Beginners Guide: How to Choose Online Forex Trading Platform?
The stock market continues to be popular since more and more investors are using trading as an option to achieve higher returns. Another fact is that the economy is recovering causing share prices to go up. To leverage this, why not invest in stocks and securities products? However, a note to mention, is that there are risks associated with stock investing, and investors should be aware of them.
With the advent of new technology, there has been a significant increase in online trading platforms. With user-friendly interfaces and quick trading mechanisms, online trading platforms are very popular among investors.
While it is impossible to predict investment results with absolute certainty, you may position yourself for success by choosing the right and regulated broker that best meets your requirements. In addition, if you want to be successful with your investing, it’s important to use a forex trading platform that is tailored to your specific needs. This could include things like your investment goals, educational background, and preferred learning style. For new investors, finding the right online stock broker can be a key factor in success or failure.
Therefore, how can you pick the best online forex trading platform for you? Let us understand the meaning of trading platforms and follow through with the steps to help you select your ideal trading platform as a beginner trader. You should read on to know how to find the best fit for you.
What is a Forex Trading Platform?
An online forex trading platform is a software user interface that forex brokers offer to their clients so they can access the forex markets as traders. This could be a standalone downloadable software, a mobile app, an online, web-based portal, or any combination of the three.
A trader can do the following with online trading platforms:
- Place deals from anywhere in the world (with an active internet connection).
- Watch a number of trades simultaneously.
- Increase your investing control.
- Watch Portfolio easily on a laptop or smartphone.
Guide To Choosing the Best Online Trading Platform For You
Step 1: Understand Your Needs
Focus on what matters most to you in a trading platform before you start your hunt for a suitable online trading platform for you. Depending on your financial objectives and where you are on the learning curve, the answer will vary slightly.
If you’re just getting started, you might give priority to features like fundamental educational materials, thorough glossaries, simple access to support personnel, and the capacity to execute demo trades before you start investing real money.
On the other hand, you could desire more advanced education, opinion-based resources written by seasoned investors and analysts, as well as a good range of fundamental and technical data if you already have some financial expertise but want to move forward in the journey.
Questions to ask yourself to understand your needs:
Are You an Active or Passive Investor? What kind of securities are your concern? Stocks, mutual funds, ETFs? Are you trying to supplement your regular income to improve your current standard of living or Do you intend for this to eventually become your primary income source?
Step 2: Filter Down the Field
It’s time to narrow down your alternatives a bit now that you are clear on your investing objectives and the fundamental services your ideal brokerage should offer. While certain investors will value various brokerage features more than others, there are a few things that each reliable online brokerage should have. What is the guarantee of protection against fraud? What is current customers’ feedback? License & certifications to find a regulated broker? — checking off these fundamental requirements is a terrific approach to swiftly restrict the field when there are so many possibilities available.
Step 3: Enquire the Fees
You could be charged these fees for every transaction involving securities. Thankfully, the majority of online brokers provide a low to no commission structure to trade on stocks and ETFs, but you might have to pay commissions if you want to purchase or sell options. Simply put, consider the securities you’re most likely to invest in, then choose a broker with reasonable commissions in that market.
Step 4: Test the Broker’s Platform
While all forex/currency trading platforms should have a description of what tools and resources they offer, sometimes the best way to assess platform quality is to try it out. If you want to use a broker’s trading platform, it may be worth signing up for free to get access to it.
Questions to ask yourself to understand your needs:
Is MetaTrader 4 or MetaTrader 5 available with your platform? Can you exercise control over order timing and execution of trades? Are quotes in real-time or are they streaming?
Step 5: Check for Online Trading Platform’s Educational Tools
If you’re new to investing, it may be helpful to look for a brokerage that offers free educational resources, such as live webinars, thorough how-to guides, video tutorials, glossaries, and more.
If you’re interested in learning more about advanced trading strategies, be sure to research how well the broker supports its clients in helping them understand the risks of such strategies. This may be information on how to use investment products responsibly, or guidance from an on-call customer support team.
Step 6: Depositing and Withdrawal Methods
If you’re investing to supplement your regular income, it’s important to know how easy it is to move money in and out of your brokerage account. If you are looking to use a more specific strategy and forget about it, the ability to withdraw funds may not be a big concern, however, life often throws us things that we do not expect, so it is wise to review the deposit and withdrawal terms.
Step 7: Rich Customer Service
No one enjoys having to reach out to customer support, but when they need to, it’s nice to be able to get a hold of someone quickly. Some online brokers offer support via phone or live chat most of the day, while others have difficulty getting in touch. Some of the newer online brokers have received complaints related to customer service, so be sure to find out how to get an account to help you when choosing a broker.
Questions to ask yourself to understand your needs: Is there a dedicated number you can call? Is it 24/7 and multilingual support? Does the website have an option for immediate assistance, like an online chat?
