Forex trading is another name for foreign exchange trading. Currencies are traded in the foreign exchange markets. The currencies are in digital form that are traded in this market . These currencies are virtual and the profit in this trading depends on the price movements of the currency pair. We will discuss the forex trading platforms UK in this blog. Let’s get into the blog!
Most Traded Currency Pairs:
The currencies that are traded are of different countries against each other. The most used currency pairs traded in forex trading are given below:
- euro vs US dollar => EUR/USD
- US dollar vs Japanese yen => USD/JPY
- British pound vs US dollar => GBP/USD
- Australian dollar vs US dollar => AUD/USD
- US dollar vs Canadian dollar => USD/CAD
- US dollar vs Chinese renminbi => USD/CNY
- US dollar vs Swiss franc => USD/CHF
How Forex Trading works?
In the forex market, traders invest in the price movements of currency pairs. Every pair consists of one base currency and one quote currency. Let’s see with an example what base and quote currencies are. For example, in the EUR/USD pair, EUR is the base currency and USD is the quote currency. The exchange rate tells how much quote currency is needed to purchase one unit of the base currency. This trading depends on economic data, geopolitical events, and market sentiment.
Moreover, the forex market operates with bid and ask prices. The price at which buyers pay for the currency is called bid price. While the price at which sellers pay for it is called the ask price. The difference between the bid and ask prices is called the spread. The spread is also known as the broker’s commission.
Traders buy the currency pair when its price increases. On the other hand, traders sell the currency pair when its price decreases. Forex brokers provide softwares to forex traders online to facilitate their trading. These platforms offer real-time price quotes, charts, technical analysis tools, and order execution functionalities.
What is Forex Trading Platform?
A software which is used by the forex traders to enhance their trading is known as trading platform. These platforms provide access to the foreign exchange market. In other words, it is a currency trading platform. There are many online and downloadable platforms, including web and mobile apps.
Best Forex Trading Platform UK for Beginners:
New forex traders get confused while choosing the platform according to their needs. They want a platform that offers various features with educational resources. As we know, learning about forex trading might be difficult for beginners. These tools or softwares can help new traders to improve their trading skills.
These platforms help new traders to get real-time market data. This can improve their decision making and enhance their trading. Charts show the visual pictures of the market going up or down. This visual representation helps traders to predict the future of the market.
Here are some of the best forex trading platforms UK for beginners:
- MetaTrader
- Plus500
- eToro
- IG
- Pepperstone
- EvaTrade
- XTB
Best Forex Trading Platform for Scalping with Low Fees:
What is the fee for a trading platform? The fees charged by a trading platform for maintaining your account, interest on the borrowed amount, currency conversion fee, deposit and withdrawal fees, ot etc. Every trader wants a platform for trading which has a low fee structure. Let’s see what is scalping in forex trading.
The process of opening and closing multiple small trades for small intervals is called scalping. Traders get small profits when there are small price fluctuations in the market. Its goal is to open and close trades quickly and earn profit. But if the platform charges high fees for these small trades, traders can pay more than he has earned. So, traders want the best platform which charges low fees for scalping.
Here are some of the best forex trading platform for scalping with low fees:
IC Markets
Pepperstone
FXCM
EvaTrade
FPMarkets
What is Technical Analysis and Charting of Trades?
The process of making predictions about future price movements based on past and current market data is called technical analysis in trading. With technical analysis, traders can set entry and exit points, manage risk through stop-loss orders, and optimize their trading strategies. Technical analysis can be done for all types of assets such as stocks, cryptocurrencies, commodities, indices, etc. Indicators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD), and Stochastic Oscillator are used for technical analysis. Charting helps traders in the same way. In charting, there’s a visual representation of historical price movements and other relevant market data of financial assets.
Forex Trading Platform with Advanced Charting Tools and Technical Analysis Indicators:
If traders want to improve their trading and gain profits, technical analysis is important. This analysis causes traders to make better trading decisions. Technical analysis is done so that the traders don’t miss out on any trading opportunity. Indicators send alerts and notifications to traders when there is an opportunity. On the other hand, the charting makes it easy for traders to watch real-time market data as well as uptrends and downtrends. Charting makes it easier for traders to perform technical analysis.
Forex traders prefer a trading tool that provides advanced charting tools and technical analysis indicators. Let’s have a look at some of these softwares:
- MetaTrader4 (MT4)
- MetaTrader5 (MT5)
- Ninja Trader
- TradingView
- EvaTrade
Conclusion
Trading platforms are really helpful for both new and experienced traders in the UK. A software which is used by the forex traders to enhance their trading is known as trading platform. Market can easily be accessed through these tools. You can get these platforms in all forms like web application, mobile application, downloadable application, and combination of all three. These tools or softwares can help new traders to improve their trading skills. Some traders prefer scalping but they want low fees for the platform. There are various platforms offering low fees for all types of trade. Traders can review the market, get information about trends and patterns, and improve trading skills with charting tools. Get your hands on these tools to have a better experience.
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