Stock Broker Trading Platform – What You Should Know
When choosing a stockbroker it’s important to find the perfect platform for you. What should you look out for?
Are you new to investing in stocks? First of all, finding the best stock broker platform is integral to your trading success. The right stock broker will be a source of support, education, and portfolio diversification; a veritable co-pilot for navigating the markets.
As today’s world moves to ever smaller and more mobile screens, there are more and more cutting-edge online brokers to choose from. Unsurprisingly, online trading appeals to investors for the many possibilities it offers. But you need to find the right trading platform to enjoy remote trading on the move, access to instant market information at the press of a finger, and benefit from integrated analytical tools.
What Is The Stock Market?
Basically, the stock market is the global meeting place where investors of all types buy and sell stocks, i.e., shares of ownership in a public company. For instance, you may have heard of the “Dow Jones” or “NASDAQ.” These are known as a stock market index, a kind of portfolio of stocks and investment holding in which companies are listed, and their performances tracked. Some of these indices specialize in a specific industry or asset, such as the technology sector. In this way, the S&P 500 and the NASDAQ-100 Technology Sector Index (NDXT) are best known for listing tech stocks.
How To Invest In Stocks
Of course, investors will buy and sell stocks with the hope of making a profit. On the other hand, companies go public and sell shares of their stock to raise capital and increase their profile. This means that investors who purchase stock of a company become shareholders. By buying stock of a particular company, you are hoping to cash in on their success.
However, shareholders end up sharing in both their profits and losses. Should a company fail altogether and go out of business, traders could lose part or all of their investment. This is where portfolio diversification comes in; investors should be wary not to “put all [their] eggs into one basket” as this increases risk. Ideally, it is better to spread your investments across several varied companies.
It goes without saying that the primary way to make money through stocks is to “buy low, sell high.” However, some investors also profit through dividends, in which shareholders are given regular payments through what are known as “high-dividend stocks.” Wherever possible, you want to be in the long game. In other words, you should buy into companies you genuinely believe in and hold onto your stocks through the thick and thin. Indeed, many of the most successful investors have hit windfalls through stocks they purchased years, if not decades before.
Types Of Stock
Stocks are categorized by company size, geolocation, industry, or type. Generally, there are two types of stocks: preferred and common. Firstly, common stock is the go-to investment of the beginner trader. If you only want to buy a few shares in a company, you could purchase common stock. With this investment, you will earn a stake in the company’s profits alongside potentially voting rights. This type of stock tends to have greater potential for long-term return.
A less volatile avenue is through the other type: preferred stock. Like bonds, preferred stock pays out a fixed dividend to investors. Obviously, lower volatility means lower risk in terms of losing value over time, but equally less likelihood of sharp increases in value.
Stock Brokers Today
There are many ways to trade the stock market. To be precise, some of the most common techniques include day trading, scalping, and swing trading. These are all examples of “active trading.”
Not too long ago, investing in stocks was like booking travel in that you had to go through an agent. To buy and sell stocks, you would have to hire a stockbroker to place trades on your behalf, a little like a travel agent booking your seat on the plane. As a result, most trades would be executed via a time-consuming and costly phone call. And just like the travel industry, the world of trading has now been blown open by a host of online tools through which investors can place trades in mere seconds.
Today, the most straightforward way to invest in the stock exchange is through an online broker. Simply set up your account, verify your identity, make your first deposit by transferring funds onto the site, and hey presto! You can open your first trade on the stock market.
What To Look For In The Best Stock Broker Trading Platform
Making your first foray into the world of trading stocks can be a daunting task, and this is where your broker comes in. Finding an online broker specifically tailored to your individual needs is key to your success in the markets. In particular you want a platform with low fees, no hidden charges, and access to all the financial markets and assets you wish to add to your portfolio. Also, don’t underestimate the power of a reliable customer support team: you never know when you might need to lean on an expert hand while trading!
Take our online broker TradeOr as an example. TradeOr boasts some of the tightest spreads on the market, with which you can trade stocks, indices, commodities, and hundreds of fiat currency pairs. Our innovative and mobile-friendly platform lets you fund your account and trade using your favorite cryptocurrencies. We charge 0% commission, and there are no hidden fees. And best of all, TradeOr clients have access to the best charting tool on the market: TradingView. This allows traders to analyze the markets, back-test trading strategies and create customizable charts. Traders can also open positions directly in the charts and therefore execute trades on the move, never missing an opportunity!
Overall, the best stock broker platform is a personal choice, but there are certain parameters that every trader should look for in their trading platform. Of course, you need to ensure your broker has access to all the markets and assets you wish to trade. Other vital considerations include a mobile-friendly platform with integrated enhanced features for analyzing and monitoring the markets, educational resources, and a supportive team on call for your questions. Fortunately, you can find all of these and more on our platform TradeOr!