Important Features of a Great Trading Platform
Apps and websites designed to simplify communication and access to traditional offline things via technology are examples of a new evergreen trend. Investors, brokers, traders, and other stock market participants use software and cutting-edge technology in their daily activities. Numerous companies are vying for your business, whether you’re just starting to invest or looking for a new brokerage firm. A great trading platform is one of the most important aspects you should look for.
Before we dive into the various features a trading platform should have, you should first understand the meaning of a trading platform. A trading platform is computer software that is used by investors or traders to place stock trades. It is offered by financial institutions like banks or stock brokerage firms. When selecting the best trading platform in India, an investor should look for the features provided and the required fees. It is significant because different types of traders require different characteristics to make trading decisions.
So, here’s a list of essential features for a great trading platform:
1. User-friendly Interface:
user-friendly interface can reduce the frustrations that a novice may experience when navigating a trading platform. To be effective with any online trading platform, you must understand its complexities. If you did not like the overlay, at first sight, you should not go for that one.
2. Quick order execution:
A trading platform should be quick to use. It should not take too long to place an order. A good trading platform supports one-click ordering and can manage limits, stop-losses, and other types of orders. When you place an order, your platform should be advanced enough to execute it in seconds.
3. Options Trading Tools:
Solid trading platforms should include tools such as reliable options chains and advanced order types that allow for multi-leg executions. Options can assist in leveraging trade ideas with less initial capital. Investors can use options trading and analysis software to determine when and how much to trade based on the exact risk.
4. GTT order:
GTT order is an abbreviation for Good till trigger order. It is a type of order where you can buy or sell your orders at a limited price or market price. When the trigger price is reached, whether on the same day or at a later date, a limit order is placed on the exchange at the price you specify. This feature helps you to save time and energy at the time of entry as well as the exit point.
5. Bracket order:
It is a type of order that is commonly used by intraday traders. This type of order combines a buy order with a target and stop-loss order. The bracket order facilitates automatic squaring off at a price level that is favorable to traders at the end of a trading session. It is used by intraday traders for both transactions i.e., buying and selling of stocks.
6. Cover order:
A cover order is a market or limit order combined with a stop loss order. Putting a stop loss order means you know in advance how much loss you will incur if the trade moves against you. Because of the inherent nature of cover Orders, they assist traders in minimizing downside risks and providing better risk management control.
7. Investment Alerts and Notifications:
Investors who want to stay on top of their investments must have access to investment alerts and notifications, such as changes in account balances or portfolio values. Also, many platforms provide you with notifications of updated news on stocks, the economy, etc. Trading platforms that are well-designed provide traders with the ability to quickly set alerts after determining key triggers, and then to forget about them once they are set.
8. Customization:
Each trader has different choices and preferences for trading. There are mandatory features that allow a trader to customize settings, from multiple layouts to linking windows, and programmable hotkeys to routing preferences. Traders need platforms that are flexible and tailored to their needs in order to enable agility and fit around their preferences.
Examples of Popular Trading Platforms
Many leading stockbrokers provide you with popular trading platforms. Here are some of them:
1. Zerodha:
We all know about Zerodha and their achievements in such a short period. They offer various trading software tools and platforms which include all the features mentioned above. Here are the platforms offered by Zerodha:
- Kite (Web based & Mobile Application)
- Coin (Mutual funds investment)
- Sentinel (Live Market Alerts)
- Console (Back-office)
- Partner products such as Smallcase, Streak, GoldenPi, Sensibull, and Ditto.
2. Upstox:
To provide you with a seamless trading experience, Upstox offers you some amazing tools and platforms. The trading platform provided by Upstox is easy to use and has a smooth user interface. The best part is they don’t have multiple platforms. You can invest in various segments through a single platform. The Upstox trading software is accessible via mobile and web browsers. Pro Web is a web-based trading platform and Upstox Pro mobile is a mobile-based app. Here are some key features of their trading platform:
- Advanced charting options
- Customizable workspace
- Multiple watchlists
- Real-time data and stock prices
- More than 100 technical indicators
- Various order types are available like Stop-loss orders, Cover orders, Limit orders, Bracket orders, etc.
