What is a trading platform? How to make a reliable decision among the variety of offers
What is a Trading Platform? How to Choose a Reliable Solution Among the Variety of Options
Most modern people have likely seen at least once in their lives a classic movie scene depicting a bustling, spacious hall where individuals in expensive suits close deals in an atmosphere of absolute success and significant financial achievements. The 1980s and 1990s have left an enduring cinematic impression on how many people perceive financial exchanges. However, technological progress has not only made market trading more accessible but also reshaped the associations linked to this process.
Today, the most common technical solution for trading and investment is the trading terminal, or in other words, the trading platform.
Understanding the Concept of a Trading Platform
A “trading platform” refers to software that enables users to interact with other market participants. It allows them to post their buy and sell offers, manage their assets, and view information about the activities of other traders.
These functions address the basic needs of traders or investors, which a trading terminal is designed to fulfill. A good example of such a technical solution is the RT platform, which includes essential functionality like submitting, modifying, and canceling various types of orders, viewing current trading results, purchasing locates, and more.
Types of Trading Platforms
Amidst the wide variety of trading platforms available, choosing the right one can be quite challenging, especially for beginners in trading and investment. To start, it’s essential to differentiate between the types of trading platforms on the market. Most modern platforms can be grouped into three categories: desktop applications, web platforms, and mobile apps.
- Desktop Platforms
These are the most widely used because they maximize the capabilities of your device, providing stable performance—something crucial for active market trading. - Web Platforms
Their primary advantage is accessibility. To trade, you simply need to open a browser page and use your login credentials to access your account. - Mobile Apps
These are the best solutions for long-term and medium-term investments. All trading operations can be performed directly on your phone, making it easy to track your results at any time.
Professional and Non-Professional Platforms
All platforms can also be broadly categorized as professional or non-professional. Professional platforms typically offer more extensive functionality and customization options. For instance, one of the most renowned professional platforms is Sterling Trader Pro, which is often chosen by our clients who engage in trading as their primary professional activity.
Undoubtedly, one of the main drawbacks—or rather unique challenges—of professional platforms is their cost. Infrastructure expenses, including software costs, are a significant consideration, especially for beginners in trading. In such cases, non-professional platforms can be an ideal option. These platforms provide all the essential functionality for trading at a more affordable price. A good example is Alpha Trader Pro, often chosen by our clients who are either beginners or traders for whom trading is not their primary profession.
Platform as an Analytical Tool
For many traders, platforms have long ceased to be mere tools for basic trading operations. Modern platforms can rightly be considered valuable analytical resources for enhancing market competitiveness. Unique scanners allow traders to select trading assets more effectively, while customized filters optimize searches to align with their trading strategies.
For example, scanners and filters are central advantages of the Takion | Fondexx trading platform. According to our research, this platform stands out as the most optimal choice for active trading: ZeroPro (TradeZero) vs Takion: How to Choose the Best Trading Platform for Active Trading? | Fondexx
How to Choose a Trading Platform
Selecting a trading platform is a critical task for every trader, whether they’re just starting out or advancing to a new level of skill development. So, what should you pay special attention to when choosing a platform for trading on the U.S. stock market?
First and foremost, it’s important to note that a platform only provides the technical functionality. Trading conditions, available instruments, commissions, etc. are determined by the broker who provides the services.
However, when focusing on the technical aspect, it becomes clear that the choice of platform should be guided by your own needs and priorities. Below is an approximate list of characteristics to help you navigate the selection process:
- Required Functionality
Having developed your trading strategy, you likely have a general idea of the technical tools you need. For example, if your strategy involves opening positions when a price reaches a minimum level, the platform must include a stop-limit order feature. Another example is the availability of hotkeys, essential for active intraday trading.
Basic functionality also includes a Locate Monitor, which allows the purchase of locates for shorting hard-to-borrow stocks. This feature is available in platforms like RT, Alpha Trader Pro, Sterling Trader Pro, and Takion. - Available Quote Lists
This parameter is especially crucial for professional traders who need a comprehensive view of the market. Typically, extended quote lists are provided by professional platforms. - Additional Tools and Features
Examples of additional functionality include the ability to integrate an Imbalance Monitor—a tool used in U.S. stock market trading to identify discrepancies between the number of shares being sold and bought before the market opens or at the close of the trading day. Another example is API access for automated trading. - Optimal Cost
As mentioned earlier, infrastructure expenses are an important factor in evaluating the profitability of trading or investments. However, choosing a platform based solely on cost might not be the best decision.
Platform prices typically range from $0 to $400 per month (including quotes). Additionally, it’s important to note that the platform cost is just one part of the trading account's conditions. Many brokers offer free software but charge very high commissions for those accounts. Traders should carefully evaluate whether free software or lower commissions would better suit their strategy.
For professionals, commissions often play a key role in selecting both the broker and the platform. - Demo Accounts
A significant advantage of any platform is the availability of demo accounts, which provide an excellent opportunity to familiarize yourself with the platform's functionality and interface, and to assess whether it meets your expectations.
Platforms like Alpha Trader Pro and RT even offer demo simulators, which provide live quotes and trading conditions that closely mimic real-world scenarios.
Conclusion
Choosing a trading platform is an important and responsible process at any stage of your development as a trader. While the interface and functionality of a platform are significant, it’s essential to remember that trading conditions are provided by the broker, not the platform.
Therefore, when selecting a platform for trading, the primary focus should be on choosing a reliable and qualified broker who can offer you the most favorable trading conditions, trading and technical support, high-quality consultations, and essential auxiliary services.
When deciding on the optimal technical solution, always prioritize your own needs and trading style. However, if you still have doubts, remember that you can request a free consultation to learn more about trading conditions, platform capabilities, functionality, and your development in the U.S. stock market trading industry.