Many tools and softwares can help us improve our Forex trading experience. These tools provide us with a more accurate understanding of our trading.
This article will explain the best trading tools for Forex traders in 2022.
Best trading tools
Based on extensive research, here are some tools which can enhance your trading experience.
- Trading platforms
- Charting software
- Trade journal
- Copy-trading service
- Currency correlation matrix
- Time zone converter
- Forex volatility calculator
- Economic calendar
- Financial news wire
Let’s dive a little deeper into the functioning of these tools.
1. Trading platforms
Trading platforms are one of the most important tools in Forex trading. Advanced trading platforms are MT4 and MT5, developed by MetaQuotes. Most Forex trading brokers offer the MT4 platform; the premium brokers are shifting over to MT5. So, this is something that you should keep in your mind and not compromise over it. Read more about hotforex review south africa
2. Charting software
Forex trading charts are essential when you are trading at professional levels. Charts provide real-time knowledge to the traders about the expected change in the prices of currency pairs. Several brokers offer real-time charts on their platform. You can also opt for any 3rd-party website to get this information.
3. Economic Calendar
An economic calendar is another extremely important tool for Forex trading. However, this only serves good value to professional traders. This is overkill if you are a beginner or a short-term Forex trader. An economic calendar lists the time and date of all the important economic data that can potentially affect the currency pairs. The economic calendar includes employment and inflation numbers, GDP (Gross Domestic Product), and central bank meeting dates.
4. Financial News Wire
New events can significantly change the direction of exchange rates. A financial news wire tool keeps you updated about all the recent events that can affect your currency pairs’ prices. You can get instant access to important news with a premium financial news service. This way, you can avoid some significant upcoming losses.
5. Trade Journal
Some companies offer a trade journal that allows traders to keep track of their trades. This allows traders to record their progress and learn from their mistakes.
6. Copy trading service
Have you ever felt like you are never going to learn Forex trading? This copy trading service allows traders to copy all the moves and trade activities of an experienced Forex trader. Some companies like eToro offer this service, and it is worth checking out.
7. Currency Correlation Matrix
The currency correlation matrix tool measures how one currency’s pair compares exchange rates to another currency pair.
8. Time Zone Converter Tool
Forex trading has 4 open sessions for traders all around the world. Some sessions are more beneficial for some traders based on their favored currency pair. A time zone converter tool gives you a precise conversion into your interested trading time zone.
Some important trading tools can enhance your forex trading sa experience by miles. Make sure to check out the tools we mentioned in our article.