Forex Tester 3 is a dedicated forex trading backtesting software. It allows you to backtest mechanical strategies swiftly. It also has the ability to replay price action for backtesting manual strategies.
If you are looking for a realistic forex trading simulator, Forex Tester 3 is a strong contender.
Want to find out if Forex Tester 3 is suitable for you?
Let us help you with this complete and balanced review of Forex Tester 3.
I’ve taken it for a test-drive to understand its functions and check its suitability for different trading styles.
Now, before you read on, let’s talk about what you should look for in a trading simulator. This will give you a good sense of our review scope.
There are two main aims of using a trading simulator.
- To learn how to trade without risking money
- To verify a trading edge with historical data
Only a high caliber simulator can meet these aims well. Minimally, it must be realistic and offers high-quality trade records.
It must also be easy to use so that you do not waste time on the learning curve.
On top of that, your simulator must offer the trading tools you need to put your trading strategy in place.
Finally, you should consider the cost of the simulator versus the value you can get out of it. E.g. time saving, realistic backtest, opportunity costs.
Hence, I will be answering these five questions in this Forex Tester 3 review.
Overview of Forex Tester 3 Review
#1: Does Forex Tester 3 Offer A Realistic Trading Experience?
#2: Is Forex Tester 3 Easy To Use?
#3: Is Forex Tester 3 A Good Learning Tool?
#4: Is Forex Tester 3 Suitable For You?
#5: Should You Buy Forex Tester 3?
#1: Does Forex Tester 3 Offer A Realistic Trading Experience?
Simulation Settings
Forex Tester 3 has an array of settings to ensure realistic backtesting and replay.
Most simulators allow you to set your account balance and reset it when necessary. Forex Tester 3 goes a step further. It allows you to record deposits and withdrawals from the account as well.
You can define spreads, lot size, and leverage for each pair. You customize them exactly to your broker’s specifications.
With Forex Tester 3, you can set floating spreads that vary with market conditions. However, to use floating spreads, you need to upgrade your data package to include tick data. (More on this below.)
Price Data
The reliability of the price data is critical to realistic backtesting.
Forex Tester 3 comes with free basic forex data provided by Forexite. It includes 16 years of forex data for 7 majors, 9 crosses, and 2 metals, down to 1-minute bars.
For higher time frames (daily and above), this basic forex data package is sufficient.
However, if you need greater granularity in data, you will need to upgrade for tick data. For instance, scalpers will definitely need this upgrade for realistic backtesting and practice.
There is no centralized market for spot forex. Naturally, price feeds from different brokers differ. As a result, the same strategy might perform differently.
Hence, for an authentic simulation, you should use your broker’s data feed if possible. This is another area where Forex Tester 3 shines.
It is transparent about its data sources. Many simulators simply provide you with generic spot forex data from a single source.
But Forex Tester 3 allows you to choose your preferred forex broker for price data download. Broker options are shown below.
With its custom settings and data sources, Forex Tester 3 is able to offer a realistic simulation.
You should not expect anything less from a dedicated trading simulator.
Trading Setups Review has partnered Forex Tester to offer a special discounted price for our readers. Click here to buy.
#2: Is Forex Tester 3 Easy To Use?
You don’t want to waste too much time figuring your way around a new simulator. You want to get started as soon as possible.
The aim is to spend your time on productive work like backtesting and replay practice.
Let’s take a look at Forex Tester’s learning curve.
User Interface
The layout of Forex Tester 3 is similar to that of MetaTrader 4 (MT4).
While it’s not an exact replica, users of MetaTrader 4 will find Forex Tester 3 familiar.
This is a huge plus.
If you’re an experienced MT4 user, this familiar layout shortens your learning curve.
If you are a new forex trader, you will very likely turn to MT4 when you want to transit to live trading. Using Forex Tester will help with a quick transition.
On top of this, there’s good news for non-English speaking users. Forex Tester 3 comes in 20 different languages.
Ease Of Getting Started
When you start up Forex Tester 3, the first step is to download the market data you need for backtesting.
With a few mouse clicks, I was able to download the forex data using the Data Center.
There are also prominent buttons for essential functions like:
- Creating a new chart
- Adjusting time frame
- Start/stop the testing
- Controlling the speed of replay
There are also 15 videos to help you get started. The one shown below is the first tutorial: Quick Start.
As for chart options like adding indicators, you can do so easily with a right-click on the chart. You can also send trade orders this way.
