You’ve decided you want to start trading. The next question arises: which platform? There are heavily advertised online trading platforms that pay for that advertising with hefty fees. But since advertising is self-serving, you shouldn’t simply go for the most popular platform. With the plethora of trading platforms, however, it can be difficult to make a choice. Here are a few tips on how to choose the right online trading platform for you so you know where to put your money.
Do you need a platform with low fees because you plan on executing a lot of trades? Do you want to invest in a particular product, whether soybeans or Bitcoin? Or are you interested in new instruments like binary options trading? Such questions are always asked by businessmen like Louis Hernandez Jr and you should ask them too. Not all platforms offer every possible type of investment. Nearly all of them let you invest in stocks, stock indexes, and the most common commodities and precious metals. If you want to invest in bonds, foreign currencies, cryptocurrencies or something more exotic, you’ll have to do some research. If you want to engage in CFD trading against those items, you’ll find an even narrower selection of trading platforms.
You should get a look at the user interface as part of your research. Do you see the basic buttons? Do you understand the options they are offering? If not, it isn’t right for you. You can also use this time to check out professionals. Expert traders who publish unbiased advice are worth their weight in gold.
The beautiful graphics on the homepage are there for advertising purposes. Look at the market charts you’ll be using to make decisions. Do you understand them? Do they provide the information you need? Are they updated fast enough to be relevant when you need the information? Another reason to watch charts and trend lines update is to see how smoothly the site is updating. If it is stuttering when trying to present graphs to you as a general user, you have reason to be concerned about executing a trade free from errors.
You don’t have to sign up with a trading platform because a guru recommended it, and your friends’ recommendations should be taken with a grain of salt. Instead, research the site’s reputation for technical support when there are issues with trades. What level of assistance do they offer to traders when there are issues with payments? Do they take forever to answer emails or phone calls if there is an error? Have they had any security breaches in the past few years? How do they protect your financial information from hackers?
You don’t want to pick a trading strategy that has you tied to your desk watching the market go up and down. One option is shifting to a longer-term trading strategy where transactions take place hours and days later. Another option is using a mobile trading platform so you can check on the market and set up transactions no matter where you are.
Yet another factor to consider is ease of use. However, trading platforms that let you execute a trade via your smartphone are probably easy to use when you’re on your computer or tablet.
Finding a great trading platform doesn’t have to be difficult. If you manage to do your due diligence and use some of the tips in this article, you should find a great platform to trade on in no time.