Por a neophyte trader, choosing the right trading platform involves proper understanding of these three features to choose the one that best suits your trading profile. Trading platforms are rapidly becoming more popular and allow individuals to enter the world of trading stocks, cryptocurrencies and other currencies with just a few clicks. Nevertheless, it is better to go through a platform that allows you to learn this activity for free, before acting “for real”, without betting your money, at least to start.
What is trade?
Trading consists of buying financial securities such as stocks, currencies, etc., with the aim of reselling them at a higher price in the shortest possible time.
What is a trading platform?
A trading platform like Avatrade is a virtual space dedicated to securities trading and where the trader will be able to interact with the financial markets using all the relevant tools. To know :
- the GUI
- The interface for order entry
- Information News Feeds*
*If you risk yourself on the wrong platform, you risk not being able to sort the good from the bad information in the markets and make dangerous decisions for the success of your trades.
What is a good trading platform?
The basics that a beginner should have are:
The option to register simply and quickly. Some brokers actually use complicated language that you won’t necessarily understand from the start. Here it is a matter of choosing from the start a platform that has proven itself (for example, of the metatrader type) and that allows you to go directly to the securities you want to trade and so on. .. Better is worth choosing a platform that dusts off the trading world right from the start and explains to you, step by step, in an intuitive way, the steps to follow.
The essential role of access to information
An online trading platform should be able to provide you with all of those technical and basic information related to trade in one place.
To do this, you need to be able to access real-time information such as:
- profit per stock
- the dividend rate
- balance sheet and income statement
Dealing with emotions
We probably don’t say it enough, but a bad trading platform can affect your stress. On the other hand, if you use a good platform, you will de facto be more intellectually agile because you will have confidence in your tools and your interfaces. The quality of the broker can really make the difference.
Pitfalls to avoid
It is better to take some time and do some research before you start trading CFD or cryptocurrency. Check the site’s reputation and reliability in advance via recent and well-argued customer feedback.
You will definitely need to choose a platform that is well established and can present an official license with all the approvals of the French financial authorities. Make sure that the trading platform is under the auspices of a recognized financial authority and that it has a solid and documented security system.
Finally, a good platform worthy of the name should be able to allow you to practice for free before getting into serious things with money genuine…
Trading platform fees
Brokerage fees are one of the most important elements. In fact, if you use the scalping technique, for example, it is better to choose a cheap platform. Actually, everything will depend on your dealer profile. In other words, to be successful with your strategy, you will need to identify the functionalities that you absolutely need to minimize the cost of your trades as much as possible. Conversely, if you hold your positions for the long term, the “cost factor” will be less important and other features will be preferable in this case.
Avatrade, a platform with a solid reputation
The Avatrade platform is undoubtedly one of the best platforms currently available on the market thanks to its open architecture formula. In fact, Avatrade offers three trading platforms:
- The Web Trader application (limited in terms of features)
- Meta Trader 4, in downloadable version and in web version (one of the most used and popular trading software by Forex traders). MetaTrader 4 (MT4) is also excellent technical analysis software that provides a wide range of Forex technical indicators and other analysis tools. moreover, with MetaTrader 4 we can add oscillators and many tools for CFDs.
- Meta Trader 5, available in downloadable version and in version 2.0, dedicated to all markets (stocks, cryptos, indices and commodities). The main difference between MetaTrader 4 (MT4) and MetaTrader 5 (MT5) is that MT5 is not only a Forex and CFD trading platform, but also a stock trading platform.
So many tools that the trading platform makes available to you that can affect your ability to execute your orders. By using a bad platform, the biggest risk will be that you will not be able to execute your trades on time and therefore record subsequent losses.
Article written by Bertrand Dubourg, consultant for AvaTrade.