Which Are The Best Trading Platforms?

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Which Are The Best Trading Platforms?

Online trading platforms have completely revolutionised the way that individuals trade financial instruments. The ease of use and convenience has attracted new generations to the market, and this growth means that it has never been a better time to starting trading online.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

What makes a Good Online Broker?

An online broker is just one of several types of brokers you could use to start trading, but it is increasingly popular due to its lower fees and higher customisation. Choosing the correct online broker for you is important, as it can mean the difference between success and failure. The right platform has the ability to facilitate your trading experience and allows you to develop your strategy and, potentially, your rate of success.

In order to determine whether an online broker platform is good or not, you need to consider several different factors. So as to keep things simple, these five factors are the most important:

  • Minimum Deposit – Certain online trading brokers only accept traders with investments worth a minimum €25,000 or higher. Whilst this factor alone does not differentiate between a good or bad broker it does severely limit the investors which can open an account with such a broker.
  • Fees – All your actions on the platform can incur fees, and there can be a massive difference between the fees of one broker and another. Apart from trading fees, you would also need to consider non-trading fees.
  • Payment Methods – The faster and cheaper you can fund your account or withdraw your money, the better. Some of the best online brokers offer multiple payment methods which include some of the most popular categories.
  • Trading Platform – You will be using the trading platform every time you carry out a trade, so it is vital that it is user-friendly and convenient. Some of the best platforms are also available on multiple devices, including smartphones and tablets.
  • Products and Markets– As a trader looking to diversify your investments you might very well be looking to trade forex and CFDs using just one platform. Not all platforms offer the full range of products and markets you might need.

Comparing Broker Fees

online brokers

Fees play an important role when investors are deciding which online broker to choose. Since fees can make the difference between a successful trade or a loss, you need to understand them well before you start trading. Generally, brokers split their fee structure up as follows:

  1. Trading Fees – Commissions and spreads, and any other cost directly related to a trade.
  2. Financing and Overnight Rates – These fees can sometimes be categorised under Trading Fees, and include any costs relating to holding an open and leveraged position till the next trading day or longer. Leverage is a form of margin trading, where you borrow money from the broker to increase the value of your trade.
  3. Non-Trading Fees – Covering a host of administration and operational fees, including withdrawals and inactivity.

When comparing fees of different online brokers you will quickly realise how expensive certain trades may be. In some cases, such as if you will be investing below €500 or so per trade, it might not even be feasible for you to use more expensive brokers without having to risk a larger portion of your investment. This is because it will take you much longer to get the necessary value movement to close your position, cover all the fees, and still turn a profit.

Based on research carried out on hundreds of online brokers, this guide will outline some examples of reputable online brokers which score highly in all five factors.

Plus500

Plus500 is a regulated online broker which offers its users a demo account to test different investment strategies without risking any of their own funds. The platform is very easy to use however, since CFDs are complex financial instruments, it is only recommended for investors and experienced traders. Plus500 does not charge any deposit fees, and withdrawals are also free as long as you don’t carry out more than five per month.

You can make deposits using cards, bank transfers, PayPal or Skrill. Minimum deposit values vary but are generally low throughout. Minimum deposits by card, for example, are set at €100. Plus500 has very low fees, with spread fees starting from as little as 0.56%.

80.5% of retail CFD accounts lose money.

Plus500 specialises in offering users CFD trading in over 2,000 different instruments and markets. You can use the platform to trade CFDs of Bitcoin, as well as forex, stocks, and indices. CFDs are a high-risk investment product and should only be traded if you understand the risks involved. 76.4% of retail investor accounts have lost money with this provider.

eToro

Available to users worldwide, eToro built its reputation as a dependable online broker which offers the popular social trading feature. With this feature, you can emulate the trades of successful traders and reap the benefits of their choices and experience. Note that only real cryptos are available in the US.

eToro is one of the few online brokers which doesn’t charge commissions on trades and instead makes its money through spreads. While it does charge overnight and withdrawal fees, the platform remains one of the most affordable online brokers.

Most deposits are free, although certain fees may apply depending on the payment method. eToro accepts a wide range of payments, including a variety of cards, eWallets, and PayPal. The platform requires a minimum deposit which varies by payment method, but this is extremely low, with card payments only requiring a minimum of $50.

75% 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. Cryptoassets are highly volatile unregulated investment products. No EU investor protection.

eToro is a regulated broker which offers CFD trading in diverse markets and assets. You can use eToro to trade stocks, commodities, and cryptocurrency, amongst many others. Since CFDs are complex instruments, they always come with a high risk of losing money rapidly due to leverage. 66% of retail investor accounts lose money when trading CFDs with this provider.

AvaTrade

AvaTrade is a regulated CFD trading broker which offers users a variety of financial instruments and markets to invest in. For over 12 years, the platform has attracted a worldwide audience by offering a combination of low trading fees and no deposit or withdrawal fees. You can make a deposit into your AvaTrade account using a variety of options, including credit or debit cards, bank transfer or Neteller. Minimum deposits vary by payment method, with card payments requiring a small minimum of €100.

AvaTrade’s trading platform has been described by its users as being both intuitive and user-friendly. Users can access detailed historical resources, including asset charts, to analyse trends and make predictions. The platform is truly accessible, supporting over 20 different languages. More advanced platforms, which include enhanced features such as automated trading are also available for experienced traders.

With AvaTrade, you can invest in a variety of CFDs, including stocks, commodities and cryptocurrencies. Due to the high risk associated with trading CFDs, especially due to leverage trading, you should only opt for such a product if you are aware and satisfied with the possibility of losing part or all of your investment.

IQ Option

As one of the fastest-growing trading platforms, IQ Option offers users a convenient and effective way to trade online. Offering favourable trading fees and o% commissions, this platform offers up to 100x leverage options. IQ Option does not charge any deposit fees and you can get started with as little as €10. Withdrawal fees vary depending on the method used.

In order to start trading with IQ Option you can deposit funds into your account using cards, eWallets, prepaid cards, and even Bitcoin. The trading platform itself is very easy to navigate through and includes detailed asset value charts.

The platform allows you to trade a variety of markets and products, including CFDs of cryptocurrencies, indices, and ETFs. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% 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.

Trading 212

Trading 212 is a regulated online broker with presences in both the UK and Bulgaria. The company is best known for its famed platform app, which has been downloaded over 12 million times so far. Through its platform, you can trade a range of financial products, including ETFs, indices, and cryptocurrencies. Using the platform is very easy, yet it features several advanced functions, such as multiple trades on the same trading pair.

Trading 212 makes trading online as simple as possible. Apart from offering users free access to detailed analysis charts, the platform does not charge any commission fees and offers some of the lowest spreads in the industry. You can fund your account using one of several options, including cards and bank transfers. Minimum deposits vary, but the lowest is just €100.

The platform boasts over 1,800 different tradeable assets, including CFDs, forex, and cryptocurrencies. Trading CFDs is a high-risk investment which could result in loss of funds. 76% of retail investor accounts lose money when trading CFDs with this provider.

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