A decade ago, it would have been hard to believe that almost everyone would eventually have the power to trade stocks, forex, commodities and crypto-assets using a smartphone. Crypto-assets were not nearly as popular as they are now and public participation in stock/forex trading was moderate because many people remained skeptical about trading stocks.
Fast forward to 2021 and now it is literally impossible to keep up with the economic news. Currencies, commodities and cryptocurrencies are making global headlines numerous times every day, giving traders many opportunities to make money. Global advancement in technology has facilitated exponential growth in the economic markets sector. Brokers are now inviting customers to take charge of their investments by offering trading platforms.
What is a Trading Platform?
An electronic trading platform is a software that is provided by a broker and is designed to facilitate the buying and selling of financial instruments (stocks, currencies, commodities, crypto).
Through a trading platform, an investor should be able to:
- Monitor and analyze the performance of different companies and financial instruments.
- Deposit and withdraw funds for trading using different payment service providers.
- Access liquidity and sometimes leverage which is basically the power to buy or sell different assets along with their derivatives.
- Transact by opening and closing positions on stocks and other trading instruments.
As a trader, choosing a platform that will work for you is one of the first and most crucial steps towards becoming successful. It is hard to keep track of all the trading platforms that are available in the market now, not to mention the additional pressure of differentiating the legitimate service/platform providers from the scammers.
Choosing The Best Trading Platform
It might be an uphill task especially if you are a novice but you can make this easier on yourself by visiting TradingGuide.co.uk. Putting your hard earned money into the hands of rogue platform providers is never a good idea so remember to carefully carry out a background check. The following are things you need to consider before settling on a platform provider:
- Licensing – Is the broker licensed by the Financial Conduct Authority (FCA)? Choosing a platform provider that is licensed allows you to trust that your funds are safe because the broker is compelled by law to handle your funds according to the guidelines stipulated.
- Fees – Capital is the most important thing to a trader because without it, there is nothing to invest. Be wary of trading platforms that charge exorbitant fees in the form of commissions, spreads among other hidden transaction fees.
- Payment options – Select a trading platform that offers payment methods that are convenient for you. Brokers offer different channels of deposit and withdrawal such as credit/debit cards and mobile wallets like Skrill.
- Transaction specifications – Some brokers have a minimum deposit amount and maximum withdrawal amounts. Some even specify the minimum acceptable trade sizes.Ensure that you select a platform provider that will not frustrate you on this basis.
- Customer service – It is important to select a platform provider that is responsive to you in case you ever need any assistance from them.
- Ease of use – Different people prefer platforms that have different capabilities. If you are a newbie, choosing a trading platform that is easy to use is very important. A more experienced trader would most probably select a platform that has more to offer than the basics.
eToro is one of the most commonly used trading apps in the UK. This is because the app has a great user-friendly interface that is very intuitive especially for new traders. IG Markets is a household name that has leveraged on its experience to build an amazing trading app. With over 195,000 customers worldwide, IG Markets has one of the widest variety of markets to choose from.
The number of people who are trading using a mobile app is increasing and this has prompted platform providers to put more effort on this front. Trading apps have become very powerful as we have seen most recently in the GameStop short squeeze. Ultimately, only you know what you want from the trading app which. Investing is serious business so please take your time while evaluating if the app you have selected checks all your boxes.