Trading currency on the forex market can be a complicated business, yet it is an investment opportunity that appeals to a lot of people. Stick with just one or two currency pairs and if you do plenty of research and know your stuff, then it is possible to make a profit from the financial activity.
Even the best traders need a bit of help though. Thankfully there are a lot of tools available to make your forex trading life a lot easier. The best thing is that many of them are free as well, so start downloading and making the most of them now.
- Currency Correlation Tool
When you intend to trade more than one pair of currencies it is essential you are aware of the correlations between them. It is possible to do this yourself with a spreadsheet, but make things a lot quicker and effortless with a currency correlation tool. Plus it should be as up to date as possible, whether you’re looking to diversify, hedge or increase exposure.
- Economic Calendar
There are a number of factors that can affect the value of currency. Some can come as quite a surprise, based on unexpected events, while others can be prepared for. Using an economic calendar is vital for making accurate forex investments, as you can see when certain budgets and other political events will be happening that will affect its value.
- Trading App
Those already trading currencies will be using one or two trading platforms. If you haven’t already, download the equivalent trading app for your smartphone or tablet. This will allow you to make trades on the move and react to any currency changes as soon as they occur. Plus many have much simpler interfaces to make your trading easier.
- Position Size Calculator
Setting stop losses and a fixed percentage of your trading account to put on the line is an incredibly safe strategy to use. In order to know how much this should be, using a position size calculator makes it quick. All you need to input is the account currency, balance, currency pair, risk percentage and stop loss in pips.
- Time Zone Converter
The forex market is basically open 24/5 as there are major trading centres in Sydney, Tokyo, London and New York. This means you can trade on any of them throughout the day. Some trading tools convert time zones, but for those that don’t, using a forex market hours tool is helpful for knowing when certain markets are open.