For forex trade execution and for speculative profits a trader has to close a deal. Since a private trader can’t be a full Forex market participant, he is obliged to work through brokers and dealers that later on retransmit his deals to the market. There are two ways of giving instructions to a broker: outdated outcry trading, when a trader calls the dealing center and gives instructions by voice and webtrading via trading terminals.
At the moment brokers leave outcry trading for extreme cases, if a client i.e. trader lost his access to internet or a trader has another technical issue that does not let him make, close or modify the deal independently. But the majority of deals are made by a trader through his private forex terminal.
Trading forex terminals represent broker companies that offer services for a trader. That is why a trader must download a forex terminal from his broker’s website after opening an account or from a link that will appear upon creating an account. The forex terminal has to be completely secure for your personal data and its effectiveness in working with broker company servers must be proved. Usually trading terminals are easily adaptable to computer system requirements and to internet connectivity channels. Also forex brokers do not require user charge for using trading terminals, which is appropriate on a share market.
A trading terminal from a broker involves a full list of trading instruments that he offers. The main function of a trading terminal is to provide the trader with current rates in real-time. For that purpose it must be constantly connected to the server of a broker company, and allow to make deals depending on those rates within the scope of trader’s basic fees. Usually the rates are presented in the form of graphs and/or rate tables. Trading terminals allow to manage trading account and exposed positions, showing in real time uncommitted funds for trading, marginal obligations and current financial result.
Frequently forex terminals include newsfeed with main events for fundamental analysis and standard instruments of technical analysis (for example, moving average). The most advanced terminals have module of trading strategies testing with history that is why there are rate archives. Therefore a trading terminal on a forex market is the main working environment for traders and the main instrument for making trading decisions.
A trading terminal must have a system of trader identification to ensure safety of usage, and also to let manage different accounts from the same software product. It is important to note trading account password thefts. Since the terminal is in trader’s computer it can be attacked by malicious software, including Trojans. Since the trader is responsible for deals made from his identification data, the security issue must be solved primarily. It is recommended to change trading passwords at least once in a quarter.
Lately mobile versions of trading terminals have gained popularity. They allow a trader to stay at his actual workplace without losing connection and control of market. Unfortunately many beginning traders overestimate the role of mobile versions of terminals and try to carry out analysis on the go, which leads to increase in inaccuracy of decisions adopted. One should remember that mobile terminals for communicators are created for control and monitoring and prompt adjustment of exposed positions, and for full value analysis one should use desktop versions.
Every broker can have his own terminal. But not every broker can afford developing his own forex trading terminal, since it requires considerable investments and constant expenditures for maintaining a software product. That is why the majority of companies use software products of third-party companies. To make traders’ task easier at most and to facilitate the transition of a trader from one broker company to another, without wasting his time getting accustomed to functional and interface of forex terminal, companies move towards unification of a trading platform in use.
Thus, the majority of the companies are currently using trading forex terminals from MetaQuotes company, that is called MetaTrаder (read full review of this terminal and its functional).
In any case, no matter what terminal is chosen by a trader or is given to him by broker company, a trader must learn terminal functional on a demo account and check the convenience of making trading deals and analytics of exposed positions, learn the peculiarities of forex terminal functioning, i.e. administer a full test of trading terminal. And only after testing and obtaining the skills of using the terminal, a trader can begin trading with his real account.