Choosing a Forex Broker Part IV - Trading Technology and Value Added Resources

David Waring · 08-05-2008, 11:27 AM

Previous Lesson

In my opinion Forex Capital Markets (FXCM) offers the most comprehensive services, and best trading experience in the forex industry.

Next Lesson - Full Forex Trading Course

In our last lesson we continued our series on choosing a forex broker, with a look at how to evaluate the transaction costs a trader will incur depending on the broker he or she chooses. In today's lesson we are going to continue this discussion, with two additoinal factors to consider before opening a forex trading account, trading technology and value added services.
Once a trader has an understanding of the financial stability, regulatory environment, and transaction costs of the firm they are considering trading with, probably the next most important thing to understand, is the trading technology and value added services that the firm offers.

The one thing that I can tell you is universally important to all traders in terms of trading technology, is platform stability. As a traders platform is his lifeline to the markets, if the trading platform crashes, freezes up, or experiences other technological difficulties, then this obviously significantly hinders a trader's ability to perform. Where quality of execution is open to a lot of interpretation, whether a firm's platform is stable or not is pretty straightforward, so I have found that the broker review section of forums such as Elitetrader.com are a pretty good indication of who is strong and weak in this area.

Outside of platform stability, I can tell you from experience that there are as many different priorities traders have for trading technology, as there are trading styles and personalities. To help each individual trader go about this decision making process in as structured a manner as possible, I have come up with a list of features, which traders can rank in order from highest to lowest priority. Remember that many firms offer multiple platforms, so don't simply assume that a firm does not have something, simply because it is not featured on their website.

1. Ease of Use
2. Profit and Loss Report Clarity
3. Advanced Order Entry
4. Trading from Charts
5. Backtesting
6. Web Based Platform vs. Downloaded Platform
7. Platform Customization
8. Mobile Trading

If you have other things that interest you, then simply add them to the list in order of priority, before checking out the different options that are available to you.

From a value added services standpoint, there are also a wide array of different options available depending on which firm you select. With this in mind, you should also have a good understanding of what is important to you as a trader before beggining your search, and I have included a list similar to the one above, to assist you with this process.

1. In house research
2. Third party research
3. Realtime News
4. Trade Signals/Recommendations
5. Charting Package Options
6. Managed Accounts
7. Trading Education

That's our lesson for today. You should now have a good understanding of some of the main things to consider from a trading technology and value added resources perspective when choosing a forex broker. In our next lesson we will look at what are in my opinion the last two major factors to consider, available account types and customer service.

As always if you have any questions or comments please leave them in the comments section below, and good luck with your trading!

08-05-2008, 04:59 PM

Really impressive, great website, a lot of usefull & practical Forex informations, presented very clearly and what's more important absolutely free.
You make a great contribution to the FX traders society.
Take care

David Waring · 08-06-2008, 10:16 AM

My pleasure thank you for watching I am glad you like the site.

Best Regards,
Dave

zoglchaim · 05-15-2009, 01:26 PM

hi
i trade with fxcm trading platform and really like the interface and chart

however i would really like platform that has trade history on the chart after orders were closed. something like in mt4 platform
i see Boris Schlossberg's video he has something like this
do you know of any platform that offer that?

David Waring · 05-28-2009, 12:50 PM

Hi zoglchaim,

Glad to hear from you and my apologies for the long delay in reply.

In addition to the FXCM standard platform which is featured in my videos, FXCM also offers the metatrader platform so if you simply want to remain at FXCM and have the metatrader platform this is possible.

I am not aware of any platforms that offer what you are talking about however I do know that the platform that Boris uses in his videos is GFTForex's platform.

Hope that helps,

Best Regards,
Dave

12-23-2009, 05:39 AM

David

I saw a video on utube from yourself concerning dailyfx+.
On their platform they have a link to Trade the News audio, and although I have spoken to them I am still uncertain as to whether or not it is available on their spread betting account.
I appreciate that it is not your job to act as a free information service but I would be grateful
if you could help me out as I intend to do some news trading in the New Year.

Best wishes from the UK
Congratulations on some really well 'informed' videos

Jim

advfn2828 · 12-23-2009, 05:57 AM

Hi Jim

Welcome to Informed Trades

Dave is not regularly posting here at the moment but I can confirm that DailyFX+ is available to UK spreadbet platform holders.

Hope that helps

Graeme

Quote:

Originally Posted by Unregistered

David

I saw a video on utube from yourself concerning dailyfx+.
On their platform they have a link to Trade the News audio, and although I have spoken to them I am still uncertain as to whether or not it is available on their spread betting account.
I appreciate that it is not your job to act as a free information service but I would be grateful
if you could help me out as I intend to do some news trading in the New Year.

Best wishes from the UK
Congratulations on some really well 'informed' videos

Jim

12-24-2009, 07:52 AM

Graeme

Thanks for the reply, very useful.

I have taken a look at some of your previous posts and it is nice to see somebody using common sense and being prepared to really think instead of living in some fantasy land.

Regards

Jim

advfn2828 · 12-24-2009, 08:08 AM

Quote:

Originally Posted by Unregistered

Graeme

Thanks for the reply, very useful.

I have taken a look at some of your previous posts and it is nice to see somebody using common sense and being prepared to really think instead of living in some fantasy land.

