Best forex trading tools available in 2022

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Best forex trading tools available in 2022

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…What are Forex trading tools and why do you need them?

Forex trading may sound like an easy thing to do but it is far from it. You will realize this, even more, when you are new to the forex world and are still learning the tricks of the trade. There are many factors that you should be looking at if you wish to have a successful currency trading forex journey and also earn profit. Forex trading tools have been created especially for traders who operate on currency trading platforms.

Today you’ll find hundreds of Forex trading tools around and you must know that it is impractical to think that you will be using them all. Every single tool serves a different purpose and they could help you in one way or the other. Hence, now how do you assess which forex trading tool is good for you?

 

Typically, we go by three yardsticks that help us decide if a forex trading tool will do you any good or not:

  1. Reliability: A good forex tool is one that is reliable.
  2. Affordability: If the trading tools burn a hole in your pocket, you may not want to invest in it as that money should rather be invested in the market. Affordability is key for any good trading tool.
  3. Functionality: The most effective forex tools are those that help you with the necessary information you may require when you trade on the platform.

Forex traders typically use technical analysis tools like Economic Calendar, Volatility Calendar, and even Currency Correlation Matrix since these tools can be handy when it comes to getting the right trading signals. Several traders even opt for forex market analysis tools that are best suited to new traders who are still working on their trading styles and habits.

 

Best Forex Tools

 

#1. Charting Software

Charting Software is an important and widely used Forex trading tool that nearly every forex trader uses. It helps you with a visual representation of the market’s behaviour and how it has performed. It lets traders assess market conditions in real time and also analyze past trades. There are many Charting Software packages that have many additional technical indicators that let traders check their methods before they actually use it for trades.

 

#2. Trading Platforms

While there are several trading platforms out there, MetaTrader4 is by far one of the most popular forex trading platforms. Experienced forex traders opt for MetaTrader4 because of the different features it comes with.

MetaTrader 4 backs nearly all leading forex trading companies and you can pick from the lot and choose to work with one of them. Different asset classes that are serviced by online trading agents like metals, energy goods, and stock indexes are also accessible via MT4.

 

#3. Financial News

It is important to keep yourself updated with financial news that goes around the world to be able to up your game. A currency’s overall value is determined by many factors such as political conditions, unforeseen geological occurrences, etc.

If you are familiar with such factors, you will be able to tell how that currency might perform in the market in the near future. Together, these aspects add up to making an informed decision.

 

#4. Economic Calendar

There is no tool like the economic news calendar for forex traders. It allows traders an insight into how the market would perform in the future on the basis of geopolitical events and  financial data.

If you are keen on Forex trading, then you should be using an Economic Calendar. These can be very helpful in learning about inflation numbers, the GDP of countries, as well as meeting dates of leading central banks.

 

#5. Copy Trading

Copy trading service is a very effective and useful tool that any trader on the forex platform can use. It is especially great for those who are new in the field. With this tool, you can copy the trades that traders you are following make in the right way.

It’s safe to say that Copy Trading is one of the finest self-development tools at the disposal of new traders. It helps them boost their trading experience and learn more about the Forex market. If you cannot make up your mind about which currency pair is right for you, Copy Trading Service will help you copy the investment a trader you follow has made.

 

#6. Trade Journal

If you want to be a successful Forex trader, you will find Trade Journal a useful tool to have. A Trade Journal maintains a track of all the investments you’ve made. It also keeps a record of all relevant data. You can access this data whenever you like. This is a great tool as it allows you to see your performance and learn from your mistakes.

 

#7. Forex Volatility Calculator

Market volatility is a very important part of forex and is best for effective trading. If currency pairs have a narrow range of trading then you should be avoiding them. A sign of a good volatility calculator is that it can segregate volatility of the past. It converts into time periods such as a week, a month, three months, and a year.

It could also be helpful when the trader wants to work with the most volatile currency pairs during the roughest times of the day. However, more volatility is typically associated with increased trading opportunities.

 

#8. Currency Correlation Matrix

 

Many currency pairings in the foreign exchange market have well-known links that are easy to figure out. These connections could be positive or negative. Often, they’re much stronger in particular pairs when compared to the others. To make the correlation table, the correlation between each currency and all other fiat currencies is made for one or more historical time periods and put in a box where they match up.

 

#9. Time Zone Converter

It is a tool that lets you adjust your trading activity to various time zones.  It points out trading session overlaps from around the world when the market is liquid. You will realize that it is one of the best technical indicators out there. It also enables us to learn the right time to trade a counter currency and understand its volatility.

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