Hello, dear traders! In this article, I’m going to tell you about top tools for the Forex trading. Working on the foreign exchange market may be a serious challenge both for beginners and experts. So, it is always better to use several trading tools that will help you to make the final decision. These currency trading tools may be great helpers in finding the best entry and exit points into/from the Forex market.
Before getting to the main topic of my article, I’d like to note that there is a great variety of popular Forex tools that can be either free or paid. The features you choose depend only on your plans. Some of them may be found in advanced trading platforms or provided by Forex brokers and news resources.
And now, let’s look at the categories of the best Forex trading tools!
Free Forex tools
Everyone knows how important understanding of the Forex market is. Resources with fundamental analysis, the Forex calendar and the economic news are usually free and can be found online. The market is affected by different events, speeches, changing the interest rates and other economic conditions throughout the world. So, the most important for a trader is keeping an eye on them and being ready for unexpected changes.
I have written more than one article on where you can find the best Forex analysis and news. Some of the handful tools can be also found in the trading platform itself. For example, in MetaTrader 4 I work with some free trading tools and indicators. I’ll tell you more about them later.
Economic calendar for trading
As I’ve mentioned, Forex news affects the volatility a lot, so traders may look at the economic calendar practically every day before planning their day-trading. With this tool, you will be aware of the time when the monetary policy changes and central bank statements will be announced.
Usually, you can find them on your broker’s website, on the thematic portals or economic news websites. The most resources rate upcoming events by their influence on the Forex market.
So, you can make conclusions how the price will respond to a certain news release. If the impact is low, it may not change at all, but in case it’s high, be ready to a high volatility. However, the market is so unpredictable, that it can become volatile in any case, so be careful and don’t risk too much while trading news.
Access to the financial newswire
This point can cost a penny for the Forex traders. But getting all the most important economic news and financial publications can be more than just useful for professional Forex traders who use both technical and fundamental analysis.
I mean subscribing to Bloomberg, Reuters, Financial Times and the Wall Street Journal. These business resources are reputable and trusted, so your money won’t be spent for anything. You’ll get the info on press conferences, reports, speeches and statements just in time you need it. Beyond the economic situation, you have to pay attention to the world’s politics, production, employment level and other moments that may influence your trading.
Position size calculator
Most Forex traders who have just begun working with the financial markets need lots of time to find out the best lot for a deal. But there is no need to stay up at night to be ready for the next trading day. There are Forex tools for automating this point!
Trading calculators can help you to define the value of a standard/mini/micro lot basing on your budget and risks per one trade. See the 4-th point about position sizing in this article. There are some links to the most useful calculators that will help you to define your trading costs.
As I’ve said earlier, the market volatility can be affected by news. So, you should be ready for a higher or lower volatility during releases.
I also need to note that you shouldn’t choose the pairs with a low volatility, as they won’t help you to earn money. Surely, looking at how volatile the pair is can be done by hands, still, I’d recommend you to save your time for more important work, and to use a computer for doing that. With the volatility calculator (or indicator), you can get the historical information and predict a real time volatility for a certain pair.
Many trading tools are already included into trading platforms. It’s no matter whether you use the best Forex broker or not, your platform can supply you with all the necessary tools for trading currency pairs. As far as I use MetaTrader 4, I’ll tell you more about its opportunities.
To my mind, there are no equal platforms for desktop and mobile trading. This software offers you manual and automated trading (you can even program your own EA basing on your trading system), 30 built-in technical indicators for traders, more than 2000 custom instruments and 700 paid ones. As for technical analysis, this platform will surprise you as well. It also allows you to work with 24 analytical tools (Gann, Fibonacci, lines and channels, arrows and shapes, etc). All this can be comfortably managed in the PC version. Note, that they have a web platform for the Forex trading too.
A trading journal
After you have created your trading strategy, made out the risk and money management tools, chosen which broker to trade with and the best currency to trade, start your trading journal.
Keeping a record of all the trades will give you materials for the future analyzing and making adjustments to the trading system. Note the mistakes and avoid them the next time. It takes time, but it’s not difficult at all!
So, I hope that these tips about Forex trading tools will improve your productivity and consistency on the market! Good luck! 😉