While traditional forex trading platforms remain popular, new alternative platforms have opened up new possibilities for professional traders. However, not all forex trading platforms are made equal.
If you’re considering an alternative trading platform, we’ve outlined some key considerations below.
Why are some trading platforms inefficient?
As investing and trading gain momentum during times of high inflation, the number of unregulated, fraudulent trading platforms has also increased. While there are some excellent alternative brokers, not every trading platform should be trusted.
For example, some brokers are based in offshore jurisdictions meaning your investments have very little protection. Some are also unregulated, which means that every trade you make is putting your capital at risk.
Top tip: if you’re not sure whether the forex broker is regulated, look for the risk disclaimers. Any regulated broker must declare their product’s risk on every web page.
What should professional traders consider when choosing a platform?
Regulatory compliance
It’s important to choose a broker that is fully regulated by the FCA. You’ll usually be able to find this information on their ‘About us’ page.
As long as the company you’re using is regulated, you should be able to get your money back if you feel as though you’ve been scammed or misled.
Account features
Every trading platform has a slightly different offering. So, you’ll want to look into the account features to choose one that’s right for you. The main four areas to look at are:
- Leverage and margin
- Deposit requirements
- Commissions and spread
- Ease of deposits and withdrawals
Which one is best will depend on what you’re looking to achieve. So, it’s important to decipher your aims and risk appetite before looking into a shiny new platform.
The currency pairs offered
Broadly speaking, platforms that offer lots of currency pairs and asset classes are best. This is because you’ll be able to diversify your platform from a single view. This makes it much easier to keep track of your investments.
Customer service
While you might not need them, it’s important that you can speak to an expert if you wish. As a trader, you should look for a platform with 24/5 support. To see how long call wait times are, you can give the customer service line a quick call.
User-friendly interface
You want your new platform to be as intuitive as possible. That means the buy and sell buttons should be bold and clear. Some platforms even have a panic button that closes all open positions.
A poorly designed platform could lead to costly mistakes!
Final thoughts…
It might seem like a boring task, but researching the right broker and platform is essential. Not only will it give you confidence, but it can also increase your chance of success in a competitive market. What are you waiting for?
