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Trading is a profession that has become more popular with the explosion of the internet. Online trading increased access to trading platforms and stock brokers and did not leave opportunities on people’s desks in tall buildings.
Some people consider trading a good passive income source since they can do it in their spare time. It is also seen as a retirement plan for some people who have dabbled in it and seen that they can make more off trading than any pension could provide.
The thing is, trading comes with high risks that can arise from the market, the trading platform you choose, or your decision to buy and sell. These risks can scare beginners and keep them from taking the plunge into the trading world.
The platform you choose as a trading newbie will influence the trading experience you get. A trading platform can be seen as a piece of software a person uses to trade securities. Many types of platforms exist, each with its strengths and weaknesses.
You will have to choose the trading platform that meets your needs best, and one thing that will influence that choice is your experience. Another factor that will influence your choice of a trading platform is your country.
So, let’s find out the best trading platform in Australia for beginners.
Contents
Steps to Choosing The Right Trading Platform
The right trading platform for one person won’t be the same for another. Choosing a platform requires you to consider many factors, and we discuss them below.
No Imitation
Copying someone else when choosing a trading platform is a bad idea. While it is a good idea to learn from the experiences of others, the choice of a trading platform has to be tailored to your needs.
Discuss with experienced people and your broker, study extensively, and then choose the platform that will help you meet your trading goals.
Imitation might put you in trading scenarios for which you are unprepared. Your portfolio might not be strong enough to follow in the footsteps of a trading guru. Remember that the person you want to copy was once a beginner.
Examine the User Friendliness of the Trading Platform
Remember that you are just getting into the world of trading securities. You will still be learning abbreviations and the meaning of words. The last thing you need is a trading platform with a complicated interface.
You should choose a platform that is easy to learn, with suitable button placement and labeled icons. It will help you progress faster than if you choose a platform with a steep learning curve.
Check the Platform’s Stability
Remember that you will eventually be trading with real money, so you wouldn’t want a platform with constant crashes and disconnections. Over time, you might miss out on important trading opportunities and experience more anxiety.
Read honest reviews on the trading platform you are interested in and see if there are complaints about down times. Also, when testing the platform, monitor its performance. Determine if it’s quick enough for you and if it is stable.
Check the Features
As a beginner, there are features a trading platform might have that you don’t need yet. Also, there are features that you will never need. While it might be good to have as wide a feature set as possible, you need to be sure that the ones you need right now are handled well by the trading platform.
For example, for beginners, educational resources and demo accounts are features that should be at the top of a checklist. If a company has few resources and offers an unsuitable demo account, you might want to look elsewhere as a beginner.
Test the Trading Platform’s Support
The technical support you get will influence the speed with which you learn to use the trading platform. Determine how quickly you can reach the trading platform’s support team.
Also, determine how many channels the platform has for communication. These things will determine how easy it is for you to get help when you need it.
Trading Platforms in Australia for Beginners.
When you are a beginner, you might get overwhelmed with the choices you have to make before you begin trading. One of these choices is the trading platform to use. There are many types of trading platforms, and they are aimed at different audiences.
Below are the trading platforms that are aimed at beginners and are suitable for the Australian market.
ThinkMarkets
ThinkMarkets was founded in 2010 and has its headquarters in London. The trading platform is part of Think Capital Limited, which is a company registered in Bermuda. The platform has traders from over 180 countries, and number more than half a million. The good things about ThinkMarkets include:
- Regulated by ASIC for security and accountability
- Demo account with $25,000/£25,000 for beginners to practice
- Over 3500 trading products available
- Quick and user-friendly registration and onboarding process
- Does not offer binary options
In conclusion, ThinkMarkets is a well-established trading platform founded in 2010 and headquartered in London. The platform is part of a registered company in Bermuda, Think Capital Limited, and has traders from over 180 countries. Its regulation by ASIC provides a level of security that traders can trust, and its demo account feature is perfect for beginners. With over 3500 products to trade on, traders have a variety of options to choose from. While the platform does not offer binary options, it remains a popular choice for those looking for a user-friendly and easy-to-navigate trading platform.
IC Markets
There can’t be a list of the best trading platforms to use in Australia without mentioning IC Markets. Scalable trading options are available on the trading platform, so parameters can be modified as needed.
More than 3000 trading options are available at IC Markets, and CFDs can be used to trade cryptocurrencies. Note that the underlying assets cannot be traded.
There are three platforms under IC Markets, MetaTrader 4, MetaTrader 5, and cTrader. These platforms come with mobile apps making trading possible from a mobile phone.
There are many pros of using IC Markets:
- IC Markets offers algorithmic trading which is attractive to some traders.
- Third-party tools can enhance the experience for beginners.
- IC Markets is a good option for those who want to use algorithmic trading.
- It has low average spreads and fees.
- It is a safe platform with high regulatory standards.
- IC Markets has implemented strong security measures to give investors peace of mind.
- IC Markets doesn’t have a proprietary trading app.