Regards

Jim

LOL Thanks Jim and festive greetings to you and yours

Graeme

08-05-2008, 11:27 AM	#1 (permalink)
David Waring InformedTrades Founder Community Host Badges About Assets Total Awards: 4 Join Date: Nov 2007 Location: Miami, FL Posts: 5,633 InformedPoints: 0.13	Choosing a Forex Broker Part IV - Trading Technology and Value Added Resources Previous Lesson In my opinion Forex Capital Markets (FXCM) offers the most comprehensive services, and best trading experience in the forex industry. Next Lesson - Full Forex Trading Course In our last lesson we continued our series on choosing a forex broker, with a look at how to evaluate the transaction costs a trader will incur depending on the broker he or she chooses. In today's lesson we are going to continue this discussion, with two additoinal factors to consider before opening a forex trading account, trading technology and value added services. Once a trader has an understanding of the financial stability, regulatory environment, and transaction costs of the firm they are considering trading with, probably the next most important thing to understand, is the trading technology and value added services that the firm offers. The one thing that I can tell you is universally important to all traders in terms of trading technology, is platform stability. As a traders platform is his lifeline to the markets, if the trading platform crashes, freezes up, or experiences other technological difficulties, then this obviously significantly hinders a trader's ability to perform. Where quality of execution is open to a lot of interpretation, whether a firm's platform is stable or not is pretty straightforward, so I have found that the broker review section of forums such as Elitetrader.com are a pretty good indication of who is strong and weak in this area. Outside of platform stability, I can tell you from experience that there are as many different priorities traders have for trading technology, as there are trading styles and personalities. To help each individual trader go about this decision making process in as structured a manner as possible, I have come up with a list of features, which traders can rank in order from highest to lowest priority. Remember that many firms offer multiple platforms, so don't simply assume that a firm does not have something, simply because it is not featured on their website. 1. Ease of Use 2. Profit and Loss Report Clarity 3. Advanced Order Entry 4. Trading from Charts 5. Backtesting 6. Web Based Platform vs. Downloaded Platform 7. Platform Customization 8. Mobile Trading If you have other things that interest you, then simply add them to the list in order of priority, before checking out the different options that are available to you. From a value added services standpoint, there are also a wide array of different options available depending on which firm you select. With this in mind, you should also have a good understanding of what is important to you as a trader before beggining your search, and I have included a list similar to the one above, to assist you with this process. 1. In house research 2. Third party research 3. Realtime News 4. Trade Signals/Recommendations 5. Charting Package Options 6. Managed Accounts 7. Trading Education That's our lesson for today. You should now have a good understanding of some of the main things to consider from a trading technology and value added resources perspective when choosing a forex broker. In our next lesson we will look at what are in my opinion the last two major factors to consider, available account types and customer service. As always if you have any questions or comments please leave them in the comments section below, and good luck with your trading! __________________ My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

08-05-2008, 04:59 PM	#2 (permalink)
FX_trader, Poland Badges About Assets Posts: n/a InformedPoints: 0 [Points Log]	Great job Dave ! Really impressive, great website, a lot of usefull & practical Forex informations, presented very clearly and what's more important absolutely free. You make a great contribution to the FX traders society. Take care

08-06-2008, 10:16 AM	#3 (permalink)
David Waring InformedTrades Founder Community Host Badges About Assets Total Awards: 4 Join Date: Nov 2007 Location: Miami, FL Posts: 5,633 InformedPoints: 0.13	My pleasure thank you for watching I am glad you like the site. Best Regards, Dave __________________ My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

05-15-2009, 01:26 PM	#4 (permalink)
zoglchaim Badges About Assets Join Date: Feb 2009 Posts: 8 InformedPoints: 0	platform choise hi i trade with fxcm trading platform and really like the interface and chart however i would really like platform that has trade history on the chart after orders were closed. something like in mt4 platform i see Boris Schlossberg's video he has something like this do you know of any platform that offer that?

05-28-2009, 12:50 PM	#5 (permalink)
David Waring InformedTrades Founder Community Host Badges About Assets Total Awards: 4 Join Date: Nov 2007 Location: Miami, FL Posts: 5,633 InformedPoints: 0.13	Hi zoglchaim, Glad to hear from you and my apologies for the long delay in reply. In addition to the FXCM standard platform which is featured in my videos, FXCM also offers the metatrader platform so if you simply want to remain at FXCM and have the metatrader platform this is possible. I am not aware of any platforms that offer what you are talking about however I do know that the platform that Boris uses in his videos is GFTForex's platform. Hope that helps, Best Regards, Dave __________________ My Free Courses: Forex Course - Stock Course - Futures Course - Basics of Trading - Subprime Crisis - Prorealtime Charts Disclaimer: Trading is risky and can result in substantial financial loss. As always my posts are simply one traders opinion and should not be taken as trading advice. I am not a financial adviser so everyone please do their own analysis and take responsibility for their own trades.

12-23-2009, 05:39 AM	#6 (permalink)
Unregistered Badges About Assets Posts: n/a InformedPoints: 0 [Points Log]	Dailyfx+ and Trade The News David I saw a video on utube from yourself concerning dailyfx+. On their platform they have a link to Trade the News audio, and although I have spoken to them I am still uncertain as to whether or not it is available on their spread betting account. I appreciate that it is not your job to act as a free information service but I would be grateful if you could help me out as I intend to do some news trading in the New Year. Best wishes from the UK Congratulations on some really well 'informed' videos Jim

12-24-2009, 07:52 AM	#8 (permalink)
Unregistered Badges About Assets Posts: n/a InformedPoints: 0 [Points Log]	Dailyfx+ Graeme Thanks for the reply, very useful. I have taken a look at some of your previous posts and it is nice to see somebody using common sense and being prepared to really think instead of living in some fantasy land. Regards Jim

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