When you want to start managing your money online, it is important to look for the best trading platform; one that can help you with many different things. You need an interactive broker like TradeStation that can provide you with all the necessary tools that allow you to trade both stocks and options, regardless of whether you are a beginner or an experienced trader.
There are many stock trading platforms available in the market. So, which one is the right platform for beginners?
TradeStation Pairs Well with Trade-Ideas
- Available: Sign up here
- Best for: Day traders and long-term investors
- Price: Trade of the Week Newsletter: Free; $2,268 / year, $228/mo for Premium; $1,068 / year, $118/mo for Standard
You can also do more robust monitoring and uncover trade ideas in an AI-driven way through a paired service like Trade Ideas. This provides an AI-powered research analyst which runs millions of potential trade scenarios each day to highlight trading opportunities as a day trading stock picking service.Best Active Trader Stock ServiceTrade Ideas | Your Coach and Partner for Navigating the Stock Market
- Trade Ideas is a stock market app that teaches you how to trade and invest
- Using a simulated trading platform, you can learn how to trade and invest without risking actual money
- The service offers a free newsletter and also AI-powered automated trading for premium subscribers.
Capital.com
Capital.com is another online CFD and stock broker designed specifically for experienced investors.
The site makes the most of real-time data and promises fast execution speeds. This means that you can make the most of changing stock performances.
The dashboard allows users to make the most of technical indicators as well as risk alerts. This means that you can have confidence that you are making informed decisions.
A positive of Capital.com is its fees. This is a popular choice amongst traders because there are no fees for deposits/withdrawals, quotes, opening/closing time trades or educational material. The company makes its money through the buy/sell spread.
76.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
SoFi Invest: Best for Personal Finance-Focused Investors
- Available via desktop, Apple iOS and Android App on Google Play
- Best For: Investors looking for automated investing already using SoFi’s other personal finance products
- Sign up here: (iOS), Android, Desktop
SoFi Invest is an app that allows you to track and trade your money. The service is the latest from the SoFi financial wellness platform and offers free trades on stocks, ETFs, cryptos and more.
The service allows you to be an active trader by buying and selling offered assets on a daily basis or passive through its automated investing service.
The company wants to serve all customers who have an interest in improving their financial situation alongside participating in their other personal finance products like student loans, money management, credit cards and more.SoFi Invest | Free Investing
- No trading fees or commissions
- No account minimums
- Invest in Stock Bits (fractional shares)
- Trade select cryptos
- Automated investing options for a hands-off approach
FXCM
Specialising in cryptocurrencies, FXCM offers low trading fees. However, a low minimum deposit is required to set up an account. There is also an inactivity fee after one year and high bank withdrawal fees.
This is not the most cost-effective platform, but it has excellent educational tools, good customer service, a regular news flow, and good search functions.
While FXCM is not listed on the stock market, its sister company is, ensuring its safety and reliability.
FXCM is ideal for a forex trader looking for easy account opening, withdrawal and funding.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
TD Ameritrade thinkorswim
Robust Trading Tools; Variety of Assets Available to Trade; Low Costs, Including $0 Commissions
TD Ameritrade is one of the most popular brokers on Wall Street and among the online trading community, and for good reason. Founded in 1975, the company has decades of experience catering to the needs of the investing community. From a trading perspective, the company’s thinkorswim platform was designed by traders, for traders, making it one of the most comprehensive offerings online today.
Day traders enjoy the thinkorswim platform because it comes with a robust set of trading tools, a long list of assets available to trade and a low-cost experience, allowing them to retain more of the money they earn in their trading activities.
Here are the key stats:
- Minimum Deposit: The platform comes with no minimum deposit. However, if you plan on trading on margins and taking advantage of certain option privileges, you’ll need to deposit a minimum of $2,000.
- Tools: This platform offers extensive analysis tools with all the technical indicators a trader would need.
- Assets Available to Trade: The company is best known by stock traders, but if you’re into options trading or want access to a host of other trading opportunities, you won’t be disappointed. The platform gives you access to stocks and options, as well as ETFs, mutual funds, futures, forex, bonds, and CDs.
- Pricing: One of the factors that has made this online broker so popular is its low cost structure. The company doesn’t charge commissions on stock, making these trades free with the exception of minor regulatory fees. The company offers industry-low fees on options, futures, and other assets tradable on the platform.
- Customer Support: TD Ameritrade has been leading the charge for decades, which would have been impossible without exceptional customer service. The customer support staff at the company is highly educated and ready and willing to answer any questions you may have.
- Simulated Trading: The virtual account offered by the firm comes with $100,000 in virtual cash, allowing you to test your strategies without risk.
- Margin Trading: TD Ameritrade does offer access to margins, but it’s important to pay attention to the fees paid. This firm charges around 9% interest, making margin trades rather expensive on this platform compared to the 3% and 4% charged by Interactive Brokers. So, if you’re into margin trading, you may want to consider another broker.
- Available Order Types: The platform offers all the basic stock orders, including market orders, stop orders, and limit orders. You’ll also have access to a long list of advanced types like one-cancels-other (OCO) orders, bracket orders, and stop limit orders.
Although the platform may not be the best for traders looking to take advantage of margins due to high interest rates, it has become a popular option among many traders as a result of its compelling tools, long list of advanced order options, and incredibly low fee schedule. Add in a free virtual account, exceptional customer support, and a long list of assets available to trade, and you have one of the best platforms online today.
Plus500
Plus500 is an easy-to-use platform that specialises in CFD trading. There is no minimum deposit and low trading fees, but it does have substantial inactivity fees.
Please note that the Plus500 platform is suitable for experienced traders only. Though Plus500 is a very user-friendly platform, CFDs are complex financial products, thus the platform is not suitable for beginners/inexperienced traders.
The web platform is user-friendly with a two-step login procedure. The mobile platform offers good search facilities and is safe and easy to use. There is no desktop version.
Plus500 offers limited research and news flow, good customer support, a demo account and educational videos. It does not provide trading platform tutorials.
This platform is not for traders who intend to make many trades in a two-minute block. Any trader that does so will be frozen from the platform.
Plus500 does not have a banking licence, but it is regulated by the FCA.
Availability subject to regulations. 72% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money.
XTB
Recommended for: Customer service
XTB was founded in 2002 and has an excellent reputation for customer service.
It has 48 currency pairs available to trade through two account types:
- Standard – Offering market average spreads
- Pro – Offering much tighter spreads but with added commission
XTB supports the full MT4 suite, and its proprietary platform, xStation 5, offers a user-friendly, intuitive solution that works well on desktop, web and mobile.
You’ll need a minimum deposit of £250 to start trading and you’ll find that several educational resources are available, including XTB’s trading academy.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Conclusion
Trading platforms are your gateway to the financial markets. They provide an electronic communications network through which orders are routed for execution at pre-determined prices by participants known as authorized participants (APs). A wide selection of trading platforms, varying in cost and complexity, is now available to investors.