A trading platform is a network-based marketplace that provides users with unlimited functionality to place trades, browse catalogs of financial instruments, and monitor accounts through financial institutions outside the broker community banking.
In most cases, trading platforms are equipped with a combination of additional features, such as top-notch research information, real-time quotes, news feeds or charting tools, to facilitate the real-time availability of trading information and to ensure transparent trading between traders. It can be to trade currencies, crypto-currencies, metals or even shares of large companies (Tesla, Apple, Pfizer, Amazon, Microsoft…).
Trading platforms, such as Avatradealgerie, are also designed to meet the particular needs of certain markets, such as currencies, stocks, commodities and indices, and options with confidence. By providing capabilities tailored to each market structure, these platforms provide greater choice in how to execute and manage trades.
Types of trading platforms
There are two types of trading platforms: so-called prop (proprietary) platforms and commercial trading platforms.
In the case of prop trading platforms, the applications are designed by major brokerage firms and mimic the trading style and requirements of electronic brokerage models.
Trading platforms, on the other hand, target retail investors and intraday speculators. These platforms are easy to use and come with useful features, such as charts and news feeds, to make it easier to find and offer more relevant information to investors and traders.
Active trading requires many trading tools and techniques to spot trends. Choosing an ideal trading platform requires hands-on experience of active trading.
How to choose a trading platform in Algeria?
When considering the choice of a crypto trading or trading platform, an Algerian investor should consider both the underlying features and the fees required. This is important because different types of traders need different features to make trading decisions.
For example, features like market depth charts and level 2 quotes are essential for day traders and other short-term traders. Conversely, tools specifically designed to visualize options strategies are useful for options traders.
When it comes to fees as a selection criterion, most traders prefer cheap trading platforms. This is the case of a trader who adopts a scalping trading strategy (small steps). Although a lower fee is generally preferable, there are usually trade-offs in the offer to consider. For example, a trading platform that charges a lower price but only offers a few features and limited research, may not be advantageous.
Other ways to evaluate and compare different platforms is to look at various mechanisms such as customer ratings and reviews; however, it should be kept in mind that not all evaluators may be free from bias or be independent.
Other trading platform requirements
Some trading platforms are only available when specific brokers are involved, while others may be skeptical of certain intermediaries. Thus, the reputation of a broker or intermediary is a factor to consider before opting for a particular platform.
In other cases, trading platforms may require traders to meet certain eligibility requirements before using them. A typical example is the $25,000 minimum in equity that intraday trading platforms require traders to have available in their accounts. Options trading platforms may require traders to use their platforms with permission to trade different classes of options.