It is really simple to get started with manual backtesting using market replay.
However, for those looking to use Forex Tester 3 for automation, the onboarding might not be as smooth.
A significant disadvantage here is that MT4 EAs are not compatible. Hence, you cannot just plug and play your existing EAs.
To program automated strategies, you need to learn to work with Forex Tester’s API. (Works with C++ and Delphi.)
The steepness of the learning curve depends on your coding skill.
If you are comfortable with coding, you will find it easy to automate backtesting in Forex Tester 3. If you have no background in programming, you will have a harder time.
Nonetheless, for those willing to learn, Forex Tester offers helpful educational resources. There are 10 preset strategies, tutorials, and well-documented API that you can access from within the software.
You can also get Forex Tester’s specialists to help with coding your strategy, but that requires extra cost.
I highly recommend that you learn how to do it yourself. Regardless of your platform, if you intend to specialize in automated trading, coding skills are essential. You will save much time and money in the long run.
Software Support
The ideal design of a simulator will so intuitive that you can figure out everything on your own.
But that’s often not the case, as every trader starts with a different background. You might get stuck and need support from the Forex Tester company.
Luckily, all Forex Tester users get lifetime support provided through:
- Online Chat
- Forum
- Online Guides with Videos
You should certainly check out their forum and resource directory to get a sense of the level of support they offer. (You don’t need to log in to view.)
Lifetime support is only valuable if Forex Tester is well-established and stable. According to their website, they’ve been around since 2006. You need to decide if a track record of 11 years is something you can trust.
Overall, it is easy to get started with Forex Tester’s friendly interface. Multichannel support is also available.
However, automating backtests might pose a small challenge, depending on your programming knowledge.
Trading Setups Review has partnered Forex Tester to offer a special discounted price for our readers. Click here to buy.
#3: Is Forex Tester 3 A Good Learning Tool?
Trading Tools
To learn well, you must be able to practice and formulate strategies with a wide variety of tools.
Forex Tester 3 has 45 indicators. You will find the standard trading indicators, and exotic ones like Solar Wind and Polarized Fractal Efficiency.
However, if you use custom indicators, you will need to rewrite them in Forex Tester’s format. This is a minor drawback.
As a price action trader, I paid a lot of attention to the drawing tools in my review.
They were adequate for my trading style. I was able to draw trend lines and channels quickly. The Poly Line tool was perfect for marking price swings.
Forex Tester 3 also has tools for trading with Andrew’s Pitchfork and Elliot Wave.
You can assign hot keys to each drawing tool for more efficient analysis. This is a function I make use of a lot.
Non-time-based charts like Range and Renko charts are also available.
To sum up, Forex Tester 3 has trading tools comparable to most charting platforms.
Backtest & Replay
You can backtest multiple currencies in multiple time frames. The layered results might offer you extra insights.
You can practise trading with real historical price action with manual testing. It is basically a replay function that is valuable for a new trader who wants to accumulate screen time.
Screen time refers to the time spent analyzing the market as price action develops. Being able to replay the market at higher speed will help you speed up your progress.
In Forex Tester 3, you use projects to manage your backtests. Each project is independent.
You can try an automated approach in one project. At the same time, you can start a new project for discretionary trading in a different currency pair.
You can start as many projects as you like, each with a different focus. Projects offer a convenient way to manage your backtests and practice sessions.
Trading Records
Another key to effective learning is record keeping.
Forex Tester 3 records your trades and calculates useful summary statistics seamlessly.
You can click on a particular trade in your account history, and find your way to the same trade on the chart. This is one of my favorite function – a quick and intuitive link between trade records and their charts.
The statistics given by Forex Tester 3 are sufficient for most traders.
But if you want to drill for more insights, you can do that easily as the data can be exported to Excel with just two clicks.
I find this export function extremely useful. With the data in Excel, I am able to run simulations and perform advanced analysis on my trades.
A good trade record includes a chart screenshot. It takes just one click to capture a screenshot of the chart.
Forex Tester’s record keeping ability is convenient and comprehensive. It adds great value to the learning process of any serious trader.
Trading Setups Review has partnered Forex Tester to offer a special discounted price for our readers. Click here to buy.
#4: Is Forex Tester 3 Suitable For You?
In this section, we will consider if Forex Tester 3 meets the needs of different trading styles.
Mechanical Trader
As mentioned, for mechanical trading, you might need to devote more effort.
