Choosing the right mobile app for Forex trading
Choosing the right mobile app for Forex trading
Forex trading is one of the fastest-growing activities for amateur finance enthusiasts who want to make a little extra money. But there are some who seek to take it a step further and can build a lucrative full time career out of their trading activities.
Software developers are never slow to pick up on changing trends, and there is now a wide choice of apps available that facilitate Forex trading on the go. Clearly, getting the right app with the functionality you need is a prerequisite to success, so here, we examine some of the key areas you need to think about when choosing the right one for your purposes.
It's a given that you need to be online in order to trade, but when you are on the go, your smartphone will typically be transitioning from one WiFi connection to another, and then to 3G or 4G mobile connections, depending on your signal and your service provider.
If trading on the go is going to form an important part of your strategy, robust connectivity that rides these bumps is paramount. The last thing you need is for the connection to go down at a crucial moment, just as you are about to make that big decision.
Some apps provide an offline mode, which at least means you can continue what you are doing if the signal is suddenly lost, and effectively carry on where you left off as soon as it reconnects.
Transaction processing speed
You snooze you lose, particularly in the turbulent world of Forex trading. Check how quickly your shortlisted apps complete a transaction after you press the button. Sometimes, a few seconds can make a big difference.
Ideally, you need your app to provide constant, real-time prices. Some apps have a delay of several minutes, while there are others that only update every few hours. Clearly, these are not going to be helpful if you want to pursue the best price action trading strategies, where you need immediate and real-time information on how your chosen currency pair is valued.
You'll be spending plenty of time navigating around this app, so don't overlook the basic aspect of feel. If it is intuitive and well laid out, you'll be better equipped to remain calm and focussed on what you are doing, as opposed to spending your time irritated and distracted as you try to find the right screen or function.
Here's another aspect that can ruin your entire trading activity if you get it wrong. Not all of us are walking around with the very latest and best in mobile technology. If your app of choice leaves you with just two percent of your phone's memory remaining, it is never going to run smoothly, and will be constantly hanging or shutting down. Your phone will buckle under the pressure and start running short on RAM, and it will be just one more distraction. The solution is easy -either choose a lighter app, or it's time to upgrade your phone.
Safety and Security
The online world is no longer the wild west that it was in its early days, and today, any trading app should feature the very best in security and encryption. Having said that, in every lucrative sector, there are charlatans and fraudsters seeking to trip up the unwary, so be cautious of apps from unknown providers, or ones that have suddenly appeared overnight. And remember the old adage that if it seems too good to be true, it probably is.
For anyone new to trading, a demo account is a must, so check whether your app of choice offers one. It provides the same functionality and market information as a normal account, but the only difference is you are not trading with real money. A demo account lets you put all that trading theory into practice and learn from the mistakes that you will inevitably make when you start out.
Some traders still maintain a separate demo account from their live trading account and use it as a place to experiment with potentially risky new strategies to see how they play out. Well worth considering if you want to become a pioneer and thought leader in the trading world.
Tips from the experts
In your early trading days, it is reasonable to be a follower rather than a leader, and there is no shame in that. Some apps provide extra help and information that is particularly valuable for those who are still learning the ropes. These include daily tips from seasoned professionals, and even the opportunity to follow star traders, and essentially shadow their every move.
Choosing what is right for you
There are more aspects to consider than you might initially think when it comes to choosing the right trading app, and there is no one size fits all solution. Shortlist your favourites and then run through the above points, however, and you will find the one that is perfect for your circumstances.