Professional Forex traders do not work alone; they have an assortment of tools designed to give them the best outcome in the trading game. Forex tools save traders time, help them know what to invest in and when, and improve investment experience.
Forex tools are accessible and affordable for everyone. Most, if not all, applications can be used at home or on a mobile phone. Here are the most common tools used by the best traders out there.
Forex Broker Spread Comparisons & Listings
Some say that a Forex trader is only as good as their broker. Finding a broker can be a challenge as no two brokers are the same. According to Forexbrokerz.com, the top 10 Forex brokers need a deposit between $1 to $200. Forex brokers listings help traders compare brokers before making the right decision.
If traders have not selected a Forex broker yet, they should examine and compare broker spreads first. Dealing spreads show the trader who can offer better exchange rates. Tighter spreads are preferable because they are less costly, while wider spreads cost more and hinder short term traders.
Economic Calendar & Outlet
An economic calendar covers real-time financial events from around the world. In conjunction with the calendar, news outlets give traders access to business publications. These online resources are a crucial tool for trading strategies. Many events have a strong influence on the Forex market and can determine someone’s next move.
Forex-related Calculators & Converters
All traders can save time and a headache by calculating and converting their possible exchanges. Here are some examples of what calculators Forex trading use to prepare for their next trade.
Pip calculators help traders calculate the value of a pip based on the size of its position and the currencies that are being exchanged.
Forex Volatility Calculator
Volatility refers to the amount of risk according to changes in exchange rates over time. Drastic changes show high volatility and vice versa.
Time Zone Converter
Another key to trading is exchanging at the right time. Traders want to know what time it is in major trading centers so they know when they should be the most active.
Keeping A Trade Journal
To hone and refine their trading habits, traders need to keep track of their trading history. By having a visual cue of their trades, Forex traders get a better idea of what mistakes they have made, and what can be done differently.
Forex Tools Summary
Beginners and advanced traders both can benefit from using Forex tools to enhance their trading experience. Most of these tools can be found for free online, and are applicable for new strategies, or can take current strategies to the next level. Use these tools before making the next move in the Forex trade market.