If you are new to trading, you should know the importance of selecting the right trading platform, especially as a beginner trader. With that said, several features of a trading platform make it great for beginner traders. Read on to learn more about the essential features that you need as a beginner trader.
What is A Trading Platform – An Overview
You should know that a trading platform is essentially an online marketplace where you will perform specific activities, such as buying or selling financial products such as CFDs. Essentially, you will be taking a position whether you are trading or investing in a financial product or several financial products.
You should know that the trading platform is all about technology, and the broker of that trading platform is the company that owns the platform and serves as your intermediary. Depending on your financial product, the broker or the trading platform provider might act on your behalf when buying or selling financial products within different financial markets.
Prioritize A Platform with Regulatory Standards
As a beginner trader, you must do your research when choosing the right trading platform for your respective financial product. For instance, when looking for the best online CFD trading platform, you must research several options before choosing one so you can compare the various platforms with each other.
With that said, when choosing a trading platform, make sure that the platform is aligned with the regulatory standards, so you can prioritize regulated brokers. Make sure to choose a broker that is licensed by a reputable financial authority, such as the CFTC in the USA. This way, you can ensure that your funds are separated, and the brokers are adhering to strict regulatory and operational standards.
Make Sure the Tools and Features Are Aligned with Your Needs
Regulation, security, and user friendliness of the trading platform are incredibly important, especially as a beginner trader. When it comes to the user friendliness of the trading platform, make sure that it is easy to navigate and essentially intuitive, so you do not have to spend a lot of your time trying to figure out the options and menus and where they take you.
You should know that the best trading platforms comprise the best analytical tools, such as technical indicators, advanced charting abilities, and reliable news sources, so that you can essentially make informed trading decisions. When it comes to your needs, if you want to trade on the go, make sure that the trading platform enables mobile trading through a secure and strong mobile app.
Carefully Analyze the Platform Fees and Costs
When comparing the different trading platforms, pair the platform fee and costs so you can differentiate between the bid and ask prices, which is also the primary source of a broker’s revenue. If you are trading CFDs, you should know that your broker might charge commissions, which is why you must be aware of the commission plan too.
If you want to hold trading positions overnight, you should know that you might have to pay an overnight financing fee, which is also referred to as a swap fee. Ask the potential broker or trading platform service provider about other potential fees, such as inactivity fees or withdrawal fees. The best trading platforms will be transparent about the pricing structure, which is why you must keep in mind the importance of transparent pricing when choosing a trading platform.
