Everything you need to know about trading platforms on the market

If you have decided to become a trader and want to know what to look for in a good trading platform, you have come to the right place. This article helps you understand and select your trading platform as a beginner trader.

What is a trading platform?

A trading platform is an online trading system that uses computer software to execute trades in a given market. Trading platforms can be used for free or at a discount, depending on the financial intermediary.

Why a trading platform?

Trading platforms allow traders to maintain funded accounts and place limited trades in a number of markets. Investors can also transact securities on stock markets. The best trading platforms must use sophisticated databases to enhance security, information transparency and ensure secondary market liquidity.
discover a list of trading platforms

In summary

  • A trading platform is software used to make trades and manage market positions through brokerage firms.
  • Trading platforms offer functions and features that enable real-time interaction with trading partners.
  • The most common types of trading platforms are Forex, CFDs and cryptocurrencies.

Understanding trading platforms

Essentially, a trading platform is a network-based marketplace that provides users with unlimited functionality to place trades, browse catalogs offinancial instruments and monitor accounts through financial institutions outside of the broker-dealer community.

In most cases, trading platforms are equipped with a combination of additional features, such as premium research information, real-time quotes, news feeds or charting tools to ensure transparent negotiation between the different parties.
market structure

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How to choose a trading platform?

When considering choosing a trading platform, you should consider both the underlying features and the required fees. This is important because different types of traders need different features to get started.

For example, features like market depth charts and Level 2 quotes are essential for day traders and other short-term traders. Conversely, tools specifically designed to visualize options strategies are useful to options traders.

Free platform Paid platform
Little freedom of transaction The trader is free to choose the offers he wants
High transaction fees No or low transaction fees
Not very reliable Reliable

You are the master of your trading

The advantage of using trading platforms is that everything happens directly, without intermediaries. You remember when investments went through brokerage services, they always had a designated broker who acted as an intermediary between them and their investments.

Trading platforms allow you to take full control of the trading process. There are no brokers or other types of intermediaries. You are responsible for every action and you will be able to assess situations much better on your own.