- If you’re a beginner, you may need to look for additional educational resources outside of IC Markets because their educational resources may not be sufficient.
In conclusion, IC Markets is a highly reputable and regulated trading platform in Australia, offering a wide range of trading options, including cryptocurrencies through CFDs. The platform provides scalable trading options that can be modified as per the trader’s requirements. With more than 3000 trading options and three platforms to choose from, IC Markets offers a user-friendly trading experience with the convenience of mobile apps. Its low average spread, low fees, and regulatory status make it a safe and reliable option for traders. Additionally, its a versatile platform that is compatible with third-party tools and supports algorithmic trading, making it suitable for traders of all levels.
eToro
The trading platform eToro, was founded in 2007 and has two tier-1 jurisdictions and one tier-2 jurisdiction. It is regulated by the FCA and ASIC.
It is a trading platform that offers trading with a unique twist: they offer copy trading services, and there are benefits to sharing your successful trading strategy with others on the platform.
Like the other trading platforms on this list, eToro also provides more than 3000 trading products including CFDs and forex.
It offers to trade in cryptocurrency and has a mobile trading app if that is the route you would want to take.
eToro is a trading platform that is commonly used by beginners in Australia, and there are several reasons why it may be an option to consider.
- Trading platform certified safe by two top-tier regulatory bodies
- Regulated by ASIC, advantageous for Australian residents
- Copy trading feature to follow expert traders
- User-friendly interface
- Indemnity insurance up to 1 million Euros in Australia, UK, and EU.
- Forex and CFD trading costs are slightly higher compared to others, even with zero commissions.
- eToro doesn’t support automated trading.
- Stop-loss and take-profit requirements may limit some trading strategies.
- Research material on eToro may be lacking.
In conclusion, eToro is a well-regulated trading platform founded in 2007, offering a unique copy trading service that allows traders to share successful strategies with others on the platform. With more than 3000 trading products, including CFDs, forex, and cryptocurrencies, the platform provides a user-friendly experience through its mobile and desktop apps. Its certification as safe by two top-tier regulatory bodies, including ASIC, makes it a reliable option for beginners in Australia. While it has some drawbacks, such as higher costs for trading and limitations on certain trading strategies, eToro’s benefits, including indemnity insurance, make it a platform worth considering.
Tastyworks
Tastyworks is a highly-rated trading platform that tries to meet the needs of most types of traders. It even provides tools for more advanced and niche traders.
Since it tries to meet a wide variety of trading needs, there is a lot to see on the interface. It might seem like a lot for beginners, but Tastyworks is also hailed for having great educational resources.
Tastyworks is a subsidiary of Tastytrade and was founded in 2017. While it is a newer platform compared to others in the market, it has experienced rapid growth.
A glance shows Tastyworks’ strengths:
- Many educational resources available for newcomers
- Weekly eight-hour live program for financial information
- Customizable trading experience
- Tastyworks appeals to most trader categories
- Robust trading tools with built-in analysis
- No need for a separate platform for analysis if using Tastyworks
- Lacks quality-of-life features like market news and screeners
- Investment selection is limited and amenities are not as good as other platforms
- Many resources available for newcomers, but can be overwhelming to navigate.
In conclusion, Tastyworks is a highly-rated trading platform that offers a wide variety of tools and resources to meet the needs of most types of traders. While the platform may seem overwhelming for beginners, it is praised for its excellent educational resources, including an eight-hour live program every week. Tastyworks also stands out for its robust trading tools that include proper analysis baked into the platform, allowing traders to customize their trading experience. However, the platform does have some drawbacks, including a limited investment selection, lack of market news, and quality-of-life features. Despite these cons, Tastyworks is the fastest-growing trading platform, making it a viable option for traders looking for a platform with a lot to offer.
What to Do After Choosing a Trading Platform
When you consider all your options and lay them beside your trading goals, a picture of the trading platform that is best for you will begin to form.
After you have chosen the trading platform that meets your needs, what should you do next?
There are some things you will have to face and they include
● The first thing to do is open an account on the trading platform and go through the verification process.
● Make sure your trading goals are realistic and consider the risks.
● Research thoroughly. Know the present market as best as you can, considering all the available options. Educate and re-educate yourself. Remember that your trading leans on knowledge so the more you know, the safer your portfolio is.
● Start trading with a demo account to get a feel for the market and the trading platform.
Final Thoughts
The world is a global village, and access to resources in other countries has never been easier to obtain. However, when it comes to choosing a trading platform, you have to be sure that it is best for the country you reside in.
Tastyworks, eToro, ThinkMarkets, and IC Markets are all established and widely used platforms in Australia that are known for their safety. It is important to consider the unique features and limitations of each platform when selecting one.
If the choice still feels overwhelming or confusing, give it time and conduct more research.
Remember, your trading goals should be realistic and are the first thing you consider when choosing a trading platform.
StockHax strives to provide unbiased and reliable information on cryptocurrency, finance, trading, and stocks. However, we cannot provide financial advice and urge users to do their own research and due diligence.
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