Types of Forex Software and Applications

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From online software to fx mobile software, there are a plethora of tools that make it easier for forex traders to buy, sell, and improve the level of intelligence they gain about the market . Software come in different forms, depending on each trader's goals. We will discuss some of the more popular types of forex software in the list below.

  1. Forex charts application. Probably the most common type of software, this one is designed to allow traders to trade using their actual accounts. With just a few clicks or taps, they can choose to buy or sell currency on their computer or smartphone. Some software also provide quotes, which enable traders to keep track of movements of their currencies of choice. With this feature, traders can easily detect trends in the market, track their performance, and make quick decisions as needed.

  2. Trade automation software. Traders who wish to literally trade even while they're asleep can use automatic software. As the name would suggest, this type of software can buy and sell currency with little or no intervention on the trader's part. Of course, there may be a downside here when everything is automated, thus it's important that the trader periodically keep track of developments in the market and movements in currencies. On a positive note, an automated software can make purely objective decisions, thus removing the factors of fear and emotion, which are often involved when actual people trade. Such trading software is know as an Expert Trading System.
  3. Signal-based software. This is the most complicated of the three types of software, since the trader has to initially set it up before automating the process. This usually involves programming patterns and inputs, which can help alert a trader when a condition of the program is met. The condition may be in the form of rising profitable market opportunities or severe dips in specific currencies. The software would then leave it to the trader to make a decision based on the output.

Whatever type of software you choose, it is worth noting that all these are just tools to help you make a sound decision when you trade. An automated application for example, is only as good as the trader using it. It's still important for every trader to keep track of the market where they trade and the currencies they're trading.

For more useful forex tips and to increase your forex intelligence, be sure to check out our FX Strategy Articles section.

Published on 27th of February 2013
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