A trading platform is a network-based marketplace that provides users with unlimited functionality to place trades, browse catalogs of financial instruments, and monitor accounts through financial institutions outside of brokerage community banking.
In most cases, trading platforms are equipped with a combination of additional features, such as premium research information, real-time rates, news feeds or charting tools, to facilitate the availability of real-time trading information and to ensure transparent trading between traders. It can be trading currencies, cryptocurrencies, metals or even stocks of large companies (Tesla, Apple, Pfizer, Amazon, Microsoft…).
Trading platforms such as Avatradealgerie are also designed to meet the specific needs of certain markets such as currencies, stocks, commodities and indices and options with confidence. By offering capabilities tailored to each market structure, these platforms provide greater choice in how to execute and manage trades.
Types of trading platforms
There are two types of trading platforms: so-called prop (proprietary) platforms and commercial trading platforms.
In the case of prop trading platforms, the applications are designed by major brokerage firms and mimic the trading style and requirements of electronic brokerage models.
Trading platforms, on the other hand, are aimed at retail investors and intraday speculators. These platforms are easy to use and come with useful features such as charts and news feeds to make it easier to find and offer more relevant information to investors and traders.
Active trading requires many trading tools and techniques to spot trends. Choosing an ideal trading platform requires hands-on experience in active trading.
How to choose a trading platform in Algeria?
When considering the choice of a crypto trading or trading platform, an Algerian investor should consider both the underlying features and the fees required. This is important because different types of traders need different features to make trading decisions.
For example, features like market depth charts and level 2 rates are essential for day traders and other short-term traders. Conversely, tools specifically designed to visualize options strategies are useful for options traders.
When it comes to fees as a selection criterion, most traders prefer cheap trading platforms. This is the case for a trader who adopts a scalping trading strategy (small steps). Although a lower fee is generally preferable, there are usually trade-offs in the offer to consider. For example, a trading platform that charges a lower price but offers only a few features and limited research may not be beneficial.
Other ways to evaluate and compare different platforms are to look at different mechanisms such as customer ratings and reviews; however, it must be kept in mind that not all evaluators can be free of bias or be independent.
Other trading platform requirements
Some trading platforms are only available when specific brokers are involved, while others may be skeptical of certain intermediaries. Thus, the reputation of a broker or intermediary is a factor to consider before choosing a particular platform.
In other cases, trading platforms may require traders to meet certain eligibility requirements before using them. A typical example is the minimum $25,000 in equity that intraday trading platforms require traders to have available in their accounts. Options trading platforms may require traders to use their platforms with permission to trade various classes of options.