best trading platforms 2023
Do you want to start trading? Are you looking for better trading platforms and you are undecided in your choice?
Are you a Trader wishing to change performance by achieving more profitable results (having more leverage) at a lower cost?
WebDigital is the right place! Following our analysis, experience and perseverance, we have highlighted in this article "04 best trading platforms" that will meet your needs, regardless of your status and your "beginner" or experienced level.
Summary :
What is trading?
What is online trading?
Definition of a trader.
The actors (agents) of trading.
Trading markets.
Types of online trading.
The (04) best online platforms.
What is trading?
Etymology : the word “trading” is of English origin, which means “purchasing and selling operations carried out on the financial markets”.
Trading represents the activity of buying and selling financial assets on different markets (equities, currencies, commodities, derivatives). This activity is aimed at making profit.
What is online trading?
What is online trading?
With regard to “ online trading ”, it can be defined as an exchange operation (barter) of financial securities through “ a trading platform ” or a “mobile trading application”. This trading software is made available to “traders” by brokers on the internet, generally free of charge.
They are also accessible to anyone wishing to invest in the stock market and trade financial instruments on the markets.
Definition of a trader:
A trader is an operator of financial markets; in one word, a trader is an “investor” with three (03) profiles: the analyst, the risk manager, the decision maker.
Analyst profile: analyzing the content in which a particular instrument is located, with fundamental and technical analysis, allowing the trader to understand the environment, the trend of the asset if it is over or under listed, as well as these analyzes help in decision-making.
Profile of the risk manager: the trader exercises the activity of buying and selling financial instruments (such as the EURUSD or the DAX 40 index) in order to derive profits.
These gains are based on the difference between the buy and sell price of the trading positions, less the broker's fees.
The decision -maker: the trader has a risk manager profile, as he must first calculate the risk he is taking on the markets in order to have a profitable situation and for the continuity of his activity over the long term.
For the trader, it is up to him to multiply his skills to carry out his online trading activity under favorable conditions.
But above all, a trader is an expert in the financial markets, mastering their functioning, their interpretations and the reading of price fluctuations and variations on trading charts in order to make gains.
Trading actors (agents):
Persons, companies, institutions or participants who activate in the financial markets are:
Central banks.
Brokers (brokers).
Les Hedge funds.
Professional and private investors (trader).
Investment funds.
Trading markets:
Technological development, more specifically the development of the internet and fintechs has favored the diversification of online trading markets, we distinguish: shares, bonds, currencies, ETFs, commodities, stock market indices and products derivatives.
Actions:
Shares A share is a title of ownership of a company, it allows you to take part in decisions since you participate in a fraction of the capital of the company, and you will receive your remuneration in the form of "dividends".
So, when you trade a share, you become “owner of part of the company” which will give you voting rights at general meetings. A shareholder's reward is called a “dividend”.
The clues:
Indices An index can be defined as a basket of shares, for example the CAC40 index is made up of 40 shares.
Investing in an index allows you to diversify your portfolio, which leads to lower levels of risk.
CAC40, DAX40, DJI30, the S&P500; these main indexes include large companies. The volatility of indices differs from one index to another. Stock indices are attractive to trade regardless of trading style.
Thus, to trade you need a certain organization, the latter according to the defined times when these indices are open.
The forex
The forex "Foreign exchange" or "exchange market" is the place where the negotiation of currency pairs takes place. So, it is the market in which currencies are convertible and exchanged, against each other at fluctuating exchange rates.
Forex is the largest financial market, according to the Bank for International Settlements, the volume of world currency exchanges exceeds 6600 billion dollars per day.
Following this large volume, the forex is dynamic and sought after by traders.
Bonds :
Bonds A bond is a part of a loan giving the right to receive interest. The lender gets back its principal when the bond matures.
As an investment instrument, the purchase of bonds allows individual investors to become creditors of large national or state companies.
Listed bonds are traded on the stock exchange, unlisted bonds are traded over-the-counter through financial intermediaries.
Government bonds or Treasury bills are not listed on the stock exchange, their placement is done through financial intermediaries called intermediaries in Treasury securities IVT.
If you are interested in government bonds, it is possible to trade US rates and German rates, for example. A bond is a debt, ie the State issuing a bond will have to repay the bond to the investor.
Raw Materials :
The Commodities are listed on the Stock Exchange, intended for purchase and sale worldwide. They represent assets used by investors to diversify their portfolio
You can analyze the market and take a buy or sell position, if you want to invest in Gold, Oil, Gas or Copper,
For example, gold (Gold) is deemed to be a safe haven by traders and investors. It is a major value in which you can invest or speculate.
ETFs :
ETFs Exchange Traded Funds or Trackers offer you the possibility of investing in a basket of shares or bonds, in a particular sector or a particular geographical area.
They represent an index fund seeking to carefully follow the evolution of a stock market index, both up and down. ETFs are investment funds issued by management companies and approved.
For example, you want to diversify into Gold. It is possible to buy shares of each of the big mining companies but you also have the possibility to buy, for example, the iShares Gold Producers UCITS USD Acc ETF comprising more than 75 mining companies related to Gold. (The latter does not constitute investment advice but an illustrative example of the presentation of ETFs.
