How to Choose a Trading Platform

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These days there are dozens of trading platforms that provide investors with different tools that can be used to enhance your trading.  Some focus on execution, while others provide a broad range of assets to trade.  There are platforms that focus on charts and technical analysis, while others are geared toward a mobile experience.  The best way to choose the trading platform that is right for you is to consider your trading routine, and focus on a platform that can help you enhance your experience.

How to Choose a Trading Platform

How to You Like to Trade?

Before choosing a platform, you should ask yourself a few questions about your trading habits and routines.  If you are new to trading, you should ask yourself if you believe your intent is to trade full time, or just part time.  Trading full time, means that your goal will eventually to make a living trading the markets, while part time, is to add additional income to your current earning potential.

Traders that are focuses on eventually trading as a full-time job need a platform that is focused on great charts, smooth execution and a robust mobile platform.  You want a forex broker than provides a platform that can be downloaded, as well as, works over the web.  This will allow you to move your home office to your regular office and avoid having gaps in your ability to transact and follow the markets.

If you are New to Trading

If you are new, you want to find a trading platform that caters to new traders.  It’s important for the education section to be robust, and teach you many of the nuances of trading including how to transact, how to manage your risk, and how-to monitory your profit and loss statement.  In addition, you want to use a broker than is trustworthy, so make sure the trading organization you choose is regulated. You also want to make sure that there are articles and videos on how to use the platform as well as how to use a financial calendar and technical analysis tools.

You’re an Intermediate or Advanced Trader

If you are an intermediate or advanced trader, having a charting package that allows you to pull up multiple studies is a very important part of a good trading platform.  You want the ability to draw trend lines and develop studies that describe trends as well as momentum.  You want to make sure the platform has this capability on both the downloaded version as well as the web version.  Activity traders also need a robust mobile platform, especially if you are trading on the go.  Here you want to see if you can execute trades from your mobile platform as well as chart current pairs, and manage your risk.

Your Routine

If you are focused on technical analysis and charts, make sure the platform you choose has robust capabilities.  If you need 24-7 access, with real-time news events, you should make sure your platform provides this capability.  If you are new to trading, make sure the education section is well written and comprehensive. Try to demo your platform before you pull the trigger and make sure you find something that fits your needs before you deposit real capital.

 

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