Online trading has become increasingly popular in Australia. However, many novice traders remain apprehensive about the process. Additionally, many aspiring traders are unsure about how to begin. Some traders immediately download Metatrader 4 or similar platforms. However, you should consider a few things before choosing such online trading sites. Read on for more information!
Amount of investment choices
It’s important to consider how many investment choices you’ll have when choosing a platform. You’ll want to know the following:
- How many stocks and ETFs can you trade? A wide selection of options is ideal, but don’t get too hung up on this number. While it’s a good idea to trade as many assets as possible, remember that not every investment will be right for every trader. For example, some people are more comfortable trading stocks than futures contracts or options. However, if your main goal is diversification, it might be worth seeing how many different kinds of investments the platform offers before making your decision.
- How many forex pairs can you trade? In addition to stocks and other securities (like mutual funds), most platforms offer currency pairs as an option for traders looking for additional diversification opportunities with minimal risk. Note: if this isn’t something that interests you, don’t let this factor influence your decision! Again, no one should ever feel pressured into making an investment decision that doesn’t work with their unique personal situation.
Trading fees and commissions
Trading fees and commissions can be a significant part of your trading costs. Some platforms charge fees based on the amount of money you are trading, and others charge a flat fee. Some platforms offer free trades for a certain time to new accounts.
Customer service quality
Does the support team respond promptly, and are they polite and helpful when answering your questions? The best online trading platforms will have friendly, knowledgeable staff who know how to fix any problems that arise quickly. Most importantly, they should be able to speak with you directly if you wish. Some platforms only offer email support which isn’t ideal as it’s harder for customers with complicated issues or those who are new traders who may need more guidance through their first trades.
Trading platforms and tools offered.
There are three main types of trading platforms: web-based platforms (or “web trading”), desktop applications (or “desktop apps”) and mobile apps. Web-based platforms are accessed through your browser on any device with an internet connection; desktop apps can be downloaded onto your computer or laptop, while mobile apps run on smartphones or tablets but lack some functionality in a full-featured web platform.
Web-based platforms offer more flexibility than desktop software because they don’t require installation and don’t have any hardware requirements beyond an internet connection. This makes them ideal for novice traders looking for a simple solution and experienced investors who want a seamless interface between their phone/tablet/laptop/desktop computer.
You should look at these factors when comparing online trading platforms.
Before you download Metatrader 4 or similar trading platforms, compare them while considering these points.
- How much money do you want to invest: Trading platforms can be free or paid, and they may vary in the minimum amount of money you need to start using them. Some online trading platforms restrict how much you can invest, while others don’t have restrictions at all. You’ll need to decide your investment goals and choose a platform that meets your needs.
- How much time and effort that you want to spend on trading: While there’s no set number for this metric (everyone has different expectations), it’s essential to ensure that the interface is intuitive enough so that even first-time traders will be able to navigate it without getting lost or confused by too many settings.