When venturing into the financial assets market, you want to be sure you are using the right tools, especially if you don’t have any prior experience. Luckily, there are many trading platforms that you can now use to help you make informed and educated trading decisions with minimal risk. However, not all trading platforms are created equal. You have to understand how you can find the right ones for your specific needs. If you are still new in this realm and can use some help to find a reliable trading platform, you have come to the right place. Below, you will find some expert tips for choosing a trading platform.
Don’t just go with the most popular trading platform. Morse often than not, a platform’s number of users is an indication of its ‘popularity’ rather than real efficiency. You want a system that works and can help enhance your trading experience. Be skeptical and thoroughly research the platforms that you are considering. Ask for advice from market experts and follow their lead. Even if you have a friend who made big profits using a certain trading platform, it’s not an indication of how efficient the platform is. It could simply be a random strike of luck and nothing more. Furthermore, you need to keep in mind your own needs when selecting a trading platform. A casual trader won’t probably need the same features an avid professional trader would. Analyze and identify your needs, then move on to researching available trading platforms that can help you fulfill them.
Look For Valuable Features
True, you will need a trading platform that has all the basic features covered. But what’s more interesting is the valuable additional features that can truly enhance your trading experience. Look for platforms that offer features you can benefit from right now instead of later on in the future. If you are always on-the-go, a trading platform that features the best trading app can be exactly what you need to manage your portfolio from anywhere and at any time. A good rule of thumb is to verify that you will be using at least 80% of the additional features a trading platform offers. Try to look beyond the sophisticated add-ons for the moment if you are still a beginner with basic needs. Over time, as your experience grows, you can then update your platform accordingly.
Find A Trading Platform That is Easy To Navigate
A good trading platform should be user-friendly and accommodate the capabilities of the users no matter their level of trading experience. Depending on your trading patterns, you might need to use your trading platform on a daily basis. This means that you want a platform that is easy to navigate and has an intuitive flow so you won’t get lost trying to figure your way around it. During your first time using the platform, you will be able to judge whether it’s user friendly enough for you or not.
Look For Consistent Performance
Trading platforms should offer a consistent level of performance throughout their lifetime. Given that these platforms don’t come cheap, you want to make sure you’re paying for a trading platform that you can rely on.
Beware of the Costs
Especially if you are a beginner, there are cots that most trading platforms charge that you need to be aware of before committing to one. Like the case with the inactivity fee. Some platforms start charging you after 3 months of inactivity while others give you up to one year before they charge the fee. When it comes to commission, most trading platforms on the market are now offering commission-free transactions. However, those usually charge a spread cost which is the difference between what asset costs to buy versus what it costs to sell at any time. The spread cost is how the trading app generates income from the users’ transactions. Another cost that you need to look out for is the withdrawal fee. With a minimum withdrawal limit set in place, every time you attempt to withdraw money from your portfolio, you will be charged a transaction fee. The idea is to discourage traders like yourself from liquidating their assets too often and continue trading instead. At first glance, you might think that the fees a trading platform charges are low. However, the only way to be sure is to compare prices from different trading platforms in order to make the right decision.
Look For The Copy Trading Feature
The copy trading feature is an amazing addition to any trading platform that is aimed towards inexperienced traders. With this feature, you can benefit from the valuable experience of professional traders by copying their trading settings or even their entire portfolio. It’s a simple, fast, and secure way to guarantee to grow your return on investment. But it’s not only for beginners, experienced traders who don’t have the time to do their research can use the copy trading feature to avoid missing out on a hot deal. However, in order to use this feature, you will have to part with an average commission of 20% of the interest you make from the copied transactions. Still, it’s a fair fee for such an accommodating option.
Find A Diverse Trading Platform
You need access to a wide variety of financial asset markets. Find a trading platform that will give you many options so that you can diversify your investments and experiment with different financial tools. Diversity is always a favorable feature of any decent trading platform.
Impeccable Customer Service Is A Must
A professional trading platform will offer you a free trial period in order to become familiar with their platform before you can decide whether it’s the right one for you or not. Once you decide to become a user, you should receive training on how to use its varied features. Just the fact that you know that help is there if/when you need it makes a trading platform superior to another that doesn’t offer the same level of support.
Choosing the right platform will take a lot of time and effort on your side. However, using the above tips will facilitate the process and give you an idea of what to look for. It all comes down to the kind of trader you are planning to become. Whatever are your needs, you will definitely find a trading platform that works for you.
Author | Emily Forbes
An Entrepreneur, Mother & A passionate tech writer in the technology industry!