Key features to look for in a trading platform

Trading platforms have been designed by brokers to offer users a host of features and functions to help increase their chances of turning a profit and minimise the risks that are associated with trading. With tailored software to assist with opening and closing trades, managing market positions and various tools and insights into the ins and outs of financial markets, they can be a worthwhile selection when trading online.

Typically available on web browsers and via apps on mobile devices (or sometimes on both), each will have its own pros, cons and differences in the services you can expect. As there are many reputable ones on the market you may find it difficult to select the right one for your needs.

As a way to not just get into trading, but also to increase bids when trading online no matter your budget, leveraging has become one of the most-used financial products of the last few years. Many brokers offer traders the chance to finance their positions with borrowed funds, so traders can participate with little collateral - and while this may pose some risks (losses can end up being higher than your portion of the position, for example), trading platforms can assist traders in making better-educated moves.

Different platforms can cater to different trading needs, such as a spread betting trading platform (if this sounds like it might fit your needs, learn more here), so it can be important to define what you are looking for before you sign up to one.

Here are five features you may want to keep in mind:

As the trading environment can be volatile and price movements can happen in seconds, the first thing to think about is the reliability of the platform you choose. If there are loading times between screens, frequent downtimes and the site is generally glitchy, this could significantly impact your ability to trade.

In such a busy world, there aren’t many people who have the time to sit at a desk and watch their PC or laptop to manage and make trades. If you need to step away or leave the house entirely, you could be missing out on worthwhile opportunities. This is where mobile trading apps can come in handy. Trading on the go can be imperative to certain methods (like day trading), so platforms that don’t have an accompanying app could be a deal breaker.

Firstly, does the platform you have in mind have a sign-up fee? Many will be free, sometimes with restrictions regarding the number of trades you make or requirements for account activity. Others may charge a one-off fee or even a subscription for access to pro features. Then there are the fees they charge on trades, transactions, spreads, currency conversion and more. Even if these are seemingly small, they can all add up and take a chunk out of your profits, and are worth considering during research and comparisons.

Trading platforms aim to prioritise the user experience and this should extend to transaction processes, too. Many users will be hoping to enjoy fast deposits and withdrawals, so it may be worthwhile to consider these, alongside the number of supported payment methods.

With a host of scams in the financial environment, it can be a good idea to do some research on the reputation of trading platforms, as well as the measures they put in place to secure your finances and personal information. Licensing and belonging to regulatory boards can be good indicators of safety, but they should also have security systems, encryption software and more to protect your account.

Many trading platforms offer traders the chance to trade with virtual cash through a demo account, this can be helpful to avoid future risk. Furthermore, ensure you make use of educational content on the web or directly through content the broker provides you with. Lastly, consider the use of stop losses to protect yourself from potential large losses.

While the online trading platform market is predicted to be worth over $12 billion by 2028 according to Fortune Business Insights, there are many trading platforms out there already. Selecting the right one for your needs may not come down to its features and functions alone. In fact, your preferences could sway your final decision and will likely narrow down your options considerably (for example, if you want to begin leveraged trading or like the idea of Forex in specific, not all of them will be a perfect match). Remember that some are created to offer nothing more than the basic trading features and others may cater to niche trading endeavours.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when spread betting and/or trading CFDs. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Read more: The key differences between spread betting and CFDs