Before selecting a trading platform, you should consider the features it provides. Here are some of the essential features to look for when selecting a trading platform:
The core of trading is data. Each platform offers different data services at different prices. You should select a platform that provides real-time quotes and market analysis to track prices, anticipate changes, and execute trades at the best possible positions.
Charting tools are crucial in analyzing the past and the upcoming prices of assets to make informed decisions. Select a platform with charting tools and indicators that you’re comfortable with to enable you to analyze the market using technical analysis methods.
Indicators are sophisticated analytical tools you can use to understand market trends and forecast future movements better. An excellent platform should provide multiple options for technical analysis, such as moving averages, Relative Strength Index (RSI), and Bollinger Bands.
Your trading platform should allow you to customize your trade orders, such as stop-loss orders and take-profit limits, upon entry of a trade. This feature enables you to manage risk actively and automate the execution of trades without explicitly watching the market continually.
The user interface and user experience (UI/UX) design play a crucial role when selecting a trading platform. You want a platform with an intuitive interface that enables you to execute trades efficiently without the need to second-guess or spend too much time locating features.
When selecting a trading platform, you need to consider the fees the provider charges. Here are the most common types of fees:
The majority of online brokers charge a commission fee upon trade execution. These fees vary depending on the platform and provider, so comparison shopping is essential to ensure that you’re getting the best value.
Sometimes online brokers may have an account maintenance fee attached to each month or year. Some platforms may also charge a fee for trading with types of accounts, such as margin accounts.
Trade fees accumulate on every position you open and close. They apply in different forms, such as a flat rate or a per share, or a per-lot rate. Sometimes trading on different exchanges could incur transaction fees.