Characteristics Of A Good Trading Platform

I have certainly traded on various trading platforms throughout my career. Some platforms were a joy and sheer pleasure to work on; others made me want to set my head on fire. The variety of trading platforms available to traders ranges from terrible platforms to excellent ones.

To meet, I simply list high-quality platforms and terrible ones. Unfortunately, if I take that approach, a pile of lawsuits will build up and if I stop and give up, my mailbox will overflow. So I've picked out a few features of a great online trading platform and listed why I find them particularly effective.1

Of course, the effectiveness of a platform is directly related to the quality of the data feed. For this article, we'll assume that all platforms have an appropriate data feed, and simply remove that variable from the discussion.

Here you can find most of the common trading platforms reviewed.

A good platform has a high-quality charting toolbar

Being able to draw trend lines, Fibonacci retracements, pivot points, and many other tools other than me traders may find necessary is essential when using trading and active charts. You don't need a physics degree to draw these symbols easily. The method for entering trend lines and other symbols should be simple. After all, the main focus in trading is the price action on the chart, which doesn't understand how to draw a line on the chart.

A good platform should be easy to read and interpret

A good platform should be easy to read and easy to set up. You do not need to read the 200-page manual to operate the software. Charts should be clear and easy to understand, and index readings should be legible and prominent. A platform that is difficult to set up or requires daily maintenance to set up wastes valuable trading time and ultimately costs traders. A good quality program also saves the previous day's settings and the correct settings should appear when you start the program the next day, so you don't have to add oscillators and indicators every day.

A good platform has a complete oscillator and indicator

There's nothing more annoying than using a platform that doesn't have a complete set of indicators or a way to add those indicators to your chart. Many low-end platforms have 5-6 basic metrics, which is the range of features. Also, with a good platform, you should be able to adjust the duration and other variables of the indicator to your personal preferences. Again, performing these functions should not be excessively time-consuming. They should be self-explanatory, and you don't have to page through the dreaded 200-page manual to see how to set up a 14-period setting on a commodity channel index.

A good platform allows for number entry and exit options

A good trading platform will allow you to quickly set the number of contracts you want to trade and provide a means to set a profit target and stop-loss limit. This should be a smooth activity and does not require excessive time. Most good trading platforms also have clauses that allow you to expand your trades at certain profit points. Also, good platforms have trailing stops that are simple to set up and easy to understand. You should also be able to set up simple bracket trades with minimal effort.

A good platform never fails or crashes

There is no worse feeling than a brisk trade and failed platform software. There is no excuse for software incompatibility with the operating system. The platform is the essence of the profession and it should be done that way. This particular requirement is one of the things that annoy my pet as I have been trading on a platform that has been built for a very shaky and long and frustrating day.

I have never and will never use that platform again. Software architects are well aware of the design flaws inherent in trading platforms and there is no reason why these flaws should not be addressed in a way that ensures traders of a crash-free trading experience. There is nothing worse than buggy software.

Trading platform software has many other unique flaws, but these five stand out as trading killers in my book. I will not tolerate these glitches and will quickly change the platform if these problems occur at any frequency. Of course, one-off defects are also to be expected. However, consistent and recurring flaws in trading platform software are inexcusable.

 

Heathrow has requested Britain to allow fully vaccinated people to travel without quarantine

 

London's Heathrow Airport has requested Britain to allow vaccinated passengers to travel after the cumulative losses of the airport reached $4 billion. Heathrow was one of the busiest airports in Europe pre-pandemic, and now due to COVID-induced restrictions, the trade volume has come down significantly. The airport has stated swift action is needed from the government's end, and travelers are also demanding a solution quickly. If the situation continues to worsen, many jobs are expected to be lost.

John Holland-Kaye, CEO of Heathrow, has stated that the passenger level at Heathrow is well about 25 percent of the pre-pandemic level, whereas other airports in Europe are nearly 50 percent. If the passengers planes and not reaching global markets like the US, the UK exports will not be able to get its export out of the country. This will eventually lead to the fall of the UK and will end up costing jobs unless traveling is allowed. If Britain allows people who are fully vaccinated to travel without the mandatory quarantine for ten days, then there can be some amount of recovery and benefits. Other Europeans have followed this method and have opened up traveling where as Heathrow is expecting Britain to do the same to achieve recovery.

