Trading platform software for real time trading
One of the main elements of successful dealing is trading platforms. They are what connect you to the online exchanges. So you need to choose your trading platforms consciously and carefully so that the platform accommodates your market, trading style and goals. After all, when you're looking for a car, you don't just jump into the first one you see - you check whether it has the right equipment, whether it is convenient and functional and whether you are suitable when driving it.
What is a real time trading platform?
Trading platforms are programmes that provide access to financial markets and allow online transactions. Specifics of trading through different exchange terminals differ significantly due to other interfaces, functions and instruments. So you have to adapt to each of them, which requires time and effort. But after a few iterations, the process becomes clear and the platform convenient.
Find the best real time trading platform software to be victorious; whether you want to trade stocks and shares, currencies, commodities, interest rates or cryptocurrencies, you will need to find an online trading platform software that suits your needs.
While some platforms allow you to buy and sell thousands of assets, others focus on industry-leading fees. Either way, you need to ensure that the platform you are considering meets your trading requirements.
So, now let's try to understand in more detail how to choose a real time trading platform for trading in Singapore.
A trading platform is an online broker that allows you to buy and sell different asset classes in their basic form. Not so long ago, you would have to call a stockbroker to invest. Not only was it an onerous process, but the fees were often exorbitant. But, with that said, the digital age now allows you to trade from the comfort of your own home.
The overall concept of the trading platform software is simple. You download the app to your phone or computer, open an account, confirm your identity, deposit funds and then trade. Most real time trading platforms offer many asset classes, which typically include stocks, forex and thousands of CFDs. In addition, you will have complete control over the trades you make, so you don't have to rely on a third-party advisor to help you.
So make sure you accurately study the trading platform software through which you are about to start your investment activity.
What can I trade on the trading platform?
So, now that you understand what a trading platform is, you need to think about the types of financial instruments you want to invest in. It is important to note that trading platforms are designed for those who wish to engage in short-term investment strategies.
One of the most popular types of instruments supported by real time trading platforms is CFD trading or Contract for Differences.
CFDs are classified as OTC financial derivatives that allow you to profit from price movements in various financial assets, including index futures, trading futures, cryptocurrencies, shares and exchange-traded securities.
The price of a CFD is the price of an asset (share, index or futures). If the price of an asset goes up, so does the cost of the CFD. The vital difference is that there are no exchange fees or other disadvantages in an exchange. CFDs allow you to take advantage of the leverage that is usually unavailable in share trades. CFDs have become very popular over the last few years.
You can profit by buying CFDs (if you anticipate the price to grow) or selling them (if you believe the market will reverse). Your earnings will be measured as the difference between the amount you buy and sell CFDs. Trading CFDs requires margin (margin is the minimum amount you must hold when opening a given trade.) as well as leverage to raise capital.
Leverage means that you are only putting a fraction of your own money into a trade. In other words, it dramatically increases your buying power by multiplying your initial investment and allows you to open a position well above your initial investment.
Specialists often describe leverage as borrowing money from your broker, even though you are not physically borrowing any money.
When you trade CFDs, you do not own the underlying asset. Instead, you buy a certain number of CFDs* (also called units) in the market when you think the asset's price will rise or sell them if you believe the price will fall. Thus, the value of a CFD reflects and always follows the cost of the underlying asset.
The advantages of CFD trading
- Trade on both rising and falling markets
Open short or long positions according to market conditions and your trading strategy.
- Leverage trading
You require much less capital to open trade than the model, where you need to own the underlying asset. As a result, leverage can significantly increase your profits (but also your losses).
- Regulated trading environment
The trading platform provides you with a regulated environment, where deposits are held in third-party accounts and a support department committed to each customer.
- Fast execution
Super-fast order execution occurs almost instantaneously.
- A more comprehensive choice of instruments
CFDs allow traders to trade all types of markets (indices, forex, stocks, commodities, cryptocurrencies, etc.) at any time. You can do it from a single trading platform from your phone, desktop or tablet. Unlike traditional investing, you will have access to the markets even outside of trading hours with orders with CFDs.
CFD trading can also work as a way of preventing potential losses by holding tangible assets. For example, if you own shares of a company but you believe the share price will fall at some point, you can use CFDs to sell them. In case they do fail, you will make a profit on the position. But if the price does go up, you can close the trade.
What are the costs of trading CFDs?
- Spread: When trading CFDs, you pay a spread, the difference between the buy price and the selling price. If you enter a buy trade, you use the buy price quote and exit that trade using the selling price, and vice versa.
- Swap rate (also called the interest rate, rollover or overnight fee). At the end of each trading day, any positions opened in your account may be subject to a fee called a swap fee. The swap fee may be positive or negative, depending on the direction of your position and the applicable interest rates.
The most popular asset classes that you will be able to buy and sell in the form of CFDs:
- Stock market indices.
- Precious metals.
- Interest rates.
How to register on a trading platform software for real time trading in Singapore?
If you are sure that you have the right tools to start your online trading career, we are now going to give you a step-by-step overview of what you need to do. The steps below usually remain the same no matter which trading platform you use.
- Choose a trading platform.
The first thing you need to do is to choose a trading platform that meets your requirements.
- Register and confirm your identity.
To comply with the FCA, online trading platforms must confirm your identity. This process, known as KYC (Know Your Customer), requires you to upload supporting documentation. For example, a passport or driving licence will suffice if you are a casual retailer and invest smaller amounts.
Some online trading platforms will also ask you to upload a document proving that you reside at the specified address. If this is the case, you will need to upload a recent copy of your bank statement, tax return or utility bill.
- Open a demo account.
To avoid the risk of loss, you can open a demo account on the platform. Then, you will be able to practice trading with your demo money and not fear losing it.
- Open a real account
If you feel strong and confident enough to start trading, you must make a minimum deposit. Most brokers allow you to deposit with a debit/credit card or bank transfer, and some even allow you to use e-wallets. Just make sure that you check whether the payment method you choose charges any fees and how long it takes the trading platform to credit the funds.
To choose a good real time trading platform, pay attention to reliability, functionality and accurate access to the exchange.
The minimum functionality of a good trading platform is to track quotes, send orders (limit, market, stop) and keep track of your positions and trades executed.
For successful trading on exchanges, a trader needs to understand the terminals' trading conditions, commissions, and features.
Thus, there is advice to do extended due diligence on the trading platform to achieve your goals.
In the end, make sure you firmly understand the risks of online trading and never invest more than you can afford to lose. Remember: small strokes fell great oaks.