Trading software may be either Web-based or client-side. With a Web-based trading platform, the trader logs into an account on the broker's Web site and performs all actions connected with the trade on that site. In contrast, a client-side trading platform is a software program that must be downloaded and installed on the trader’s PC. This software connects with the broker's server to complete the trades.

When choosing a trading platform, it's important to consider exactly which type of foreign exchange markets the platform covers (spot and exotic currencies, for example), how simple or complex the system is, and how quickly the system can execute a trade. Most online trading platforms offer a system in which the user must go through several Web pages, fill out a form with trade information, and then wait while this trade information is sent through the broker's ordering system. The problem with this is that, in foreign exchange trading, seconds matter. You don't want a program that’s going to make you wait several minutes while it sends your trade request, possibly losing your profit in the process. A better option is an interactive system in which the trader can watch a live market on the screen and perform trades in real time with one click of the mouse.

Before using any trading platform to trade real money, you can open a free demo account that will allow you to trade in real market conditions with "virtual money." When choosing a demo account, be aware that many of these accounts start you off with $2,000 to $10,000. That’s fine if you actually intend to invest that much. If you’re planning to open a mini account, though, get a demo account that gives you an amount similar to the amount you really plan to invest, even if that's only a few hundred dollars. This way you won't get used to advantages that you won’t actually have when you begin trading with real money.