When starting a forex brokerage, as important as it is to build a powerful business strategy, it is equally crucial to have a robust forex trading platform. There are some key features that really make the trading software ideal for modern traders and give businesses an extra edge over other brokerages in the market. Check out this article to understand what a forex trading platform really is and what the features are behind every strong forex trading platform.
Understanding the FX Trading Platform
As the term implies, the Forex Trading Platform is software that allows brokers to provide traders and investors with direct access to the forex markets. Now, this software can be either one or a combination of a mobile app, a web-based portal, or a web application.
Along with acting as a window to the forex market, a forex trading application also has all the tools and technologies to buy, sell, and trade in the forex market. Thus, using trading platforms, forex brokers act as intermediaries connecting the traders to forex markets and equipping them to actually trade in the market.
Brokers can either integrate leading trading platforms like MT4 and MT5 into their trading systems and provide forex trading services, or they can build the platform from scratch with the required features and functionalities. In either case, they need assistance and expertise from forex trading platform development companies like Webcom Systems to access robust trading solutions.
Key Components Of A Reliable FX Trading Platform
A trading platform is considered a reliable trading solution when it is fitted with all the required features, making it extremely helpful for both brokerages as well as traders.
Here is the list of all the features that a trading platform must include:
Live Forex Prices
As the forex market is dynamic in nature, the most fundamental function of the platform is to display the live foreign exchange market data. Thus, an ideal Forex trading platform shows real-time information on forex market conditions and price fluctuations. Not to forget, there is no space for errors when trading in the forex market. Even a minor mistake can cause hefty losses for traders.
Only when the data is precise, up-to-date, and detailed, containing complete information including market volume, bid and ask prices, market depth, etc., can traders practice efficient trading practices.
Forex Trading Tools and Indicators
Forex trading platforms are equipped with various technical indicators and analytical tools so that traders can analyze and understand the forex market well. The app can have simple tools such as trend lines, pivot points, and support/resistance levels. Also, they can have highly advanced indicators like moving averages (SMA, EMA), oscillators such as RSI and MACD, and tools like Fibonacci retracements, Bollinger Bands, and the Ichimoku Cloud.
These tools give complete insights into the market dynamics, price movements, market patterns, and more. Traders can customize their trading experience by selecting the desired technical indicators and analytical tools that suit their trading skill level and preferred trading strategies.
Demo Account
A forex trading platform also provides a demo account for traders. It mimics real-world trading scenarios and gives access to complete trading tools and functionality.
Traders can use the demo account to test their trading strategies without risking their money. These amazing features provide a testing ground for traders to experiment with new strategies and improve their trading skills at the same time.
User-Friendly Interface
A trading application, whether it is a web application, mobile app, or web-based portal, must have a user-friendly interface. Traders and investors using the application should be able to access the platform, providing data as well as trading tools smoothly, without any delays or confusion. With just one click, traders can access market data, analysis tools, and charts to trade and make informed decisions.
At Webcom Systems, our experts design trading platforms by emphasizing smooth order booking and trade execution. Also, we provide special customization options for traders to set trading alerts, create personalized watchlists, fix risk tolerance, and more.
Automation And Third-Party Tools Integration
These days, most traders are switching to algorithmic trading instead of practicing the same old manual trading. Platforms that support algorithmic trading work using automated trading strategies and allow traders to carry out complex and high-risk trading easily. MetaTrader is a safe third-party tool that can be integrated into the trading system to access multiple applications, plugins, etc., and capture the most promising trading opportunities.
Risk Management Tools
Professional traders always choose trading platforms that have automated risk management techniques and tools to protect them from big losses. This gives the traders the ease to practice different strategies and increase profit potential while keeping the risk in control. Some of the common risk management tools include position size, risk reward ratio, stop loss order, leverage, margin, etc.
Customer Support
Brokers should always stay accessible to their customers to address their trading inquiries and related technical issues. It could be any account-related issue or a technical glitch; otherwise, brokerages should provide immediate and timely issue resolutions.
For this reason, a trading platform has a special customer support feature where traders can file their issues, and brokerages can address them promptly to deliver exceptional service.
Security
Traders are required to share their financial and personal details to create a trading account and practice trading on the trading platform. In order to protect this sensitive information and provide a safe trading environment, trading platforms comply with regulations like data protection, Know Your Customer (KYC), anti-money laundering (AML), and more.
Moreover, the software is also employed with security features like backup systems, multi-step authentication, advanced encryption, etc. These integrations protect the trading platform from data breaches and unauthorized access, as well as keeping the platform functional at all times.
Educational Resources
Some Forex trading applications offer educational resources to help traders improve their knowledge and skills. These resources could include tutorials, learning materials, webinars, etc., giving complete insight into major trading strategies and market behavior.
Wrapping Up
A forex trading application includes a wide range of features, each benefiting the traders as well as brokers in their unique ways. If you are considering building a trading platform for your forex brokerage equipped with all these robust features, we can help. Webcom Systems provides scalable and customizable trading solutions, allowing brokerages to cater to traders and investors of all levels, from beginners to seasoned professionals. Contact us today to discuss your forex trading project
Recommended Read: How to Choose the Right Forex Brokerage Software Development Company?
