Comparing Online Trading Platforms: How to Choose the Best Platform for Your Needs

Introduction

Are you planning to purchase shares of stocks from leading companies across the world? If yes, you’ll need to open a trading account with your favourite brokerage.

Brokers execute trades and provide essential tools that help make rewarding investing decisions. If you use these tools in your decision-making process, you can save significant amounts of pounds in terms of asset management fees.

Each online trading platform is unique. Currently, with all online trading platforms offering exchange-traded funds (ETF) trades and £0 stock, picking one that is a perfect match for you isn’t an easy task.

Luckily, this guide has simplified everything regarding the factors to consider when picking the best online trading platform. Below you’ll find these factors.

What’s a Trading Platform?

Before knowing the factors to consider, you need to understand what online trading platforms are and the available types. Basically, a trading platform is a marketplace that provides its users with an endless list of functionalities to help them place trades, browse financial instrument catalogues and monitor accounts via online investing platforms UK or financial institutions outside the banking community.

Most trading platforms feature a blend of extra features like charting tools, real-time quotes, premium research information and real-time quotes. These tools facilitate immediate trading information availability and provide more room for seamless negotiations between traders.

Types of Online Trading Platforms

Two main types of trading platforms are available, which include commercial trading and prop trading. Commercial trading platforms primarily target day traders and retail investors.

On the other hand, prop online trading platforms involve applications designed by brokerage businesses. These applications replicate the trading requirements and styles of automated brokerage models.

How to Pick the Best Platform

Here are essential factors to consider when comparing and choosing the best trading platform for your investment needs.

Security

Security is the first thing to consider. You need to stay safe when trading. A top-notch trading platform ensures that your sensitive information is safe.

Research to know the technology, algorithm and precautionary procedures that your trading platform of choice uses to protect your money and personal information. Check if the trading platform is encrypted using the latest and highest security standards.

Customer Support

Every investor type needs a backup, whether experienced or new. Check if the trading platform you have selected features a highly trained customer care team that is always ready and available to help you in case of any concern or problem. Choose online trading platforms that offer 24/7 customer care services via readily available means.

Regulation

To ensure additional security and guarantee your funds are protected, you need to pick a platform that holds a license from a reputable financial regulator.

Some of these regulators are SEC, SIPC, NFA, MSRB and CFTC, to name a few. All reputable online trading platforms must meet the needs and requirements of these regulators.

Payment Methods, Fees and Commissions

It’s crucial to consider the methods of payment available. Some online trading platforms might provide one method for cash transfers, which mightn’t be suitable for you. The more payment options a trading platform provides, the better.

Popular options like wire transfer, cards, checks, PayPal, transfer wise and Skrill should be available to choose from. Aside from payment methods, fees and commissions are also important factors to keep in mind. Be sure to choose a trading platform that offers affordable trading fees and 0% commissions.

Education Tools

While a usable and useful trading platform is important, take time to check the educational offerings available. The search tool must be functioning correctly since you’ll need it to find new terms or advice.

Remember, what is user-friendly and intuitive to you mightn’t be ideal for another user. So finding online trading platforms you can easily work with is advisable.