How to Choose the Best Trading Platform: 5 Tips

Choosing a trading platform is not an easy decision or one that we can take lightly, so during this phase it is of utmost importance to gather any advice that can guide us towards making the right decision.

There are many brokers in the market with a multitude of options, features and even different rates that can accommodate our investment objectives, but really, it is important to take into account that.

It's true: there are many fantastic trading platforms for profitability, but there are also a few that may not be so great.

We give you the best tips on how to choose the best trading platform for you, although we've already told you that it will mainly depend on your own goals.

Shall we get started?

Maybe you're an expert investor, or maybe you're just starting out in the trading club. In any case, it is essential that you know the ins and outs of this little world:

Forex, cryptocurrencies, stocks - what to invest in?

Not all brokers work with all types of assets but most, and especially the best trading platforms, are committed to diversify the capital as a way to multiply profitability.

The main types of assets that you can find among the best trading platforms are:

  • Index funds.

  • Fixed Income Bonds.

  • Stocks.

  • Forex, investment in currencies.

  • Cryptocurrencies.

If you also consider yourself an expert investor looking to add diversification and reduce risk to your portfolio, you will also find brokers with which to invest in assets such as:

  • Commodities.

  • Renewable energies

  • Precious metals.

Now, the question we all want to answer is, where is it better to invest?

The truth is that no asset can be valued as more profitable than another, since the main characteristic of any market is its volatility.

What can influence in improving profits is to choose a broker specialized in our investment objectives, which helps to reduce risk and allows tighter commissions.

If you want to invest with Forex, you will find several specialized brokers with a multitude of different options, but you will be interested in having a large margin of leverage with competitive costs.

If you want to invest with stocks and you are not interested in investing with any other type of asset, it will be better to look for the option associated with lower risks.

If you want to invest with cryptocurrencies, your best tool will be a safe and reliable trading platform, with which to speculate both in the short and long term.

CFD trader: Benefits and risks

Online trading is an investment modality that is gaining more and more followers every day, and it is true that it has certain differences with the traditional stock broker.

The main difference between the most basic broker and the trader is an instrument: the leverage or CFD, a basic vehicle for short-term investment.

The CFD trader is based on promoting a greater investment margin, thus favoring short-term investment and therefore increasing short-term profits.

And of course, this investment margin does not appear magically: it is a loan that the platform makes to the investor so that he can open the position at the margin he wants.

There is an underlying reality, and that is that a CFD trader is not for everyone.

Investing with leverage can make your profits multiply in a positive market situation. But by the same token, there is a risk that you could lose a lot of money.

And the fact is that leverage is always an operation associated with high risks, where you trade with hypothetical money that in any case you must return to your CFD trader.

Fortunately, the best trading platforms are the first to know the risks, and have strong guarantees of investor protection to prevent you from falling into debt of any kind.

Online trading: Is it a scam? - Reviews

Perhaps because of its ease of use or because of the risks associated with leverage with any CFD trader, we always find controversy about online trading.

Don’t know what is CFD trader? Check Dotbig - one of the greatest examples of the CFD trader. 

It is normal to have reticence about the security of any platform in which we are going to deposit so much money, and we should always check that any platform is legally regulated.

The best online trading platforms offer all kinds of guarantees to their clients, starting with the endorsement of public supervision.

It is also important to make sure that the custodian bank where our capital is kept is a trustworthy and solvent entity. In other words, that our money remains ours no matter what happens.

It will be a plus to have investment guarantees, such as a Deposit Guarantee Fund or Investment Guarantee Fund (FOGAIN), although it is true that this is only offered by the best trading platforms.

In the end, the safest online trading platform will be the one that offers the greatest peace of mind. Therefore, it is always important to check everything they offer.

Online trading is not a scam: It is another way to increase our capital through speculative investment, although this inevitably involves a number of risks.

Always be sure to check all the guarantees of each broker. Online trading is far from being based on scams, but you may come across a platform of dubious reliability.

Tips for choosing the best trading platform

Yes, here is what you were looking for: the map that will guide you to your ideal trading platform.

To choose the best broker, the most important thing is to set your own investment objectives. These minimum criteria will help you:

Reliability and security

As I was telling you a while ago, it is essential that you review all the guarantees that your trading platform can offer you and, although they may seem too many, I assure you that none of them is too many.

Accessibility and ease of use

From which device do you plan to control your portfolio? You may need to be clear about this before you start looking for a platform, as not all brokers are accessible from any device.

The best trading platforms are accessible from your computer browser, your smartphone or even your smartwatch. As you can hear, so you don't miss anything.

It is important that you can access from your favorite device but also that it is intuitive and easy to use, as far as possible.

Familiarize yourself with the demo

Yes, it is important that the application is intuitive to use, but let's be honest: You won't learn how to use a trading platform you don't know in two hours (sometimes not even in two days).

That is why it is also a key factor that the broker you choose gives you the option to open a demo account with which you can trade with fictitious money, without risk and at your own pace.

The best trading platforms offer the option of opening a demo account with which you can test all the available orders. This way you can decide without any doubts if it is the broker you are looking for.

Asset diversification

Diversifying your capital in different types of assets will not only influence the profitability of your portfolio: it will also help you reduce your risks.

That is why it is a very good option to invest in several asset classes, such as forex, stocks, cryptocurrencies and even commodities or renewable energies.

Not all brokers have a wide range of assets available, but the best trading platforms do give you the option to trade thousands of instruments in different assets.

Operational customer service

The best trading platforms and the most reliable brokers are supervised by Spanish regulation, although the vast majority do not have their administrative headquarters.

At the beginning, adapting to a broker can generate dozens of doubts:

Many brokers only have an online customer service available, others by telephone, and some of the best trading platforms are available in more than 30 languages every day of the year.

Although it may seem unnecessary now, believe me: in times of panic, you will appreciate having a personal support team at any time of the day and day of the year.

Better if you choose a multi-broker platform

Many brokers choose to offer their own trading platform, with more exclusive and perhaps more intuitive services and orders than other multi-broker platforms.

But in reality, this is not worth it.

It is not worth it because although you can have many advantages, it also means tying your investment to a broker with specific rates, conditions and assets.

The market is changeable and you may also want to change at any time: if one day you want to move your investment to another broker, your operating platform should not be an impediment.