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Trading for Newbies: How to Choose the Best Trading Platforms
Online investments involve tons of risks, but with the best online trading platforms, you can save more and protect your money better. Nevertheless, choosing the ideal trading platform, out of the countless brokers who claim to be the best in the industry, is no easy task. It involves too much homework and time to vet if a particular platform is safe, secure, and advantageous to you as an investor.
If you are second-guessing what the top trading platforms are today, then this article is for you.
Best Online Trading Platform
Before you pick a trading platform to work with when investing online, some thorough selection criteria would help you find the best online trading platforms.
Here are some tips on what you should look for in a trading platform before you start investing your money.
- Licensing and regulation
- First and foremost, a well-regulated trading platform with one or more licenses from regarded monetary authorities is a must-have. It should be the first thing that you need to look for when choosing top trading platforms. A license in a jurisdiction is a great sign that the authorities closely watch, track, and audit the company. In short, you can expect safe, secure, and fair services from the platform.
- User-friendly online platform
- Whether you're a newbie in the online trading space or a seasoned trader, you'd want a platform that is simple and quick to use. If you want to avoid getting confused when using the platform, choose a user-friendly platform, whether using a web-based or a downloadable version.
- A complex interface may look sophisticated but will only hassle you in the long run. Plus, it would be inconvenient and hard to make sense if you’re a beginner trader.
- Reliable deposit and withdrawal transactions
- If you want convenience when investing online, choose a trading broker that offers reliable and simple deposit and withdrawal transactions. Easy deposits and withdrawals might be minor must-haves at first, but they will prevent you more hassle in the long run.
- Preferable trading conditions, fees, and charges
- As an investor, it’s essential to keep track of the money that goes in and out. When choosing trading platforms, it's critical to check the broker's fees and other trading charges. Ideally, you want to work with a trading platform that offers you preferable fees as an investor.
- You can't ignore these fees, but there are many ways to minimize them. For instance, many platforms charge you extra for closing an account or for inactivity. Other times, you get charged for transferring funds, and how much will differ from one broker to another.
- Meanwhile, you can usually offset these fees when choosing extra charges. Ultimately, it's important to check your options for fees and conditions when checking top trading platforms.
- Trading resources and tutorials
- Even with a trading style and strategy in place, every trader will benefit from having new resources on hand. New traders will especially find tutorials and how-to guides extremely useful. You can find a user-centric trading platform and offers multiple trading resources and tutorials to its users.
If you can find trading platforms that has all or most of the features listed above, you’ll be more than ready to start investing online safely, securely, and with less to no hassle at all.
What Are the Best Trading Platforms?
Having the best trading platform will make it easy for you to seamlessly invest in and trading various assets, from stocks to bonds and forex, without paying a fortune for the privilege. If you are looking for some of the top platforms for traders today, come and check out these options.
- TD Ameritrade is a favored trading platform of many investors, and for a lot of good reasons. Firstly, it works well for everyday and general investing for its seamless trading interface that is easy and convenient to use but offers extensive educational content. TD Ameritrade offers $0 commissions for options, ETF, and stock trades if you are looking for options trading platforms.
- The best trading platform doesn't have to be complex, thanks to Fidelity. It's an ideal platform for newbies and hopeful traders. It offers an easy-to-use mobile trading app, excellent trading tools, various wealth management options, and low fees on almost all of its investment products.
- For advanced traders, Interactive Brokers offers everything you need to multiply and take care of your investments. It offers a top-notch desktop platform that allows you to trade 24/7. Interactive Brokers also have one of the most excellent execution times and price improvements compared to other brokers.
- Charles Schwab is a popular choice for international investors with its robust toolset for charting extensive technical indicators. It also offers various asset types like bonds, stocks, futures, ETFs, options, annuities, forex, and international stocks.
How Do Trading Platforms Work?
An online trading platform is a program, software, or app that allows you to make trading positions and track your investment accounts. It works similarly to a human broker, but everything takes place online. Instead of talking to your broker, you use the platform to buy, sell, or request trades yourself.
Trading platforms can differ from another based on the features and specific markets it offers. You can trade stocks, currencies, futures, ETFs, or all of these asset types depending on the platform you choose to work with. Other online brokers also provide resources to help you understand the market, like how-to guides and tutorials. Some others come bundled with other useful services like charting software, real-time quotes, news feeds, and premium market analysis.
A trading platform makes a profit ideally when you profit by keeping a percentage commission for the trades you make.
What Are Stock Trading Platforms?
A stock trading platform is simply a software or trading app that allows you to buy and sell a particular company's stocks. Some platforms only offer stock trading, while others have other asset types like ETFs, futures, options, and many others. A stock trading platform can also offer stocks for companies in your country or foreign stocks, or both.