Now our day trading guide has gone some way to answering the question ‘what is day trading’, it’s time to look at how to actually find the best online broker. The first thing you’ll need to do is find a reputable broker that can give you access to the financial markets. A quick internet search will tell you that there are numerous platforms out there, so to help you decide we’ve put together a list of some key features to look out for.
Licence and regulation
CFDs are complex financial instruments and brokers must adhere to strict rules and regulations according to the jurisdictions in which they operate. This means that a single platform may need to hold several different licences.
For example, we are licensed and regulated by the Cyprus Securities and Exchange Commission, as well as being registered with the Seychelles Financial Services Authority, the South African Financial Sector Conduct Authority, and the Abu Dhabi Global Market (ADGM) Financial Services Regulatory Authority.
These licences act like a seal of approval and offer reassurance that any platform is operating within the bounds of the law.
There’s much to learn when it comes to day trading, meaning it’s important to have help on hand, should you need it. When looking for the best online trading platform, it’s important to make sure you have a few options for getting in touch. At the very least, a platform should provide you with ‘live’ support – whether it is via telephone or webchat.
Of course, it’s also important that help is available in your preferred language and that customer service agents are knowledgeable and courteous.
Usability, look and feel
If you’re serious about trading, then you are probably going to end up spending quite a lot of time on a trading platform. With this in mind, it’s important that a platform has the right look and feel – something often overlooked by traders eager to access the markets.
Ideally, you want to find a platform that offers a degree of choice when it comes to trading platforms. At CAPEX, for example, we offer our own WebTrader as well as the popular MetaTrader 5 (MT5) platform. Both are highly intuitive and with customisable charting opinions, meaning you can set yourself up with the perfect trading environment.
There are different levels of trader – some might be intending to devote a few hours a week to the markets as a way of generating another income stream, whereas others might be professional traders looking for a new platform. To accommodate a variety of clients, the top brokers will provide various levels of account type.
Here at CAPEX, we cater to every experience level by providing five basic account types – Basic, Essential, Original, Premium and Signature. The differing account types means that you can choose the one that best suits your own trading goals.
Fees and payments
Ultimately, trading is all about making a profit so you’ll want to find a platform that offers competitive fees and/or spreads. Prices can vary a fair bit from one operator to another, but any reputable firm will be completely transparent over its pricing structure.
At CAPEX, we don’t charge commission for day trading. Instead, our prices are reflected in the spread. This means that you can see exactly how much you will be paying for each transaction. Other platforms might charge a flat fee for all commissions and may or may not have smaller spreads.
There are also other costs to be aware of, with some platforms charging a monthly account fee, inactivity fee and/or overnight swap fees.
Trading with CAPEX.com
The great thing about CFD trading online is that you can do it anywhere there is a secure internet connection. Inevitably, this means that mobile trading has proven particularly popular as traders can conveniently open and close positions from their mobile or tablet as and when it suits them.
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