Most people refer to the stock market like they’d do for their daily news consumption. The pressing point here is that not all of the consumers to these stock updates are traders. In fact, you even see Hollywood movies, shows, and social media feature the stock market with numbers and charts like a pro, assuming everyone would know of it.
It is not far from the truth that the stock market has always been a viral point of discussion. But, away from the money-minded world, there are so many traders who know scantily about the stock market. Hence, this guide running you through the best stock trading platform for beginners will aid you in comprehending how to choose a suitable and ideal broker.
Let us not forget that there are plenty of foul fishes in the sea, targeting your hard-earned and unwarily invested money. Additionally, not everything that sells is real. Reports show that there were a gigantic number of brokers that barely had the skills, knowledge, or even license to be functioning in this business. Hence, picking the right broker for you isn’t a simple yes or no decision but rather a question that demands an elaborate study, analysis, and decision-making.
Many brokers and firms provide the best stock trading platform for beginners. Still, some are confused when choosing them because there are many bogus apps for stock and cryptos that offer their services at a competitive price.
The internet is flooded with bogus apps that appear to be professional but only end up hurting your wallets. To further add to the misery, inflation is at an all-time high, and there is no relief for a commoner. Many jobs were lost during the pandemic, and things are not looking all that well; those jobs lost were lost forever. Many businesses have shut down. No new jobs are available, and those who have jobs are still struggling to meet their ends.
Although, when the pandemic gripped the world, many sought refuges in the stock and crypto markets. And many did make a good amount of money. So, there is a silver lining, but the problem is that this silver lining is obscured by fake and bogus apps floating around the internet.
If you have been plagued with this dilemma, then look no further; let this article serve you as a guide and help you select the best stock trading platform for beginners.
Whether you believe it or not, the adoption rate of cryptocurrency has increased by many folds in the post-pandemic era. As a result, cryptocurrencies have become more accessible to an average American as their popularity has increased. For many, it serves as an alternate income and a way to hedge inflation.
Traditionally there has been only the stock exchange offering various financial products.
Some exchanges have started offering user-friendly streamlined cryptocurrency trading apps, taking cues from the current market situation.
Some investors or traders might refrain from actively participating in the cryptocurrency market. However, few will hold for a longer period with the anticipation of the price of the cryptocurrency appreciating.
Nonetheless, the approach of holding cryptocurrency for a longer period offers traders or investors the ability to build and maintain their cryptocurrency portfolio.
There have been ongoing talks about enabling cryptocurrency exchanges to allow the trading of traditional financial instruments like stocks, bonds, mutual funds, and so forth.
You have the option of either approaching a broker or a firm that offers trading platforms. So what is the difference between a broker and an exchange?
Broker vs. Exchange.
Brokers allow financial transactions between two parties, the buyer and the seller. For example, a real estate broker will be an intermediary between the buyer and seller of that property.
A cryptocurrency exchange can be termed as a broker as it facilitates the trade between a buyer and a seller of cryptocurrency. A cryptocurrency exchange only allows the trading of cryptocurrencies. On the other hand, the broker allows cryptocurrency trading along with traditional financial instruments like bonds, stocks, and so forth.
Although both are technically brokers, both have distinct types of businesses used to buy and sell cryptocurrencies and other traditional financial products.
Suppose you only wish to trade in cryptocurrencies, then an exchange will serve your needs. However, if you wish to deal with cryptocurrencies and traditional financial instruments, you can consider a broker.
It does not matter if you are interested in a broker or a cryptocurrency exchange; at the end of the day, the platform should serve its purpose. Depending on your need, you opt for a broker or an exchange.
So, if you wish to trade in cryptocurrency, the stock market, or both, what are the signs of a good trading platform?
Below are signs of a good trading platform for cryptocurrency exchanges and brokers.
Signs of the best cryptocurrency exchanges and brokers
Regulated: The exchange or the broker must be regulated. They should hold a valid license to carry out financial services. If the exchanges or the broker’s headquarters is located in a different country, then check with your local state regulator if their license is valid in your state. It serves two purposes if they have a valid license and are regulated, and if they happen to go bankrupt, your interests are secured. And second, they won’t indulge in illegal activities that might harm their clients’ interests since many scammers are launching bogus trading platforms under the guise of the best stock trading platform for beginners.
Security: Understand terms and conditions and check if your interests are protected if the broker or the exchange comes under cyber threats. Also, understand the security protocols implemented to protect your identity and account.
Reputation: Check the broker’s website or the exchange and review the review section. Like in any business, there are bound to be disgruntled customers. However, go through the entire review section and understand how they handle their clients.
Client Support Service: Before selecting any broker or exchange, try to connect to the client support service and check how quickly they respond and solve your queries.
Trading Platform: Some brokers and exchanges offer a demo account. Try out the account and check how comfortable you are using their platform’s interface. It should be smooth, quick, and easy to use. If you have never traded in life, then choose a beginner-friendly app.
Payment Terms and Conditions: Understand what are the terms and conditions that are applicable while trading. Check out for any hidden charges. Some exchanges and brokers levy charges while withdrawing or depositing funds or both.
Research: Slime brokers or exchanges have research material that comes in handy while trading. Check out what research material they are providing.
Location: Some exchanges and brokers cannot operate in every United States state. Ensure the exchange or the broker you use complies with U.S. Federal law.
Although many apps are available while trading in cryptos or stock markets, most are created by scammers. These scammers offer sub-standard and cost-effective bogus apps that are there to lure you and rip you off.
Use this article as a guide to appoint the best stock trading platform for beginners, and avoid falling victim to online trading scams.