Pipsmashers

Forex resources: 16 essential resources for forex traders

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When I heard about forex trading, the idea of working from the comfort of my home and the freedom that comes with trading seemed real. 

Unfortunately, what I didn’t know about trading was that there were just so many things to learn, factors to consider, and metrics to keep track of. 

I had to learn the hard way that trading is more than executing a trade — it’s like running a business and requires a lot of discipline, patience, and experience. 

For this reason, it is prudent to have the right resources for forex traders and tools that will help you become a successful trader.

Below, I have shared a list of resources you as a forex trader will find useful in helping you navigate the unforgiving waters of forex. 

Disclaimer: Some of the external links in this post are affiliate links. Pipsmarshers may earn a commission if you buy something via any of these links at no extra cost to you. The money earned helps in the operation of the site. Please note that any products or services we have recommended in any of our articles we have personally used and have had a tremendous experience with.

1. Legitimate brokers

The choice of your broker can have a great impact on the profit and losses you make in forex as some charge exorbitant fees, commissions, or have huge spreads. Avoid such brokers. Other than that, some brokers are not legit or rather not accredited by any regulatory authority. Here are factors to consider when choosing a broker. 

  • Accreditation by a regulatory authority such as FCA (Financial Conduct Authority), ASIC (Australian Securities and Investments Commission), CySEC (Cyprus Securities and Exchange Commission), or other regulatory bodies.
  • Trading cost: includes spread, commission, and fees for trading.
  • Deposit and withdrawal methods: should not charge exorbitant fees
  • Accounts type: the broker must provide account types with suitable leverage and commission.
  • Asset selection: the broker must provide a wide range of financial instruments (currencies, commodities, and even crypto) for trading.
  • Customer service: the broker can be contacted via multiple channels anytime.
  • Trading platforms: should be compatible with most trading platforms and with great UI.

Personally, some of the most reputable brokers I have traded with include NordFX, BDSwiss, EGMSecurities, Windsor, GrowthNext, and Incentco.

2. Economic news

News happens a lot in forex. Knowing where and when the news is coming is crucial in how you execute trades. Personally, I don’t like trading news as they have only given me losses, but some traders leverage a lot on news and it is just what they need to make profits. Apps that you can use to get news include:

  • Myfxbook
  • Babypips
  • Bloomberg
  • DailyFX
  • FXStreet
  • Forex Factory

3. Market hours

When should you trade? At market opening or closing? During overlaps or normal hours? Time for trading matters. If you want sessions with a lot of liquidity, then you should target Sydney/Tokyo and U.S./London overlaps. Here are the various times when major market sessions open and close in various parts of the world.

  • Sydney: 10 PM—7 AM GMT
  • Tokyo: 11 PM—9 AM GMT
  • London: 8 AM—6 PM GMT
  • New York: 1 PM—11 PM GMT
  • Frankfurt: 7 AM—4 PM GMT
  • Toronto: 1 PM—11 PM GMT

Image of a wall clock

Other sessions to keep an eye on for a change in a trade’s direction include Euronext, Hong Kong, Zurich, and Shanghai.

4. Trading platforms

The choice of trading platforms may not really affect your trade performance since it is a matter of preference, cost, trading features, and security. Many traders use MetaTrader4. However, it doesn’t have a lot of tools or features compared to platforms like NinjaTrader. Here is a list of trading platforms you can use. 

Note that when choosing a trading platform, consider:

  1. User-Friendliness (Interface)
  2. Charting Tools
  3. Automated Trading
  4. Custom Indicators
  5. Community support
  6. Multi-Asset Support
  7. Mobile Trading
  8. Security
  9. Timeframes
  10. Order Types one can execute
  11. Two-Factor Authentication

5. Trading indicators

I am not really a fan of indicators. However, for those traders that I have interacted with that use indicators, the number one rule they stick to with indicators is to keep it simple. A couple of things to consider when choosing an indicator include:

  • Your trading style: are you a day trader, swing trader, or long-term investor? The chosen indicator should also align with your overall trading strategy.
  • Market conditions: some indicators work well in trending markets, while others are more suitable for consolidating markets.
  • Accuracy and reliability: look for indicators with a proven track record of providing reliable signals.
  • Indicator Parameters: understand the parameters of the indicator, such as the period setting or calculation method. Adjusting these parameters can affect the indicator’s sensitivity and responsiveness to market changes.
  • Ease of Use: choose indicators that are easy to understand and interpret as complex indicators may create confusion and misinterpretation of signals.
  • Timeframe: different indicators perform differently on various timeframes. Confirm that the indicator is effective and suitable for the timeframe you intend to trade.
  • Risk Management: consider how the indicator can help with risk management. Some indicators provide signals for entry and exit points, while others may offer insights into potential market reversals.
  • User Reviews and Community Feedback: check user reviews and community feedback from traders on their experiences with different indicators, which can provide valuable insights into their effectiveness.
  • Platform Compatibility: ensure that the indicator is compatible with your trading platform. Most popular platforms, such as MetaTrader4 or TradingView, support a wide range of indicators.

Here is a simple list of the most popular indicators available on most trading platforms.

  • MacD
  • Trendlines
  • Ichimoku Kinyo Hayo
  • Moving Average of Oscillator
  • Bollinger Bands
  • Relative Strength Index
  • Money Flow Index
  • Accelerator Oscillator

6. Prop firms

If you think you need more capital for trading, prop firms are just another solution to help you meet your trading goals. Prop firms provide you with capital to trade on in exchange for a small cut from the profits (mostly 80/10 or 90/10 profit share) you make. However, you need to realize that most prop firms will give you a virtual account to trade with and not a real account unless they know you personally. Here are some reputable prop firms you can trade with.

