Top 10 Forex Trading tools

Top 10 Forex Trading tools: Do you want to start your career, or you have a passion for succeeding in the forex trade? Then you probably will want to invest in the best forex trading software that you can afford and get all the forex trading tools that are necessary to operate your trading business.

Various forex trading tools are either paid for by subscribing to a service or are given free of charge by a forex broker, a trading platform provider, or in the case of an economic calendar, by a considerable number of websites specializing in financial and forex markets news. Numerous forex signal trading services are available that offer trading cues that can be helpful for amateur traders.

Some of the forex trading tools can be found within popular online trading platforms, such as MetaTrader 4. The trading platforms like MetaTrader 4 offer a thorough package of technical indicators, as well as trade mechanization abilities.

Here we have given the list of the top 10 forex trading tools:

Trading platforms:-

MetaTrader 4 and 5 - Top 10 Forex Trading tools
MetaTrader 4 and 5

The advanced trading platforms like MetaTrader 4 and 5 (MT4/5) by MetaQuotes let other traders enter orders and offer various features for analyzing the forex market in real-time.

Economic calendar Tool:-

Economic calendar Tool - Top 10 Forex Trading tools
Economic calendar Tool

An economic calendar lists the time and date of important economic data that can influence currency pairs when released. The data contain employment and inflation numbers, gross domestic product (GDP), and central bank meeting dates.

Charting software:-

Charting software - Top 10 Forex Trading tools
Charting software

The most advanced forex trading platforms provide real-time charting services, but you can also receive charting software somewhere else.

Financial news wire:-

News can considerably affect the direction of exchange rates. A premium financial news wire gives traders a timely access to information that may affect the forex market. As an extension to the economic calendar, the economic news is distributed by a wide range of financial publications.

The interest rates play a big role in the valuation of currencies, which is the main reason that news from each country’s central bank and their financial policymakers can have such a strong impact on the valuation of a nation’s currency.

Trade journal:-

Trade journal - Top 10 Forex Trading tools

Having a trade journal gives you valuable insight into both your losing and winning of your trades. Some companies provide software designed just for this purpose only.

Copy-trading service:-

Copy-trading service - Top 10 Forex Trading tools
Copy-trading service

Copy-trading includes selecting an experienced trader to copy their trades in your account. Some brokers like eToro may provide this service.

Currency correlation tool:-

The correlation measures how one currency pair’s exchange rate changes compared to the exchange rate of another currency pair. A set of correlations contain a currency correlation matrix, which allows you to visualize the interconnectedness of currency pair exchange rate movements. 

Time zone converter:-

The periods that a trader prefers to be active in the forex market can make a huge difference to their bottom line. The world’s major forex trading centers are in New York, Sydney, London, and Tokyo, which all operate in different time zones.

The business hours of these main trading centers also coincide to some extent, for example, the market opening in Sydney on Sunday at 5 PM New York time, and closing on Friday at 5 PM New York time.

Certainly, some trading sessions and times are better than others for trading specific currency pairs concerning liquidity, volatility, and trading volume, so being aware of those times in your local time zone can be very important to forex traders. 

Forex volatility calculator:-

Forex volatility calculator
Forex volatility calculator

A volatility calculator takes a currency pair’s historical exchange rate data and specifies the historical volatility in real-time for various time frames. The historical volatility of a currency pair gives a trader a notion of the risk involved in trading that specific currency pair.

When calculating the volatility on a currency pair that is no insignificant matter and with the number of currency pairs available to trade, calculating volatility is left to a properly programmed computer. A regular forex volatility calculator or indicator that will take chronological exchange rate information and determine the actual volatility of each currency pair in real-time.

Broker Spread Comparison Tool:-

This is one of the most important elements that spread-sensitive traders tend to investigate before selecting a forex broker is their typical dealing spreads. A closed dealing spread is always preferred by traders since getting in and out of positions can be less costly if a trader can execute their trades at the better exchange rates normally offered by a tighter spread.

Contrarily, a large dealing spread increases the cost of trading and can severely inhibit short-term traders, such as scalpers who make money by taking positions that they intend to liquidate as soon as a small profit materializes.

Conclusion

All of the trading tools evaluated in this article can be freely achieved online, some of them through forex brokers and news outlet websites, while the others can be downloaded from developer’s websites like MetaTrader 4.

Trading consistently and profitability in the forex market can be a challenging attempt, and the fact remains that most traders tend to lose their money in the market.

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