How to choose the best Online Trading Platform in the UK?
Since the arrival of internet we have seen a huge increase in the DIY investing. Nowadays you can easily trade any financial asset from the comfort of your home, cheaply compared with before due to the increase in competition and also with a lot less initial capital required.
Not many years ago, investing did require having a stockbroker or a financial adviser who would inevitably get a big chuck of commission. Now you just need a computer or even just a smartphone to use a DIY investing trading platform to be up and running and hopefully build a fortune.
But deciding which DIY investment trading platform to choose is a rather complicated as there are many different ones and every online brokers has different options. Also it is important to remember that there isn’t a trading platform that fits all: despite there are some criteria that are common, ultimately every trade will have different preferences due to the fact that a trading platform might be really good for a trader but might not fit another trader’s style.
Choosing the right trading platform can really boost your online trading investments potentials. Not only you will be able to trade better and more accurately but ultimately you will avoid that your hard-earned cash will be eaten by the fees.
An online trading platform is ultimately the place where you buy, sell and hold all your investments. It is basically like a Formula 1 car for a Formula 1 pilot: if it doesn’t work well or if it does consume too much fuel than you are in trouble to beat the competition.
When looking to pick the right trading platform you need to look at the service that they offer and also the charges that they are applying. It is very important also to check that there aren’t hidden costs that might eventually take too much out of your activity. Being a successful trader is hard enough that you want to avoid anything that might slow you down and cause some extra headaches.
The good news is that since there has been an explosion of online brokers the costs have come down significantly and also there has been a push to make them a lot more transparent. In this page you will be able to find all the different criteria that we have scored the top online brokers against. As you will be able to see despite we have only listed the best online brokers there are significant differences in regards to costs and services provided so it will be important that you pick the one that most fits your trading strategy.
Five things to consider when picking a trading platform in the UK
1. Cheapest is not always best: no, it is not as simple as looking at who is offering the cheapest price. Surely it is a good point if the price is lower but when picking a trading platform you also need to look at the combination of price and service. It is normally worth paying for quality as long as the service you will get will help you achieving the best possible trading result.
2. What will you invest in: Fees can differ based on what type of financial asset you are trading. It is very important that you pick a trading platform that will work best for the type of assets you will mostly trade. For example if you are going to mostly trade forex you will need a trading platform that has the best reputation for forex trading and that it will also have a good quality/price ratio for this type of trading.
3. Tools and information: What level of trading tools the trading platform will be able to offer is also very important. Are those top of the range and can really help you gain some advantage over other traders? Also, are those tools free or they require additional costs? All those questions are very important. In addition to tools you might also want to check that the online broker will provide updated news service so that you will be able to come to the trading fully prepared. Similarly to what said about the tools it is important to determine if the information provided by the broker are free of charge or not.
4. Overall charges: Don’t stop at the admin fee or spread fee when looking at an online broker costs. You would need to get as precise as possible by adding all the costs before you can make a decision on what is worth to pay and where. Due to the high competition most brokers tend to present only the best picture of the real charges: even if this practise has reduced over the last period it is very important that you understand clearly everything you will need to pay with a broker. If you are unsure ask their customer service.
5. Extra fees being added: Although you might have made the best decision when picking an online trading platform it is always worth revisiting this on a monthly basis Things are changing very fast in the industry and there might be extra fees being added in the second or third month or the online broker could just change their commission structure. It is important that you do not ‘forget’ about the reasons why you picked a trading plaftorm and a broker: it might well be those reasons are still there but it might be things have changed or there are other brokers that have become a better choice. Make sure you visit our Top Trading Platform section regularly to sense check how the market is going and if there is a good reason to switch provider.