? Addressing emotional decisions is the major advantage of this approach, which is usually the biggest hurdle for new Forex brokers.
Although automated Forex trading software may seem very attractive, you need to be aware of potential risks that are involved with it.
To understand them, you need to look at the way that the average automated Forex software operates. In general, all automated programs are based on certain technical rules, which work under certain conditions. This way, if conditions change, the software will fail to generate profit. Aside from this, technical rules can suddenly stop working, as a result of technical mistakes, which can negatively impact your business.
Another disadvantage you face when using automated programs is that you could miss out on early income opportunities. It might happen because trading robots rely on technical indicators to make trading decisions, and trigger buy and sell signal only after the initial price movement has occurred. With this, there is always a risk of false signals, as the market environment changes unexpectedly. With this method, it’s likely that you’ll have losing trades happening from time to time.
Signals software comes in the form of recommendations that are made by an analyst, a trading robot or other trading software. In general, a signal includes the key information for the particular trade on a currency pair, with determined time and price. As daily Forex signals run in real time, they have numerous methods of notification, including SMS, email, Twitter, RSS, websites and signals directly inside a trading platform.
Forex trading signals software is divided into two main types by the functions it possessed and the way that it operates.
- Manual Forex signals – When using this type of signal, a broker has to sit in front of his device for an extended period of time and search for signals in order to make a decision on whether to buy or sell a particular currency. This means that a broker’s final decisions on a trade are made here, and it based on his own interpretation. The use of these FX daily signals has an interdependent connection with manual trading, and it can be a time-consuming process.
- Automated Forex signals – When using this type of signal, a broker only commands the software to seek out certain signals. As a result, there is no human stress, making it difficult to take trading decisions. This software will automatically interpret whether to buy or sell a currency.
Why do some users prefer manual Forex signals over automated ones? That is because a broker is able to assess the foreign exchange market in a way that a program sometimes cannot. They may be able to catch suspicious movement on the market and pull out of a trade before it starts to lose money. This is because a broker usually has analytic skills and trading experience, and he is not limited to codes and programmed settings, like automated software is.
With that being said, if the FX automated signals program has been complete configured properly, trades made with it would be quite accurate.
Overall, signals software provides an investor with all the information needed to make well-informed decisions over a trading process and navigate the market easily and effectively. Thus, FX signals can assist you in forming the best strategy to trade successfully.
Forex Trading Software on Mobile
In the modern technological progress, every investor has a good opportunity to always keep up to date with the trades that they are involved in, as they can trade on the Forex market via one of the many mobile Forex apps using his smartphone or a table. The only thing they’ll need for this is a secure internet connection.
When you begin a search, you will come across a lot of mobile Forex trading software options, in other words, apps for iOS and Android. The most reliable and trustworthy trading software will share real-time updates, as currency’s value can change at a second’s notice, and trading education resources, providing users with the latest international news and editorials.
The most popular and well-known Forex trading platform for mobile devices is, without doubt, MetaTrader 4. It has a wide range of analytical tools to offer and a simple interface that’s incredibly east to use. For each financial instrument, there are 9 timeframes that provide dynamic quotes with an itemized analysis. There are more than 50 built-in indicators and diverse instruments to analyse the market’s activity, easily define trends and determine entry-exit points. This mobile trading platform offers different ways for a user to place orders, which are available all the time, regardless of location or circumstances.
Amongst other things, MT4 ensures the safety of all trade transactions through an encoded and encrypted system. The MT4 terminal is also a very easy-to-use, so it widely popular between brokers all over the world.
The importance of Forex trading on mobile has risen significantly, mostly because it enables brokers to trade 24 hours a day, 7 days a week.
Which software to choose
Naturally, the most important Forex software is a trading platform, as it provides direct access to the Forex market and represents the link between you and your customer. For this reason, a broker should pay special attention when choosing his trading platform.
Meta Trader 4 (MT4) is the most popular and multifunctional trading platform available on the Forex market today, as it offers all the necessary business functionalities in one place and can be easily customized according to the user’s requirements.
MetaTrader 4 was developed by MetaQuotes. This trading software is licensed to foreign exchange brokers, who in turn provide the platform to their clients. MT4 allows users to see live quotes and prices so that they can place orders. The trading program is, generally, available for Windows and has some customized versions developed for the Mac OS. There are also MT4 apps for iOS and Android; MT webtrader gives a broker the opportunity to trade online without installation of a program on their devices.
The importance of the accessibility to the MT4 platform cannot be overstated. Amongst its advantages are efficient account management, fast order execution and tools for market examination. It provides instant access to the global financial markets for trading on both demo and full accounts.
The demo version is also fully functional, and provides a starting point for beginner traders, as well as also featuring tools that can help advanced brokers to further improve their service.
MT4 gives you the opportunity to automate the trading activity by programming with its MQL4 proprietary language. The most widespread Expert Advisors and custom indicators are compatible with this trading platform. This way, switching from another platform to MT4 is effortless. MT4 has also been a stable platform for years, whilst many other trading software options have been plagued with a lot of bugs and functionality issues.
When you are about to choose a trading software for your brokerage, MT4 is the obvious choice, particularly when you consider the additional tools that can be utilised alongside it. A trading platform is just the first step, so what else will you need to launch or revamp your brokerage company?
With Popcorn Technology’s full MT4 White Label solution, you can get expert assistance in setting up your business under your own brand name.
Furthermore, PopcornTech will set up and support all your technical and marketing needs to ensure that you make a success of your new or existing business.
Popcorn Technology’s all-in-one trading solution is designed to satisfy all business needs whether you’re a start-up or an established broker. With Popcorn Technology’s service, you’ll receive all of the following features:
- Branded Website
- Risk Management
- 24/6 Customer Support
- Affiliate Systems
- Wide Range of Trader Tools for Clients
Join the Popcorn Technology community and let us help you set up a successful brokerage with MT4 White Label. You will receive full support and the answers to any questions that you might have!
Success for both a start-up and an established broker in Forex trading heavily depends on the tools they have access to. The main idea of Forex trading software is to provide all the necessary features needed to analyse the market in real time and achieve profitable trades.
In this article we looked through a few popular trading software options, as well as diving deep into the most reputable and notable trading platform – MT4. We found out about the advantages and disadvantages of using automated Forex trading software, whilst also learning how Forex signals could help a broker to create the best trading strategy. Finally, we realized the importance of instant online access to the global financial markets, which can be provided to a broker through a mobile Forex trading software solution.
As a whole, sourcing for all software tools can take a lot of time and cost a lot of money for a broker. From this perspective, the easier and most budget-friendly way to launch and relaunch your own brokerage business would be other broker’s solutions.
A professional White Label company PopcornTec will provide you with fully configured software, and will also develop your website, offer ready-made marketing, and risk-free IT solutions.
With PopcornTec you will save on costs and time when setting up and maintaining your trading software, as well as during the development and promotion your own brand, building a list of new clients, and even more. You are allowed to completely focus on the operation, growth, and expansion of your brokerage, which puts you in a fantastic position for the future.