Online trading platforms are used by traders to help them with every aspect of trading. Market analysis, price projections, and purchase timing are all key whether you are trading stocks, Forex, or crypto. Trading platforms provide traders with up to the second charts and enable them to execute transactions at the click of the button. There are many online trading platforms on the market and so it is important to have all the information before purchasing one.
To help you make the right choice, here are the important features and qualities to look for when choosing an online trading platform.
1. Platform Responsiveness
The first quality you will want to look for when choosing an online trading platform is responsiveness. This is very important because it ensures that your trades are made at a split second when the markets are at their most favorable. If you have put on a stop-loss order, for example, and there is a sudden spike or drop in the price, if your platform does not respond quickly enough the order could end up being executed at a far worse price than you chose. While there is always some small difference between the true price and the price you receive, a responsive platform will ensure that this difference is negligible. To be a top trader you need to be ultra-responsive to the movement of the markets, and so does your platform.
2. Platform Reliability
Platform reliability is extremely important no matter what you are trading because it will ensure that you stay up to date on any changes in the markets and don’t miss any opportunities. If your platform suddenly freezes or crashes you could miss some important economic news or event which will cause you to delay when you really need to act quickly. Far too many beginner traders only take into account how a platform looks and feels without doing any research into its reliability. While traders who make longer-term investments and don’t need to be as switched on to the minute movements of the market can get away with a platform that freezes now and again, if you are an aggressive trader who likes to trade a lot based on up to the minute information, a reliable platform is particularly crucial.
3. User-Friendliness
In terms of trading platforms, a user-friendly interface means that when you place an order or close a trade, it is done immediately. The best trading platforms have one-click ordering functions and are capable of managing limits, stop-losses, and various other types of orders. It is also crucial that the platform has easy-to-navigate tools and charts and you can visit here to see some options with different features. It is always useful if you can view several charts at the same time to make comparisons between potential trades. As with platform reliability, being able to view multiple charts simultaneously is especially important for aggressive traders who need to be able to make quick-fire decisions.
4. Analytical Capabilities
The key to becoming a successful trader is being able to analyze your previous trades to see how they performed. It is very hard to make continuous profits if your trading platform doesn’t have analysis tools because you will be operating blind. Being completely switched on to the movement of the markets and the way your stocks or currencies are performing is crucial for sustained success. Despite common misconceptions, luck is rarely a factor in trading. It is all about being able to analyze results and markets and make informed decisions.
5. Automatic Trading Capabilities
Some advanced trading platforms have built-in algorithms which make trading recommendations. There are also some platforms on which you can create your own algorithm which will then make automatic trades when your preset conditions are met. While you should always keep your eye on your algorithms and check that they are performing as you intended, they can be an excellent way to make consistently profitable trades without having to go through the whole process manually. This can save you time and enable you to develop a coherent trading style that will help you to build a great trading portfolio.
With so many online trading platforms available, it can be difficult to know which one to choose. Fortunately, most platforms have a demo mode that you can use to get used to the platform before committing to its purchase. Check out online reviews to see which platforms people are using, and see which one feels most comfortable for you.