Financial Services

Trading Platforms: What Every Beginner Should Know

Trading Platforms: What Every Beginner Should Know

A trading platform is a software used for trading – this includes the opening, closing, and managing market positions through a financial intermediary such as an online broker.

Online trading platforms are frequently offered by brokers either for free or at a discount rate in exchange for keeping a funded account and making a specified number of trades per month.

The best trading platform for beginners offers three essential benefits:

  • It is easy to use.
  • It provides a variety of educational materials to encourage learning.
  • It includes access to quality stock market research.

That being said, here’s what every beginner should know about trading platforms

Basics of Trading Platform

A trading platform enables traders to place trades and monitor accounts through financial intermediaries. Trading platforms have other features such as real-time quotes, charting tools, news feeds, and even premium research. Platforms may also be specifically tailored to specific markets, such as stocks, currencies, options, or futures markets.

There are Two Types of Trading Platforms:

  • prop platforms
  • commercial platforms.

Commercial platforms: are targeted at day traders and retail investors. They are characterized by ease of use and an assortment of helpful features, such as news feeds and charts, for investor education and research.

Prop platforms: are customized platforms developed by large brokerages to suit their specific requirements and trading style.

Traders use a variety of different trading platforms depending on their trading style and volume.

Picking a Platform

When deciding between trading platforms, beginners should consider both the fees involved and the features available. 

For instance, Day traders and other short-term traders may require features like Level 2 quotes and market maker depth charts to assist in decision-making, while Options traders may need tools that are specifically designed to visualize options strategies.

Another important consideration while choosing trading platforms is commission fees. Naturally, traders who employ scalping as a trading strategy will gravitate towards platforms with low fees. Lower fees in general are always preferable, but there may be sacrifices to consider. For instance, low fees may not be advantageous if they translate to fewer features and informational research.

Every beginner should also consider the reputation of the intermediary or broker before committing to a specific trading platform to execute trades and manage their accounts.

Finally, most trading platforms have specific requirements to qualify for their use. For instance, day trading platforms may require that traders have at least $20,000 in equity in their accounts and be approved for margin trading, while options platforms may require approval to trade various types of options before being able to use the trading platform.

Popular Trading Platforms

There are different trading platforms available, but our focus will be on these four popular options:

Bitcoin Revolution App Trading

Trading has been around for a long time. In this form of trading, you are not taking possession of the assets you choose to invest in. Instead, you are simply making predictions regarding the direction that the price of an asset will move. In this case, you can make profits even when the price of an asset is moving down.

So, why should the Bitcoin Revolution app be your first choice?

The fact is, trading is highly speculative which means that risks do exist. The app does not guarantee you success on every trade you enter into. Instead, they offer you software that takes into account historical market data and uses technical indicators in its market analysis. Immense attention to detail has been placed on the software’s ability to carry out data-driven analysis accurately and in real-time and allow you trade by bitcoin revolution login.

eToro

This trading platform is really simple to use, and it supports small stakes. The minimum deposit is just $200 and you trade from $25 upwards. In terms of what assets, you can trade, eToro supports several asset classes. This covers 2,400 stocks across 17 different markets. You can as well buy shares in companies based in the US, Canada, UK, Hong Kong, and heaps of European exchanges.

eToro also gives you access to over 250 ETFs and 16 cryptocurrencies. Their commodity trading platform supports everything from gold and silver to oil and natural gas. Every financial market at eToro can be traded on a commission-free basis,you don’t need to pay any ongoing fees either. This is a trading platform for those seeking a low-cost provider.

Pros:

  • Super user-friendly trading platform
  • Buy stocks without paying any commission or share dealing charges
  • 2,400+ stocks and 250+ ETFs listed on 17 international markets
  • Trade cryptocurrencies, commodities, and forex
  • Deposit funds with a debit/credit card, e-wallet, or bank account
  • Ability to copy the trades of other users
  • Regulated by the FCA, CySEC, ASIC and registered with FINRA

TD Ameritrade

TD Ameritrade is a popular broker for traders, TD Ameritrade is a US brokerage powerhouse that has been active since 1975.

TD Ameritrade offers thousands of shares across both US and international marketplaces. This also includes newly launched IPOs,and access to the US bond market, alongside retirement-based financial products like annuities and tax-efficient portfolios.

TD Ameritrade also offers a day trading platform. This includes everything from forex and cryptocurrencies to commodities and futures.

They charge no commission – if you are looking to focus on either stocks or ETFs.

TD Ameritrade is regulated by all relevant bodies in the US – so you should have no concerns regarding the safety of your money.

Pros

  • Great mobile app
  • Wide selection of investment options
  • Solid customer support
  • No minimum trading fee

Robinhood

Robinhood is a commission-free trading platform that started as a mobile app, and now has a web interface as well.

Similar to eToro, Robinhood allows you to buy stocks on a commission-free basis. In total, the platform offers more than 5,000 stocks – most of which are US-listed. This covers both primary exchanges – the NYSE and NASDAQ.

Robinhood also offers up to 250 non-US stocks. There is no minimum deposit fee at Robinhood, which is great if you want to start small.

As a US-based broker, Robinhood is heavily regulated. This includes the authorization from both FINRA and the SEC.

Pros:

  • Zero commission stocks
  • ETFs and crypto
  • Excellent mobile trading app

Interactive Brokers

Interactive Brokers is the most popular trading platform for professionals with low fees and access to markets around the world.

This brokerage firm has been offering trading services since the 1970s, and they are arguably the best platform to trade as a seasoned investor.

The platform has a lot of advanced trading tools and features. This covers valuable resources for performing both fundamental and technical research. In terms of assets, this top-notch trading platform covers thousands of financial instruments including 135 markets in over 33 countries.

Pros:

  • Offers low-commission CFD and Forex trading
  • Exposure to 78 different stock markets
  • No minimum deposit required

Is Online Trading Safe?

Online trading is safe if you use a regulated online stock broker and never invest more than you are willing to lose. Trading stocks online is inherently risky. Start with a small amount of money, read investing books, and keep it simple by buying and holding for the long term instead of trying to time the market.

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.