What is a trading platform?
A trading platform is a software system that is used to trade securities. The platform enables investors to open, close and handle their market positions. This is done through a financial intermediary such as a bank or a broker.
Online trading platforms are available free of charge from a financial intermediary in exchange for using the platform to trade online and/or maintain an active or funded account.
Trading platforms include various features that help investors take decisions when it comes to trading and investing. Some of these features include real-time quotes, interactive charts, a wide range of tools and indicators, market research and analysis, and real-time news feeds. Trading platforms can also be geared towards specific instruments such as stocks and ETFs or CFDs and Forex.
How does a trading platform work?
When a trader places an order for buying a financial instrument such as a stock the order gets recorded in the database of the trading platform and the exchange platform. The environment of the trading platform allows traders to conduct securities trades on various global financial markets. Modern trading platforms use sophisticated architecture databases to boast security, and information transparency and provide market liquidity.
How to choose a trading platform?
There are many factors to consider when choosing a trading platform. First of all, traders need to consider what their needs are. For example what financial instruments they are looking to trade. Depending on the instrument a trader may need a specific type of platform to employ strategies and reach objectives.
Fees are also important to consider when choosing a trading platform. Fees can include commissions, custody fees, and account opening fees. It's important to check the fees provided by the platform/provider.
An intermediary (bank/broker) is essential when using a trading platform. It's crucial to work with a reputable and licensed bank that will ensure security and service and stand behind the trading platform.
Finally, some trading platforms may have specific requirements. For example, some platforms have minimum funding requirements while others may necessitate certain approvals to trade options or on margin. Understanding this can ensure you have the platform that meets your needs.
What is the best trading platform?
The best trading platforms should provide you with the tools you need to implement your strategies. Whether you are a beginner investor or already an expert you need to choose the platform that fits your needs. The user experience, pricing, account opening process and customer service quality are all important factors to consider when you open a trading account.
How to find the best trading platforms for beginners?
To find the best platform for beginners you should start with finding a trading application with an easy-to-use interface. If you are just getting started you may want to focus on straightforward and less risky instruments such as stocks and ETFs. Before you start investing you can make the most of trading platform tutorials to get an overview of the platform and the different functionality it offers.
How to find the best platform for trading for experts?
As an expert trader, you may be looking for more advanced trading tools and access to more complex trading instruments. You can start off by ensuring the products and currencies you want to trade are available on the platform you are considering. Some questions to consider? What are my upfront costs? What are the trading fees? Will I be charged inactivity fees? Is there a minimum deposit required? Where is the bank/broker regulated? Is there 24-hour support? Once you get the answers to the basic questions and do your research you can find a platform that checks off all the boxes and gives you the best trading conditions. Plus if you are considering switching brokers- will the new bank/broker reimburse transfer fees. This is added advantage.
How to find the best trading platform for mobile?
Today most all trading platforms are available as apps. You can explore options on the App Store and Google Play store based on your mobile device. Reading reviews is also a good way to get feedback from other users.