CandleFocus Glossary Editor
A trading platform is a software program that facilitates the exchange of financial assets between buyers and sellers. It is a powerful tool which provides investors and brokers the ability to manage market positions, and execute and manage trades. Trading platforms offer a comprehensive range of features and it is important for users to have the right combination of the right tool to fit their trading requirements.
New traders who are just getting acquainted with the investing world from the stock exchange or advancing traders who want to utilize sophisticated trading tools require different types of platforms. For novice traders, trading platforms are an easy to use interface with basic order entry screens. By contrast, experienced traders who need advanced charting tools, real-time streaming quotes, news feeds, educational resources and access to proprietary research need a more sophisticated set of trading tools.
Platforms can differ based on the fees charged, features offered and the type of workflows desired. Fees charged for trading typically include broker commissions, futures exchange fees, exchange fees and any other administrative fees. The features and services offered by trading platforms may also vary and may include a choice of market data services, research services and direct access to proprietary information.
When evaluating a trading platform, traders and investors should also consider the types of order types, fees and trading tools available along with the reputation of the platform provider. A good approach is to compare platforms based on their fees and features in order to select the best fit. For example, Interactive Brokers is rated highly as a trading platform/online broker for advanced traders due to its low commission costs, access to trading platforms and research across a variety of asset classes.
Overall, trading platforms offer a powerful set of capabilities for executing trades, managing risk and for active traders. By understanding their own trading preferences and doing a little research, traders and investors can find a trading platform that is the most suitable for their trading needs.
New traders who are just getting acquainted with the investing world from the stock exchange or advancing traders who want to utilize sophisticated trading tools require different types of platforms. For novice traders, trading platforms are an easy to use interface with basic order entry screens. By contrast, experienced traders who need advanced charting tools, real-time streaming quotes, news feeds, educational resources and access to proprietary research need a more sophisticated set of trading tools.
Platforms can differ based on the fees charged, features offered and the type of workflows desired. Fees charged for trading typically include broker commissions, futures exchange fees, exchange fees and any other administrative fees. The features and services offered by trading platforms may also vary and may include a choice of market data services, research services and direct access to proprietary information.
When evaluating a trading platform, traders and investors should also consider the types of order types, fees and trading tools available along with the reputation of the platform provider. A good approach is to compare platforms based on their fees and features in order to select the best fit. For example, Interactive Brokers is rated highly as a trading platform/online broker for advanced traders due to its low commission costs, access to trading platforms and research across a variety of asset classes.
Overall, trading platforms offer a powerful set of capabilities for executing trades, managing risk and for active traders. By understanding their own trading preferences and doing a little research, traders and investors can find a trading platform that is the most suitable for their trading needs.