Be sure to consider the time and effort you need to convert your trading strategies for Forex Tester 3.
It’s not tough for someone comfortable with programming. Depending on your coding proficiency, this might not be a concern.
Forex Tester 3 offers the ability to view the charts during an automated backtest. Most platforms do not show you the charts until the backtest is completed.
Also, you can adjust the strategy parameters on the fly.
If you are fine with coding separately for Forex Tester 3, you will find it to be a capable backtesting platform.
Discretionary Trader
Forex Tester 3 is ideal for discretionary price action traders. The learning curve is short, and the drawing tools are robust.
For discretionary traders, the ability to replay price action is important. And Forex Tester 3 does this well.
However, there is no plug and play method for getting your custom indicators into Forex Tester 3. Hence, this is a drawback if you need to use custom indicators in your discretionary trading.
Scalper
Scalping takes place at high speed with uncertain trade execution. Hence, it is one of the hardest trading styles to backtest reliably. This is true regardless of your platform.
If you are a scalper, you must upgrade to the VIP data subscription for tick data.
I also highly recommend that you get your data from the actual broker you will be using in your live account.
These two steps will allow you to use Forex Tester 3 to backtest a scalping strategy reliably.
However, this setup will cost more. (Click here for our special discounted pricing.)
Non-Forex Trader
On Forex Tester’s website, they mentioned that Forex Tester 3 is not limited to forex. It includes metals, and CFDs on indices and stocks.
But if you look closely, only a few brokers offer non-forex symbols. And even then, the offerings are limited.
Unless you see your broker and the exact symbol you want to trade on this list, do not assume that they are available in Forex Tester 3.
You can create custom instruments and import your own data. This is a possible workaround but poses much inconvenience.
Hence, if your trading focus is not forex, I recommend that you consider other simulators.
#5: Should You Buy Forex Tester 3?
If you have a demo trading platform that you’re happy with, stick to it.
This is especially true if the platform is the one you will be trading with when you switch to a live account.
But if you are not happy with the functions or the cost of your current simulator, consider Forex Tester 3.
Based on the above information, you should have a pretty good sense of whether Forex Tester 3 suits your trading needs.
Hence, at this stage, there are only two more things to consider.
Cost of Forex Tester 3
Forex Tester 3 has a regular price tag of $299, and it comes with free Basic Data.
As shown below, there are three levels of data for Forex Tester. Standard and VIP are paid subscriptions.
To decide which data subscription you need, consider your:
- Trading time frame
- Trading symbols
- Need for tick data and floating spread
Clearly, Forex Tester 3 offers the best value for swing traders who look at daily and above time frames. The free basic data plan suffices, and you will just need to make a one-time payment for this great tool.
If you need to upgrade your data package to Standard or VIP, there will be recurring charges. But there are affordable yearly options that bring the price down.
Trading Setups Review has partnered Forex Tester to offer a special discount for our readers. Click here to learn more.
Consider your alternatives.
Typical demo accounts expire. Those that don’t usually require you to maintain a minimum account balance. Inactivity fees are also a concern.
On top of that, most demo accounts run on a deactivated mode of a trading platform. Such instances do not provide the full features of a dedicated simulator/backtester like Forex Tester 3.
With Forex Tester 3, you will no longer encounter these issues.
Paying a modest price for an excellent tool to improve your trading skills makes great sense. Especially when you consider the fact that many traders lose far more than the cost of Forex Tester 3 in reckless live trading.
First-Hand Experience
Before you take the plunge and buy Forex Tester 3, I strongly encourage you to download the trial version by clicking the banner below.
Nothing beats trying out Forex Tester 3 for yourself.
The trial version is limited in the ways stated below. But it offers enough for you to evaluate the software meaningfully.
Pros and Cons of Forex Tester 3
To conclude this review, here is a summary of the pros and cons of Forex Tester 3
Pros
- Works for both mechanical and discretionary traders
- Realistic backtesting environment
- User-friendly
- Comprehensive set of trading indicators and drawing tools
- Seamless export of trading records
- Easy import of price data
- Data from various major forex brokers
- Lifetime support
Cons
- Might need a data subscription (recurring charges)
- Not suitable for non-forex traders
- Windows OS only
- Need to use C++ and Delphi for custom indicators and strategies
Trading Setups Review has partnered Forex Tester to offer a special discounted price for our readers. Click here to buy.
Disclosure
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