What is an online trading platform?

Posted by aarav badhe on July 21st, 2019

Any investor before beginning the process of investment should fully understand the complexities of investing, so they will not go in the world of investing without having the complete knowledge. A critical aspect of investing is an online trading platform. Online trading platforms are a software which is 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 Online trading platforms are just a software that enables the investors and traders to place the trades and monitor the accounts through financial intermediaries. Most of the times, trading platforms come bundled with exciting features like real-time quotes, charting tools, news feeds and also premium research. For first time investors it would be beneficial to learn investing in stocks for beginners.  

There are two types of trading platforms:

1.    Commercial platforms:
Commercial platforms are targeted for the retail investors and day traders. They are characterized helpful features and by ease-of-use, like the news feeds and charts for investor education and research.

2.    Prop platforms:
This type of Online trading platforms are customized platforms that are developed by large brokerages for suiting their specific requirements and trading style.  

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

When deciding between online trading platforms, traders and investors must consider both the fees that are involved and the features available. Fees are just another important consideration while deciding a trading platform. Traders and investors should also take multiple considerations into account and balance the trade-offs while selecting Online trading platforms.


Advantages of using online trading platforms are:

1.    Easy dealing:
Investors will not have to deal with brokers for managing their purchase or sales. With online trading it will be done with just a few clicks and it is rare that the traders will need to speak directly with the brokers.

2.    Affordability:
Online trading platform are affordable, since more brokers offer online trading, cost of dealing has decreased considerably.

3.    Greater control:
Online trades can be conducted day or night at any time, that allow traders to choose when they choose to trade. Trading can be done through mobile device or laptop, allowing flexibility and freedom.

4.    Real time trading:
Online brokers offer advanced interface and real time prices, as traders can keep a track on the deals at any time and will get most up to the minute prices.

5.    Fast transactions:
A trading platform is quick and as soon as the account is set up, investors can start with the trading.