Free Forex Trading Tools to Have in Your Toolkit
For a complete beginner, the fundamental and technical concepts of forex trading may seem complex and intimidating at first. Learning them in theory is different but practically applying them in day-to-day trading activity is a bit confusing for an average newbie stepping into the forex market for the first time. But this gap between theory and practical application can be bridged by using a set of forex tools that are designed to make trading easier for each and every trader irrespective of their know-how and experience. Many of these forex trading tools are free to use when you join a forex trading platform. So, today we will give you a checklist of free forex trading tools that you should have in your toolkit before going live.
As we all know, forex currency pairs are very volatile in nature. Their prices get impacted by many economic events and new releases on a daily basis. An economic calendar is an essential tool that gives us all relevant updates about the news releases that could possibly impact the prices of the currency pairs that we are trading with. Most forex brokers do provide a free economic calendar as a part of their trading tools on their platform. This will tell you the dates of important economic data releases such as GDP, inflation rate and more. Such news releases not only affect exchange rates but influences all financial markets that we trade in. So, it is a useful tool for every trader alike irrespective of the instruments they trade with.
A currency converter is a part of the online trading calculators which most forex brokers have added to their platform. Just as the name indicates, a currency converter can be used for converting one currency to another instantly and accurately. This saves your time as manual calculation using conversion rates may not be practical in fast paced trading styles. A currency converter is a must have tool for all traders as the conversion rates between currencies is the very essence of forex trading.
This is another tool that we get as a part of the forex trading calculator set. Pip is the unit of measurement for the smallest change that happens in currency prices. Hence, one cannot move forward in forex trading without knowing the value per pip for the base currency they trade with. And a pip calculator can be used to easily calculate this value within no time.
Most forex brokers will be giving you an online profit calculator as a part of the trader’s toolkit on their platform. This is an essential tool for calculating the end result of your trades. Knowing the trading results will be a useful tool for planning and executing your trades with at most perfection. You will be prepared for the best and worst scenario which is crucial for risk management in forex.
This is a tool that one must use every time before opening a new position, especially when you avail leverage from your broker. The margin calculator will tell you the level of margin needed to open and run a particular trade position. This will help you to avoid a margin call situation in leveraged trades.
So, these are some of the forex trading tools that you should be adding to your toolkit for trading with ease. They are completely free, easy to use and moreover essential for upgrading your skills as a trader in the forex market.