Trading platforms are software-based services provided by third-party companies to ensure smooth functioning for clients of the broker institution. They are offered either in laptop/desktop software form or in the mobile application form. Every broker has a unique trading platform for clients with an abundance of products and services offered for a superior trading experience.
Availability of pricing graphs, order book, high-low for the day, market cap, and financial ratios like return on investment are certain reliable features of the trading platform.
Different brokers offer various attractive services through their trading platforms to ensure more investors and traders engage with the broker institution. On-time order execution is critical for any trading platform. Even seconds of delays or misplacing orders by the platform can create losses in lakhs of rupees for the clients.
A trading platform needs a demat account, trading account, and a savings bank account of the client to be linked with each other. The demat account meaning is simply based on the word demat, which means a dematerialized form of shares’ accounts.
Based on their fundamental and technical research through the trading platform, broker institutions provide their clients with updated recommendations and notifications.
One can avail of the basic facilities or opt for research-driven and ultra-trading facilities with charges levied by the broker institutions. Guided research of available options and knowing their requirements or needs from the software/app is essential for an amateur trader before considering that particular trading platform.
Introduction
Trading platforms are software and phone applications provided by any broker institution to their clients. The trading platform helps make digital trades for their clients along with other facilities like fund transfer, portfolio management, mutual fund, tax filing, etc. A demat account is needed by any participant to invest and trade in the stock market. The Demat account attached or linked with a trading account is critical for any individual to invest in the capital markets.
Features of Trading Platform
- Price Charts/Graphs
In the beginning, for an amateur trader, it is essential to speculate and find the perfect scripts to invest in after a free demat account opening. The best way to consider buying shares is to understand the price movement given over a while. The graph or chart facility in the trading platform helps any individual to have a complete price movement history starting from the day the script is listed on the live market.
- Order Execution
The orders are placed on the trading platform provided by the broker. Through the platform, on behalf of the clients, the orders are sent to the exchange, and then the exchange executes those orders when they match with the live market prices. Time is crucial while placing and executing orders; a few seconds’ delays can take away huge profits from the traders.
- News and Notifications
Instant market news and updates are predominant for traders. Companies mostly release their financial statements during market hours. These releases directly impact the share prices for the day or the following days due to new entries of buyers and sellers in the script. Such news and notifications on selected companies can help traders make quick and instant order executions using the platform.
- Fundamental and Technical Analysis Tools
Brokers offer fundamental and technical analysis tools to their clients. The analysis tools have basic features unlike some superior analysis software, yet they are quite helpful to small and amateur traders. Through the trading platform, long and short-term recommendations on a few scripts are free of charge to enhance trader engagement.
Factors to consider choosing a trading platform
- User-Friendly System
Any individual initially learning about the trading platform has to understand small-big concepts clearly. A user-friendly platform is needed that helps them acknowledge and understand the stock market jargon and financial terms. An entry-level trader must consider platforms with proper steps and instructions for a hassle-free trading experience.
- Instant Support
Time is of great essence for traders and investors alike. Delays can result in huge losses. Whenever severe issues are faced by the platform, quick support from the broker institution is needed. If the technical irregularities are not solved instantly, all clients using the platform will face financial damages for each minute the system is down.
- Fee structure
Brokers provide products and services to clients for which they charge various fees. To consider the best trading platform, one must calculate the total charges levied on them for the services. The charges include brokerage, account maintenance, DP transactions, and Fundamental-Technical alerts (if opted). After considering all charges and facilities, one can zero in on the best trading platform to trade.
- Margin availability
A margin is a credit provided by the broker institution for the clients to make daily trades and increase the total value of executed orders. The margin facility is SEBI-regulated, and almost all brokers provide the margin facility with different slabs for different clients. Experienced day traders are likely to consider trading platforms based on the margin amount provided.
Conclusion
Traders will always prefer the trading platform that is most convenient to them, rather than following and opting for the broker used by their friends or family. Almost all brokers provide the same facilities and services as others. The charges, reliability and superior trading experience are something that provides a diverse experience to the users. However, a proper understanding of one’s requirements is crucial since the selection of the right trading platform will be based on those personal requirements and not recommendations.