Forex trading is not the easiest concept for many people to deal with. It usually involves use of excessive leverage which in turn causes traders to make emotional mistakes.
This problem tends to lead traders to the idea of forex trading software. Forex trading software can be anything from a signal generating software that tells you how to trade, to an expert advisor plugin that actually does the forex trading for you.
One important thing to keep in mind when considering whether to use forex software to help you trade is that the trading software can only follow the rules that you set for it. Most people consider forex software because it removes emotions from the equation. This can be both good and bad. One one hand, it's good because it makes the system trade by the rules you set with no exceptions, meaning no meaningless trades, and no hanging on to trades that should be closed. On the other hand, there are times when the market acts very abnormal and mechanical trading systems can be eaten alive by volatility, and trading software will not know the difference.
This is all just to say, that forex trading software is useful, but it will not solve all your problems. I've spent some time here on about.com doing reviews on different forex software (forex software reviews) products and most of them actually turn out to be mediocre, with few exceptions. In the end, the only difference is that the software has a reason to open or close a trade, and it doesn't lie to itself about the future of the trade.
I'm personally not a huge fan of forex trading software, mostly because I have seen a large number of scam programs that sell hot for a month and then the program disappears as the real word of mouth spreads on the performance. I'm not in any way saying that all forex software is a scam, just that it should be viewed with some skepticism.
My recommended way to use forex software would be to look at the recommendations that the software makes after it does it's analysis, and decide for yourself whether a trade is appropriate. While it's true that this reintroduces the human factor into the equation, it also protects your account from being automatically emptied if the software is not good software.
If you insist on using an automated forex trading software, make sure to test it on a demo for an extended period of time. At least 30 days of continuous use. Do not put more money in the account than what you need to keep the software trading, this will protect you in the event of software malfunction by keeping your losses limited.
Lastly, check with other traders you personally know and see if they have feed back on the product that you want to use. Most of the time, forex software reviews are fake. The only way to find out the truth is to talk to someone that you know, and try the software out on a demo account. Those raving reviews make it very tempting to buy the software, and that's the point, but in no way does that mean the software will work for you.
Like anything else in forex, use some common sense, approach everything with a business attitude, and keep your optimism in check. Until you see proof with your own eyes that a software works, don't trust it.
