How to Select a Trading Platform That is Right For You

Source: Pixabay No Attribution Required

Your individual trading needs determine the type of online trading platform you require. Since every trader is different, it makes sense that the type of trading platform you choose must meet your requirements. Since many tools and resources are available with each platform, it can get somewhat overwhelming picking one trading platform over another. The objective, therefore, is to limit your use of tools to a handful of options which allow you to trade with greater accuracy, precision, and fluency. From conventional platforms to crypto exchange platforms, there is a tremendous variety of options available to traders.

The trading platform you pick must facilitate real-time information to ensure that the latest pricing is available. By having readily available information, you can easily follow breaking news and act on it accordingly. With commodities, indices, currencies, stocks, and digital assets, it’s important to be able to access precise trading exchange information at all times. Nowadays, mobile trading is the fastest-growing trend in the market. PC, Mac and mobile functionality are sacrosanct with these platforms. Once you download a trading app for Android or iOS, you can immediately power up and access the financial markets.

From a safety perspective, it’s always a good idea to pick an exchange platform that allows you to select a variety of financial instruments. Conventional trading platforms typically offer stocks, indices, forex, and commodities. The advent of digital currency trading has added an entirely new trading and investment perspective to the mix. Now, disruptive online trading platforms offer traders the option Ethereum exchange platform as well. With over 2,300 digital currencies available on the market, the trading arena is markedly different. Cryptocurrency like Ethereum initially listed at $0.3080000 and is now trading at hundreds of dollars per unit ETH. Such growth serves as a fantastic incentive to traders and investors. The diversity of currency exchange options at popular brokerages means that you can access many more financial instruments than ever before.

From a functionality perspective, the types of tools available to you are equally important. In this vein, stop-loss options can help to minimize losses on unsuccessful trades. Charts, graphs, statistical data, mobile notifications, quick deposit/withdrawal options, and comparative analysis are useful features available at reputable trading platforms. It goes without saying that traders should only pick a trading platform that is fully licensed and regulated, transparent, and credible. This narrows down the list tremendously to a handful of world-class trading platforms. User-friendliness, functionality, and regulation are among the most important features to consider when picking a trading platform. All of this requires careful research, crosschecking, and personal evaluation.

How Should a Novice Trader Choose a Trading Platform?

As a newcomer to the scene, there is obviously a reason why you are interested in trading financial instruments or crypto exchange options. For some folks, it’s the appeal of accessing global financial markets from the comforts of home, or on the go; for others, it’s the dramatically reduced costs compared to traditional land-based brokerages. Whatever your reason, your decision to pick one platform over another must comply with the following requirements:

  • The platform must provide you with easy-to-use features which can help your daily trading activity. Too many features will complicate your trading activity and will serve as a disincentive to trading.
  • Always choose a platform based on your personal preferences. If the platform is easy to use and meets your needs, it may be a good fit for you. What is your opinion of the trading platform? Is it user-friendly? What about the graphics and functionality? Are your preferred trading options available?
  • Once you are using a trading platform, you may encounter technical issues that require immediate attention. The quality and availability of customer support will play an important part in your decision to stick with an online trading platform. Do you have access to a demo trading account to practice on? How stable are the trading platform and the software?

In summary, there are at least 10 factors to consider when picking a trading platform. These include the following:

  • Ease-of-use
  • Trading robots
  • Platform software
  • Promotional offers
  • Fees and commissions
  • Licensing and regulation
  • Reliability and credibility
  • Safety and security of funds
  • Cryptocurrency exchange options
  • Margin and leverage requirements

Some of the most popular platforms in the world include MetaTrader 4 and MetaTrader 5. Other options such as NinjaTrader, cTrader, and TradeStation are preferred by many traditional traders. Online trading is a popular option for casual traders and professional traders alike. The more information you have available, the better your decision-making processes will be, and the more likely you are to finish in the black.

Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.