Popular Trading Tools for New Traders

Forex trading tools have become an essential part of the trading landscape. Manual trading and analysis can be time-consuming and open room for errors, so automating some parts of the trading process with tools and software can improve efficiency. 

Trading tools can analyse market data and identify trades more quickly and accurately than manual analysis. 

This article discusses the top trading tools that traders can use in their forex trading process.

What are forex trading tools?

Forex trading tools refer to software, applications, and other resources traders can use to analyze, monitor, and execute trades in the foreign exchange market.  These tools vary widely in their functionality and complexity, but they are all designed to help traders make more informed trading decisions in less time than manual trading. 

Top forex trading tools

Trading platforms

To trade forex, the first thing a trader needs is a trading platform, as it gives them access to real-time market data, analytical tools and other trading instruments that can help predict market movement and place trades accordingly. 

Forex trading platforms like MT4 and MT5 allow trading in the forex market directly, analyse of price movements of different currency pairs, and access to other charting tools.

MT4 (MetaTrader 4) is a widely used forex trading platform that provides traders with advanced charting tools, technical indicators, and automated trading capabilities through Expert Advisors (EAs). MT5, on the other hand, is a more advanced platform with more trading features like more time frames, trading instruments, market liquidity measure, netting and hedging.

Charting software

Trading software is useful tool for forex traders who require advanced charting capabilities, and visual analysis.These charts collect price feeds from one or multiple sources, plotting price changes and offering additional benefits like aggregated quotes. By using a charting tool, traders can analyze real-time price movements in the ever changing market. 

Forex calculators 

Forex calculators assist a trader to perform quick trading calculations for different factors like profits, margins, pips, Fibonacci levels and more. The calculators use precise formulas to make calculations that help support strong risk management and trading strategies. Using a forex calculator helps avoid making emotional decisions and rely on factual data only. Some of the many forex calculators traders can use are:

• Position size calculator
• Pip calculator
• Margin calculator
• Currency converter
• Pivot point calculator
• Fibonacci calculator

Copy trading tool 

Copy trading tool allows traders to copy forex moves made by experienced traders automatically. When a trader chooses another successful trader whose trades traders want to copy, the tool automatically executes the same trades in real-time per the trading strategy.  

One of the main advantages of copy trading is the ability of less experienced traders to benefit from the expertise of successful traders without the need for extensive knowledge or analysis of the forex market. However, do remember that margin trading is high risk and just coping a successful trader’s trades does not mean your trades will succeed.

Most copy trading tools include features such as analyzing performance metrics, providing a list of successful traders to copy, and assisting in risk management.

Financial news

Financial news can be a powerful forex trading tool as it provides traders with up-to-date information on global economic events, market trends, and geopolitical developments that may impact currency prices. Traders can use financial news to make informed decisions on when to enter or exit trades, based on their analysis of how the news will affect the markets.

Forex calendars 

Forex calendars provide traders with a schedule of economic events, such as releases of economic indicators, speeches by central bank officials, and other events that may impact the forex market. It gives a detailed breakdown of the event, such as the time of release, the expected impact on the market, previously forecasted values and more. This helps traders plan their trades around upcoming economic events and news releases and anticipate potential market movements. 

Currency correlation tool

Currency correlation tools are software applications that help forex traders measure and analyze the correlation between different currency pairs. These tools provide traders with real-time data and analysis on currency correlation. The tool uses advanced algorithms and statistical models to help analyze historical data on currency pair movements and identify how the currency pairs can move in the future.This tool has specific features like real-time alerts, correlation charts, correlation matrixes, currency strength meters and more.

Select your preferred forex trading tool now

With access to a range of powerful trading tools, traders can stay informed about market events and trends and make more informed trading decisions. 

Start trading with Blueberry Markets. Sign up for a live account or try a demo account.

About The Author

Ben Clay

Ben Clay is a skilled and experienced CFD trading professional and writer with 14 years of experience in the industry. As a part of the Blueberry Markets team, Ben is known for his ability to simplify complex concepts into insightful and engaging content. His profound understanding of CFD trading, coupled with his exceptional communication skills, has established him as a trusted contributor who delivers insightful information to a wide audience.
Expertise: Forex and CFD trading

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