Types of online trading : There are several ways to do online trading.
The definition of these different approaches is made according to the trading period in which you are available and also according to your personality as a trader. We distinguish :
Le Scalping:
Scalping , also called “micro trading” or “small steps trading”, it represents a stock market strategy aimed at carrying out very short-term transactions and incessant stock market exchanges. Scalping is based on taking permanent positions. It involves changing positions in seconds or minutes at most.
The concept is to buy and sell securities very quickly in order to take advantage of the largest price fluctuations.
This style of trading is executed only during the day. He is very dynamic. The goal is to have many trades with small gains.
Le Day Trading:
Day Trading is a technique similar to scalping. It is the execution of multiple round trips during the day, then proceed to the balance of all the positions before the closing of the market, so as to remain liquid during the night.
This type of trading will suit beginners and those who want to limit their number of positions and their exposure to risk.
Le Swing Trading:
Swing Trading is the identification of the most probable price movements in the short term, to maximize profit. It is practiced over a longer period of time, so your trades will be open for several days. Your goal will be to find trading opportunities as quickly as possible by identifying future trends based on fundamental analysis.
Investors:
Investors A trader can invest in the stock from a few hours to several years. It will all depend on your trading style and desires; for example, he can buy French stocks such as Renault and international stocks such as Apple and Boeing. Building a stock portfolio will allow you to speculate on a stock if you are a short-term trader or to create a real link with the company in which you are investing by receiving a dividend if you are a medium- or long-term trader.
The four (04) best online platforms:
A trading platform represents a main instrument that traders use online daily on all markets, here are the 04 top trading platforms that we recommend to you.
NB: CFDs (Contract for Difference) are financial tools that allow you to obtain significant leverage effects while being easy to handle: the performance you get is the difference between the sale price and the purchase price multiplied by a coefficient which is called leverage
1. Etoro.com
Etoro is a simple and easy to use trading platform, it is one of the world leaders in trading. It is intended for beginners wishing to start trading stocks and CFDs. This platform is remunerated with a spread system.
The site is characterized by:
Financial instruments comprising: shares and ETFs + CFDs on shares, ETFs, Forex, Commodities and cryptocurrencies.
Leverage: on stocks (x5), on indices (x20), on forex (x30).
Speads: 0.09% CDF on shares; 0.016% CDF on CAC40; 0.030% CDF on GOLD; 0.042% Forex (EUR/USD); 0% for a selection of 2000 stocks.
Inactivity fee: €10/month after 12 months without activity.
2. Xtb.com
Xtb is ranked among the best low-cost advanced trading platforms. The latter constitutes a very attractive structure; buying stocks and ETFs is free and trading CFDs is at a reduced fee.
It is a platform that has had great success in its journey, it has all the qualities of a professional platform, advanced graphics, technical analysis instruments.
Xtb provides you with two trading stations:
Xstation 5: has been awarded several times.
Meta Trader: it is the most used platform for forex trading.
Xtb is the cheapest platform for forex and stock CFDs. It is characterized by:
Financial instruments: Stocks & ETFs + CFDs on stocks, ETFs, forex, commodities and cryptocurrencies
Leverage: on stocks (x5), on indices (x20), on forex (x30).
Commisions :
Stock CFDs: 0.08%
CAC 40 : 0,023%
Forex: 0.0035%
Shares: 0% on 2000 shares
Inactivity fee : 10 euros/year
3. Capital.com
Capital.com represents a modern platform which is characterized by advanced functionalities (technical analysis, sentiment analysis, stock pickers), it is accessible to neophyte traders.
This famous platform has a full range of alternative assets; Commodities (investment in oil, purchase and sale of gold, also silver, palladium, coffee, gasoline, etc.).
As it is characterized by the advantage of no additional costs, as well as the advantage of access for a minimum payment of €20, its characteristics are as follows:
Financial instruments : CFDs on stocks, indices, Forex and cryptocurrencies and commodities
Leverage : x5 on stocks, x20 on indices, x30 on Forex
Spreads :
CFDs on shares: from 0.02% to 1%
CFDs on CAC 40: 0.010%
CFDs on Gold: 0.020%
Forex (EUR/USD) : 0,005%
Inactivity fee : €0
4. Plus500.com
Plus500 an easier and simpler to use trading platform for beginners. It provides traders with a wide range of over 2000 instruments with low fees. Markets offered cover indices, currencies, commodities, cryptocurrencies, stocks, options, and ETFs.
This platform allows you to trade on several markets from a single screen by offering real-time information.
Its major advantage lies in its ease of use.
It is characterized by the proposal of a complete pack:
Tight spreads;
No commission;
Leverage up to 1:300;
Fast and reliable order fulfillment.
You can take control of your account through the use of the means and features that the Plus500 platform has put in place:
Stop Limit / Stop Loss;
Guaranteed stop;
Protection against negative balances;
FREE email and push notifications on market events;
Alerts on Price Movements, Change % & Trader Sentiments.