The advancing technology has made many individuals look for ways to earn income through online portals. Trading is one of the most popular online activities people venture into since it is a flexible activity to participate in, even on the move. While trading continues to make some traders rich, others are counting losses. Various reasons contribute to unsuccessful trades, including not understanding your requirements, wrong strategy, copying others, and failure to select the right trading platform.
If you are a beginner, having the right trading platform is paramount in maximizing your potential. You can find the right trading platform by taking advantage of expert researchers’ recommendations, such as this list of the best trading platforms in the UK. Alternatively, you can conduct the research procedure by following the elements below.
1. Security and Regulations
Whether you are a forex, stock, cryptocurrency, or commodity trader, there are plenty of trading platforms to choose from. However, you need a legitimate platform since there are numerous fraudulent ones waiting to take off with your money once you commit to them.
To ensure you trade on a secure platform, check whether they are regulated and by which authorities. The right trading platform must be overseen by world-class authorities such as the Commodities Futures Trading Commission (CFTC), the Financial Conduct Authority (FCA), etc. Brokers under such regulations guarantee your funds’ safety and allow you to trade under the best conditions as required by the financial authorities.
2. Assets Availability
When choosing a trading platform, ensure it hosts all the assets you plan to trade. For instance, if you are a stock trader, go for a trading platform that hosts a variety of stocks you are familiar with. You should also be able to trade the stocks as derivatives, such as CFDs, options, and indices. We advise you to pick a trading platform with additional assets for portfolio diversification.
As a trader, it is crucial to have a budget to ensure you do not overspend when trading your preferred assets. Remember, trading platforms vary in different elements, including the charges they impose on traders. That is why you must select a trading platform that fits your budget by considering various costs or charges, including minimum deposit requirements, commissions/spreads, transaction fees, inactivity charges, etc.
4. Platform Performance
This is another crucial element to consider when looking for the best trading platform for your needs. You see, some trading platforms were created with newbies in mind, while others mainly focus on the experts. Therefore, ensure you go for a user-friendly trading platform based on your skill level.
You can also consider a customizable platform to allow you to trade long-term even after becoming more skillful. Most importantly, a trading platform must be fast in trade execution to ensure you take advantage of potentially profitable opportunities before the market changes.
5. Demo Account
Before venturing into an asset in the financial market, it is wise to be fully familiar with how it works. Take advantage of the many learning resources hosted by brokers. A trading platform with a demo account will help you practice what you have learned and gauge your skill level before investing your hard-earned money.
It is also easy to test a trading platform’s performance with a demo account before deciding to commit. Note that trading platforms’ demo accounts are risk-free. They are loaded with virtual funds to help you understand their operations free of charge.
6. Support Service
Whether you are a beginner or an expert trader, you must consider a trading platform with a reliable and dedicated support service. This is so that you can easily get guidance or clarifications in case you encounter trading challenges. Remember, some trading platforms’ support services operate round the clock daily while others’ availability is only five days a week. Therefore, ensure a trading platform’s availability aligns with your trading schedule. More importantly, they are contactable using convenient communication channels such as phone, email, or live chat.
The most important thing when looking for the right trading platform is considering your trading needs. Do not be misled by other traders’ recommendations since not all trading platforms will suit your trading requirements. With the above elements, you will find a suitable trading platform regardless of the market you trade in. So, take your time researching, and remember to only trade with amounts you are willing to lose since losses are inevitable in a trade.