At present, traders can use several trading software to manage their do a number of transactions. The 4 most common types of forex trading software include trading platforms, technical analysis software, trading signal generators and forex robots. Below are the known functions of each software type and the top choices we prefer.
1. Trading platforms allow traders to manage their account and manually execute their transactions. These are usually web-accessed and are integrated with the broker’s web-site. One of the most popular trading software today is Metatrader. MT4, a popular release, is a free program which features built-in technical indicators which allows traders to analyze market movements in a flash. Aside from the MT software, another popular trading platform is VT trader which can be customized (from automatic, semi-automatic to manual entry and exit transactions) depending on the level of the trader.
2. Technical analysis software feature charts and a record of exchange rates for all possible currency pairs. Most technical analysis software are already bundled with trading signal generators and will employ a number of methods including Stochastics, RSI, MACD and many others. Some of the more popular choices for this type include MCFX, Abletrend and Easctrend. Specifically designed by Multicharts for forex trading, MCFX features high definition charting, real time market scanner and a proprietary back testing software. It may also be configures so that it executes trades automatically. Abletrend identifies market trends in its early stages and alerts traders for possibly buy or sell opportunities. Meanwhile, Easctrend identify exit points and signals the trading platform to perform the transaction.
3. Forex trading robots are usually referred to as expert advisors (EA) because they are designed to perform trades automatically. They are highly sophisticated and are usually plugged in to the MT4 platform. EAs allow the trader to perform transactions 24 hours a day without additional customization. The downside to this is that there are already a number of EAs available today and some of them are outright scams. Some of the top forex robots today include FAP Turbo and Forex Megadroid. FAP Turbo is proven to generate profit in a steady manner. It works for both long term and short term strategies and it is very easy to setup.
It works best with the pairs EUR/GBP and EUR/CHF. On the other hand, Forex Megadroid extrapolates market values and helps predict market behavior in the next 2-4 hours. It is believed to accounts for 70-90% winning trades but since it focuses on only 1 pair, the EUR/USD, there are only a handful of traders who use it.