HOW TO PICK THE RIGHT STOCK TRADING PLATFORM?
Stock investment yields higher returns when done properly. Most times brokerage services are needed especially for new investors. For proper profitable stock investment, there must be an alignment between brokerage service, investment, learning style, and educational needs.
There are a lot of risks attached to stock investment. However, with the right choice of online brokerages that soothe your need, risk can be reduced. It is advised to choose a trading platform before choosing a brokerage.
But if a broker is chosen first, your broker should be able to work with your choice of a stock trading platform. Here are the things to consider when choosing a trading platform.
Make a Decision Base on Your Need
Choosing a stock trading software must not be based on what others follow. Rather, it should be based on your personal need. To get the right platform, you need to analyze the information that is known more about the stock. Then, speak to an experienced broker and pick a suitable broker for your platform.
Ask yourself, do you want to be a passive or full-time investor? Do you know the kind of trade you are going into or you need a broker with a lot of experience? What are your aims and objectives? These questions will serve as a roadmap in your choice of the trading platform.
Make use of User-Friendly Interface
The choice of trading platform should be based on how comfortable and friendly it is. You must be able to understand the features and functions of the platform. As a beginner, it is better to opt for a platform that is simple and easy to use. Then as time goes on you can get used to other platforms to work with professionally.
Fees or Charges
It is better to know what you will be charged for using a particular broker. This will help compare prices with competitors and see which platform offers cheaper features. As a beginner, ask if the broker you are choosing also gives free access to a trading platform or there are additional charges. For a professional trader or investor, it is better to know if there will be charges to access the advanced platform.
Fund Deposit and Withdrawal
Knowing how to fund and withdraw money from your account is very important. Terms for deposit, withdrawal, and fund settlement should be properly looked into.
For depositing funds, this is done by:
Finding out if funds can be deposited using cheque, wire or credit card, or ACH transfer. Also, make sure to look into the charges involved using this method.
The number of days it takes for deposited funds to be available for investment. Settlement times most time varies and it all falls back to how often you trade and the balance in your account.
See if the brokerage makes available saving accounts that speed up immediate transfers and check if it's free. You also have to be sure if they are FDIC insured.
For withdrawing funds, check:
How long it takes the sold investment funds to settle the dividends. Plus, how long will it take for them to be available for investment.
How accessible it is to withdraw funds from your brokerage account and how fast it reaches your bank account? Find out if you have the opportunity to link your ATM card to your account.
Whether you are a beginner or an experienced trader, you always want to ensure the platform you choose offers top-notch customer service. Trading online comes with its own complications, and you need someone at your beck and call who is always willing to help out.
Hence, before choosing a trading platform, check for the help and support of the different trading platforms and brokerage. Give them a call to see how fast it takes to access their support team or service staff.
Though this might not affect your brokerage decision. It is still advisable to check If you need to call a designated number for trade assistance. Plus, if you need to pay some dime when you avail of their service.
Having a successful stock trading experience all depends on the kind of broker, tools, and resources you are exposed to. Spend time knowing and identifying the platforms and features that suit you most.
Moreover, avoid going into trading due to constant and aggressive advertisements from brokers or companies. Rather, get enough understanding of how the stock works and the best trading platform to use.