5 Top Trading Tools for Forex Traders: Foreign exchange trading is a complex task where many times, professionals also make mistakes. However, these obstacles can be mitigated with the help of tools. Trading tools are nowadays a prerequisite to every investor and a vital path to achieving success in the industry.
Some of these tools are paid while many are available free of cost too. Generally, free ones are not very reliable, but the ones available with brokers are usually good. The reason is the brokerage firm is required to hold their users and the clients need tools for investments. In exchange, every trading website earns from their customers too.
Today, we’ll discuss here five trading tools for forex investors. These are the top five ones, and there could be dozens of more.
5 Amazing Trading Tools For Forex Market Traders
The foremost tool which a currency trader needs is several kinds of calculators. It includes a currency pip calculator, margin calculator, volatility calculator, profit calculator, and currency converter. Little details of each of them are:
Currency Converter: A foreign currency converter aids the traders in knowing the value of one currency in another. For instance, if you do not know the value of one US dollar in the Japanese Yen, you can take the converter’s help.
Profit Calculator: It allows investors to determine the earnings from one single or multiple trades.
Margin Calculator: The tool helps the investors by calculating the needed margin, the leverage percentage and the total amount necessary to hold a position.
Volatility Calculator: The volatility calculator is vital in analysing the past instability of a currency pair in real-time for different periods.
2. Economic Calendar
The one tool which every trader might be aware of and would need is an economic news calendar. The tools include essential information for every currency enthusiast, including central bank policies, monetary policymakers’ speeches, election news, and several statements. The tool also aids in providing vital economic stats and future geopolitical events for both already released and upcoming outcomes.
3. MT4/5 Trading Platform
A trading platform includes many tools which aid investors in trading. The range of tools can range from signals, indicators, charts, patterns, to options like one-click trading, scalping, hedging, etc.
4. Time Zone Converter
Forex is all about trading via different country exchanges and executes orders on foreign currencies. It primarily requires an investor to know the time zones of varied places. Thus, a time zone converter is a must as the market is open 24 hours a day, from Monday to Friday.
5. News Wires
Financial news wires release useful current news related to government, nations, companies, and more. Interest rate is also a major contributor to it since it plays a big role in determining the pair fluctuations. Other items in a news wire include major economic releases, elections, geopolitical coverages, numbers like GDP, employment data and much more.
The Bottom Line
So, these were the top trading tools for the forex market. Notably, these tools are also available with brokers. However, not every trading website features them; only a handful of trustworthy, genuine sites will include these as it requires a cost to maintain them all.
ETfinance is one such broker. The CySEC regulated trading website which provides a wide range of investing services to its users. Moreover, the company offers several services like a demo account, excellent customer service, robust IT security, simple payment methods, quick, simple UI/UX, and low trading charges.
Furthermore, doubts about ETfinance scam should be kept away as apart from CySEC regulations, the venture is also a part of Investor Compensation Funds and follows no negative policy.