Best Forex Trading Tools:
- MetaTrader 4, MetaTrader 5 / Trading View
- Trade Journal
- Calculators: Currency pip, volatility, margin, profit, and currency converter
- Correlation Matrix
- Financial News
- Economic Calendar
When you start trading forex, you’ll find out quickly that the best forex trading tools can be indispensable for analyzing markets and setting parameters for selecting trades.
Most online brokers either allow you to use the MetaTrader platforms or offer them as an alternative to their own proprietary platforms. Advanced traders can also use powerful features and tools available on other platforms.
TradingView is an advanced financial visualization platform with the ease of use of a modern website. Whether you are looking at basic price charts or plotting complex spread symbols with overlayed strategy backtesting, TradingView has the tools and data you need to take your trading to the next level.
The number of traders that are active daily on TradingView through the social network is next level and the content on there is great for learning if you are a newbie to trading. You can connect to millions of traders from all over the world, discuss trading analysis and ideas
Using a trading journal is one of the most underutilized tools by beginner forex traders. Recapping trades to break down what went right or wrong will help prevent future mistakes and improve returns down the road.
It is easy to think a trading journal is nothing more than a record of past trade entries and exits. Perhaps your broker already does that for you. But your trade record, as displayed on your broker’s trading platform, isn’t enough to give you some necessary bits of information. Moreover, you’ll soon get to why a proper forex trading diary contains more than trade entries and exits.
TraderSync has great features and outstanding usability and it is the only journal to include iOS and Android mobile apps. Bottom line, for an easy to use and overall feature-rich replacement for excel, TraderSync delivers.
Forex traders who plan their trading week typically examine an economic news calendar. An economic calendar lists all major economic releases, central bank interest rates, and policy statements, national elections, and speeches by central bank officials that could affect the valuation of all of the major currencies.
An economic calendar generally includes the expected number and the previous number. Any deviation from the expected number, either higher or lower, could significantly increase the volatility of the currency involved, as can revisions to the previous result.
Currency Pip Calculator
A pip represents the smallest whole unit of movement in a currency pair’s exchange rate. A pip calculator can help you determine the amount a pip is worth based on the position size in the local currency.
A pip calculator usually displays the pip value of a specific currency pair based on a micro-lot of 1,000 currency units, a mini-lot of 10,000 currency units and a standard lot of 100,000 currency units. You can also sometimes enter your desired position amount.
Margin is the percentage or accounting currency amount required to open and maintain a position in a trading account. A margin calculator usually computes the required margin, the margin percentage, and the currency amount required to hold a forex position based on the entered contract size, the currency pair traded, and your accounting currency.
A profit calculator is a simple tool that lets you determine a trading position’s profit or loss at different exchange rate levels.
How exchange rate changes in one currency pair relate to those seen in another pair is called correlation, and a set of currency pair correlations makes up a correlation matrix. Some currency pairs correlate strongly because they have a common counter or base currency or if an official peg is in place, while other pairs are not well correlated.
A correlation matrix provides a visual representation of the existence of historical interconnectedness between the exchange rate movements of different trading pairs. The correlation is usually expressed in terms of a correlation coefficient, which is an indicator that shows the degree of correlation among different currency pairs
Forex Heat Map Widget gives a quick overview of action in the currency markets. It lets you spot strong and weak currencies in real-time & how strong they are in relation to one another. This trading tool can help choose trading strategies, find opportunities, and trade with confidence.