Article posted by Avatrade
The trading world regularly welcomes new investors. With the evolution of communication tools and the Internet, the activity is demystified and more democratized. Today, from your computer, you can access financial markets located almost anywhere on the planet. To do this, you need the services of a broker or broker. It offers a trading platform, thus playing the role of intermediary between the markets and the traders. There are many trading sites available. Here are 7 tips for finding a reliable trading site.
Consider the security of the trading site
Trading involves the investment of capital. A reliable site is one that guarantees the safety of your money. We recommend that you opt for a site that backs up user funds to accounts in Europe. Make sure that these are indeed segregated accounts (accounts that are not affected by the broker’s balance sheet). With these accounts, protection of funds is guaranteed, even when the broker goes bankrupt.
“A reliable site is one that guarantees the safety of your money. We recommend that you opt for a site that saves user funds to accounts located in Europe”
Make sure the trading site is regulated
If you want to trade online, be sure to choose a site dedicated to this, that is to say a site designed for this purpose and regulated. In reality, a trading platform works thanks to software that must have given characteristics. A reliable trading site is necessarily regulated, which proves that its software meets the requirements in this area. We advise you to trade on a dedicated site, authorized in Europe by the competent authorities. These are, among others, the AMF (Financial Markets Authority) and the FCA (Financial Conduct Authority).
“A trading platform works thanks to software that must have given characteristics. A reliable trading site is necessarily regulated, which proves that its software meets the requirements in this area”
To ensure that an online trading platform is regulated, do not rely on the information given on the site on this point. Go to the Regafi website (Register of Financial Agents) and find out if the company or broker offering the trading site is authorized to operate in France. In addition, the AMF publishes from time to time on its website blacklists of companies and sites that are not authorized. Do not hesitate to consult these lists to know the sites to avoid.
Control the accessibility of the site and information
A reliable trading site is one that you can easily access. Likewise, the platform must allow you to obtain real information on trading. The concept of accessibility of the site calls on ergonomics and the supports allowing its use. Before opening an account on a trading site, explore it to assess the fluidity of the interface.
Check if the site is easy to use and if you can access it from all possible devices (desktop, laptop, tablet and mobile). One of the benefits of online trading is that it makes trading on the go possible. Mobile-accessible sites are therefore the best options. Some also offer applications whose features make operations even easier.
“Check if the site is easy to use and if you can access it from all possible terminals”
As for the accessibility of information, this is a criterion to which you must pay attention, especially if you are a beginner in trading. Give preference to sites that provide resources to help the user master trading. On these platforms, the basic notions are detailed, the operation of the markets is exposed, advice is given by specialists, etc. Some trading sites also offer training for all profiles.
Pay attention to brokerage fees
The use of a trading site is obviously not free. It is subject to brokerage fees which vary from one broker to another. They are taken from the trader’s account for each transaction on a financial market. Brokerage fees are calculated by brokers based on factors such as volume and frequency of transactions. The markets in which transactions are made also influence these fees.
“Brokerage fees are calculated by brokers based on factors such as volume and frequency of transactions”
Generally, brokerage fees correspond to a certain percentage of the amount of each order. Some brokers offer that they are paid as a flat rate. In France, brokerage fees are around 1% including tax (All taxes included). Reliable trading sites stand out for their transparency. The brokers who maintain these sites provide full details of the fees they charge traders’ accounts. To find one, make comparisons. You can use a comparator of trading sites for this.
Pay attention to accessible stock markets
The reliability of a trading site is judged in part by its scope. A reliable platform must provide access to key local, regional and international markets. There are several financial markets in which you can trade online. We have in particular the markets of France, Switzerland, Forex, Euronext, NASDAQ, New York Stock Market, London Stock Exchange, etc. Depending on the products targeted for your transactions (CFDs, currencies, commodities, etc.), you can choose one stock market or another and even several.
Consider the availability of a free trial account
Trading is learned. After any theoretical training, the ideal is to put yourself into practice without taking the risk of losing money. This is why many trading brokers allow traders to create demo accounts on their sites or demonstration. This advantage is offered on all sites that want to be reliable. Generally, all trading platforms regulated by competent institutions offer free trial account creation to traders.
Prioritize a trading site with available customer service
In order to find a reliable site for online trading, we advise you to pay attention to customer service. On any site of this type, a staff is supposed to be attentive and at the service of users. The customer service support of an online trading platform is essential for the trader at times. We advise you to choose a site whose customer service is operational 7 days a day ideally or, failing that, 6 days a week and this, 24 hours a day.
Finally, remember that CFDs are complex instruments with a significant risk of losing money due to leverage. Before using them, make sure you understand how they work.