The trading software is one of the more overlooked aspects of
trading Forex online. For those who are not familiar with the Forex
market, it is extremely fast-paced and volatile. That is why all
brokers claim that their software offers the minimum latency in
providing real-market updates. Unfortunately, this is a very generous
statement and it does not take into account the client's internet
connection or his geographic location.
The client's connection to the web is obviously the most important
factor regarding receiving real-market updates from the broker. It
really should be the best connection that one can afford, whether it is
cable, satellite or ISDN. Cable is the preferred connection, as it is
more secure and offers greater bandwidth.
And then there is geography. It is common sense that Broker X who is
located in Toronto can establish contact with Client A located in
Montreal much faster than Client B, who is located all the way down in
Mexico City. The fact is that all internet connections are affected by
distance. The farther a client is away from his broker, the more delay
he will receive as a result because of the physical limitations imposed
on wiring. Thus, always research your broker's geographic location
before selecting it as the right one for you. For best results, always
choose a broker who is closer to you.
Any decent broker will offer its trading software for free. Some will
even offer different versions of its software for traders of different
skill levels. Usually, "advanced" versions loaded with extra features
are available for free to those who request them.
Trading software comes in two flavours- web based and client based
software. If your broker offers both kinds, great! Each has its own
advantages, but it is the general consensus that web-based software is
better.
Web based software operates completely on the broker's server and is
interfaced through a web browser like Internet Explorer or Mozilla
Firefox. This creates a lot of flexibility for the client, as he can
access his Forex account anywhere providing he has access to an ISP and
a browser. Security with web based software is not an issue, as all
exchanges between the client and the broker take place over secured
sockets and are heavily encrypted.
Client-based software is downloaded onto the computer and executed from
there. It is faster and more convenient to access, and is more "homely"
in the sense that it will blend into your desktop environment. However
because client based software resides on your computer and stores
sensitive information like name and passwords locally, it is very
vulnerable to hackers. If they managed to sneak pass your firewall
through Trojans or some other backdoor virus, they can do great harm to
your bank account.
If you are just starting off with Forex, be sure to take these factors
into consideration when selecting the best broker. Analyse the features
of the provided software to make sure that they're right for you. So
with all that said, good luck and happy trading!
About the author:
www.moneymadeeasy.biz
Ian Shell
ian@moneymadeeasy.co.nz
Article Source: http://www.Free-Articles-Zone.com
Powered by ScribeFire.
0 comments:
Post a Comment