Focus on online trading

Unlike an online broker which allows its customers to subscribe to basic financial products, such as access to equity markets, ETFs on securities account or through the tax envelope of the PEA, a trading platform most of the time offers access to derivative products with leverage.




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Trading platforms for active management in the markets

On a trading platform it is possible to subscribe to crypto-currencies (bitcoin, ethereum, solana, avalanche, etc.). The trading platform is primarily aimed at novice traders who have a certain amount of time to devote to managing their money.

Indeed, the amateur trader opens short positions (often intraday).

Trading platforms most often offer:

  • flows of stock market indicators

  • technical analysis tools (Japanese candlesticks, Bollinger bands, resistance analysis, etc.)

To get started in online trading, it is important to train beforehand, in order to fully understand how the markets work, knowing that they can be extremely different, depending on whether you are trading commodities, CFDs or currencies in Forex.

Trading sites are not aimed at the same investor profiles as an online broker such as Boursorama or Bourse Directe. Here, the objectives are different. Brokers favor investment over a more or less long horizon when digital trading platforms emphasize short-term speculation.

The 2 main trading platforms

Metatrader 4

MT4 (Metatrader 4) is undoubtedly one of the most used trading platforms by stock market investors and online brokers specializing in Forex and CFDs.

Metatrader 4 is available in version:

The MT4 platform offers a pleasant environment to use for amateur traders, thanks to a simple interface in terms of handling.

Created in 2005 to replace the Metatrader 3 platform, the MT4 platform has evolved considerably over the past few years.

The MT4 platform is free and is a pioneer in technical analysis. It remains a trading platform highly appreciated by independents, in particular for its reliability and the many tools available online.

Metatrader 5

The MT5 (Metatrader 5) platform is of more recent design. Indeed, it was founded in 2010 to replace the MT4 platform.

However, the company Metaquote has chosen to develop the two platforms in parallel with almost similar languages. The only difference between MT4 and MT5 lies mainly in the back office and the intrinsic infrastructure of the platforms.

Whether the trading platform Metatrader 4 was initially designed for Forex and CFD trading, the Metatrader 5 platform is more used by stock or futures traders.

Select your trading platform carefully

Here are 5 recommendations for choosing the right trading platform on line:

Fair pricing

Each trade will cost you money. These fees will inflate the final cost of your unwound or open positions and will have a direct impact on your potential profits.

On a trading platform, prices are mainly based on the spread. That is, the delta between the buying price and the selling price of a product. The spread corresponds to the Broker’s commission, ie the fees charged to place the order. The spread is generally specific to each derivative product.

Ease of access

Every trader is different. There are as many forms of trades as there are traders. To effectively meet the needs of speculative investors, platforms must offer good accessibility tools to be able to position themselves effectively on the markets.

It is therefore strongly advised to opt for a platform that blends with your trading style. This is to make it easier for you to trade assets online, wherever you are in the world.

Access to information

Information is the sinews of war when it comes to trading. A online platform must therefore provide you with all the relevant information in a single place with access to relevant technical and fundamental information. One of the most listed on the market today is that of AvaTrade, www.avatrade.fr, which has an excellent watch on all the financial markets.

The amateur trader must be able to analyze a company at a glance, thanks to:

Trading tools

A good platform must provide you with, for example, tools like:

  1. The Stop Loss which stops a trade as soon as the share price falls below a pre-established level.

  2. The Good Till Date which mentions your preferred expiry date, etc.

Connectivity

A trading platform must be able to offer you excellent connectivity around the world, especially if you trade on foreign markets, such as the NASDAQ or the London Stock Exchange.

In summary, using the services of a trading platform certified by the AMF (financial market authority), recognized by international governmental banking institutions (regulation rates) is highly beneficial to traders who wish to develop their brokerage operations, whatever or the targeted assets. The chosen trading platform, or online broker, offers investors opportunities to trade on the majority of the planet’s financial markets as well as on the most representative stock exchanges of the international economic ecosystem in real time and without intermediaries. The advantage of the platforms also lies in the provision to their users of a multitude of functionalities and tools (much of which are free to access as on the AvaTrade platform) which are essential to fully understand the strategies. to apply, depending on the targeted assets (leverage, use of CFDs, short or long positions, scalping, medium or long-term investment, etc.). The use of trading platforms has expanded, there are currently more than 29 million traders worldwide using their services. The connectivity of these online brokers and their great responsiveness make them privileged players for a market representing more than 6,600 billion dollar transactions carried out per day, all assets combined.

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