What is a trading platform and when should you use one?
It is fair to say that the world’s financial markets play a huge role in the global economy. The cryptocurrency market for example is predicted to be worth over $2bn by 2026! This is in addition to the global FX market which sees billions made in trades each day or the London Stock Exchange which is popular for investors to dabble in. For people in Kent, the amount of money in these markets certainly makes them an appealing investment choice.
Trading in markets like those above has really been opened up to the average person in recent years. The digital transformation in trading has enabled anyone with an internet connection, computer and starting capital to invest from home. With the potential for fast returns and unrivalled flexibility, online trading is something more people around Kent turn to for extra cash now.
One thing you might have heard mentioned around online trading are trading platforms. But what are they and when should you find the best trading platform UK residents could use?
What are trading platforms?
In short, trading platforms are online websites which make it possible to trade on the world’s financial markets. It is key to look for a platform that is regulated by the Financial Conduct Authority and one that has decent cybersecurity features. In the same way as you want to avoid expensive mistakes people make when selling homes in the UK, you want to avoid trading on a platform which is not secure.
But when should you use a trading platform?
Opening and closing trades
If you live in Kent and want to start investing, being able to open and close trades is key. Without the ability to do this fundamental task, you will not be able to buy or sell assets when the opportunity arises. But how can the average person with no direct connection to the global financial markets do this? The answer is to use a trading platform. Without a platform to connect you with the various markets, you will find placing or exiting trades impossible.
Monitoring your trading portfolio
Once you have been trading for a while, you might find that you have built up a diverse, large portfolio of assets. It is key to monitor these in the easiest way possible and track their performance over time. Monitoring your portfolio is especially crucial for looking at assets which are not performing well and may need cutting loose. All decent online trading platforms will make it easy to monitor your portfolio and this makes it sensible to use them. In addition, most will also offer a wide range of assets and markets to get involved with. This means that you should use a trading platform when you want one central place to trade from and to review your open trades.
Access to the latest charts and news
It is also worth using a trading platform when you want to see the latest charts to trade from. All good platforms will enable this and carry the latest charts from markets like stocks, FX and crypto to look over. This is essential for traders because they allow you to predict where the price of any open investment might go and enable you to find new opportunities.
It is also worth using a trading platform when you want the latest financial news. Most will carry this and make it easy to get up to date with what you need to know. Typically, the best platforms will also carry guides and helpful advice for traders. This could be videos on how to use the platform itself or handy tips for newer traders. Therefore, it can make sense to use a platform like this when you need extra advice as a trader.
Trading platforms are key to investing
As the above shows, trading platforms play a key role for traders in Kent and the whole UK. Without them you would not only find it impossible to open or close trades but you would have a much harder time monitoring your open trades and finding the latest market news to act on. When you also add in the extra help they can give, it really does make sense to sign up with a reputable trading platform when dabbling in global financial markets.