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Billions of dollars a day are spent on speculative trading. Traders buy and sell stocks, Bonds, Forex. CDs and a wide array of other investment instruments. For these traders to execute their buying and selling they need to use a trading platform to facilitate it.

Creating a trading platform can be very lucrative but it is a very competitive market that requires a great deal of technical investment. Here we will go over the basic things to consider when one is building a trading platform.

What To Trade: Trading platforms exist for specific types of trading. The most common type of platform is for stocks, but many exist for Forex (for more information on forex visit Forex Academy, Bonds, Cryptocurrency and others. The first step is deciding exactly which aspect of the trading market one wants to cater to.

Competitive Pricing: Platforms compete for customers based on their functionality and pricing. Many platforms charge somewhere around $10/trade. Many also give discounts to those who hold over $50,000 in their trading account. Even more, many offer low few trading for ETFs and Index funds. One must decide what price they can set and still make money.

Functionality: There are many different types of traders, but most fall into two broad categories; fundamental analysts and technical analysts. The fundamental analysts are those who look at individual companies to identify those which are undervalued or have large potential. These people are most likely to be long term investors and not prone to weekly trading. The other group, technical analysts, look at price movement, charts, and certain indicators to determine buying and selling points. 

Technical analysts require charting software and quick response price data. If a trading platform does not offer they are unlikely to attract many high volume traders.

Functionality also must include all the typical trading options, such as stop-loss market and limit orders.

Convenient Funding Options: Moving money in and out of one’s trading account is very important for the average trader. Many platforms have lost customers due to their lengthy funding and withdrawal times.

Strong Customer Support: Platforms without quality customer support are likely to fail. At minimum, one must be able to provide customer support during all trading hours. For those interested in a Forex trading platform that means 24-hour customer support.

Access To Markets: Some smaller platforms only give access to the national exchanges. In 2020 there is no reason why one should not have access to all the major markets. Failure to do so will likely result in a lack of clients.

Quality UI: Functionality is the most important aspect of a trading platform, but one cannot underestimate the importance of appearance. The User Interface of any trading platforms should be professional and sleek and be well laid out with an intuitive design.

Security: Security is of extreme importance. Many cryptocurrency platforms have experienced security breaches which resulted in them losing customer trust. The trading platform business is extremely competitive and a security breach can mean the end of a trading platform.

Posted on Sunday, December 15, 2019 5:35 PM | Back to top

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