There are two
main classes of FOREX trading software to be considered - web based
and client based.
All FOREX software needs to provide up-to-the-second market information. The fast
pace of the FOREX demands real-time data for making decisions about
when to enter and exit the market. FOREX dealers will generally claim
their software performs well with a minimum of delay, but, in fact, there could be a
number of factors delaying data transmission.
factors which can slow down data transmission speed are Internet
connection speed and distance from the broker's servers.
traders should have, at a minimum,
modern computer with a high speed
Internet connection to
take full advantage of the FOREX software offered by the broker. It may
also pay to choose a broker in the same area as you live. Traders in
Bangkok who deal with brokers in Ohio may expect delays -
especially during volatile market conditions.
Which is Better - Web Based or Client Based FOREX Trading Software?
Web based software is commonly hosted on the broker's website
- you don't have to install any software on your computer. Client based
software, on the other hand, will require you to download and install
the software package
used by your broker on your own computer.
Which is better?
More and more brokers are
offering web based client software for reasons of convenience, safety
and reliability. Web based software allows you to log on to your
account from any computer - you can make trades from any
location that has an Internet connection.
Client based software, on the
other hand, restricts you to making trades from the one computer you
have downloaded it to.
In addition to the convenience, web based software offers greater security. Data is
secured with high-strength encryption making it impossible for outside
parties access during transmission. Client based software is also
secured during transmission but there are more possibilities for data
loss from the trader's own computer. Viruses and hackers may be able to
access valuable financial data stored in a home or office computer.
Features of FOREX Trading Software
FOREX software needs to access real-time quotes and offer a means to
enter and exit the market. Even most basic packages offer these
functions. Current quotes can be seen for most currency pairs and the
software allows you to buy or sell at market prices or enter and exit
the market using stops or limits. Ideally, trading software should have
integrated charting functions with a variety of viewing functions.
software packages should be offered free of charge, but many brokers
will also have more advanced packages available for a monthly fee. Some
features you could expect to see in advanced software include the
ability to trade directly from the chart and full analytical functions.
The backbone of FOREX software is a series of data servers that allow
you to connect to your broker's web site and make transactions. Servers
operated by the FOREX broker need to be reliable and secure for
maintaining data integrity and assuring accurate transaction
processing. Servers are subject to power outages and natural disasters,
so to ensure maximum uptime, the broker should operate at least two
sets of servers in separate locations. Brokers should also offer
regular data backups to guarantee the integrity of their customer's
financial data in case of server failure.