Trading: 7 Tips for Finding a Trusted Site

Article submitted by Avatrade

The trading world regularly welcomes new investors. With the development of communication tools and the Internet, the activity is demystified and more democratized. Today, from your computer, you can access financial markets located almost anywhere on the planet. To do this, you need the services of a broker or broker. It offers a trading platform and thus plays the role of an intermediary between the markets and the traders. There are many trading sites available. Here are 7 tips for finding a reliable trading site.

Consider security at the point of sale

Trade involves the investment of capital. A reliable website is one that guarantees the safety of your money. We recommend that you choose a site that backs up user funds to accounts in Europe. Make sure these are indeed segregated accounts (accounts not affected by the broker’s balance). With these accounts, protection of funds is guaranteed even when the broker goes bankrupt.

“A reliable site is one that guarantees the safety of your money. We recommend that you choose a site that saves user funds for accounts in Europe.”

Online trading requires the use of your personal data. The preferred websites are those that offer guarantees regarding user data protection. Remember to inform yourself about this on each of the pages that interest you. Most of the time trading venues approved by the competent bodies meet the security criterion.

Make sure the trading side is regulated

If you want to shop online, make sure you choose a site dedicated to this, that is, a site designed for this purpose and regulated. In reality, a trading platform works thanks to software that must have given characteristics. A reliable trading site is necessarily regulated, which proves that its software meets the requirements in this area. We advise you to shop on a dedicated website, approved in Europe by the competent authorities. These include the AMF (Financial Markets Authority) and the FCA (Financial Conduct Authority).

“A trading platform works thanks to software that must have given properties. A trusted trading venue is necessarily regulated, which proves that its software meets the requirements in this area.”

To ensure that an online trading platform is regulated, do not rely on the information on the website at this point. Go to the Regafi website (Register of Financial Agents) and find out if the company or broker offering the trading site is authorized to operate in France. In addition, the AMF publishes from time to time on its website blacklists of companies and pages that are not authorized. Do not hesitate to consult these lists to know the sites to avoid.

Check the availability of the website and information

A reliable trading site is one that you can easily access. Likewise, the platform must give you the opportunity to get real information about trading. The concept of website accessibility requires ergonomics and the supports that make it possible to use it. Before opening an account on a trading site, explore it to assess the smoothness of the interface.

Check if the site is easy to use and if you can access it from all possible devices (desktop, laptop, tablet and mobile). One of the advantages of online trading is that it makes trading on the go possible. Mobile-friendly pages are therefore the best options. Some also offer applications whose functions make operation even easier.

“Check if the site is easy to use and if you can access it from all possible terminals”

Regarding the availability of information, this is a criterion that you should pay attention to, especially if you are new to trading. Give preference to sites that provide resources to help the user master trading. On these platforms, the basic concepts are detailed, the market operation is revealed, advice is given by specialists, etc. Some trading sites also offer training for all profiles.

Be aware of brokerage fees

The use of a trading site is of course not free. It is subject to brokerage fees, which vary from broker to broker. They are taken from the trader’s account for each transaction on a financial market. Brokerage fees are calculated by brokers based on factors such as volume and frequency of transactions. The markets in which transactions are made also affect these fees.

“Broker fees are calculated by brokers based on factors such as volume and frequency of transactions”

Generally, brokerage fees correspond to a certain percentage of the amount of each order. Some brokers offer to be paid as a flat rate. In France, commission is around 1% including tax (All taxes included). Trusted trading sites stand out for their transparency. The brokers who maintain these sites provide full details of the fees they charge to traders’ accounts. To find one, make comparisons. You can use a comparator of trading sites for this.

Be aware of available stock markets

The reliability of a trading venue is judged in part by its scope. A reliable platform must provide access to important local, regional and international markets. There are several financial markets where you can trade online. In particular, we have the markets of France, Switzerland, Forex, Euronext, NASDAQ, New York Stock Market, London Stock Exchange, etc. Depending on the products targeted for your transactions (CFDs, currencies, commodities, etc.), you can choose one or another stock market and even several.

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Consider the availability of a free trial account

Trading is learned. After any theoretical training, it is ideal to put yourself into practice without taking the risk of losing money. This is why many trading brokers allow traders create demo accounts on their websites or demonstration. This benefit is offered on all sites that want to be reliable. In general, all trading platforms regulated by competent institutions offer free trial account creation to traders.

Prioritize a trading location with accessible customer service

To find a reliable website for online trading, we advise you to pay attention to customer service. On any site of this type, a staff must be attentive and available to users. Customer service support of an online trading platform is sometimes crucial for the trader. We advise you to choose a website whose customer service is operational 7 days a day ideally or, if not, 6 days a week and this 24 hours a day.

Finally, remember that CFDs are complex instruments with a significant risk of losing money due to leverage. Before using them, make sure you understand how they work.

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