3. Angel One:
As a full-service broker, they offer various services, including research and advisory services. Angel One has invested heavily in trading technologies. They are well-liked by traders due to their advanced technology platforms and robust research services. The company provides a variety of in-house developed trading platforms and tools such as:
- Angel One Trade (Stock Portfolio Tracker & Web Trading Platform)
- Angel One App (Mobile Trading App)
- Angel ARQ (Investment Advisory Tool)
Through Angel One trading platforms, you get interactive charting tools, easy bank transfers, Stock screeners, the latest market information and news, instant notifications, Instant order execution, and much more.
4. Sharekhan:
It is a full-service broker that offers investment and trading services. They are popular for their educational programs and their excellent customer service. Sharekhan offers 4 trading software to their customers:
- Sharekhan Desktop Website (Website Trading)
- TradeTiger (Trading Terminal)
- Sharekhan App (Mobile Trading)
- Sharekhan Mini (Low bandwidth App)
Some top features of Sharekhan platforms include placing orders directly from charts, access to HeatMap, advanced option chain, In-depth market stats, advanced orders, secure bank fund transfer, personalisation, chart linking, etc.
5. Kotak Securities:
Kotak Securities develops and offers a variety of tools and intraday trading software to enhance each customer’s trading experience. They also have a diverse range of investment options, including equity, debt, mutual funds, and derivatives. The following are the various platforms that they offer:
- Kotak Securities website
- KEAT ProX (Desktop Trading Terminal)
- Kotak Stock Trader (KST) (Mobile-based app)
- Fastlane ((App for old or slow computers)
- Xtralite (Platform for slower internet connections)
- Dealer Assisted Trading
Kotak Securities provides high-speed online trading software with key features like Real-time portfolio monitoring, personalized watchlists, notifications and alerts, easy & quick transfer of funds, in-depth research reports, stock recommendations, and many more.
Final Thoughts
These are just a few of the characteristics you should look for in a stock market platform. A professional trading platform combines flawless functionality with a wealth of additional tools. Remember that a platform is a tool for enhancing your investing and trading experience, so choose the one according to your trading strategy and preferences.
FAQs
Q1. What are the essential features of a great trading platform?
Ans- A great trading platform should offer real-time market data, an intuitive user interface, order execution capabilities, and robust security features.
Q2. Why is real-time market data crucial for a trading platform?
Ans- Real-time market data provides up-to-the-minute information on stock prices, trends, and volumes, enabling traders to make timely and informed decisions.
Q3. What role does order execution play in a trading platform?
Ans- Order execution speed and accuracy are crucial. A great trading platform should facilitate swift order placement and execution to capitalize on market opportunities.
Q4. How does security play a role in a trading platform?
Ans- Security is paramount to protect user data and financial transactions. Encryption, two-factor authentication, and secure socket layer (SSL) protocols should be in place to ensure a secure trading environment.
Q5. Can I access a trading platform on multiple devices?
Ans- Yes, a good trading platform should offer compatibility across various devices, including desktops, laptops, smartphones, and tablets. This allows traders to access their accounts and execute trades on the go.
Q6. What features should be available for technical analysis on a trading platform?
Ans- Technical analysis features may include advanced charting tools, technical indicators, drawing tools, and trend analysis. These tools aid traders in making informed decisions based on price movements and patterns.
Q7. Are there risk management tools available on trading platforms?
Ans- Yes, risk management tools such as stop-loss orders, limit orders, and alerts are essential for controlling and mitigating risks associated with trading.
Q8. How can a trading platform support different types of trading strategies?
Ans- A versatile trading platform should support various order types, including market orders, limit orders, and conditional orders, to accommodate different trading strategies such as day trading, swing trading, and long-term investing.
Q9. Are there educational resources available on trading platforms for beginners?
Ans- Many trading platforms offer educational resources, tutorials, and demo accounts for beginners. These resources help users understand the platform’s features, market dynamics, and improve their trading skills.
by Instockbroker Team | February 9, 2024