Trading securities online can be very rewarding when done the right way. When you are interested in this type of investment, you will need to select a good trading platform that will make the process easier for you. It is also best that you hire a broker to help you with the trades, depending on the type of trader you want to be. There are so many brokers out there, most of whom offer free account opening on their platforms so you can start trading. Whether you are a beginner in this type of trading or an advanced trader, it is important to make sure you choose the right platform and brokerage for your trades and below are the most important basics that should matter when making your decision.
Types of securities
It is advisable to start by finding out what securities you will be able to trade on the platform. It is best that you choose one that gives you the opportunity to trade all the securities that interest you currently or that may interest you in the near future. Stocks, IPOS, futures, and options are some of the securities you can choose to trade.
Real-time quotes
There are different ways that price quotes can be extracted, but if what you are getting is data that is not really up to date then you will be doing very little in terms of maximizing your returns. Most web platforms offer real-time data, but is it important to make sure that’s what you actually get from your trades? You may need to update manually, but the platform must have adequate measures to offer real-time streaming.
Alerts and watch lists
As an active trader, you will find very important alerts for your trades. Watchlists and alerts can depend on different things that are likely to impact trading. Therefore, you should select a platform that allows you to customize such email or text message alerts so that you can make any decisions related to trading.
Order execution and timing
A good trading platform should at least allow you to place orders that can be executed at any time during business hours or that remain valid unless you cancel them. On more advanced platforms, you may be able to place limited orders with more variability so you have more control over order times and executions as well.
Order classes
The placement of trade orders can differ from one platform to another, but basically you can place, dynamic stop orders, market orders on close orders, stop loss orders, among others. A wider selection of orders might be better for those just starting to get acquainted with online trading. For advanced traders, then a platform that allows placing conditional orders for multiple trades they set up can be excellent. In this way, automatic executions are possible depending on the specific triggers selected.