So, you have finally decided to bite the bullet and try to do something with your money other than earning nearly zero in a bank account. If you live in Europe, you can have the privilege of lending your money to the German Government and receive less than you gave them back in 10-years due to negative interest rates. You know that a trading platform is important to your success, and that if you are patient you can find the one that fits like a glove.
Many trading platforms are similar, but it is differences that will help you increase your likelihood of achieving success. Nearly all platforms provide you with the ability to trade a financial instrument. Buying and selling are relatively standard. It’s the nuances that you should look at before you hand over your capital.
First of all, you should look to see if the platform you are interested in has been reviewed by other traders. Be careful of many of these online reviews, as a broker will write many of these on their own. Look to see if there are any negative, such as customer service or not returning money when you ask to redeem your cash. If you cannot easily get in touch with a broker, you will become frustrated very quickly and this will take away from your focus on trading.
The products that a broker offers is very important. Many brokers will focus on either forex or stocks, or just indices. If you know you will only focus on a specific type of instrument, then a broker that has a trading platform that specializes is okay. On the other hand, if you are looking for a wide variety of instruments which will provide you with opportunity, then find a platform that offers a plethora of instruments. Here, you will also need to be careful of the brokers ability to offer tight bid/offer spreads. If the broker only really focusses on forex but also offers stock indices, the spread they provide on indices could be wide which will erode your ability to turn a profit. Remember, the bid is the price where the broker is willing to buy a security while the offer is the price where the broker is willing to sell a security.
A trader can learn something new every day. Finding a trading platform that offers an education section is very helpful (Iforex trading platform for example) . The key is to read a lot of opinions in an effort to formulate your own view. Sure, you might find someone who you really like, but it’s very important to hear what a lot of people are thinking.
Platforms that offer robust technical analysis tools are also very helpful. The easy of which you can draw trend lines or insert studies will entice you to use their tools more and more. Some platforms even offer back-testing tools which allow you to test your strategy on historical data to see if it worked at some period in the past.
The process of finding the trading platform that fits your needs takes time and effort. Many people rush the process and eventually find out that the platform you have chosen is not for you. If you take the time to find the right trading platform, you will be able to concentrate on your strategy and produce robust returns.