Being beginner forex traders, we often need clarification about everything. From trading to tools, we need guidance to figure out the best course of action. If you’re also a beginner looking for the best trading tools, don’t worry; I’ve got you covered. In the article, you will find some of the most reliable trading tools that are totally free of cost. Also, being a novice trader, I won’t recommend anyone to go for the paid tools. There are enough free tools in the market to help you in your trading journey free of charge.
Top 3 Free Trading Tools For Beginners:
- Economic News Calendar– News significantly impacts exchange rate levels since the foreign exchange market reflects the value of currencies in accordance with the current economic conditions in each nation of origin. Many websites like MetaTrader provide free access to economic calendars. The economic news calendar is one of the most helpful and well-liked tools for beginner & advanced forex traders. It includes dates for elections, speeches by monetary policymakers, and central bank policy pronouncements. Most online calendars often make this important background information accessible one to two weeks before the releases are scheduled.
- Forex Time Zone Converter– The financial results of a trader can be determined from the duration he/she chooses to remain active in the market. Talking about the forex trading hubs, then there are 4 main hubs – Sydney, Tokyo, London and New York. Each of these cities operates in a separate time zone and when the markets overlap, they are most busy and liquid. For a financial instrument to be traded effectively, there must be a trading activity, liquidity, and market volatility. This converter tool helps traders from other zones to trade in the preferred time zone.
- Calculator for Forex Volatility– The most significant currency pairs to trade are those with a wide range. A volatility calculator uses historical exchange rate data to estimate each currency pair’s implied volatility in real-time. The historical volatility will be divided into several time frames, such as one week, one month, three months, and one year, by a decent forex volatility calculator. Using historical volatility as a benchmark aids traders in determining if the price is high or low. As part of their overall money and risk management plan, a trader may decide to lower the position size for currency pairs with higher volatility to minimize the risk.
Chances of success are high when using appropriate forex trading instruments and having solid knowledge of the forex trading industry. Also, keeping track of every trade allows a trader to improve their trading, so maintain a trading journal. Although it could seem straightforward to each individual, you should keep in mind that both many new traders and some professional traders have faced significant losses in the forex market. It is always important to remember that, despite forex offering you great potential for financial success, it also has the same hazards. Therefore, you must gather knowledge and expertise before entering this market and trade and critically evaluate your skills and talents to succeed in this money-making venture.