Over the years Forex trading software has evolved from simple broker charts and

Forex robots all the way to fully automated trading applications that make it easy for

anybody to enter the market. Many of the advancements can be broken down into

the following categories:

Trading Platforms. Automated Trading System

Forex Trading Signals

Let’s break down each section and then wrap up with the attributes that

you may want to consider when determining the best trading software

for yourself.

Platforms for Forex traders. Quite simply, these are the currency charts where price is plotted and in

some instances, you can enter and exit trades right from the charts. Trading

charts software can go from basic price and time plots to a whole range

of information such as:

News releases Market profile

Pattern recognition tools Chart multiple pairs and markets

Market depth Watch lists

Portfolio managers

The features available depend on a few variables however keep in mind that the

more features, can mean a higher price for the charting software. Many people,

especially beginners in currency trading, would probably want the following

features in the Forex trading platforms they may be considering:

Various technical indicators. Since many begin their trading

education by learning about technical analysis, indicators such as moving

averages, osciallators and other trend delineation tools may be useful.

Most platforms, including the free Metatrader download that is available,

comes with a vast array of tools that may make up your particular trading

system.

On chart information I find this incredibly useful because

knowing at a glance where price is in relation to your stops or targets make trade management extremely simple.

Some charting software will allow you, with a click of the mouse on the chart itself, enter and exit a trade. You can also easily adjust your stops if trailing or adjust your take profit targets by simply pulling a horizontal line up or

down on the chart itself.

Free Forex charting software while alluring does have drawbacks. The

data feed usually comes direct from your broker and not a arms length

third party. As well, software such as Metatrader 4 provided to you from

your broker usually has a wider spread value so in reality, it truly is not “free”.

Downloading your trading software is not the only option. You can also get

live charts online and one popular type is the Netdania charts. These are not

as sophisticated as the paid download platforms but for a simple trading style, they may be all you need.

Automated trading software This method of trading comes with a

little controversy. Many large firms use automated trading systems to enter

and exit their positions.

Keep in mind though that these companies have millions of dollars

they use for the design of their Forex trading software. They recruit the best

minds from top schools to help give them the edge.

Forex trading robots attempted to capitalize on the success of

automation however in the end, they have shown themselves to be a waste of money, a waste of time, and a quick

end to trading accounts.

The controversy doesn’t end with robots. High frequency trading

software (HFT) has caused many issues with the markets prompting the SEC to

begin an investigation.

Exchanges are being looked at for potentially giving HFT traders an advantage over other traders in relation to the buy/sell orders.

It’s not all doom and gloom as there is automated trading software that are

designed by those who have a profitable trading system. They have

simply chosen to automate their work and allow a program to execute when

their trading variables line up.

The forex auto-trade program from Netpicks is an example of this type of currency trading software. It utilizes a profitable trading system and allows a

hands off approach for traders that simply want to reap the benefits of

trading but in a “hands off” manner.

There are some important benefits to automated trading strategies and they can affect the positive or minus state

of your forex trading account:

Eliminate emotional mistakes. If you have traded for a while, you may

have noticed the urge to do some things outside of your trading plan. These usually occur either after a losing trade(s) or after a string of

winners where you feel invincible.

Once the variables line up, the trade is executed and managed without your intervention when using automation. The trade is allowed to play out to its conclusion and the win/loss becomes a random distribution of the method and not from your deviation of the

trading plan.

Keeps you consistent. Without allowing your judgment to

come into play, each trade is executed exactly as outlined in the trade plan.

You allow the expectancy of your trading system to play out and if the

expectancy is positive, you know in the long run, your trading software will

serve up a healthy trading account for you.

Allows multiple opportunities. When your automated Forex trading

software is unleashed on many different currency pairs, you will be

hard pressed to miss a trading opportunity.

Since Forex traders virtually around the clock, you can be assured that your

software is waiting for trading opportunities regardless of the time of day. There is a drawback however and

that is being over exposed in the market.

Trading software usually has a limit on the amount of capital exposure but if your does not, expect to find yourself

in too many positions and in many cases, being long and short and just

compounding losses.

Forex trading signals This type of Forex trading software is different from the automated trading

software described above. These provide you with Forex signals for entry and exit levels and you are

responsible in the execution.

This trading software allows you to trade currency using a a combination of variables and trade plans. Here are

the general steps in swing and day trading software once you dowload

from the vendor.

1. Unpack the various indicators and templates 2. Install those items in the folders appropriate for you charting software 3. Apply the template to your charts

The key to this type of software for the foreign exchange trader is to ensure you backtest the plan according to the trade

plan that accompanies the system.

The benefits to the backtest include:

- Testing your knowledge of the system - Proving to yourself the system gives you an edge - Train yourself to execute the system when appropriate according the trading plan

If you are new to this type of Forex software, you can see the benefits by

downloading the free version of Netpicks own Trend Jumper.

Simply download, install, and backtest the system

How to start Forex trading with software?

Every trader is unique and some things will suit you while for another, it may

not be appropriate.

There is nothing better than trial and error and that is often the best way to learn. It would be prudent for you to download any Forex trading software

you are considering and put it through your own style of testing.

There are a few points that each person should investigate during their

testing phase.

Is support attentive? There is nothing worse than trying to work through

something yet not have the support to help you over the humps. If support is not existent now, don’t expect them to

be there when you have real money on the line. Be a stickler for proper

support.

What is the refund policy? To be fair, there are many low quality companies out there selling low quality products.

Ensure there is a refund policy and make sure you read the fine print to

make sure you fulfill the refund requirements.

That said, be a quality individual who doesn’t simply refund to get the

trading software for free. If you are requesting the refund in good faith

and there is no response, charge-back through your credit card company.

Does the product fit the hype? Forex is one of the most hyped markets and

many vendors with promote their Forex trading software with outlandish

claims. Make sure that what they promise, they deliver.

While results may differ, they should not be so far off the mark if you have followed the instruction they laid out.

Forex robots were hyped to be an ATM but most, if not all, failed to deliver.

Remember if it is too good to be true, it probably is.