First, Find The Right Online Trading Platform.
Youâ€™ve worked hard to earn your cash, the last thing you want to do is throw it away on a bad investment. One way you can avoid that is by picking the right trading platform from the outset one thatâ€™s simple to use, has low trading costs and provides all the tools you need to make well-informed investment decisions.
The good news is, thereâ€™s plenty of choice out there, but itâ€™s always a good idea to find a one-stop-shop solution that meets all your needs. So hereâ€™s a quick guide on what to look out for:
Get the right tools for the job
Being a financial expert is not necessarily essential for success at online trading; all you need isto do your research properly. Thisis why many trading sites offer a plethoraof guides, analytic tools, charts and notifications to help you make the best investment decisions. CMC Markets, for example, provides up to the minute market news and insights, market calendars and other useful insights which can be used to help predict the rise and fall of stocks CFD (Contracts For Difference) trading is one of the fastest growing forms of online investing among casual traders due to the low costs involved and these guys have all the info and help you need to get started.
Try before you buy
Every online trader, whether amateur or pro, has their own style and preferences when it comes to dealing, and every online platform is different too, with unique features that will appeal to different types of investors. Of course, the best way to find which is most suitable for you is to try them out. Most will let you sign up and trial the service without any financial commitment. Once youâ€™ve done that, you can take a look at the features offered to see which is best for your needs.
- Interface How easy is it to navigate and carry out trades?
- Tools When it comes to assessing risk and opportunity, or testing out strategies, what tools are there to help?
- Fees How much does it cost? Is there a monthly/quarterly fee? What are the fees for trading?
- What can you trade? Stocks and shares arenâ€™t the only options when it comes to online trading. Look for a site that offers others, such as CFDs, Forex, indices, etcâ€¦. Itâ€™s good to diversify and your needs may change in future.
- Trading flexibility and features Likewise, look at how much flexibility you have when it comes to placing trades. For example, can you add stop-losses?
- Research Market reports, analytical graphs and company stats can all help you make well-informed trading decisions.
- Customer care All platforms offer different levels of customer service. If you need to talk to someone on the phone, then make sure the platform you choose offers that option.
What sort of trader are you?
Of course, a lot of will come down to what sort of trader you are and how you expect your needs to grow. If youâ€™re just starting out, youâ€™ll be looking for an online trading platform thatâ€™s intuitive and can guide you through the basics of learning to trade.
However, if youâ€™re a veteran trader, you might be looking for something a little more complex with more options when it comes to making trades. The same will applies when it comes to fees. If youâ€™re doing a lot of trades regularly, then you might be prepared to pay extra for more services, whereas if you only make one or two trades per month, or less, you wonâ€™t be eager to fork out for a fixed monthly subscription.
Clearly, the best online trading platform for one person wonâ€™t be ideal for another. Everyone has different needs and trading styles, but just like when youâ€™re trading, if you put in the research now, youâ€™ll see the rewards in the long run.