The Forex Toolbox: Top 50 Free Web Tools for Currency Traders

Thanks to the web, investing and trading in forex has never been easier. From blogs and commentary, to charts and quotes, it can all be found online. Of course, it’s important to be aware that many of these tools may not be appropriate for the average investor. Forex trading can be complicated, and it’s important to weigh the costs and benefits carefully before diving in. Additionally, forex is prone to scams; before choosing a broker, make sure to do plenty of research.

Because of the risks, average investors are advised to use only a small (5%) portion of their assets for currency trading, and/or to use forex chiefly for hedging purposes. If, for example, you are concerned that your savings account (denominated in US Dollars) could depreciate as a result of current US economic policy, you could diversify a portion of your assets into foreign currency(s). That being said, the following 50 websites comprise our favorite resources for forex enthusiasts and traders.

Blogs

Before building your forex toolbox, you should begin by browsing the blogosphere for general information.

1. Forex Blog. This blog specializes in fundamental analysis, assessing the effect of economic developments on the forex markets.
2. Daily Markets. Daily Markets offers daily opinions and live news feeds.
3. Forex Project. This blog chronicles the experiences of amateur “Trader Rich,” who aims to achieve a gross return of 50% trading forex.
4. Forex Trends. Their goal is to save you time by analyzing forex market psychology.
5. FX Instructor. This blog is authored by traders from around the world, with daily technical reviews and mentoring for beginners.

Real-Time Quotes

Now that you have the basics down, you need access to exchange rates.

6. Forex Trading Charts. This site features a visually appealing quote matrix, with one-click charting.
7. Forex-Markets. Quotes are displayed real-time, along with the bid/ask spread.
8. FX Street. More than 1,000 currency rates are divided into 13 regions.
9. AC Markets. Real-time quotes are only one of the many tools offered here.
10. Quote.com. One-stop shop for quotes, with exchange rate data, stock prices, etc.
11. X-Rates. The most comprehensive source for forex quotes, with data for over 50 currencies.

Charts

While a basic chart depicts how a given exchange rate has fluctuated over time, a sophisticated chart can enable you to spot patterns and understand trends.

12. OZ Forex. Their high-end, real-time, charting package allows you to run studies, draw trendlines and save charts.
13. Forex Realm. Template for generating quick charts for popular currency pairs, as well as a glossary of indicators.
14. Forex Pros. Flash-based charts are based on live data, and support the overlay of various indicators.
15. CMS Forex. Their proprietary software, VT Trader 2.0, allows traders to apply graphical technical indicators and trend lines directly.
16. Forex Capital Markets (FXCM). With seven different charting programs to choose from, you can be sure to find one that matches your needs.
17. XE. Advanced and Premium Charts can be previewed with seven-day free trial.

Technical Analysis

After choosing a charting program, the logical next step is to choose a suite of technical indicators that will guide your strategy.

18. Forex Day Trading. This is an excellent place to begin because it explains the most popular technical indicators.
19. Technical Analysis Site. Matrix of indicators are applicable to many types of investments.
20. Realtime Forex. Each technical indicator is explained in a separate PDF with accompanying tutorial.
21. Forex Trading Gurus. Contains a library of advanced articles about technical indicators and chart patterns.
22. Action Forex. This page is devoted entirely to technical analysis, with daily, weekly, and specialized reports.

Backtesting

Before putting actual money on the line, you should first backtest your trading strategy against historical data.

23. Trading Markets. This article provides a nice overview of various methods for performing a backtest.
24. Tradecision. Professional backtesting software for “thinking traders.”
25. Forex Strategy Builder. This program uses combinations of technical indicators and logic rules to simulate a trading process.
26. Forex Historical Data. Offers historical data to traders that wish to manually backtest their strategies.
27. Forex Learning Site. A detailed list of reputable brokers that use MetaTrader4 (MT4), an easy-to-use backtesting program.

Central Banks & Monetary Policy

Monetary Policy represents the backbone of a trading strategy based on fundamental analysis.

28. Trade TNT. Explanation of how and why Central Banks seek currency stability.
29. MATAF. Here, the author posts about developments involving Central Banks that move the markets.
30. Baby Pips. An excellent overview of the different functions that Central Banks perform.
31. Easy Forex. Interest rate table with long and short term rates for all tradeable currencies.
32. Top Forex News. Summary of benchmark interest rates, with the change from the most recent policy meeting.

Economic Calendars & Indicators

Economic indicators feed into Central Banks’ decision making processes for tweaking monetary policy.

33. Forex.com. Overview of economic indicators and why they are important.
34. Info Forex. Detailed explanations for specific economic indicators, with ‘relative importance’ grades.
35. GFT Forex. A comprehensive listing of economic indicators, with forecasts and previous levels.
36. Forex Floor. A concise overview of the indicators that most affect exchange rates.
37. Pinnacle Exchange. Analyzes the effect of different indicators on the Fed’s approach to monetary policy.

Forecasts and Signals

The following resources use a combination of fundamental and technical analysis to make predictions.

38. Ace Trader. Outlooks are neatly segmented by time period and underlying analysis, complete with charts and data.
39. E-Forex. Free daily market analysis and trading recommendations.
40. Finotec. Short and long signals, based on support and resistance levels.
41. ForexRate. Daily forecast on all of the major currencies, complete with technical commentary.
42. iFOREX. Forex forecasts and real time trading signals for four major trading currency pairs to paying customers.

Forums

Check out the following forums to see what people are currently saying about forex.

43. Forex Forum. The-self proclaimed ‘world’s leading forex forum.’
44. Forex Factory. Threads are ranked by date and popularity, and arranged by topic.
45. Go Forex. Forum is mediated by a group of experts, who reply regularly to member posts.
46. Forex Focus Daily. All the major economic and forex news articles are posted in this forum.

Books

Why not supplement your knowledge of forex by purchasing a book, or downloading an e-book?

47. Forex Books. Touted as the educational resources about currency trading for all levels of traders.
48. Earn Forex. Here, you can download up to 80 free e-books.
49. Forex Calling. Their Forex Strategy Workbook walks you through every trading day for a hypothetical month of trading.
50. Forex Razor. High quality unbiased forex book reviews and ratings, contributed by actual traders

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