Forex trading is a highly impressive form of trading. You need to understand a lot of things before you venture into Forex trading. You need to know about geopolitical events and currencies. This will help you along the way in Forex trading. Before you can venture into Forex trading, you need to study regularly. There is a need for consistent learning before you can make an impact in Forex trading.
Top Forex Trading Platforms in New Zealand
The first step to trading Forex involves opening a trading account. You can only open a trading account on a Forex trading platform. You can open either a live account or a practice account. Another name for a practice account is a demo account. If you do not know about Forex trading yet, you can start with a practice account. Before you open any Forex trading account, you need a good knowledge of Forex trading platforms.
As a Forex trader, you need to be aware of the various types of Forex trading platforms. It will help you to make better trading decisions. The beauty of it is that individual traders can choose any trading platform he prefers. In this write-up, we are going to focus on the different types of Forex trading platforms available.
Types of Forex trading platforms
We can categorize Forex trading platforms into two broad types. There is the downloadable and the non-downloadable type. The downloadable types are applications of software. You can get access to them after you download them on your device. You can download them on both PC and mobile devices easily. After downloading, you will need to install them before you can start using them.
On the other hand, the non-downloadable type does not require any downloading. This type is open via the internet. You only need to open it directly on your browser. You can also open it on both your PC and mobile device. The two of them work in the same manner, but the only difference is that one requires that you download an application while the other one does not require such.
Before you use any of the trading platforms above, find out if it is compatible with your system first. You can also call the non-downloadable type the cloud-based platform. The beauty of it is that the non-downloadable type is easy to access on virtually any device that can access the internet. This is unlike the downloadable type that requires some device compatibility.
How and where you trade can also determine the one to go for between the two types. You may also want to consider the functionality of your device. Some applications will only run on local devices on which you install them.
Available programming language
Forex trading platforms can also be categorized in line with the programming language with which they build the application. Many of the Forex trading platforms have their bases on complex programming languages. As a result of this, end users can develop and deploy the specific trading algorithm for trade execution. The functionality of each depends on the programming expertise of the developer. You can categorize such trading platform s into two main types:
- MetaTrader 4 and MetaTrader 5: This type is the most popular. Their end users are more than those you find using any other trading platform.
- cTrader: This one gives you a direct connection to the Forex trading market itself. It is an Electronic Communications Network platform. This is why it can connect you directly to the Forex trading platform.
- ActTrader: You can get both downloadable and non-downloadable types under this particular category.
- TradeStation: The programming language for this one is special. It is the Lua programming language.
- Currenex: It comes in various versions. There is the Currenex classic and the Currenex Viking. The Currenex classic is for beginners in Forex trading. The Currenex Viking, on the other hand, is for professional Forex traders.
Dealing desk against a non-dealing desk
Some other versions of Forex trading platforms are the dealing desk and non-dealing desk trading platforms. In the dealing desk version, the system connects directly to the dealing desk of the broker. This is where all pricing information originates. The transaction orders of the trader will first go through the dealing desk. Good examples of dealing with desk trading platforms are:
- Currenex Classic
Another name for the non-dealing desk is direct market access or ECN platform. The price in this system originates from the liquidity providers. The trader can easily peruse them also. Another name for this system is direct access trading. Good examples are:
- Currenex Viking
How to choose a reliable Forex trading platform
There are different Forex trading platforms out there. You need to look before you leap when you want to choose any of them. In this section of the write-up, we will show you a couple of features that you should consider when looking for a reliable Forex trading platform.
How secure is the platform?
Before you register with any of the Forex trading platforms out there today, you should first consider security. Do not forget that you will be giving the broker your hard-earned money. So, you must be sure of the security of that platform before you register there. When checking security, also check the credibility of the broker. A credible and secure broker will be regulated. You should also check the credibility of the regulatory agency before you register with the broker. As a Forex trader in New Zealand, you should register with brokers approved by the country’s regulatory agency. The regulatory agency in New Zealand is the Financial Market Authority. You should not register with that broker if it is not regulated by this agency.
Aside from the New Zealand regulatory agency, you can also consider brokers regulated by other regulatory agencies across the globe. Examples of such reliable regulatory agencies are:
- Canada: Investment Information Regulatory Organization of Canada.
- France: Autorité des Marchés Financiers (AMF).
- Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFIN).
- Switzerland: Swiss Federal Banking Commission (SFBC).
- Australia: Australian Securities and Investment Commission (ASIC).
- United Kingdom: Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA).
- United States: National Futures Association (NFA) and Commodity Futures Trading Commission (CFTC).
Cost of transaction
The cost of transactions is one other very important thing you need to bear in mind when looking for a Forex trading platform in New Zealand. Every Forex trader will have to pay a transaction fee. However, the fee differs from one Forex trading platform to another. The Forex trader will have to pay commission or spread on each trade he enters into. So, the best thing to do is to look for a broker that demands low fees. The most affordable will help you to save a lot of money off trading. While it is good to look for a cheap broker, you should not forget the issue of reliability. So, make sure that the broker offering low-cost transaction is also regulated. It is good to look for a broker offering a tight spread.
Ease of deposit and withdrawal
One other very important thing to consider when looking for a reliable broker is the issue of deposit and withdrawal. A good broker will not make it difficult for you to withdraw your money. A good broker will also provide so many deposit methods. This way, it will not be difficult at all to make a deposit. Normally, deposit processing should not make more than a few seconds. In fact, the money should arrive in your trading account immediately. Before you register on that broker, find out how many deposit methods are available first. The deposit and withdrawal processes should also be smooth and speedy.
Quality of customer service
The quality of customer services is also very important. Find out how fast the customer care agents respond to calls from the customers. You can find out about this by reading a review of the Forex trading platform. The review will give you an idea of how reliable the Forex trading platform is. You should also find out how many contact methods are available. Do not forget to find out how fast they reply to calls or emails. Do they also allow their customers to communicate via live chat? Before you register on that Forex trading platform, also find out if any customer had ever been maltreated before. Check if any customer had ever lost his money to the broker fraudulently. If you notice any of such things, then you should steer clear of the broker without any delay. If one broker looks unreliable, simply look around of rather one.
Forex trading is rewarding. Be that as it may, it can be risky. So, you need to learn a lot before you venture into Forex trading. You should also not risk more than you can afford to lose when trading Forex. This will enable you to make the right trading decisions. From the information given above, you now know the various types of trading platforms. Before you choose any of them, you need to first carry out adequate research. You can then pick any of them that is ok with you.