P.or a novice trader, choosing the right trading platform implies the correct understanding of these three characteristics, in order to select the one that best suits your trading profile. Trading platforms are rapidly becoming more democratic and allow people, in just a few clicks, to enter the world of trading stocks, cryptocurrencies and other currencies. However, it is best to go through a platform that allows you to learn this business for free before trading “for real”, without wagering your money, at least to get started.
What is trading?
Trading consists of buying financial stocks such as stocks, currencies, etc. with the aim of reselling them at a higher price in the shortest possible time.
What is a trading platform?
A trading platform such as Avatrade is a virtual space, dedicated to the trading of securities and on which the trader can interact with the financial markets, using all the appropriate tools. Know :
- The GUI
- The order entry interface
- Informative news feed *
* If you take risks on the wrong platform, you risk not being able to separate the good from the bad information on the markets and making decisions that are dangerous for the success of your trades.
What is a good trading platform?
The basics a beginner should have are:
The ability to register quickly and easily. In fact, some brokers use complicated language that you won’t necessarily understand from the start. It is a question here of choosing from the beginning a platform that has proven itself valid (of the metatrader type, for example) and that will allow you to jump directly to the securities you want to trade, and so on … It is worth opting for a platform that dusts off the world of trading right away and explains, step by step, in an intuitive way, the steps to follow.
The essential role of access to information
An online trading platform should be able to provide you with all of the technical and basic information related to trading in one place.
To do this, you need to be able to access real-time information such as:
- earning per share
- the dividend rate
- balance sheet and income statement
The management of emotions
We probably don’t say it enough, but a bad trading platform can affect your stress. On the other hand, if you use a good platform, you will actually be more agile intellectually, because you will have confidence in your tools and interfaces. The quality of the broker can really make a difference.
Traps to avoid
It is best to take some time and do some research before engaging in CFD or cryptocurrency trading. Check the site’s reputation and trustworthiness in advance, using recent and well-argued customer feedback.
You will have to choose a platform that is well established and that can present an official license with all the approvals of the French financial authorities. Make sure the trading platform is under the auspices of a recognized financial authority and has a robust and proven security system.
Finally, a good platform worthy of the name must be able to allow you to train for free before getting into serious stuff with which money real…
Trading platform fees
Brokerage fees are one of the most important elements. In fact, if you use the scalping technique, for example, it is better to opt for a cheap platform. In fact, it will all depend on your trader profile. In other words, to be successful in your strategy, you will need to identify the features you absolutely need, in order to minimize the costs on your operations as much as possible. Conversely, if you hold your positions over the long term, the “cost” factor will be less important and other characteristics will be preferred in this case.
Avatrade, a platform with a solid reputation
The Avatrade platform is probably one of the best platforms currently available on the market, thanks to its open architecture formula. Indeed, Avatrade offers three trading platforms:
- The Web Trader application (limited in terms of functionality)
- Meta Trader 4, in downloadable version and in web version (one of the most used and appreciated trading software by Forex traders). MetaTrader 4 (MT4) is also an excellent technical analysis software that provides a wide variety of Forex technical indicators and other analysis tools. also with MetaTrader 4 we can add oscillators and many instruments for CFDs.
- Meta Trader 5, available in downloadable version and 2.0 version, dedicated to all markets (stocks, cryptocurrencies, indices and commodities). The main difference between MetaTrader 4 (MT4) and MetaTrader 5 (MT5) is that MT5 is not only a Forex and CFD trading platform, but also a stock trading platform.
Many tools that the trading platform makes available to you and which can affect your ability to execute your orders. By using a bad platform, the main risk will be that of failing to execute your trades on time, and therefore of subsequent losses.
Article written by Bertrand Dubourg, AvaTrade Consultant.