When choosing a Forex broker it is very common to research all the functions and features available to you, as they can directly affect your buying decision.
While this makes sense as a consumer, some of the features may, quite frankly, not be necessary.
One of the main overrated features commonly found is something called Autochartist. This software will randomly choose the technical patterns on the table, drawing your attention. In theory, that’s a great idea. But the reality is that by using this software, you are doing nothing to advance your knowledge as an operator. There is no point in trying to trade Forex if you are not willing to learn.
Another big problem with this piece of software is that it often gives technical guidelines that are suspicious by nature. For example, a flag pattern on the five-minute chart is nothing to worry about. While the banner pattern is shown on the weekly chart as well, the truth is that it shows too many low-grade patterns as the software seems to be missing filters to keep out some of the less noticeable technical settings.
Other things to consider
Forums are a complete waste of time when it comes to your Forex broker. Most of the talks you will see in these forums tend to be of the “troll” variety. In other words, it’s just a bunch of people setting fire to each other on the Internet. At most, you will have a lot of ignorant people trying to convince you that your trading configuration is correct, even though they have no idea what they are doing. In the worst case, it becomes very similar to primary school with all the insults and nicknames.
The analysis can sometimes be exaggerated. It all comes down to the analyst the company hires. Most reputable analysts are working for the largest brokerage firms. Very often these are highly respected analysts, but smaller brokers may hire someone who does not necessarily know what they are doing. One thing to suspect an analyst is if he focuses primarily on short periods of time. If the analyst tends to show a lot of five, 15, and hour charts, it is very likely that they are the ones that will simply make you trade more and therefore keep your money faster.
One of the biggest losses of time that forex brokers will find is the provision of Dow Jones news on their Metatrader 4 platform. Although the content of the news is certainly acceptable and professional, by the time they receive the news on the platform, it has already affected the markets and becomes useless. It is almost impossible to compete with brokerage firms that use Bloomberg terminals and T-1 connections for their news services.
While not all of these services are harmful, they are not necessarily a reason to open an account with a specific Forex broker. You will find that most Forex brokers are essentially the same, and offer very similar packages. To be honest, the industry simply isn’t that innovative. By focusing on what really matters to you specifically, you won’t find yourself trapped by a Forex broker based on “empty calories”.