5 Things Investors Should Consider Before Choosing a Trading Platform
Many new traders seek information on how to trade online and overlook the first major decision they will ever make. Learning how to use different trading tools is important but you will only succeed if you trade on the right platform. Remember that you are making a major financial commitment with the expectation of good returns. Here is a guide on how to pick the best trading platform.
1. Access to Trading Information
A good trading platform provides all the information you need to make timely decisions. The platform should have information on all securities and their key data including the dividend yield, price-earnings ratio, and earning per share among others. You will also need live market updates to make quick and sound decisions. Some websites will provide important resources such as step by step guides to using some of the most successful trading platforms, for example, this ZuluTrade guide goes through the characteristics of the platform in detail, as well as how to set up an account.
2. Accessibility on Different Devices
Another important aspect is your ability to access the platform on different platforms. You should enjoy the same convenience when you switch from your computer to your mobile device. Try accessing the platform from all your devices before you open an account. Check if all the pages are responsive and that all tools are available on all devices. If you pick the right platform, you can trade from any location with a reliable internet connection.
3. Trading Tools
Trading platforms differ in terms of the available trading tools. Some of the basic trading tools to look out for include Stop Loss and Good Till Date. If you are a new trader, you need a basic guide on how to use these and other tools on the platform. Some online platforms offer SMS notifications when your securities change. You can also get alerts on your mobile device whenever a suitable stock or security is available in the market. Go for a platform with trading tools that make your investment journey easier and enjoyable.
4. Fees and Charges
As part of their marketing strategies, online trading platforms do not talk about banking charges and other fees until you sign up. The cost of services and banking transactions affect your profits. You are likely to make low profits at the beginning as you learn the trade. You could end up with a loss even after making the right move if the charges and fees are high. The benefits that an online platform advertises may be a disguise for the high transaction charges. Check this information before opening an account to ensure that you get value for your money.