A trading platform is an online software or application that is used to execute financial trades or transactions in various financial markets— foreign exchange currencies, stocks, commodities, cryptocurrencies, and so on. These platforms serve as a medium or digital interface that facilitates the buying and selling of assets. Generally, these platforms are equipped with several features which assist users to analyze market data, manage their portfolios, and access various trading tools and resources including charting tools, technical indicators, and order execution tools.
The range of solutions offered by these trading platforms has made it easy for anyone, including beginners with little to no prior trading knowledge, to independently execute trades.
It is important for beginner traders to continue to learn different things that can make their trading career easier. Beginner traders are advised to explore trading platform solutions from Soft-FX.
This article shall cover general things you need to know as a beginner trader.
Basic features of a beginner-friendly trading platform
As a beginner, the wide range of trading platforms to choose from can be exhausting. It is very important to know the features to look out for in a preferred trading platform as a beginner. Some of these features include:
- User-friendly interface: Using an intuitive, simple, and seamless user interface is very important for a beginner. Your preferred trading platform should be very easy to navigate with concise instructions to guide your trade execution and access to market data.
- Risk management tools: A good trading platform should be equipped with tools such as risk assessment tools and stop loss or take profit orders. This is because proper risk management is crucial to all traders, especially beginners.
- Low Minimum deposits: A trading platform that is concerned with the needs of trading beginners will have a very low minimum deposit. This is important for beginners because it encourages them to start trading with a small financial commitment.
- Educational resources: Most beginner-friendly platforms offer a range of educational materials and resources for their users. Different trading platforms use different formats for their resources. It may be in the form of articles, videos, tutorials, and webinars.
- Demo account: This is a very important feature for trading beginners. Demo accounts offer the access to practice trading with a demo account. With this demo account, beginner traders can trade without risking any money.
- Regulatory compliance
- Fees and commission
- Customer support
- Mobile device compatibility
Essential Trading tools for beginners
In addition to using a very good trading platform, beginners should also learn some essential tools that can be a total game-changer for their trading journey. Some of them are:
- Technical analysis tools: Technical analysis is a very important trading technique. It is used for spotting trends and patterns in the market, which in turn can be used to determine potential trading entry and exit points. Most trading platforms offer tools that help with technical analysis like charting features, technical indicators, and sketching tools.
- Economic calendars and News Aggregators: As a trader, it is very important to always be informed on news and events that could impact the financial markets. Economic calendars are thus very useful tools to stay updated and make better trading decisions. The most popular economic calendar tools are Forex factory and investing.com. It is also important to pay attention to news aggregators that provide real-time news, analysis, and market insight. Examples of such are CNBC, Reuters, and Bloomberg
- Risk management tools: It is very important for beginners to pay attention to risk management. They should learn to use tools like stop-loss orders, take-profit orders, and trailing stops.
Bonus: Tips for a successful trading career as a beginner
- Don’t stop learning, always educate yourself.
- Learn to start small. You can begin your trading journey with a demo account or a small investment and then subsequently increase the capital.
- Set clear and realistic trading targets and goals.
- Learn to be patient and avoid impulsive decisions, always stick to your trading plan.
- Diversify your portfolio, do not put all your funds into one asset.
- Always use risk management tools.