Almost every online FOREX broker has a software package for their clients to make
transactions and get information about market prices. Due to the relative maturity of
online trading there is a consensus among FOREX brokers about what clients need in
terms of software tools. There are two main classes of FOREX software – web based
and client based.
All FOREX software needs to provide up-to-the-second market information. The fast
moving pace of the FOREX demands real-time data delivery for making decisions about
when to enter and exit the market. FOREX dealers claim their software performs well
with a minimum of delay, but in fact there can be a number of factors that could delay
data transmission.
Internet connection speed and distance from the broker's servers are the two main factors
that can slow down data transmission. FOREX traders should have a reasonably modern
computer and a high speed Internet connection to take full advantage of the FOREX
software offered by their 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 experience delays –
especially during volatile market conditions.
Web Based or Client Based?
Web based software is on the broker's website – you don't have to install any software on
your computer. Client based software requires you to download and install the software
package used by your broker. 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 just one computer.
Besides the convenience, web based software offers greater security. Data is secured
with high-strength encryption making it impossible for outside parties to access during
transmission. Client based software is also secured during transmission but there are
more possibilities for data loss from the trader's computer. Viruses and hackers may be
able to access valuable financial data stored in a home or office computer.
Features
FOREX software needs to access real-time quotes and offer a means to enter and exit
the market. Even the 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.
Basic software packages should be offered free of charge, but many brokers also have
more advanced packages available for a monthly fee. Some of the features you could
expect to see in advanced software include the ability to trade directly from the chart and
full analytical functions.
Technology
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.
transactions and get information about market prices. Due to the relative maturity of
online trading there is a consensus among FOREX brokers about what clients need in
terms of software tools. There are two main classes of FOREX software – web based
and client based.
All FOREX software needs to provide up-to-the-second market information. The fast
moving pace of the FOREX demands real-time data delivery for making decisions about
when to enter and exit the market. FOREX dealers claim their software performs well
with a minimum of delay, but in fact there can be a number of factors that could delay
data transmission.
Internet connection speed and distance from the broker's servers are the two main factors
that can slow down data transmission. FOREX traders should have a reasonably modern
computer and a high speed Internet connection to take full advantage of the FOREX
software offered by their 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 experience delays –
especially during volatile market conditions.
Web Based or Client Based?
Web based software is on the broker's website – you don't have to install any software on
your computer. Client based software requires you to download and install the software
package used by your broker. 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 just one computer.
Besides the convenience, web based software offers greater security. Data is secured
with high-strength encryption making it impossible for outside parties to access during
transmission. Client based software is also secured during transmission but there are
more possibilities for data loss from the trader's computer. Viruses and hackers may be
able to access valuable financial data stored in a home or office computer.
Features
FOREX software needs to access real-time quotes and offer a means to enter and exit
the market. Even the 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.
Basic software packages should be offered free of charge, but many brokers also have
more advanced packages available for a monthly fee. Some of the features you could
expect to see in advanced software include the ability to trade directly from the chart and
full analytical functions.
Technology
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.
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