Essential Tips for Choosing the Right FX Dealing Software

Posted by Fintech News on February 7th, 2024

Businesses today have taken their businesses across borders and have to deal with foreign exchange (FX) markets. While FX dealing has become more accessible than ever, many issues affect smoother forex transactions, impacting the business's cash assets. Using FX dealing software can help you overcome price fluctuations and navigate other issues, but choosing such a platform is another challenge for international business owners. Without a reliable FX trading platform, merchants and their customers will face friction in their payment journeys, affecting their service experience.

Understand Exchange Rates and FX Dealing

Before delving into the tips, let's learn what FX deals are.

Businesses with customers or vendors across borders send money to pay for services or products. Before sending money, it's crucial to calculate the amount your payee will receive after the currency exchange for their region. Currency exchange rates fluctuate regularly, impacting the final amount you need to pay.

For instance, if you get services from a UK-based business costing GBP 421.33, you will owe CAD 718, but that's not what you pay. Here's the catch!

You will need to pay for the exchange rate offered by the payment method you choose and the transaction charges to your service provider, be it a bank or any financial institution.

The things get trickier if you pay a month later, in case of credit sales. You will need to pay for the exchange rate. For instance, if the price of 1 GBP is increased by .06 in the FX market, the day you make a payment, the equation will be changed. Now you will owe CAD 761, excluding exchange rate, transaction fees, taxes, or other charges.

Imagine all this as a business owner who had to pay frequently to their international vendors, who had to pay regardless of the exchange rate fluctuation.

Addressing this problem requires FX dealing to get the best rates for international transactions. Even then, you need a manual calculation, which requires human resources to manage different foreign customer accounts. A forex trading platform can make it easier to deal with forex rates while keeping track of currency fluctuations so you can trade without worrying about the exchange rate. So, let's learn more about the trading platform and what it has to offer.

FX Dealing Platform – An Overview

FX trading platform is a tool that helps international businesses and forex brokers buy and sell currencies internationally. Depending upon the service provider, a trading platform offers numerous benefits to business traders to support enterprises while dealing with foreign exchange rates. Standard functionalities of FX dealing platforms include real-time market quotes, charting tools, order execution capabilities, and various analysis tools. Users can access these platforms through desktop applications, web-based interfaces, or mobile apps.

However, choosing a trading platform that aligns with your business objectives and offers the best exchange rate is essential to smooth international business transactions. Some providers also provide FX white labelling platforms, allowing you to meet branding needs. A good forex trading platform can help you stay connected with the market and will enable you to leverage real-time data to seize FX opportunities.

6 Tips to Choose the Best FX Dealing Platform

After understanding the significance of the FX dealing platform, this section will discuss the tips to choose the best platform so you can get the most out of it to run your business. Following are the practical tips you must consider to choose the trading platform.

1. Understanding the Business Needs

Before choosing a trading platform, it is important to identify your business needs and objectives. Each platform offers a range of tools and services to improve your trading experience. While selecting the FX dealing software, align your business objectives with the software to find out whether it offers the services that will help you achieve your business objectives. For instance, choosing a solution with integrated CRM will help you provide good customer support, improving customer experience.

2. Comparing Pricing Plans and Value Offers

Compare the price plans of the available software and the value they deliver for the price. This will help you determine the value of the money you will receive. Get a live product demo before purchase to thoroughly understand the software and what it has to offer. By getting to know a variety of platforms, you can make an informed decision about the one that suits your needs.

3. Currency Pairs Offering

While comparing software, check the currency pair they offer. Some platforms provide major currencies, whereas others allow you to exchange in any currency worldwide. Choose one depending on your business operations. If you get a comparatively lower price software that meets your needs with major currencies, go for it.

4. Consider User-friendliness

For maximum utilization of the software, your team will need training. Depending on the user interface and easiness of use, you can determine how long it will take your team to use it. If the software you get comes with resources and tutorials to learn, it will be an excellent feature to consider. Also, check for support offered by the service provider. The platform accessibility is also essential here. See if it is a SaaS platform, a desktop application or a mobile app.

5. Check for Customer Service Offered

Ensure that the forex trading platform offers outstanding customer service. Since forex trading operates around the clock, issues may arise at any time, necessitating assistance. When choosing a forex trading platform, verify that its customer service is accessible 24/7. Confirm that there is always a representative available for phone support to address specific issues as they arise.

6. Read Reviews before Purchase

Many websites allow you to compare software platforms and show product reviews from actual customers. By utilizing various trading platforms and sharing experiences with others, valuable insights can be gained. This approach will equip you with information about different trading platforms, aiding you in selecting the most suitable and optimal forex platform for your needs.

Final Thoughts

Businesses with international vendors and customers need a reliable FX trading platform. Embracing a forex trading platform can help you with competitive foreign exchange rates while saving high transaction costs with banks. This will also help you improve the customer experience by reducing friction in international payments. By looking at the tips in this blog, you can learn how to choose the best software that meets your business needs.