The stock market has received extreme popularity these days. More individuals opted to invest in the stock market in high hopes of higher profit and returns. But, investing online is not for the faint of heart. As an investor, you have to accept all the risks that come with investing, but, once you have found yourself a perfect platform, then you are in for a real treat! You can eventually save more.
Since you have decided to invest your shares for better earnings, then at the very least, find out what is in store in it for you. Being a beginner, your initial stepping stone is to find a desired broker by taking into consideration stock, shares, and Forex.
It may sound easy, nonetheless selecting a topmost trading platform poses a challenge. It will demand so much of your time and energy. Remember, usually, investors pay a larger amount of trade commission although they have released a lesser amount.
Finding the finest platform can cause stress or anxiety. No need to worry, because this page welcomes you with arms wide-open, to teach you superbly the right manner in picking the platform that suits you most. This will be your guide in picking up the platform that can help you achieve monetary gains beyond your expectations. You will be guided in discovering criteria in analyzing an appropriate platform, including some tips and takeaways.
How to Pick a Trading Platform?
1. What works for others might not work for you. Do not duplicate, replicate, or imitate other people’s actions. You may find inspiration from them, but do not expect that what happens to others will exactly be what will be happening to you. Never select a platform just because other people have recommended it. Instead, pick something that will match your expectations, including your particular needs. You must be wise at analyzing information. So consult your broker, reflect on the broker’s familiarity or expertise, and agree on a platform suited for you.
2. Pick a platform that is comfy for you. Be vigilant and keen on choosing. It should be convenient, not burdensome to use since you shall be working with it every day. Its functions and add-ons must be accessible, comprehensible, and stress-free. So, discover a platform that has an interface that is friendly to users.
3. Find a platform having functional yet simple features. It must be responsive in any given situation. All additional features might be useless later on. So choose functionality over complexity. But if shortly, you plan to give it an upgrade, you can still pursue it anytime. After mastering the skill of investing and having decided that you will utilize the platform’s features in the present, then a complex platform suits you most. But, as a novice, you might start small. Take things slowly and begin with something more basic, simple, eventually, you will absorb the knowhow fast. Track and see your progress in no time.
4. Consider a platform with speedy, constant, and steady performance. As a beginner, aside from simplicity, you must examine a platform’s stability and performance. That is why you must make sure that your platform matches your software. This is very crucial.
5. Is your team supportive? You and your broker must be able to use the platform. Preferably, your broker must be an expert at using it. Both of you, including your teammates, must be skilled at working with the platform. If they like it too, then you are prepared to take a brand new trading platform.
Things to Consider in Selecting a Trading Platform
- Is the platform user-friendly?
This will ensure that it can efficiently and effectively work without getting you confused. More than how many features there are, it’s about how convenient they are to use. Typically, it’s the first impression that will dictate whether or not the platform works with you.
Since you are a beginner, fight the urge to have a platform with the most complicated-looking interface. It will not make sense to you, instead, it will make things harder for you. The platform should contain options and buttons that are understandable enough since that would save you much time. In examining the platform, check the graphics, too. A good-looking platform will motivate you as you move forward.
- Is the Commission Preferable?
In deciding on an online platform, remember to consult brokers. Typically, it’s the broker’s job to provide instructions, especially on investment menus. Meanwhile, tenured brokers usually propose your admission to Forex/future trending.
So, your broker’s venture shall determine the following choices: the commission rate, and what content you shall have.
- What’s the Minimum Investment?
Take a closer look at some experienced and top-rated brokers without any account minimum; for instance, Merril Edge, TD Ameritrade, Ally invests. These brokers landed the best brokers’ online list.
Yet, some brokers will require a minimum investment as they start and they may pay $500, even more. Several Canadian mutual funds demand a minimum investment.
This will give you an idea that once you have decided to open a brokerage account using your money, then you have to brace yourself for the challenge. It might be difficult for you to last in this field. Know that a lot of beginners can’t grow their $500 to become $1k.
- How much is the fee for your broker?
As a beginner in trading, the role your broker plays is undeniable. Therefore, you simply should not forget the broker’s fee. But to survive, keep that specific fee at its bare minimum.
Be mindful of all your transactions. Once you decide to transfer to another broker, be sure to have enough knowledge of the new company. Conduct some research before you make big decisions. Regardless of what company you transfer, the broker’s fees are impossible to evade. But you can minimize it by opting for an extra service.
- Do you have trading needs and style preferences?
As beginners, this might be your first time investing. So you do not necessarily have to pay extra fees like advanced trading. But still, you have to familiarize yourself with the online market. Watch a lot of video tutorials from several trusted websites. Those will give you a comprehensive explanation.
There are plenty of brokers who can give sufficient information or explanation to their customers through video tutorials.
Some Takeaways:
- What else to look into?
The things to consider in picking out a platform were enumerated. But aside from those on the list, you must ask the following: is the platform licensed? Are the conditions of trade satisfactory? Are the funds safe? Is the platform reliable? To answer these questions, check on the broker’s website. Read reviews about the trading platform. All the opinions of other customers could help you come up with a solid and wide judgment.
- Are the topmost platforms those with the best offers?
Do not easily be misled. When a platform has so many offers, be cautious. Be suspicious when the offerings are too-good-to-be-true. Ask yourself if profits will still be possible to gain if the offerings are too many. Apply your instinct. Think critically as you decide. Examine the platforms by referring to the list above to see if which of those platforms can yield satisfactory results; whether or not they are honest with their offerings. Because for some, business is business. Some traps are disguised as offerings.
