Once you have decided to explore the profit-making and risk management benefits that trading provides, you should embark on deciding which trading platform to use. This is an important decision since it will play a significant role in determining your success. How fast you make trades, how easy it is for you to start trading, and the complexity of your trading strategies, will all be determined by your choice of trading platform.
In order to make the right decision, you need to know what to look for in a platform. You also need to know how to compare the different features that the platforms provide. The following is a breakdown of the most important features of an online trading platform. It will come in handy in helping you to make the right decision.
Order execution tools
The primary role of a trading platform is to facilitate trades. The tools that a platform has should be fast, easy to use, and convenient. They should also be able to allow you to deploy advanced trading strategies.
When it comes to placing basic orders of buying and selling, the platform should be able to make it as easy and as fast as possible. Therefore, when evaluating this feature, you should focus on the interface of the platform. The simpler and less crowder the interface, the better.
The number of advanced order execution tools that a platform has is also important. Tools that allow you to place timed orders and bracket orders can help you to minimize your risk exposure. Tools that allow for basket order, algorithmic scaling, and other complex orders can go a long way in enabling you to maximize your profits. Therefore, choosing a platform with advanced order executions tools can boost your chances of making a profit.
Manually going through all the data generated from the market in order to identify good trades is time consuming, cumbersome, and tedious. For beginners, it can be quite overwhelming. Scanning tools help to simplify the process of identifying profitable trades. All that a person has to do is to feed the scanner with a given set of conditions and the scanner will automatically identify opportunities that meet the defined criteria.
However, having a basic scanner is not enough for most traders. This is because these scanners have a limited set of conditions that you can define. They are therefore limited in the scope. Advanced scanners dig for a wider range of opportunities. They can analyze and identify patterns that are in line with your trading strategy and highlight profitable set-ups. Therefore, platforms with sophisticated scanning tools offer convenient ways for profiting and are thus preferable.
Charts are useful since they are more digestible. Since they are primarily visual, they make it easier for traders to identify trends and other opportunities. Charts vary in complexity. The options that platforms provide vary in terms of formatting and the information displayed. There is also a difference in the degree to which a platform allows its users to customize charts.
When evaluating the chart options that are offered by a given platform, you should consider the level of customization allowed. Charts with advanced and customizable indicators are ideal. Options like line break charting, point and figure, Ichimoku, Fibonacci plotting, and wave studies charting are important if you are planning on deploying advanced trading strategies.
The market is sensitive to events that occur around the world. Therefore, having quick and easy access to the latest information is important as it will enable you to identify and take advantage of opportunities as soon as they become available.
When deciding on which platform to go for, you should definitely consider the news feeds that they are offering. A platform that lacks the option to subscribe to popular news feeds like Reuters, Dow Jones Newswires, and PR Newswires is definitely not ideal. However, it is important to note that platforms normally charge for access to these feeds. Therefore, you should evaluate the terms that they offer and whether there is an option to access a free alternative.