Renowned investor and Columbus Business School Faculty member Jim Rogers has been cautioning investo...
Trading Forex on Your Mobile Phone
09/21/2010 12:01 am EST
The world is increasingly becoming dependent on mobile devices for business and personal use with smartphones now capable of completing virtually any daily task from composing e-mail, browsing the Internet, editing documents, and even trading foreign exchange. This is no surprise as wireless technology has significantly improved in the recent couple years as service providers have met the increased demand by developing the proper infrastructure required to support mobile devices that use a lot of bandwidth.
Here are a few important elements of mobile trading that all forex traders should be aware of when opting to trade on their mobile device:
Why Go Mobile?
First, all traders should ask themselves why they want to trade forex on a mobile device. Mobile devices are great for their portable qualities, but are still limited in terms of screen resolution, processing speed, and connectivity. Most traders use a computer as their primary trading device and only use a mobile platform to complete simple transactions on the go because there are no limitations on the computer platform. Forex brokers have successfully created mobile platforms to fill this desire for convenience, but the technology is not yet available for forex traders to completely replace their computers with a mobile device.
Trading away from a computer is limited by a trader’s mobile device. Mobile trading platforms are not supported on all mobile devices, so make sure to check with your broker if your device is compatible with their software. Many forex brokers offer platforms for the iPhone and iPod Touch, Blackberry, and certain Windows Mobile devices. Additionally, your device requires a valid Internet connection and data plan for access to the mobile trading platform.
Mobile trading is entirely dependent on a clear wireless signal. A high-speed data connection (i.e. 3G) is recommended to ensure optimal connectivity to mobile trading platforms. It is not recommended to place trades in areas with limited wireless connectivity or while in motion because you risk interruption from your wireless provider. There is already a significant risk of loss involved in trading forex. This risk increases if trading on an unsecured wireless connection because of the chance of losing service in the midst of entering or exiting a trade. In general, it is a better idea to set your stops and your limits after placing market orders as a protection against considerable amounts of loss. Relying on a mobile device involves uncontrollable risk such as losing cell phone signal.
Opening a free demo account with play money is a great way to test a forex broker’s mobile trading platform without losing any money before trading live. It is suggested that traders should trade forex on a demo account for at least three months prior to funding their own live account. Therefore, you can experiment with the services available at different brokers and test out their mobile platforms. The mobile platform will most likely have different features than the platform available on a computer for reasons such as device compatibility and limitations of data transfer, but you should be able to note these differences during the free demo. Some key software elements every mobile forex trading platform should have are the ability to:
- View live streaming rates and spreads
- Place market and entry orders
- Manage live trades and orders
- Monitor balance and margin levels
- Access and analyze charts, news, and reports
Education is paramount in developing a successful trading strategy to profit. Many forex brokers offer their traders mobile price and news alerts to keep them informed with trends in the market. Traders can select to choose text message alerts with forex information relevant to their trades. With price alerts, traders can pick a currency pair and price. If the market reaches that price, you’ll receive a text message that you can later act on easily from your mobile device. With news alerts, traders can choose countries to stay up to date with important news releases such as central bank rates, GDP, CPI, and employment data. This way, you can then trade the news right from anywhere by using the forex platform installed on your mobile device.
Educational resources can also be accessed by using your mobile device’s Internet browser. The majority of forex education and research Internet publications now offer mobile versions of their sites that can be accessed by nearly all Internet-ready mobile devices. This benefits all mobile traders who can now view forex news analysis and then place trades directly from their mobile device.
Customer Service and Tech Support
Customer service for forex trading platforms should be available to traders 24 hours a day, seven days a week. This is important for both immediate troubleshooting of any issues as well as general questions regarding trading. Check with your forex broker to see if they offer support via phone, Internet chat room, or online format.
Specifically, mobile traders should have access to some form of technical support for their mobile platforms, especially since wireless providers will not have the means to offer assistance. Some forex brokers offer interactive videos to show what features are available on their mobile platforms and online access to documentation to get you started.By the Staff at DailyFX.com
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