As of 2022, there are over 2,160 companies in Australia’s share market. That means there are a plethora of excellent options. However, choosing the best trading platform in Australia can be difficult if you don’t know what to look for.
Trading platforms bridge the gap between you and a financial market. So, whether trading in cryptocurrency, commodities, forex, or stocks, you need an excellent platform that is easy to use.
Doing your due diligence saves you headaches and allows you to enjoy making profits with an amazing trading experience. Although no rule governs which platform is the best, there are essential factors to look for in a trading platform. So, what should you be looking for in a broker? From excellent customer service, ease of use, provision of trading materials, and comprehensive investment options, here’s how to find the top trading platform in Australia.
Understand Your Goals
Before you choose any platform to trade in, you need to know your goals. For instance, what are your trading techniques? Does the platform have special analysis tools? A good platform should have essential tools for in-depth chart analysis and better decision-making.
But regardless of your trading technique, be sure the platform is adaptive to the changes in the market. This will allow you to switch to different analysis methodologies or trading styles without needing another platform.
If you don’t have funds or simply want to minimize risk, you need a platform with a funded trader program. Fortunately, you can easily find a reliable platform with funded trading accounts in Australia.
For testing purposes, a demo account is essential. A platform should have a demo account to practice, develop strategies, and test its tools before going live.
User-Friendliness of the Platform
A good trading platform should have an easy-to-use interface that allows you to navigate easily. Additionally, everything should be easy to understand, from the language to features and functions.
You should execute trades easily, which means the platform should have conveniently placed buttons. It should also allow you to simultaneously schedule executions, view various charts, access breaking news and market analysis, SMS/email alerts on your positions, and interesting investment opportunities.
Variety of Financial Instruments
There are many trading instruments ranging from currencies, indices, forward contracts, futures contracts, derivatives, options, exchange-traded funds (ETFs), metals to cryptocurrencies. Although some are more popular than others, receiving high trade volumes, a good trading platform should not limit what you choose to trade.
But it’s important to note that brokers choose to specialize in certain financial instruments. That means you may not be able to find one that offers excellent services in all types of instruments. So, choose a broker that gives you access to the instruments, assets, and markets you need.
As you plan to make money by trading, it’s important to know that brokers are in business and need to make profits too. They achieve this by charging you fees and commissions. It can be on funds transfer or spreads on your trades.
So, while it’s impossible to avoid the charges, you should aim at minimizing it. Check the platform’s spreads and fees on transactions and accounts. The golden rule is that the lower the fees, the better. But watch out for brokers with hidden fees.
The reliability of the broker can be the difference between making profits or losses. There are many things that you need to pay attention to finding a reputable broker.
Here are the tops considerations:
- Platform’s performance: A good platform should be accessible from various devices and should be stable. The platform should not freeze when executing trades or crashes during global economic events or news.
- Data security: A reliable platform should be as secure as possible. The last thing you want is to lose your data or funds to hackers. Check for data encryption, third-party data usage, firewall use, 2-factor authentication, etc.
- Customer care responsiveness: A good trading platform should have 24-hour support and be highly responsible through calls, texts, or email.
- Mode of deposit and withdrawal: Your broker should allow you to transfer funds seamlessly, be it using Paypal, credit cards, or wire transfer.
- Trading & education tools: Reputable brokers provide their traders with all the resources they need to make smarter decisions and enjoy successful trading. Check for tutorials, webinars, and trading tools on their website.
- Transparency & honesty: A reliable broker should be transparent in all their operations to you and the regulations. A transparent broker will provide you with genuine claims and offers, has no hidden fees, and should not mislead you in any way.
- Regulation & compliance: Ensure the broker is regulated by the Australian Securities & Investments Commission (ASIC). ASIC monitors and regulates brokers’ activities preventing fraudulent activities.
- Broker’s reputation: Before deciding on a broker, do thorough research and check their website reviews and social media handles. What are customers saying about them? Choose a broker with a clean record.
There you have it. Now you have a good idea of what makes a great trading platform. Use this information to choose a reliable platform in Australia that meets your trading needs.