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How To Choose The Right Online Trading Platform For Yourself

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How To Choose The Right Online Trading Platform For Yourself

How To Choose The Right Online Trading Platform For Yourself

In recent times, retail participation in the stock markets has been increasing exponentially and so have the providers of trading platforms. Apart from the conventional brokerage companies with dedicated relationship managers, a new concept of ‘discount brokers’ has taken everyone by storm as their popularity rises by the day. But what factors should you keep in mind while picking the ideal platform?

We have collated a list below to help you in your decision as you proceed to open an online Demat account.

 

Factors to keep in mind while choosing an online trading platform

 

1. Cost

First things first. The stock market is all about money and hence, the cost of trade becomes a vital factor for consideration when choosing the right platform. The cost associated with each trade is called a brokerage, and the brokerage you pay will vary as per the class of security you are dealing in and also by the timeframe of your trade.

For example, the brokerage you will be required to pay while trading in equities will be different from that applicable to trading in options. Similarly, an intraday trade can attract a different brokerage as compared to long-term trades. Apart from brokerage, annual account maintenance cost is something you should account for, as usually, brokers do charge an annual fee.

 

2. Features

With the advancement in technology, the number of features offered is becoming a key differentiator. From offering the ability to read price charts and add indicators, to providing alerts and instant statements, there are several. It is important to obtain an understanding of these features, as different people have different needs, and you might find yourself resonating with one class of features more than others!

 

3. Downtime/Outages

Ask any trader, and they will tell you ‘Timing is of Essence’ when it comes to trading in the stock market. Even after all the analysis and price tracking, it is very crucial to not only enter into a trade at the right time but also to time your exit. Hence, the platform chosen by you for trading should be one that does not suffer from regular downtimes or outages as that can act as a hindrance to timing your trades accurately.

 

Conclusion

Choosing the best web trading platform to execute your trades is as important as analyzing your trades. Your choice of the platform goes a long way in your trading journey and becomes a factor in all of your trades. Using the above list, you should be able to pick a platform that is not only sound and effective but also powerful enough to serve your purpose and style of trading!

 

Disclaimer: This blog is not to be construed as investment advice. Trading and investing in the securities market carries risk. Please do your own due diligence or consult a trained financial professional before investing.

 

See More: 14 Best Online Stock Trading Platforms 2022

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