Online trading: 5 tips for choosing your broker

You intend to engage in the sale or purchase of stocks or currencies on the financial markets. If you want to practice this activity online, you must choose a trading platform that meets your expectations. By following these simple tips, you should find it more easily.

Choose a reliable platform

Before opting for an online trading platform, you must check that it complies with the regulations in force. In this regard, some sites are controlled by financial regulatory bodies, which guarantee their reliability.

This certification will also allow you to browse the site in the best security conditions. In addition, the Autorité des Marchés Financiers (AMF) publishes an updated list of fraudulent trading platforms. His consultation can prevent you from being the victim of a scam.

Also beware of sites that promise you guaranteed earnings and huge profits. Such advertising campaigns, relating to certain markets, in particular that of currencies, are moreover prohibited by law.

In any case, it is necessary to avoid browsing on poorly identified sites. Before choosing an online platform, take advice from your banker or consult the information given by the AMF website.

Offers that meet your needs

The choice of an online trading platform also depends on what you are looking for. If you are a beginner trader, you will preferably opt for a brokerage site that informs you on how to proceed to buy or sell your financial assets online.

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You then choose platforms including tutorials, glossaries or even adapted customer service. More experienced traders will move towards sites allowing the use of elaborate stock market techniques, such as « scalping » or « pip trading ».

They find detailed opinions and in-depth financial analyzes from trading specialists. You will also choose your online platform because of the access it gives you to different financial markets and the trading tools it makes available to you.

The nature of the offer

You can choose your online trading platform based on the variety of transactions it offers you.

A brokerage site can give you access to Forex. This specialized market, which allows you to buy and sell currency pairs, is one of the most popular. It can also give you the opportunity for interesting transactions on the stock and bond market.

Certain raw materials are also subject to quotations. The chosen platform can still give you access to this market, as well as to that of cryptocurrencies, which are virtual currencies, exchanged digitally.

Alongside these multi-market platforms, there are more specialized brokerage sites. If you are interested in currencies, you will opt for an online trading platform operating mainly on Forex. Some sites also specialize in financial instruments like CFDs, which make it easier to trade online.

Expenses

The choice of your online trading platform also depends on the brokerage fees it imposes on you. They are deducted on the occasion of each order to buy or sell a financial asset.

These costs, which are levied by a stock market intermediary, are in principle proportional to the amount of the order placed. They also vary according to the volume of transactions and the nature of the market on which they are operated.

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In general, the brokerage fees charged by online platforms are more moderate. In addition, certain services, such as childcare costs, are often free.

However, it must be checked that very attractive offers, in terms of brokerage fees, do not conceal restrictive conditions, such as a limitation on the number of transactions. Also, make sure that hidden or inconspicuous charges don’t make the offer less attractive.

Other precautions to take

Before deciding on an online trading platform, do not hesitate to compare the available offers. In this regard, there are very useful online comparators. In a few clicks, they allow you to access summary tables.

They list the major online brokerage sites, highlighting the pros and cons of each. This overview allows you to quickly identify the offer offering you the best value for money.

You avoid many tedious procedures and save valuable time. It is also a free service. Consulting the opinions and comments raised by the various offers can also be useful. On the condition of favoring those which are published on serious and authorized sites.

It is also necessary to distinguish between factual and relatively objective information, which helps you make a choice, and opinions whose purpose is mainly promotional.

Also Read: 5 Tips for Choosing the Best Trading Site

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