What you should know about Brokerage Accounts

If you’re interested in investing in the stock market you might have come across the term “brokerage account” and asked yourself what it is, and why do you need it. 

Even the most experienced traders are technically not qualified to make trades on the stock market themselves, but brokers are. Stock brokers can be thought of as the real-estate agent of the stock market as they know how to execute trades, the rules and regulations, and the rules and regulations set by the Securities and Exchange Commission (SEC), which maintains a fair and efficient stock market. A lot of stock brokers work as part of a bigger brokerage house or agency, while others operate on behalf of individuals or Wall Street. 

What traders need to do is: set up an account, deposit their funds and start trading. 

Brokerage Account

What is a brokerage account? It is similar to a bank account as it’s a safe place for traders to store the money they intend on investing, and the profits they made back from shares. Like a bank account, an account number is issued to the trader. Although they’re not run by bankers, some brokers function like banks as traders can write cheques and use linked debit cards with them.

A brokerage account is a mandatory requirement to be allowed to trade on the stock market.

There are a few different types of brokerage account. A trading account is one where the trader is in full control. This suits experienced traders who want to manually trade based on their research and experience of the market. A full-service brokerage account can trade for brokers and provide advice. There are different types of accounts in between these two examples, if a trader wants autonomy, but also the ability to contact the broker and ask them to act on their behalf, that can be accomodated.   

How to Set it Up:

Setting up a brokerage account is a simple process, once a broker has been selected. Popular brokers include, but are not limited to; E*Trade, Interactive Brokers, Fidelity, and TD Ameritrade. Robinhood is one of the free brokerage firms available, but a free broker comes with restrictions and restraints that those who require commision don’t have. 

Setting up an account, for example one with E*Trade, requires filling out an application. First the broker will want to know basic personal information such as your name, date of birth, address, and contact details. Then they require more relevant information such as your net value, marital status, social security number, and whether or not you have any dependants. Once this stage of the application is complete, the broker will need to know your trading goals, stock market experience, and how the account will be financed. 

It’s worth shopping around for a broker, and many offer benefits to traders to entice them to sign up, for example, one might offer free investment advice, or commission free-traders under a certain amount. 

How to Use It:

Setting up the account itself is usually a free process, the trader then has to deposit the amount of money they’d like to trade with into the account.

Most brokers take approximately 7% commission per trade, but the exact rate differs across all brokers, 7% is the industry average. Purchasing 3000 shares at once will incur the 7% commission, but buying 1,500 shares in two separate transactions will add up to 14% commission as it is charged per purchase. Traders should try to buy as much as they can in one go if they want to reduce the amount of commission they end up paying. As well as commission, some brokers require traders to have deposited a certain amount of money before they’re allowed to trade. Not all brokers have set a minimum amount of money needed to trade, new traders can start off with a broker who don’t require this. Some brokers also need a certain amount of money to stay in the account at all times. This usually applies to whos who trade on the margin. These traders will have set up a margin account, and borrow money from the broker to purchase more shares they can normally afford. Margin trading is for experienced traders confident they can pay the loan back. 

Budding traders should paper trade before investing real money. Paper trading, which is also referred to as virtual stock trading, is a replica of the stock market which mimics how it behaves. Paper trading is an opportunity to practice trading without running the risk of losing a real financial investment. StockstoTrade is also a valuable service for new traders as it has resources for them to learn about the market and how to engage with it. 

Things to Consider:

There’s a lot to consider when it comes to selecting a broker. 

Customer service should be taken into account due to how fast the stock market movies. If the customer service is slow, then traders could miss out and lose money if they have a question that needs to be answered or are having trouble with their account. This is why traders should read the reviews left by customers, and take the brokers reputation into account while deciding whether or not to open an account with them.

The amount of fees and commission that a broker requires has a large influence on who traders work with. Traders will be hesitant to set up an account with a broker who charges above the industry average commission fee, unless they have additional services that justify the charge. Some brokers charge additional fees for financial advice, but this is not something that traders must opt-into. Some brokers will also require a minimum amount of money to be deposited once the account has been set up, to allow traders to start using it, while others require above a certain amount of money to remain in the account at all times to keep it active. 

Have a strong idea of how often you would like to trade, this is because some brokers require traders to make above a certain amount of traders per month.