Using a trading platform is an excellent idea because it gives you access to market signals and tutorials. These signals and tutorials are critical to making the right trading decision especially if you are acting on a volatile trade. You will have access to a virtual training program as well. This program includes a demonstration account that you can use to familiarize yourself with online trading. Another benefit is having access to technological infrastructure that helps you trade in real-time. Seeing what the top traders are doing is also possible. This insight into their trading practices is an excellent way of knowing if you are heading in the right direction. Unfortunately, choosing a suitable platform is a challenging task. Here are 3 things to look for in a reputable trading platform.
1. The Level of Security that the Platform Offers You
IOActive released a report in August 2018 that focused on the level of security that trading platforms offer their clients. It found that nearly all of the top 40 trading platforms worldwide have shocking levels of vulnerability. For example, some of them transmitted unencrypted data including information on balances, portfolios, and personal details. Other platforms stored unencrypted passwords. Two-factor authentication is also unavailable in a few of them. That means hackers can infiltrate these accounts easily. They can do it through mobile apps, desktop applications, or websites. Examine the security measures that an automated trading platform has in place before you join it.
2. The Stability of the Trading Platform
Technical issues arise for many platforms. However, reliable ones experience these issues rarely while fraudulent ones have them endemically. Select a trading platform that has the least number of technical problems in a year. Online reviews by traders can give you insights into the frequency of these problems on a particular platform. For example, these reviews will provide you with an indication of how many times traders fail to connect to the platform’s server. They will also tell you how often the trading station malfunctions. Knowing these details is critical to your financial success because it helps you avoid problematic platforms. Remember, a malfunctioning platform can cost you thousands of dollars. Avoid it if you can.
3. The Support Services That the Platform Offers You
What happens when you realize that some items are missing from your portfolio? Whom do you talk to if you suspect that someone is trying to infiltrate your account? What do you do when you cannot gain access to your account for a particular reason? Whom do you call if there is a delay in a specific transaction? These problems are common in trading online. The platform’s support team is your first point of contact when you experience them. Ask them these questions. Unsurprisingly, unscrupulous trading platforms have unresponsive support teams. These teams take hours or even days to answer your questions. Some of them send automated responses or never respond at all. Determine the responsiveness of a platform’s support service before you join it.