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Best Trading Platforms in 2021

Trading platforms allow you to interact safely with other investors on the market. Since there are different types of trading assets, platforms can also vary significantly. You can now conduct numerous transactions online, which is ideal for all investor profiles, strategies, and objectives. 

With such a broad array of options available, you may find it challenging to select the best trading platform for your needs. Check out the following sections to find out more about your options, how to choose the best trading platform according to your objectives, and how to use it!

Our Picks for the Best Trading Platform

Although there are numerous trading platforms that suit different investors, we have objectively selected the top ones that provide versatility, high value, and multiple tools to help you with your asset research. You may get inspired by this shortlist if you want a user-friendly platform, cost-efficiency, and numerous types of assets ready to be added to your investment portfolio. 

1
Min. Deposit
$50
Exclusive promotion
User Score
10
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Start Trading
Pros:
Trade/invest in stocks with just $50
Invest for dividends and get payout on stocks on Ex-Dividend day
Over 11 payment methods, including PayPal
Payment Methods
Bank Transfer, Wire Transfer
Full regulations list:
CySEC, FCA
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro. Your capital is at risk.
2
Min. Deposit
$1
Exclusive promotion
User Score
9.3
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Start Trading
Pros:
0 Commissions and no deposit minimums
Registered with and regulated by SEC and FINRA
Loss of cash protection
Payment Methods
Full regulations list:

What Is a Trading Platform?

Essentially, a trading platform is a virtual environment where investors can buy and sell financial assets. These are managed by brokerage firms, and they allow you to manage your investment portfolio, buy and sell assets, conduct research, and obtain access to a wide variety of financial instruments.

These services come at a cost for investors as many trading platforms have variable fees or commissions. Some of them may require you to pay a fixed cost per transaction or cover variable fees when you withdraw or deposit money. The best trading platform should provide the right combination of affordability and versatility to suit your specific investment objectives. 

3 Ways You Can Benefit from a Trading Platform

One of the significant benefits of a trading platform is the speed at which you can analyse and execute trades. Scalpers and day traders can make particular use of the software as their trading style demands fast services. 

The top trading platforms allow you to test out your strategies by providing a demo account. You can select stocks, open and close positions, and get used to the analysis tools without risking your own money. 

The best platforms have excellent charting tools. Trendlines, channels, Fibonacci retracements, and patterns are a few to name. A wide range of tools ensures that you can do your analysis with the highest accuracy. 

How Does a Trading Platform Work?

When you buy or sell an instrument through a trading platform, the software takes the place of a human broker. In other words, you can now independently buy or sell assets, short them, follow a buy-and-hold strategy, and many more.

Most trading platforms have a straightforward interface with a long list of assets that can be filtered, or you can simply type in the name of the asset you want to buy. Then, you need to click on the chosen instrument and add the amount of money you want to invest. The trading platform also has dedicated sections where you can see your trading portfolio, check the returns or losses, use analysis tools, and more. 

3 Steps to Using a Trading Platform

1

Open an Account

The first step is to choose the best trading platform for your needs. To save time on checking the best trading platforms, you can select one of our suggested platforms. Then, you need to open a trading account. The platform requires you to add in your personal information and upload a verification document in order to comply with current financial regulations.

2

Choose Assets

If you are a beginner, you may want to try the demo account first. This contains virtual money that you can invest to get accustomed to the platform, tools, how to place orders, and more. If you want to create a real portfolio, you need to fund your account. Either way, you should conduct thorough research regarding your chosen assets to make sure they match your trading strategy and objectives.

3

Start Trading

Once you use one of your broker’s payment methods to fund your trading account, you are ready to start trading. Invest in your selected assets by selecting them, adding the amount of money you want to spend, and clicking on “buy”. The transaction takes place immediately as long as you send the order during the trading hours, depending on which stock exchange the asset is listed or the type of asset you’ve selected.

What Are the Advantages of Using a Trading Platform

The best trading platforms have the following advantages for traders:

  1. Trading through an online platform comes with ultimate flexibility. You can stay at home and manage your online portfolio at any time. 
  2. Most trading platforms are available as mobile phone apps. In other words, you can also adjust your position on the go. 
  3. Trading platforms are beneficial in terms of speed. Through one-click trading, you can open or exit a position immediately, or add a stop-loss order. This can help you protect your principal from severe losses. 
  4. Many essential tools are available to help you lower your risks. Historical prices, for instance, can help you identify patterns and make advantageous trades at the right time. 
  5. Some beginner-friendly trading platforms allow traders to copy other experienced investors. This could be a great start, especially if you are a novice or do not have much time to trade actively. 
  6. Trading platforms come with extensive educational sections and even news related to their assets. These help you boost your knowledge and make well-informed trading decisions.

