There have been continuous improvements and changes in the financial industry. These have brought in the best of the trading changes and the new methods on how to do dealings of various transactions. The use of new technologies has made the process and the platform even simpler and efficient.
The technology has a huge impact on the trading platforms. This is the software that makes the things easy for the investors so that they can earn good profits with minimum investments and get high returns. There is best online trading platform and many companies are competing for being the best. Trading platform selection is the core step for investors as it can lead to either increase in cost or increase in profits. But to select a particular online platform the following features should be kept in mind before selecting the ideal online trading platform:
- Catering to the needs: Specific needs refer to the needs of investor and his trading strategies. How an investor wants to implement his/ her trade? Whether he/ she wants to make an option trading strategy or simply buying and selling of stocks. Also whether intraday transaction can be executed by the investor or not.
- Brokerage considerations: The brokerage that the trading platform charges is also an important factor in determining the selection of trading platform. No matter how much efficient the platform is, it will not be useful for investors to use that platform if it charges more brokerage.
- Interface provided: The interface that is provided by online platform is also a considerable factor and can effects the decision for selecting a particular platform. Not every investor is a professional or technical expert, but he/ she must understand how to use these platforms easily. If there are too much technicalities involved in the platform interface then it might not be feasible for layman to place his/ her trade.
- Technical efficiency: Technical efficiency of the online platform is decided by the latency. Latency is the difference between the price at which the trade is actually executed and the price at which investor placed a bid. So technical efficiency is high when latency is low. This has helped a lot of investor in being one sided regarding the trading platform.
- Technical tools: There are many other technical tools that might be helpful to the investors at large. The tools include charts and graphs that help in analyzing the performance of the portfolio. This is another advantage for the platform and it can help attracting investors.
- Arbitrage recognition: Arbitrage is a trading opportunity that involves no net investment of money and is free of risk. This situation occurs when a stock has different prices in the two markets. So investor can buy low and sell at high price. A good platform will always be able to recognize the arbitrage opportunity and will help people in taking the advantage of that.
Many stock brokers are present in the market but there must be a decent knowledge of the trading platform so that you can make a wide choice. So decide what matters to you and then execute your strategy.