As defined by the site Investopedia, trading is the exchange of goods and services between a buyer and a seller. This economic concept has been around for thousands of years already. Before, the common trading medium is any kind of commodity or physical goods. These include oil and precious metals such as gold. These days, money or currencies became the most popular trading medium. Stocks and shares in many companies are also popular trading options among investors.
Trading can be a lucrative business. Many individuals have successfully profited and grown their capital after years of investing on various trade options. Even so, the huge risk of losing much of your capital is almost as equal as doubling your capital after many transactions. If you’re a novice trader, you need to heed the warning and be extra careful especially when choosing the ideal trading platform.
What is an online trading platform anyway? Typically, online trading platforms are offered by brokers which traders and investors can use to invest on or buy and sell a specific trade medium or several options available. Online trading platforms allow traders and investors to monitor their accounts, their investments, as well as the current trends and status of the market. Many trading platforms were designed with features and tools that are easy to learn and navigate through as deemed by the brokers to be beneficial to the platform’s users. In addition, the features and tools available in a trading platform are tailor fit to the trade options that the platform was made for. Read more about that here.
What Do You Want to Trade?
Of course, this is the first question you should ask yourself when choosing a trading platform. The most popular goods to invest on and trade are forex, stocks, shares, cryptocurrencies, precious metals and more. It’s up to you to decide which among these you’d like to venture. But before choosing any from the list of the trade options available, make sure to read as many resources as possible about that particular market you are eyeing.
Once you have chosen the goods you want to trade, look up popular trading platforms that cater to these. Then, jot them down on the list.
Is this Trading Platform Registered and Regulated?
So, you have the list now? Great. The next step is to find out how legit it is. Steer clear from those platforms that are not authorised and regulated by the government’s financial authorities. Remember, there are countless of trading platforms to choose from that you don’t have any idea which to choose anymore. Among these countless options, scammers are lurking around, making promises of huge returns at a short span of time—promises that are too good to be true. And don’t be fooled by how they provide good-sounding reviews from their “users”. At times, they pay people to write something awesome about them or they write fake reviews themselves. Too bad for them, the reviews sound so scripted and monotonous that you’ll easily feel that only person has written all of them.
So, always check if the platform you wish to choose is constantly monitored by the government. Take note, even these platforms don’t guarantee a winning profit for everyone. What more do you expect from those downright scams? You can lose all of your capital!
Find Out What Other Long-time Traders Say
It is also important to find out what other traders, especially, those who have been around in the market for a long time, have to say about the platform. Say, you want to try a well-known trading platform such as Plus500. Read everything that people say about it. For sure, they have varying opinions that include both the advantages and the disadvantages. In a Plus500 review, you can read information about the tools and features it offers, the level of the site’s user-friendliness, possible risks, and if a demo account is available.
Also, don’t forget to do some research on the amount of costs that using a trading platform might incur, how much capital is needed for you to be able to make your first investment, and what is the quota of trades you need to make each month.
As what some might say about it, trading might be a scary business. Investments may grow big in a shorter span of time as compared to other investment options. However, huge risks are associated with it as well. So, if you plan to venture it, make the wise choice when it comes to the right trading platform.