7. Expert Advisors (EAs)

Expert Advisors are automated trading systems that traders can use to gain a competitive edge on the market. You can create EAs on your trading platform or purchase one online and upload it on your trading platform. These tools/bots are designed to execute trades with minimal/no human (by analyzing the market and making proper decisions). They include.

  • Athena EA
  • FX Fortnite EA
  • Odino Forex Robot
  • Alfa Scalper
  • Trade Manager
  • Convert FX

8. Trader type

What type of trader are you? Traders often fall into different categories depending on their trading styles, strategies, and timeframes. Here are some common types of forex traders.

  • Scalpers: Scalpers are traders who aim to make small profits from very short price movements. They hold positions for a short time and focus on high-frequency trading.
  • Day Traders: Day traders hold positions for a day, (avoiding overnight exposure to market risks) and capitalize on intraday price movements.
  • Swing Traders: Swing traders hold positions for a few days to weeks, aiming to capture “swings” or price movements within a larger trend.
  • Position Traders: Position traders prefer a long-term approach (holding positions for weeks, months, or even years). These traders base their decisions on fundamental analysis and macroeconomic factors.
  • Algorithmic Traders: these traders use computer algorithms and automated systems to execute trades based on predefined criteria. Algorithmic traders often employ quantitative strategies, expert advisors (EAs), and high-frequency trading.
  • Event-Driven Traders: Event-driven traders focus on market events and news that can affect asset price movement. They may open a position before or after significant economic releases, geopolitical events, or corporate announcements.
  • Technical Analysts: Technical analysts rely heavily on charts, patterns, and technical indicators to make trading decisions. They believe that historical price movements can predict future market movements.
  • Fundamental Analysts: Fundamental analysts take a long-term perspective of the market and may hold positions for a longer period. They base their trades on economic (micro and macroeconomic factors), interest rates, and political events.
  • Contrarian Traders: Contrarian traders are reversal traders taking positions against the prevailing market sentiment. They believe that markets tend to overreact, and they look for opportunities to take positions opposite to the majority of traders.
  • Copy Traders: Copy traders follow successful or profitable traders on various trading platforms to replicate the positions they take
  • Hedgers: Hedgers use the forex market to protect against the risk of adverse price movements. They may be businesses or investors who want to mitigate the impact of currency fluctuations on their financial positions.
  • Retail Traders: Retail traders are individual traders who participate in the forex market for personal investment. They trade (for themselves) in smaller volumes, unlike institutional traders.

Note: A trader can assume different trading styles depending on how the forex market changes. Whatever style you choose, know that successful trading requires a combination of skills, observing proper risk management, being disciplined, and having a thorough understanding of market dynamics.

9. Channels/communities

There is a saying that goes no man is an island, and the same applies to forex. Being part of a community (of traders) can be instrumental in helping you become a better trader. However, I would recommend you only join communities where you can participate in the discussion, not those where members aren’t allowed to comment. You can find communities for traders on Telegram, WhatsApp, and Slack. 

Image depicting online communities

Note: Please be careful while in any trading community and don’t give your money to people you don’t know to trade for you, nor take signals that are not in line with your strategy.

10. Sentiment Indicators

Sentiments give information on how traders view the market. They show the number of traders who are going long or short for a particular currency/asset. These can help you determine whether/where/when to enter or exit a trade. Some indicators you can use for sentimental analysis include:

  • IG Client Sentiment
  • The Commitment of Traders Report
  • The Fear and Greed Index
  • The VIX volatility index

11. Copy trading

Copy trading is where a less experienced trader executes trades by copying what an experienced trader does. Other people call it mirror trading, auto-trading, or social trading. A few regulated platforms you can use for copy trading include:

  • eToro
  • AvaTrade
  • FXCM
  • Vantage
  • Trickmill
  • Pepperstone
  • IC Markets

Note that you will need to subscribe to these platforms to enjoy the services of copy trading.

12. Signals

Much more similar to copy-trading are signals. Trading signals are information on trading opportunities (buy or sell recommendations) shared by experienced traders with other forex traders. 

Many traders use platforms like Telegram and WhatsApp to share signals. Some groups are paid while others are free. There are also platforms like Acuity Trading, MetaTrader Signals Market, and Trading Central that you can use to get signals. 

Note: I would advise that you only use signals that are in line with your trading goals and strategy.

13. Rebates

Some traders call these cashback. This is money you get from your trading activities or rather the reward for investing in the forex market. A few brokers and platforms that you can register to get rebates include:

  • Active Trader Cash Rebates
  • RebateKingFx
  • FxRebate
  • PayBackFx

14. Trading accounts

Various brokers offer a variety of trading accounts depending on a trader’s risk appetite and capital. A few names that are commonly used include Executive, Premium, Classic, Zero-Spread, VIP accounts, or Standard. What separates one trading account from another is the form of commission charged, leverage, spread, and capital investments. 

15. Payment methods

Trading CDF/Forex is like running a business and as a business owner, reducing transaction costs can go a long way in lowering your overall operational costs. It is important to look for a reliable payment method for depositing and withdrawing funds from your account—one that won’t charge exorbitant transaction fees. The various payment methods accepted by most brokers include:

  • Bank wire
  • Credit Card
  • Wise
  • Mpesa

16. Trading products

Trading products or instruments are the assets that traders speculate on (either through buying or selling). They include currencies, commodities, stocks, indices, and even crypto. 

Final thoughts

Trading CDF/Forex is no walk in the park. However, having the correct resources for forex traders means you get a great head start in your trading career. I have confidence that all that I have shared in this post will go a long way in helping you meet your trading goals. But if you need any help or guidance on trading CFDs, don’t hesitate to reach out. 

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