February 8, 2011
Choosing A Forex Broker - Why Charts Are Very Important
If you have ever gone through the process of choosing a forex broker, you will know just how difficult it is. There are so many different factors to consider. You have to compare various different companies and ask yourself questions such as:
- Are They Fully Regulated?
- How Can I Deposit And Withdraw Money?
- Will My Money Be Safe?
- Is The Broker Well Capitalised?
- Is There A Free Practice Account I Can Use?
- Is There A Minimum Account Size?
- Is The Trading Platform Easy To Use?
- Are The Spreads Relatively Tight?
- What Is The Customer Service Like?
These are all important questions, but you may find a broker that ticks all of the boxes, but is still a big disappointment when you actually start trading with them. That's because there are some really good forex brokers out there that do not provide you with good charting software.
This is actually very important because you could have an account with the best and most reliable company in the world. However if the charts provided are really basic and don't include many of the indicators that you need to make good trading decisions, then you are not going to make any money.
To give you an example, if you are a regular reader of this blog you will know that I am a big fan of the Smoothed Repulse indicator. Indeed this has become a part of my 4 hour trading system in recent years (see right for more details).
However I know for a fact that hardly any brokers include this indicator in their charting software, so for me this would automatically rule them out if I was looking to open a trading account with someone.
The only way you can access this indicator, as far as I know, is by joining a broker that uses the ProRealTime platform, such as IG Index, for example, and one or two other spread betting companies.
It is a similar story with the Supertrend indicator, which is another favourite of mine. This is generally only available through the same platform (although you can download a version of this indicator to MT4 if you do some digging around).
Anyway the point is that you have to find a broker that will enable you to actually make profits. If the charting facilities are not up to scratch, then you will have to sign up to a different company or use charts from elsewhere. Using third party charts can be a major inconvenience and you may find that you will have to pay for these charts as well.
So it's best to join a forex broker that offers good quality charting facilities right from the start. A lot of forex traders like the MetaTrader4 platform, which is the charting software used by many brokers nowadays, but some traders, including myself, prefer to use the ProRealTime charts. Ultimately it is entirely up to you of course.