Three Top Trading Platforms for Australian FX Traders
One of the factors Australian traders seeking to capture profits from trading currencies in the Foreign Exchange Currency Market (Forex) is that the times of peak currency market activity are out of sync with Australian time zones. Whilst it is entirely true that the Forex market trades 24 hours per day for 5-1/2 days per week, there are many hours when price activity is quiet due to a lack of trader participation.
There are four predominant Forex sessions during the trading day, based on the time in major cities with large financial market operations. Those sessions are based on Sydney, Tokyo, London and New York. These sessions overlap to a certain degree. By far, the most critical session in which to participate is the tail end of the London Market and the beginning of the New York market. The four-hour period when those two sessions overlap is when the vast majority of trading activity, even activity related to the Australian and New Zealand dollars, takes place in terms of currency pair price movement.
For someone living in the Australian Eastern Standard Time (AEST) zone, those prime hours when the London and New York Forex sessions overlap are 11:00 PM to 3 AM. Given that you would prefer to be sleeping during those hours, choosing the best trading platform for Australian traders ascends in significance, because very little of the trading being done will be actively managed.
Taking Advantage of Forex Orders Based on AEST
No, you do not have to forego sleep in order to participate in the Forex markets. Rather, you will use special order types to set up your trades in advance, go to bed, get yourself a good night’s sleep, and then have a look in the morning when you get up to see how your trading strategies panned out. Strange as it may sound, trading in this fashion is less stressful, because price analysis, trade entries, exits and maximum acceptable risk can be made outside times of peak price activity without your emotions getting the better of you.
Using “Limit” and “Stop” orders on your Forex trading platform, you can coolly plan your trades. You will be much more objective without watching trades go in your favour or against you, tick by excruciating tick, and you will be able to determine logical entry and exit points, as well as control your exposure to risk. To new traders, this discovery is a welcome revelation. To those with some degree of experience, it is a solid reality. A good trading platform for Australian traders will take the effect of time zones into account and offer tools to take best advantage.
Best Forex Trading Platform for Australian Traders
There are actually more than a few good platforms for Australian traders. Here are just a few among the top trading platforms at which you will want to have a look.
MetaTrader 4 and MetaTrader 5
These two versions of the most popular trading platform in the world both make excellent choices as a trading platform for Australian traders. MetaTrader 4, in particular, has a large online community of Australian traders. This community offers a wealth of information to Australian traders dealing with every conceivable trading subject that is of a universal nature, but more importantly, tactics, strategies and adaptations more specific to the AEST zone that eliminate the necessity of your figuring out all of the intricacies on your own. Many experienced Australian traders have made MetaTrader the preferred platform for Australian traders, with Expert Advisors (EAs) that supply algorithms and automated trading strategies that enable objective decision-making and also allow you to get your sleep.
Many traders have access to MetaTrader 4 and 5, even when they do the bulk of their trading on other platforms. It is almost viewed as the trading equivalent of the computer operating system.
Pepperstone Razor Account
Razor is not exactly a trading platform. Rather, it is an account type offered by a Melbourne based Forex broker with a team of veteran Forex managers that understands thoroughly the unique position you are in as a Forex trader in Australia. For new traders and those with varying degrees of experience, Pepperstone offers security based on its compliance with stringent requirements put in place by Australian regulatory agencies.
The Razor account type can be used with MetaTrader trading platforms and another highly popular, and one of the best Forex trading platforms for Aussie traders, cTrader. One of the primary benefits the Razor account offers is that it is an Electronic Clearing Network account, meaning that trades are routed straight to the markets, bypassing broker dealing desks, meaning that you will never wake up to find one of your orders filled at a price other than what you expected. Another key benefit is the ability for you to determine the amount of leverage you want to employ, which is a great way for traders to manage risk exposure.
Currency Management Corporation (CMC Markets) is based in London, but it has a hub in Sydney that caters to Australian traders’ unique requirements. Part of their appeal is that they offer 330 currency pairs. Those pairs have tight spreads, so you as an Australian trader do not have the concern of paying high prices to trade some of the more exotic Asian-Pacific currencies. Their proprietary Forex trading platform is called Next Generation.
As a platform for Australian traders, one of the things you will most enjoy is the ability to trade over the web with any internet-enabled device. Your busy life of work, kids and so on can limit the amount of time you can spend in front of the computer, but with Next Generation, you can keep an eye on your trades and the currency markets. With Apple and Android device specific apps, or the mobile-friendly version of Next Generation, you can take advantage of any gaps you find in your daily routine to stay in the flow of the currency markets.
Trading Forex in Australia has unique, but not insurmountable challenges. The best Forex trading platform for Aussie traders makes living in the southern hemisphere, far removed from the big financial centres of London and New York, no more difficult than any other aspect of daily life. In an increasingly connected 24/7 world, you can trade Forex on a level playing ground with anyone in the world.