Online trading software is used to send and manage trader orders. The fast-paced executions and low costs have allowed retail investors in Saudia Arabia to benefit from the same advantages as professionals. Previously the best conditions were only available to investors in big banks and financial institutions.
Currently, trading has been a primary choice for many Saudi traders for diversifying their portfolios and earning a stable passive income. While there are risks associated with each form of trading, having the best tools gives a slight edge over the markets. Online forex trading platform are a new tradition as developments in the internet and technology continue to occur.
Working Methodology of Online Trading
Before listing the significant benefits and characteristics of software, let us discuss how online trading works.
- Traders living in any corner of the world can use various search engines to search for the best brokers
- After the appropriate selection, they can open an account and deposit sufficient funds
- As the money shows up in the account, they can start trading immediately
- Brokers may require traders to verify their credentials due to regulatory issues and avoid money laundering.
The Capital Market Authority of Saudia Arabia is responsible for maintaining all the regulations within brokers. If they observe any misleading activity from the brokers within the Kingdom, a hefty fine or a ban is implemented.
Features of Online Forex Trading Platforms
Saudi Arabian traders have the following benefits through online forex trading platforms.
Online trading software features many instruments such as forex, stocks, futures, cryptocurrencies, indices, etc. It can have all the major minor and exotic pairs within the currency market. This characteristic is now mainly limited to the broker that the trader uses.
Algorithmic trading is the new hot topic for investors as they can trade the market on auto mode without manual intervention. Traders can code their strategies into these systems and let them run on their own. The code of the EA must be compatible with your software. In currency trading, MetaTrader and cTrader are typical applications offered by brokers. A company can also introduce its software with better features compatible with their service.
Trading software has backtesting features that help test a system for a specific duration on multiple currency pairs. With optimization function, Saudi investors can find the best set file for their robot.
Charting tools constitute a major portion of trading software. They include all the vital tools needed for analyzing the charts technically or fundamentally. This can be especially handy for scalpers who get in and out of the markets within seconds. Wasting time by switching from a custom charting platform can be detrimental for them.
The following tools are a must for any trading software:
- Market watch
- Support and resistance lines
- Trend lines
- Zone marking
- Fibonacci intervals
- Multiple time frames
Excellent technical analysis with the help of available tools can help you with trading by a huge margin.
Trading platforms now support a handful of order types including, limit, stops, GTC, etc. Depending on your trading style, you can enter the market with a suitable execution. Using stop losses can help manage your risk.
Your system should meet the minimum hardware requirements to run the trading software. Using lower end CPU or GPU to run the platform may result in lags or errors.
Online trading platforms are indeed helping traders in Saudia Arabia by leaps and bounds. While the benefits are huge, investors should not forget that maintaining risk and a good mindset are the first steps to becoming consistently profitable.