Today almost everybody has heard something about investments. The media and news encourage exchange of this information. Every other minute we are informed of the dollar or EURO exchange, prices for various assets, precious metals and stocks on TV. This is not for nothing. This information is distributed to increase financial awareness of people. Everybody needs money, that is why people start changing their attitude toward their own budget. If ten years ago most of us knew only how they could earn and spend their money, then nowadays a new model is growing: «to earn – to save – to make much of investment».
Trader dreams of living off his interests on investment, and that’s highly probable. There are a lot of ways to invest money. The most advanced solution allowing to choose a broker and trading tools is an investment marketplace. In the article we are going to consider advantages and selection rules of a trading platform.
What is a marketplace?
Marketplace is an online platform which joins together various organizations being ready to work around the clock online. These companies render a wide range of services relating to investing and internet-trading. They provide access to margin trading with usage of Forex tools. The assortment of assets for investing is also rather wide: stocks, currencies and cryptocurrencies, commodities, precious metals, indices, and others.
The key idea is to get all trading tools in one place. In addition, there is an option of automated trading. This system suggests users to benefit from electronic paperwork.
The principle options of financial online-platforms are:
- interaction between a supplier and user in automatic mode.
- instant registration of a personal client area and account on an official website in accordance with an offer agreement.
- a comprehensive and simple interface.
- flexible margin trading terms and floating leverage.
- as a rule, an access to a well-arranged analytic base.
- often there are no fees paid for opening and using of a brokerage account.
- aggregator websites on the platform, which allow a client to choose a financial product in accordance with terms, interest rate, and rating.
Which services are available on such a platform?
- There is a wide choice of trading tools. It is possible to open an account and choose the market to trade on: stock, currency, cryptocurrency, and commodity. It is possible to start an investment account.
- Online expert consulting and portfolio investment.
- Copy trading. Even beginners can afford this option. You do not have to have a lot of skills and experience in investing to copy the trades of successful traders and get returns.
- Participation in clubbing.
- Investment advice. This is an assistance in the form of consultation on various financial subjects. You’ll get a personal financial consultant.
- Training. If you can undertake and complete free training they offer, be sure to do it. The additional information will help avoiding mistakes and disappointments in your investment activities.
Selection criteria for choosing an investment marketplace
We know for sure that marketplaces provide investors with favorable terms and possibilities. Online-service does rote job instead of a trader, selecting and verifying the market participants. The client is only expected to open an investment account, choose favorable terms on the platform and start trading.
Marketplaces do not act on behalf of brokers of their partners and they are not their agent. Investors command the services of third party companies. At the same time, these particular platforms are responsible for quality of the rendered services.
In order to select a platform, you should consider certain criteria. As a rule, they hardly differ from performances you use to choose investment companies. Let’s regard the key moments.
- First, you should pay your attention to legal documents when you select an online marketplace. You should learn more about laws and regulations in the area where marketplace is incorporated at. The companies may run business without any charter documents if they are incorporated within the offshore jurisdiction in any free-trade zone. Cooperation with such companies may turn into a deposit loss.
- Besides, partners of marketplaces should be reviewed from time to time. The liquidity providers check the financial reporting, quality of their products. These particular indicators ensure reliable organization performance.
- Financial service as any other organization can turn bankrupt or be stripped of their license. You should consider the rating to avoid engagement with an unreliable platform. The marketplaces are rated by special agencies on the basis of deep analysis carried out by experienced specialists. On popular statistical websites you can find the information about number of client operations, registered and active clients.
- In addition to analytical information you can read reviews. Over the Internet real-life investors share their experience with various organizations. For certain the platform you have chosen has its general reputation at the market.
- Every online platform has various service rates. Before you choose, you’d better decide which one suits your needs and will worth the money in your particular opinion. There are fees which a marketplace charges customers regardless of a volume and number of trades.
We’ll list some fees. You may be expected to pay for:
- brokerage account maintenance;
- escrow agency services;
- deal making;
- deposit and withdrawal of funds;
- filing of applications by phone.
- Look through the financial tools and markets provided by the platform. To do that you should analyze participants-partners and available products. Decide which assets you are going to invest in.
- Before registration you should enter the platform and decide whether the interface is well-designed being comprehensive and user-friendly. The modern platforms are developed to be clear and easy-to-use for customers. Find out whether there are various payment options for deposit and withdrawal to the cards you already have. Some banks may restrict this option or add bank fee.
- Contact the customer support. Use any available option to come in touch with the specialists, send them a message or benefit from a feedback form. The beginners always face some difficulties. And such test will help you to understand the way the platform administration interacts with users. In many respects your decision to continue with a particular platform should depend on the quality and efficient response of the staff.
- Another important moment which should be mentioned is the way training is arranged here. Before you conclude an agreement with the platform, you should get all materials and guidelines concerning usage of this marketplace. This content should help you to cope with the environment when you break new ground as a beginner.
Also, various applicable training courses related to trading with various assets will be a great virtue. If the platform provides their newsletters with email updates, you should subscribe in order not to miss the vital information.
Today investment products allow generating extra revenues and arranging a long-term principle earner. Wise fund management allows you to live a full life in your younger days and provide for an old age. There are a lot of ways to invest money in the financial market. You can choose marketplaces and investment companies (Dutch Rate, BlackRock, Vanguard).
The trading platforms are developed to arrange all existing options which are already available for every person. You may benefit from all these services online at all times of the day. And you can increase your funds without leaving your home thanks to e-transactions. Today investments are discussed in all families and that means there are reasons for development of such a cross functional, full-featured office providing financial services.
When you choose an investment platform, you should comply with the rules, described in this article. In such a way you will avoid any frauds. Remember that trading terms and other conditions of a chosen marketplace should not go against the applicable laws.
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