With the availability of many online brokerages, trading on different stocks and assets is now easier than ever. The question is which brokerage to choose for trading.
Thanks to the advancement in technology, trading or investing in stocks, indices, commodities, or currencies, etc. have now become easier than ever. A reliable connection to the internet, coupled with a reliable trading platform is just about everything you need these days to get your money to work on your behalf. However, as not every trading platform is the same, it’s important that you choose the best platform to start your brokerage trading.
Some trading platforms are good for individual traders, while some others are designed for institutional traders. Depending on their purposes, they can vary both in terms of the features and the fees. They also vary in terms of minimum deposits or available resources. As there is no single platform that is best for everyone, below we discuss the different ways you can find the brokerage most suitable for your trading goals and habits.
Reliability of the Brokerage Trading
Trading is perfectly legal, and thus, regulated by a variety of financial bodies. Depending on the place of your residence and the kind of assets you want to trade or invest in; you may have to find a broker that complies with the eligible authorities in your area. For example, a European brokerage may be registered with CySEC or CIF in Cyprus; while a UK broker needs to be regulated by the FCA for maximum reliability.
So, read the fine prints carefully and do your research to find out the platforms that are regulated, safe, and reliable.
Requirements and the Ease of use
Different brokerage trading requires different information to be provided from the trader’s part. It usually includes proof of identity, proof of residence, and an active bank account. Depending on the platform and your trading goals, you may also have to deposit a certain amount to be able to start trading. This minimum amount not only varies when it comes to depositing money but also can extend to the stake you can buy, sell, or hold in an individual asset.
The interface of the platform is another key factor to consider. Trading is usually a complicated affair; and so, you must find a platform that makes the experience as enjoyable as possible. It is also important for success, as the availability of features such as a graphic chart, real-time quotes, fundamental research, technical analysis tools, and such can hugely impact your decision making processes.
Fees and Charges for Brokerage Trading
Whether you are planning for trading on CFDs or real assets, you should look into the detailed fee structure of your broker. Do they have a fee for deposits and withdrawals? How much is the commission for buying, selling, and holding an asset? How much is the fee for leverage? These are the questions that you must find an answer for before choosing a brokerage.