Trading Platforms

Forex is traded via a broker's trading platform (sometimes called a trading console or trading station). You will need a modern computer with high speed internet connection to access the platform.

With the leading forex brokers you're able to trade not only over the Internet but also on your mobile phone.

Here's a screen shot of ACM's trading console.

You should download the user guide and familiarize yourself with all aspects of your broker's platform. No doubt you will open a demo account and practice your trades for at least a month before trading live. By the time you are ready to trade live - risk real money - you would have learned the intricacies of the platform. This should avoid you making costly mistakes, such as buying when you want to sell, and selling when you want to buy.

You should not settle for a platform that does not come with one-on-one customer support, including telephone support, live chat, and 24/7 technical support. In the event that your trading platform goes off-line you should be able to call your broker's dealing desk to manage your trades, for instance, to close a losing trade.

The platform should offer real-time quotes and let you quickly enter and exit the market. These are minimal requirements. Most brokers now offer integrated charting and technical analysis packages with their trading platforms.

A trading platform's screen layout should be user-friendly, and include the ability to view real-time currency exchange rate quotes. It should also offer an account summary showing your current account balance, realized and unrealized profit or loss, margin available, and any margin locked in open positions. (These terms shall be explained later).

Trading platforms tend to be either Web-based (in Java), or client-based programs that you install on your computer:

• Web based software is hosted on your broker's website. You won't have to install any software on your own computer. You'll be able to log in from any computer with an Internet connection.


• A client-based software program (one that you download and install), lets you trade only on computers where the program is installed.

The 'download and install' program usually runs faster, but most programs are operating system specific. For example, some programs run only on Microsoft Windows. But the better brokers provide both Web-based and Java-based platforms.

Brokers tend to prefer Java-based programs because they are safer and more reliable. Java-based software is less vulnerable to attack from viruses and hackers during transmissions than 'download and install' software.