Traders, which wishing to operate the active forex trade, have to make sure that their broker offers them a reliable platform. Other financial instruments, e.g. Stocks and futures are traded in a market with a central order book where all open orders are entered with their price and where the price of each executed order is registered as an official load price. Technical analysis packages, broker platforms, etc. indicate the price and offer charts that were designed based on the course. If the strategy of the Traders indicates a signal in charts, they can immediately enter at that price.
Forex, however is not on an exchange. The Trader acts the prices, which are placed to it from its broker to the order. This raises two potential problems:
- The Broker offers no separate analysis tool.
If the broker does not offer own analysis tools and you are therefore an independent product or a competing product, then vote in the prices between your broker and the charts do not match. You will then receive signals but the price is above or below it. Consequence your profit drops by more pips.
- Your broker offers your own analysis tool, but it uses a generic price flow (e.g. Reuters or Bloomberg).
Again, the price data in the chart and the tradable data are different. Most brokers have only unreliable platforms! So be careful. In a reliable platform, you act the same as those in the graphs and indicators. The platform of WH SelfInvest for example, is such a reliable platform.
