What to Look for in an Online Trading Platform

Some of the biggest online trading platforms can be seen on the shirts of mega sporting franchises as commercial sponsors, something which serves as one of the many indications of a good trading platform to go with. It isn’t a black-and-white matter which is as clear as daylight though, neither is it set in stone. A global reach isn’t the be-all and end-all of the tools with which one should gauge the authenticity and quality of the service they would implicitly get from an online trading platform. It’s just one of a few things to look for in an online trading platform, particularly if you’re going to be trading Contracts for Differences (CFDs) for commodities, foreign exchange and stocks.

So what should you look for in one of these platforms to settle for? After all, there are so many different platforms these days that a simple Google search coughs up options in their thousands.

Recognizable name

Do not fall into the trap of thinking this is a rather unfair practice. Looking for a recognizable name in a trading platform takes nothing away from the institutions behind these online trading platforms. They have to go through a lot of regulation and due diligence in order to reach a stage where they can offer brokerage services over the internet, via their trading platform offerings. The truth of it however is that quite simply put, a poor man cannot open up a trading brokerage and they certainly cannot offer an online trading platform.

Look for a recognizable name – it’ll be a good indication of a decent online trading platform.

Good, fair reviews

As time goes by and one comes across many different reviews about products and services online, you begin to develop a knack for sniffing out fake news and fake reviews. Fake reviews come in two different forms – one from disgruntled customers who may very well have had their service terminated on grounds of having violated the Terms of Use, and two, from the service provider who has commissioned fake reviewers to publish fabricated positive reviews about their service.

A good review to look at with regards to online trading platforms would be one where the reviewer gives a fair analysis and report on their personal experience and you can tell with these things. Check many such reviews and make up your own mind about whether to proceed with that specific platform or not.

Wide selection of trading instruments

This actually depends on a number of unique factors, such as the fact that sometimes a specialized trading platform offers a better service since they specialize in a specific trading instrument. Otherwise if you’re going generally for the likes of CFDs, then the platform should offer as many different instruments to trade as possible.

Sizeable user base

Online trading is like a more organized version of online gambling really, so the rules of online gambling pretty much apply as is to online trading platforms. The bigger the user base, the better service you’ll get as there are many other traders to “compete” against.

Jerry Kirkham is an investment professional, and like every investment professional, he makes mistakes. Jerry encourages you to do your own independent "due diligence" on any idea that he talks about, because he could be wrong. Nothing written here, at Essential Savings, or anywhere else Jerry may write is an invitation to buy or sell any particular security; at most, Jerry is handing out educated guesses as to what the markets may do.