Points to Consider When Choosing a Trading Platform
May 16, 2022 (Investorideas.com Newswire) Are you new to the world of online trading? Welcome aboard. However, before you start depositing and buying/selling, you need to pick the trading platform that is right for you. There is a wide choice of options out there, suited to all types of traders.
First things first, though. You need to be registered with a broker to operate on a platform. Trading brokers partner with trading platforms or introduce their own proprietary platforms to give their users access to the marketplace. Simply put, a trading platform is the means to connect between the traders and the markets, while the broker is the messenger.
That being said, it is essential to go for an optimal trading platform to enjoy a seamless trading experience. Here is a list of some things you should consider when selecting a trading platform.
Design and interface
A platform with a user-friendly interface is something you will probably notice right away, and it is key for the rest of your trading journey. You do not want to find yourself overwhelmed by the complex features and tabs on the trading system when you have to make decisions under pressure. Hence, you should look for a platform with extensive services and all the necessary tools but with a simple, easy-to-use design.
Available trading and analysis tools
To perform technical analysis effectively, you should select a platform that integrates all the standard analytical tools, drawing tools, graphical objects, and technical indicators that are common and widely used. The availability of multiple trading tools and varied chart designs on a trading platform can help you better study the markets according to your trading strategy. However, don't look for a solution that includes every tool that was ever invented, because that doesn't exist.
Additional features and services
Besides the basic functionalities a platform provides, some additional services can further refine your trading. To achieve productive results, you can look for a platform with diverse asset classes, news feeds, an economic calendar, trading community, market depth charts, educational information, or other features which can certainly serve as a surplus.
Some platforms like MetaTrader 5 also offer algorithmic trading via trading bots or EAs. easyMarkets, the well-known trading provider, recently announced the addition of MT5 to its platform offering. easyMarkets provides variable spreads to its MT5 user base and leverage of up to 500:1 (Note: European and Australian clients are not provided with this high leverage).
With the easyMarkets version of MT5, traders can take full advantage of the platform's components with no hidden fees or charges. Additionally, traders can create their own customized indicators, back-test their strategies, and register with VPS.
Several brokers charge trading fees or commissions on every trade. You can select a platform with minimal fees or reasonable spreads to minimize these costs. However, this decision depends entirely on your preferences or trading capital and how much you can afford to pay in fees. Note that high or low fees do not guarantee a platform's high-quality performance.
Stability and execution speed
An unstable performance by the platform, such as hanging orders or delayed market quotes, can adversely impact your trading routine. Therefore, you should ensure a platform's stability, check its order execution speeds and analyze the frequency of live-market data updates before going for it.
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