In the last week of January, the stock market received a lot of media attention because multitudes of average Janes and Joes essentially took on hedge funds when they decided to invest in GameStop shares. Hedge funds had been shorting the retailer’s stocks up to that point.
Soon, the movement managed to drastically raise the previously struggling stock price. It ended up becoming a big payday for many new investors.
It’s moments like these that spark interest in stock trading for many beginners. Choosing a platform is one of the first steps in getting started. This article will describe the qualities that make a platform reliable and beginner-friendly.
In dealing with financial institutions, reputation is one of the first and most important factors to consider when narrowing down the options. There are several signs that indicate if a stock brokerage is reputable.
One of the easiest ways to determine whether a brokerage is reliable is by going through the user comments. What are the people who actually use the platform saying about it? Although customer reviews should be taken with a grain of salt, if there are consistencies in the comments, there’s likely some truth to them.
Fraud protection and online security are also among the most important signs of reliability. The length of time the company has been in business can be a sign here. Brokerages with less secure platforms may not survive for long due to the inherent risks in financial dealings.
Having been in the foreign exchange industry for quite some time now, Fair Forex has established itself as a trusted platform for forex. Now, we are venturing into stock trading with all the confidence and experience we’ve gathered. We also have a long list of honest client reviews that express their satisfaction with our platform.
User experience is another area that should be examined. Since this is a list specifically for beginners, user-friendliness is an important factor to consider.
First of all, the website should be easy to navigate, especially for those who are not yet familiar with the technicalities of the market. Its design should be easily understandable and intuitive. Although things like the color or typeface may seem insignificant, they can make or break the user experience.
The availability of educational and research materials is also a top priority for beginner traders. These resources should be easily accessible, so users can further educate themselves about the current market and stock trading in general. These materials can come in the form of PDFs, newsletters, blogs, and other content formats.
Overall, the platform should be readily usable, even for a complete beginner. They should not feel lost and there should be materials to help them progress as traders.
Brokerages offer unique features that make their platforms more appealing to traders. Some of these features are more important for beginners than others.
Some platforms have robust portfolio construction tools. Although this feature will likely be better maximized by seasoned traders, it’s also wise to have the option early in the trading career so beginners can get used to building their portfolio.
Many also offer demo accounts so new traders can try their hand at buying and selling stocks without risking their investment capital. This can help them get used to market movements and how they impact the shares they hold.
At Fair Forex, we also offer spread betting feature which allows traders to invest in the movement of their chosen stocks. They can essentially bank on whether the stock will increase or decrease in value.
Lastly, a good trading platform offers clear pricing. Contrary to popular belief, the absence of trading fees doesn’t automatically make a platform ideal. In fact, some platforms may offer zero to no transaction fees but will charge their clients more elsewhere.
A clear pricing structure allows traders to weigh the pros and cons of using their platform. It better informs their decision whether to use it or not.
Some trading platforms also offer low minimum account balance requirements. This is also a good feature for beginners because they can start trading without investing a lot of money.
The stock market can be daunting, especially for new traders. It’s important to carefully consider the qualities and features of a platform before investing. Using this article as a reference is an excellent first step. Investopedia also offers an insightful list about this topic.
If you want a secure and conducive platform to start trading stocks, we are your partners.
Register here and begin trading.