What is a trading platform?

Posted by aarav badhe on May 27th, 2019

Before beginning the process of investment, investors should completely understand the intricacies of investing, so they will not go in the world of investing blindfolded. One of the most critical aspects of investing is a trading platform. A trading platform is a software used for opening, closing and managing market positions through a financial intermediary. Online trading platforms are frequently offered by brokers either for free or at a discount rate in exchange for maintaining a funded account or making a specified number of trades per month. The trading platform is just a software which enables the investors and traders to place trades and monitor the accounts through financial intermediaries. A lot of times, trading platforms come bundled with exciting features like real-time quotes, charting tools, news feeds and also premium research. A trading platform can also be tailored to specific markets, like stocks, currencies, options or future markets.

There are two types of trading platforms:

1. Prop platforms:

This type of a trading platform are customized platforms which are developed by large brokerages for suiting their specific requirements and trading style.

2. Commercial platforms:

Commercial platforms are targeted at day traders and retail investors. They are characterized by ease-of-use and an assortment of helpful features like news feeds and charts for investor education and research.

Before deciding on the type of trading platform, the investor should consider both the fees involved and features available. Another tool provided by financial institutions is the portfolio tracker. An investor will benefit from using a portfolio tracker, as they are useful for saving time, involve better investment decision making, easy to use tracking platform and completely cost-efficient.   

When deciding between trading platforms, traders and investors must consider both the fees involved and the features available. Fees are another important consideration while deciding a trading platform. Traders and investors should take multiple considerations into the account and balance trade-offs while selecting a trading platform. Traders and investors should take multiple considerations into the account and balance trade-offs while selecting a trading platform. Investors can use online trading platforms as well. Some of the advantages of using online trading platforms are:

1. Ease of dealing:

Investors do not have to deal with brokers for arranging their purchases or sales. With online trading it will be done in just a few clicks and it is rare that traders will need to speak directly with the brokers.

2. Affordability:

Online trading platform is affordable, since more brokers offer online trading, cost of dealing has decreased considerably.

3. Greater control:

Online trades can be conducted at any time day or night, which allows traders to choose when they choose to trade. Trading can take place through mobile device or laptop, allowing flexibility and freedom.

4. Real time trading:

Online brokers offer real time prices and advanced interface, as traders can keep an eye on the deals at any time and get most up to the minute prices.

5. Fast transactions:

A trading platform is fast and as soon as the account is set up, investors can begin with the trading.