Online trading consists of buying or selling financial securities through an online platform. Also the choice of the site allowing to carry out your stock market operations should not be done lightly. These few tips should help you choose the most suitable platform.
Choose a reliable site
To avoid disappointment, it is essential to choose a trading site offering the most serious guarantees. This is the case for the platforms listed on the site https://invest-sur-internet.com/meilleur-site-de-trading/. Indeed, they are, like other sites, controlled by financial regulatory authorities specific to the stock market sector. It is also necessary to verify certain information, such as the registration number issued by the competent authorities.
To check the seriousness of a trading site, you can also view your order execution statistics. First check that they exist, then, if so, consider them as one of the best instruments to assess the desire for transparency but also the effectiveness of the platform concerned.
Also avoid online brokers who would canvass or give you investment advice. It is not their role. They must limit themselves to placing the stock market orders that you give them.
It all depends on your trader profile
The choice of trading site will also be depending on your experience in this area and the type of transactions you want to operate.
Thus, the platforms practicing « day trading » are rather recommended for beginners or people who are less familiar with the subtleties of trading. This is a short-term strategy, which consists of completing the stock exchange operations planned for the day.
On the other hand, some sites are more designed for more seasoned traders. If, on the other hand, you are looking for an online broker who is essentially limited to executing your stock market orders, it is better to choose what is called a « no dealing desk » broker.
Finally, you will choose your site according to the market you are targeting. Some sites are indeed specialized in the stock market, others in those of raw materials or cryptocurrencies.
Fees to check
Trading generates certain costs, which vary greatly from one platform to another. Some are very rare on online sites. This is the case of custody fees, which are levied in exchange for holding stock market securities.
In addition, certain subscriptions make it possible to limit brokerage fees. However, if the number of orders provided for by the subscription is not reached, specific charges may be levied.
Typically, brokerage fees make up the bulk of your expenses. They consist of commissions charged by brokers on each order, and on « spreads », which represent the difference between the purchase price and the sale price of the financial security. Some are fixed, others variable.
While brokerage fees vary depending on the online site chosen, their amount also depends on the type of market selected. Finally, access to certain services, offered as an option, may still generate additional costs.
The minimum deposit: another element to consider
In most cases, you have to deposit a certain amount of money to be able to access the trading site. In effect, it is better to avoid platforms that do not require any deposit and even offer bonuses. These are not always trustworthy sites.
Sometimes you can start your trading program with just 50 euros. This is, however, an insufficient sum to obtain appreciable results, even if, with the leverage effect, you can increase your bet. This is called a practice that allows the broker to lend you money, according to a specific rate.
Finally, when choosing your site, it is important to check the procedure for depositing your money, by bank transfer or credit card for example. Beware of less conventional means.
Before you decide, also make sure that there is a simple device that allows you to withdraw your funds if you wish. And do not forget to check the effort of transparency of the site, in particular in tax matters.
Online trading support tools
If you are new to trading, or inexperienced, preferably choose a platform offering a free online trading demo.
This is a fictitious trading account, but introducing the apprentice trader to real stock market conditions. This simulation offers an excellent opportunity to practice the mechanics of trading before experimenting with them for good.
The amounts of money invested on the site are imaginary, but the situations you face are very real. You can thus measure the impact of your decisions on the results finally achieved.
Some sites also offer guides and tutorials, which introduce beginners to the mysteries of trading.
Also read: What is the best legal trading platform?