Article posted by Bertrand Dubourg
Investors who are interested in the financial markets know the environment of traders with their multiple screens on which they follow abstruse curves and graphs of several colors. These software are trading tools that allow you to position yourself on different negotiable securities to sell or buy them, in a relatively short period of time. This, in order to earn money. Originally reserved for an elite, these tools are now accessible to laymen, via trading platforms. Detail review.
What is a trading platform?
A trading platform is software available on the Internet that brings together the appropriate tools for monitoring the financial markets. In addition, a trading platform gathers all the information necessary for the trader’s decision-making.
Individual investors use a trading platform that will allow them to take positions on the stock markets, as would an experienced trader.
These platforms offer technical applications with variable geometry, which will allow novice traders to direct their actions according to their appetites or the desired level of investment.
The best platforms are regulated by the Autorité des Marchés Financiers (AMF) and must guarantee a maximum level of security for their clients.
In other words, a trading platform is software intended for beginners or expert traders who wish to benefit from the volatility of a market (CFD, Forex, etc.) from their PC or smartphone.
“The best platforms are regulated by the Autorité des Marchés Financiers (AMF) and must guarantee a maximum level of security for their clients”
The platforms therefore allow everyone to carry out trades according to their objectives. The effervescence around these new platforms is undeniable and this has made it possible over time to reduce spreads (costs), with the emergence of ever-increasing competition in the sector.
Nevertheless, it is better to understand the risks represented by the stock markets or raw materials. It is therefore imperative to train well beforehand, then to carefully choose a reliable trading platform validated by the financial authorities.
Finally, to trade online, it is necessary to equip yourself as follows:
● A computer, tablet or smartphone,
● An Internet connection,
● A stock broker,
● A trading platform
This digital equipment is part of our daily lives. It is therefore very simple to invest via a trading platform.
What and how to trade on a platform?
Trading allows you to invest in a myriad of underlyings. It is therefore possible to trade different markets such as:
● indices (CAC 40);
● raw materials;
It is possible to speculate on the markets through different contracts such as:
● Futures (futures contracts)
● CFDs (contracts for difference).
These contracts allow the investor to take positions with a more or less significant leverage effect.
In the large family of financial markets, we often find the Forex (Foreign Exchange) which designates the foreign exchange market, or currency market. Thus, the individual who trades on the Forex, speculates in pairs (EUR/USD for example) on a rise or a fall of the currency that he has in sight.
It is essential to determine your trading style before jumping into the deep end. Indeed, the trading style is closely linked to your investment horizon and your investor profile.
Some will want to speculate intraday, that is to say on a single day, while others will prefer longer-term strategies and keep their positions over several months or years.
“It is essential to determine your trading style well before jumping into the deep end. Indeed, the trading style is closely linked to your investment horizon and your investor profile”
On the other hand, an intraday strategy consists of keeping positions open for only a few moments during the same trading session. This is also called scalping.
If scalping is still too slow for you, you can resort to trading robots (or automatic trading). Here, a software (trading robot) opens positions for you, respecting your pre-established parameters.
How to choose a trading platform?
As you will have understood, before starting to trade on CFDs or currencies, it is better to choose a trusted platform, especially if you are new to this universe.
A good broker should always offer:
● a selection of trading platforms (MT4 or MT5)
● Automatic trading
● Manual trading
● unique and powerful functionalities.
In addition, the broker must provide you with a wide range of trading instruments such as Forex, stocks, ETFs, commodity trading or CFD stock indices.
It is also better to choose a generalist platform designed for all traders, with solutions for each investor profile.
“A good trading platform should allow you to open a demo account so you can practice trading and improve your skills before you start in the real market with your own funds”
A good trading platform should also allow you to open a demo account so you can practice trading and hone your skills before you start in the real market with your own funds. The platform must be easy to access and present in many countries, which is a guarantee of solidity and reliability. For example, you can generate an account on Avatrade France, an online trading site that offers its users all the features explained above. This platform, which has a high rate of regulation, provides both beginners and experienced traders with optimized services that are fully consistent with their needs.