A trading platform is defined as software that foreign exchange traders in Australia use to trade position through a financial arbitrator such as an online broker. Often, online brokers offer trading platforms either at discounted prices or free of charge.
Traders can then receive and maintain a funded account, and make a stated number of trades each month. The ideal trading platform offers low fees and a collection of powerful features.
What’s the Work of a Trading Platform?
With a forex trading account, both UK traders and investors can place trades and regulate their accounts through online brokers. These platforms often come with various other features such as; charting tools, real-time quotes, premium research, and news feeds. Platforms can also be specially designed for designated markets such as; currencies, stocks, futures, and options markets.
Main Types of Trading Platforms
There are two types of trading platforms which are; commercial platforms and prop platforms. Commercial platforms target day traders and retail investors. They come with various critical features including charts and news feeds which facilitate research and investor education. Commercial platforms are easy to utilize. Prop platforms are customized and established by established brokerages to match their trading style and specific requirements.
Which Trading Platforms do Traders Utilize?
Australian traders can utilize a vast range of platforms depending on their volume and trading style. If you’re a beginner, you need to conduct extensive research and try to understand trading before venturing into active trading. Researching helps you understand terminologies used in the market; how to develop your trading system, the various techniques you can use to establish trends, interactive content, and exercises.
Choosing a Platform
When it comes to choosing a trading platform in Australia, investors and traders need to consider the available features and fees involved. If you specialize in short term trading or are a day trader, you may need features such as; market depth and level 2 quotes. These will come in handy to facilitate decision making. If you specialize in trading options, you will need specialized tools to help you envision strategies.
To utilize some trading platforms, traders may need to meet certain requirements to qualify. For instance, traders using day trading platforms may need to have approximately $25,000 capital in their accounts to get the margin trading approval. Traders requiring options platforms, on the other hand, may need approval to trade different types of options before they can utilize the trading platform.
Fees are one of the main factors to consider when choosing a trading platform. Traders who utilize the scalping trading strategy opt for platforms with low fees. While many traders prefer lower fees, there could be trade-offs to consider.
For instance, low fees will not be ideal if what you get out of the offer is limited informational research and features. Some trading platforms can be rational to a certain broker while others will only be available when operating with a specific broker.
Due to this, investors need to establish the reputation of the broker before investing in a certain trading platform to manage their accounts and execute trades.
Other Trading Platform Types
As we mentioned before, there are two main trading platform types. The other types of trading platforms include fall within the main types and this depends on the assets being traded as seen below.
Cryptocurrency trading platforms expedite selling and buying of digital assets such as Bitcoin, Ethereum, Litecoin, and NEM. they execute cryptocurrency exchange transactions and offer their users analytical tools to help them make rational decisions.
For Traditional Assets
With traditional trading platforms, clients can invest money in long-established assets such as EFTs, stocks, mutual funds, options, bonds, futures, precious metals, and currencies. Multiple asset platforms are designed to certain financial sectors such as the futures market and bond market.
If you are considering joining the foreign exchange market, conduct extensive research first before choosing a trading platform. Be conversant with various aspects of the trading sector before engaging with an online broker. This is a critical factor if you want to avoid unreliable online brokers.