An introduction to forex trading
Forex or foreign exchange trading involves currency exchanges at a global level. Since this is a decentralized market, there is no single controlling or regulatory authority which manages the trades each day. Rather, the control is distributed to eight different global trading centers like London, Sydney, Tokyo, Singapore, and New York.
Over the years, the forex market volume has increased to an overwhelming level, crossing 5 trillion dollars per day. Traders are becoming more intrigued with the high volatile and lucrative nature of the market. This increasing influx of global traders has forced several forex platforms to launch online services.
What are forex trading applications?
With the growth of technology, several changes have been introduced to the forex trading market, one of them being the launch of mobile-based applications. These applications can be used on both iOS and Android phones, thereby allowing the traders to constantly monitor the trade values, exchange rates, resistance and support curves of different currencies, the current condition of their trades, and so on.
Some of these applications are perfect for free forex signals while some have been developed with the sole aim of helping amateurs learn more about the market.
Benefits of forex trading app
· 24X7 market access
One of the major benefits of using an online trading application is that you will be able to access the market any time during the day. The market always has remained open for 24X7 trades. But in earlier days, traders weren’t able to access the market every time they wanted. But now, with an application present in your phone, there will be no restriction, both in terms of time and geological location.
· Enhanced trading opportunities
With 24X7 access to the market, you will be able to get the latest updates about the price movements in the forex market. Be it the price drops or increments, you can easily deduce whether the movement is against your trade or not. Similarly, you will have access to the overall analytics of the trades which will help you in studying the standing condition of the currencies and predict the future exchange rates.
· High security for trading
The mobile applications are governed by top-tier regulatory bodies. This will help you to buy and sell the currencies with low risks. Be it the interest rate risks or the transactional risks, there are no scams involved in these online applications. The increased security is one of the reasons why many traders are using various mobile platforms for trading in the forex market.
· Continuous monitoring of trades
You can continuously monitor the condition of your trades. These applications will provide you every piece of information about the present market condition and hence, you will be able to analyze whether you will make profit or suffer from loss.
Risks of forex trading apps
· Geographical restrictions
Not every online application is available throughout the world. Some applications are meant to be used only by a certain group of traders classified according to region. Sometimes, these applications don’t provide all the features to the entire globe. These geographical restrictions limit the flexibility in trading to some extent.
· Limitations of currency pairs
Another major limitation which most traders encounter with the mobile applications is in the currency pairs. If a platform is offering you all the major base currencies, nothing will be as good as that said application. But, out of every ten such platforms, at least six of them provide limited base currencies, which is why traders cannot enjoy the smoothness of forex currency exchange.
Top 2021 forex trading apps
In 2021, the most used online mobile-based platform is MetaTrader 4 or MT4. It is generally considered for traders who are proficient in automatic trading, regardless of their experience in the trade market. For technical analysis, you will have thirty indicators and twenty-four analytical instruments.
Since it is supported on both iOS and Android, there will be no restrictions when it comes to mobile OS. The features of the application can be customized to meet the trader’s requirements and strategies. Here, you can even work in a demo account which will help you to understand the dynamics of the forex trading market easily. You can view a complete history of all the trades under your account. 3 chart types are present with nine time frames.
One of the most famous platforms for trading forex currencies is MT5 or MetaTrader 5. This offers a fast switch between different accounts which helps the traders manage their trades swiftly without any delay in availing the opportunities. It can be operated both on Android and iOS operating systems, thereby providing the traders flexibility in using their phones to monitor the market.
As it is managed by the top level regulating bodies, the platform offers reliability and safety against all odds of online trading. This is why it’s being considered as an evolving forex platform for both novice and advanced traders. Here, you will have a full update on all your trades, including the stopped ones and the pending ones. As a trader you will receive nine time-frames with thirty technical indicators and twenty-four graphical instruments for proper technical analysis of the trade options.
Another amazing online trading platform for the forex traders is the cTrader. It is compatible with both the iOS and android mobiles, which is why it has such a large trader volume. The charting analytical tools are impeccable and can be used to derive fast results for quick trade executions. High-end encryption is offered so that traders can continue with their transactions without any worry. It also provides an automated trading platform with custom indicators. It can be accessed from different locations, thanks to the several proxy servers positioned across the globe. The application is highly responsive and provides an easy-to-use interface.
Both traders and brokers can use the mobile-based applications for trading in the forex market from anywhere. With proper strategic analysis, and a constant monitoring of the price movements, one can devise a profitable plan to open a position against a quoted price and start the trade. All you will have to do is learn the forex market, inside and out, and then start trading.