What Are the Disadvantages of Using a Trading Platform

The best trading platforms have the following disadvantages for traders:

  1. Some investors may risk their funds unnecessarily because of the convenience of online trading platforms. 
  2. You may also commit errors by sending the wrong orders or making typing mistakes, so make sure you double-check each transaction before submitting it. While this may not be so serious regarding small trades, you still have to cover commissions if the case.
  3. Online trading platforms are not available in remote areas or if you do not have access to an internet connection. 
  4. Technical problems, downtime, bugs, or unreliable internet connections can cause losses, especially if you are a day trader. 

Expert Tip on Selecting a Trading Platform

It is essential to look out for charts and similar tools when selecting the best trading platform for your needs. The interface should be easy to understand and use, so you can conduct your analysis quickly and eliminate guesswork. It’s also important to have access to different trading assets since you need a diversified portfolio to lower your risk.
- Shams Ul Zoha

How to Choose the Best Trading Platform?

Choosing the best trading platform can be a matter of personal preference. However, there are several general aspects you need to consider before making this decision since transferring your portfolio to another platform can be cumbersome. Let’s see the most important factors that should affect your decision. 

Is the Trading Platform Regulated?

Undoubtedly, you should open an account with a regulated trading platform. Make sure you check all relevant sections, disclaimers, and notes to find out if and how they comply with current regulations. For instance, uploading your ID when registering indicates that it complies with KYC (Know Your Customer) regulations, aiming to keep bad actors away from trading environments. 

What Fees and Charges Apply? 

You should find out all the fees and charges that apply by reading the terms and conditions before opening an account. These should also be related to your trading strategy. For instance, you may not want to pay a fee for each transaction if you are a day trader, but you may accept fixed withdrawal fees. Alternatively, you may prefer a fee per transaction if you have a buy-and-hold strategy rather than paying regular withdrawal fees that can lower your regular dividend income. 

What Devices Can You Use?

Most of the trading platforms are now available on all operating systems, including Windows, Linux, iOS, and Android. You should check compatibility if you prefer a certain device, such as your mobile phone. 

What Assets Are Available to Trade on a Platform?

Many trading platforms are now universal, so you can trade stocks, bonds, commodities, ETFs, and many other assets. If you want a specific type of asset, such as cryptocurrency, you should check whether the platform has access to it. 

Is There a Demo Account?

A demo account is useful if you want to get familiar with the platform before risking your capital. This may also be a practical feature for a beginner. 

What Is the Account Minimum?

While some trading platforms do not require a minimum deposit, others may come with higher limits. This can be a significant limitation if you are a small investor planning to trade penny stocks, for instance. 

What Educational Resources Are Available?

Well-rounded trading platforms also provide educational resources. These might be related to how to make the best of their analysis tools, how to manage your portfolio, find out news and other information, and many more. 

Is There Help and Support Available? 

Some low-cost trading platforms might not provide access to instant customer support. You should check how you can receive help if you have issues with your account. Some examples might include a 24/7 helpline, live chat, email, and others. 

Can I Use This from Anywhere?

Nowadays, it is not surprising that most investors expect constant access to their trading accounts. In most cases, trading platforms may be accessed from anywhere as long as you have an internet connection. Some of them might not be available in certain countries or regions due to legislation. 

Frequently Asked Questions

  1. There are numerous well-reputed trading platforms. For instance, eToro is one of the best social trading platforms that provide affordable trading accounts and educational resources.

  2. Numerous beginner-friendly platforms provide a smooth experience. You should check the availability of a demo account, instant customer support, and fees and commissions you need to cover.

  3. Trading platforms offer various tools, from technical indicators to fundamental news, that help you make the best trading decisions.

  4. It takes several minutes to download a platform or app, depending on your internet speed and device.

  5. Trading platforms generate revenues through the fees and commissions you need to pay for their services. For instance, you may need to cover a fee for each transaction or pay a small charge when you deposit or withdraw funds.

  6. Trading platforms or online broker platforms are considered as safe as traditional brokerage firms. They have to comply with the same regulations and use stringent security technology to provide a safe trading environment for their users. You should check all the relevant sections before opening an account to check security and regulation compliance.

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