An electronic trading platform is computer software that allows users to place buy and sell orders for financial assets. Electronic trading platforms allow users to trade stocks, commodities, derivatives, options, indices, ETFs, and cryptocurrencies. The first commonly used electronic trading platform was Nasdaq. Nowadays the most popular trading platforms for retail investors are MetaTrader 4, MetaTrader 5, and cTrader. These trading platforms are mobile-friendly and let users trade using trading robots via the usage of APIs.
How did people trade stocks before trading platforms exist?
People traded stocks and other financial instruments person-to-person on physical exchanges like the NYSE and Nasdaq. Today they use sophisticated online brokers who offer intermediary services between buyers and sellers.
The importance of latency
Latency is important for trading platforms as users need to be able to trade at the right price. The transfer of data via the internet allows retail traders to trade the financial markets very quickly and at fair and up-to-date prices. Some brokers offer co-location, which are large computer databases located near a physical exchange. This reduces the latency for online trading further and is suitable for high-frequency and algorithmic trading.
Trading Platform Regulation
According to Rule 17a-23 by the U.S. Securities and Exchange Commission (SEC), trading platforms must report information about their users, orders, and trades quarterly. There are regulated and unregulated trading platforms and brokers. We recommend only trading with regulated brokers and trading platforms. This is our list of recommended trading platforms and apps in UAE.
Trading Platform Features
Trading platforms feature graphs showing historical price data, current economic news, portfolio tracking, and order books. Most trading platforms provide Application Programming Interfaces (APIs) for traders who want to use robot trading software.
The mission of Business24-7 is to provide comprehensive, unbiased ratings and reviews of the best online brokers. Trading platform, fees, mobile trading, payments, assets, regulation, education, and research are all part of our six-month evaluation of a broker’s trading platform. The rating scale was based on thousands of data points that have been weighted into the scoring system. Brokerages were required to fill out a multi-point survey regarding every aspect of their platform. In-person demonstrations and evaluations were provided by the majority of the online brokers we reviewed. Stefan Grasic, along with our team of industry experts, conducted our reviews and developed this methodology for ranking what form is used in online investing.
All trading involves risk. More than 80% of investors lose in spread bet and CFD trading. As these complex instruments allow for the use of leverage, there is a high risk of losing more money than you have deposited. Before attempting to participate in spread bets and CFDs, consider how well you understand them and if you can afford to lose your money.