Don’t have a clue when it comes to investments? Struggling to make sense of the trading market? While it can take years to master the art of trading, selecting the right platform early on can get you off to a great start. However, that’s easier said than done. Need some help making sense of online trading platforms? Read on for a breakdown of what every novice should be looking out for when selecting the perfect platform for their needs.
Trading Platforms: What Are They?
Trading platforms are essentially online marketplaces where you can trade securities. Investors can manage, open, or close positions on these online platforms. While some traders and investors prefer to work through an intermediary, there’s an increasing number of beginner-friendly platforms out there.
The best trading platforms boast intuitive interfaces with integrated charting software, research tools, and new streams. Some platforms are focused on specific markets, such as stocks, while others are more generalised. Generally speaking, trading platforms have never been more accessible. However, they’re not all created equal.
Key Features of a Great Trading Platform
Need some help finding the perfect trading platform? Below are just some of the things you should be looking out for when weighing up your options.
Accessibility
Newer platforms tend to be fairly intuitive. They’ve been designed in such a way that there’s relatively little learning curve, allowing you to focus on actual trading, rather than figure out how to use an endless suite of essential features. Ideally, you’ll want a platform that can be readily accessed, wherever you are in the world. Are you someone with a habit of switching between devices? Make sure the platform you pick is just as accessible on a smartphone or tablet as it is on a desktop computer.
What’s On Offer?
No two trading platforms will have the same offering. Some offer a variety of products and markets, while others are more tailored to one specific thing. Consider your trading goals before deciding on a platform. Are you looking to make a profit through shares? Perhaps you’re keen to explore exchange-traded funds (ETFs). There’s no point sinking precious time and energy into a platform if it doesn’t actually allow trading on these products.
If there’s any indecision, go with a platform that offers the most variety. This way, you’ll be able to diversify your portfolio, protecting you from significant losses that might derail your trading ambitions.
Earn Free Cryptocurrency From Crypto Airdrop (Bitcoin Ethereum & More)
Join Us On Telegram Now
Essential Trading Tools
Every beginner is going to need to lean heavily on trading tools. Fortunately, most trading platforms offer an exhaustive range of these. Something as simple as a PIP calculator can help you make smarter trades, while more exhaustive features like computational analysis will give you in-depth insights into your overall trading performance.
Bear in mind that, even if two platforms promise the same suite of features, these tools aren’t necessarily going to behave the same way. As such, it makes sense to shortlist a few desirable platforms, and then see how well they perform in practice.
Have You Thought About Risk Management?
Don’t assume a trading career is going to land you a life-changing sum of money in a matter of weeks. It’s a long and often painstaking process where losses are almost as frequent as gains. Understanding the risk involved in trading is just as important as knowing a good opportunity when you see it.
As a beginner, your risk awareness isn’t going to be particularly refined. This is something that will develop over time as you learn from your mistakes. However, most platforms now offer some risk mitigation features. You can add automatic stops to your trading account to prevent you from losing too much capital.
Don’t Forget About Fees
Don’t assume every penny you earn is profit. Many platforms require you to subscribe to a paid account package, while most brokers will charge fees when you deposit money into a trading or investment account. Some of these fees can be substantial. If you’re not careful, a significant slice of your profit margin is going to be consumed by sky-high fees and platform costs.
Finding the Perfect Fit
At the end of the day, what works for someone else might not work for you. You might favour tools to help you visualise data, while someone else may lean toward automation. However, there are a few key things to look out for when selecting a beginner-friendly platform. For starters, make sure it’s actually offering you the products and/or markets you want to speculate on. Once you’ve confirmed this, go with an accessible and intuitive platform with a minimal learning curve.