The modern incarnation of trading, you only need computing power to engage today’s financial market. The Internet and some capital will do the rest. Some claim online trading platforms are the greatest developments to ever happen in the stock market. It gives everyone an opportunity to trade. The first step to trading is choosing a trading platform that’s right for you.
What is a trading platform?
It’s a computer software program that allows traders to place trades and monitor their accounts. It enables brokers to provide their innovative strategy tools and communicate with their users. Trading platforms act as a connector between the buyer and sellers. You can stream live market prices, access to charts, and place or buy orders from any location. Most brokerage firms offer trading platforms for free or for a small fee. Different platforms specialize in different instruments and trading strategies. Pick the platform that suits your needs.
Trade on the go
Thanks to the advancement of technology and the internet, the market has become more accessible. You can download most trading platforms on your mobile devices or tablet and trade wherever you are. Online trading platforms have given everyone with a mobile device and some extra cash the opportunity to trade. No longer tied to your desktop to trade.
8 Factors to choose a trading platform
There’s no better time to invest than right now. So much online trading platform to choose from, all with their own individual character. But picking your own trading platform comes down to your personal preference. Here we gather 8 key factors on how to choose the right trading platform for you.
Time is money. In the fast-moving market, a slight delay or mistake can affect the trade. You need a reliable broker, offer the fastest order of execution, and have a very stable platform allowing their traders to trade with minimal negative slippage. The platform needs to integrate order execution in a large number (between the signal provider and the follower).
Some platforms can be very complicated, choose the platform that is easy to use and understand. If you plan to trade every day, you will deal with the same interface every. Hence, choosing an interface convenient for you to make your daily transactions is vital. Make sure the charts are simple enough to grasp and easy access to all the tools available.
A fee is a cost of trading. There are withdrawal fee charges and other hidden fees such as an overnight fee. Lower fees are always preferable but may not be advantageous if it means fewer features on the platform.
Regulation is there to protect your funds from the inherently risky nature of trading. Make sure you check a broker regulatory status before making a deposit.
5.Function and Features
Pick a platform that provides not just the latest market data or essential function, but lets you quickly create charts, identify price trends, and analyze potential trade opportunities. It’s also beneficial to choose a platform that provides auto trading tools so you can copy strategy from the expert traders. Also, select the platform that has the indicator that suits your needs. With the right tools and indicators, you might be the next master of trading!
6. Customer support
Choosing a platform that has excellent customer support is always comforting, especially when you involve data exchange and money. It needs to be reliable, easy to reach, and competent.
7. Demo Account
The platform should offer you a free demo trial before you start using them for real. If you are new to trading, we highly recommend you to open a demo account first, it allows you to experiment with the trading platform and its many features without risking losing real money. Also, test their tools and user interface, then decide if it meets your needs.
8. Instruments offered
Different brokers offer different trading instruments. Make sure you choose the platform that has a vast selection of choice and has your preferred trading strategies in place. Never put your eggs in one basket. Diversifying your portfolio will help to control your risk.
Trading platforms offer many advantages and disadvantages to individuals interested in the financial markets. One thing for sure, they are more beneficial compared to the traditional ways of trading. The following list summarizes the benefits and downsides of trading platforms:
Pros of trading platforms
Back in the 80s, only the rich could afford to trade. The cost of making a trade in those days on the New York Stock Exchange ranged anywhere from $50 to $1,000. Because of the popularity of online trading and the advancement of technology, it has reduced the cost of trading tremendously. Nowadays, some platforms will charge a small fee to buy or sell, and sometimes it’s free.
2. Learn to invest or improve your trading strategy from the expert
Most trading platforms offer copy trading tools.
For New Trader
You can gain trading experience and learn from the expert. Watch how the professional decides when to enter the market, place stop-loss orders, and exit the market. There is no better way to learn than diving straight in the market with guidance. Applying copy trading is more efficient, time-saving, and you’ll get a quicker result.
For Professional Trader
Use this tool to improve your trading strategies. Double-checking or comparing strategy with the other signal provider, detecting market trends, and stay up to date with it.
3. Greater control and flexibility
Because of online trading, most markets are now open 24 hours, 5 days per week. This gives you the flexibility to trade at any time. With trading platform applications, traders can choose when to trade, no more calling, or meeting up with a broker to initiate a trade.
By choosing your trade, it allows you to avoid the broker bias. Most brokers might get a commission when selling specific instruments, so they tend to give financial advice based on what will benefit them. Not you.
Online trading platforms offer real-time price and trade information, enable you to keep on top of your trade. This means you can monitor your investment performance in real-time, get most up to the minute prices, and see what changes you need to make to improve the outcome.
Cons of trading platforms
When placing an order on a trading platform, you depend heavily on the underlying server and software. Any delay or technical glitch in the platform will cause a delay in price quotes or information on order status, which might incur losses.
Trading platforms rely on the mercy of your internet connection. If the internet is too slow, it might cause a delay in receiving price quotes and could lose out on a possibly important or profitable trade.
3. Addictive nature
Trading is similar to gambling; it gives you a natural adrenaline rush. It promises huge gains and high income, but these rewards come with great risk. Trading in the financial markets is stimulating, thrilling, and captivating.
You are your own investment manager. With so much scam and fraud in the financial market, sometimes you might come across market manipulation or even negligent analysis. There will always be risks of making poor investment choices. Without an advisor, you’ll spend hours analyzing the market and reviewing financial statements.
Our recommended trading platform is our very own Juno Auto Trader :
- Excellent customer support- able to contact the representative via instant messaging.
- Low starting deposit of $100
- Compatible mobile apps (iOS & Android)
- Vast selection of signal providers
- Portfolio customization
Copy trading is like having a teacher that guides you through every trade and gives you direction on what moves to take. It takes the pressure of your own decision making and sees the profits much quicker.
Though for anyone new to trading, we highly recommend starting with Juno Auto Trader demo account first to get the feel of the market before going to a live account.