Trading is all about buying and selling assets in order to make a profit. Financial trading is exactly the same. Financial trading is carried out in one of two ways: either via an exchange or over the counter. It’s something that anyone can get involved in, there are just a few things to consider before you start.
What do you need to consider before you start trading?
- First of all, you need to get acquainted with the stock market. You need to understand what is going on and learn how the stock market works. If you are looking to buy stocks within a certain company, then it is a good idea to start following them and keeping note of what is happening.
- You will then need to consider your own finances. You will need to decide how much you can actually afford to put into the stock market. If you put in too much and cause yourself to get into financial difficulty then it will be a waste of time.
- Trading is not a guaranteed money-maker, there are risks. You are just as likely to lose the money that you put in as you are likely to make money. It’s something you really need to think about before you start trading. Work out just how much money you can afford to put in and make sure it isn’t going to affect your normal everyday bills.
- Once you have decided to go into trading, you will need to decide on a trading platform. There are many different trading platforms to consider, so you will need to do some research and pick the one that is right for you and your specific needs.
What do you need to consider when choosing a trading platform?
If you are new to the world of trading, then it is a good idea to get acquainted with the different trading platforms that are available to you before you pick one. The things that you need to consider with each trading platform are:
- Is it FCA regulated? You should only use a trading platform if it is governed by the Financial Conduct Authority. If you are unsure, you can check the FCA register here.
- What are the platform’s fees and charges? Some of the trading platforms will charge more than others, so it is always worth checking this first and factoring it into the cost of trading.
- What does the platform trade? If you are only looking to trade in GDP, then make sure the platform allows for that. Or, if you are wanting to trade in cryptocurrencies such as bitcoin then you need to check if the platform allows that too. Some trading platforms may allow you to trade in multiple currencies.
- How user-friendly is the platform? If you are just starting out in the world of trading then you will want something that is easy to use.
What trading platforms are available to me?
There are many different trading platforms out there but the top three that are worth considering are:
- eToro – this is best for beginners to the trading world and is also one of the most popular trading platforms in the UK.
- Markets.com – if you are not a beginner then this one would be one to consider. It doesn’t charge trading fees or commissions but you will need to know a bit more about the stock market to be able to use it.
- DEGIRO – if you are planning on trading for a long time, then this platform may be ideal for you. It offers some of the most competitive fees and allows you to invest in companies from all over the world.
Before you decide to invest, it is a good idea to have a look at each of these platforms and see which one is best for you and your financial needs.