2022-23 Work From Home Deductions - What You Need to Know

So you're a newcomer. Ready to start trading, but with little to no experience, which begs the question, where do I start? And can leave you feeling overwhelmed.

Well, you're not alone. Everyone has to start somewhere, and it isn't only new investors that feel apprehensive about making a wrong investment decision. After all, your aim is to build wealth. It's a given that with investment comes risk, but if you read ahead, we ensure that you'll learn how to choose a promising trading platform that will soon put you on the right foot.

 

Start Your Learning. What is a Trading Platform?

A trading platform is a software system mainly delivered through a brokerage or financial institution. It allows you, the investor, to autonomously trade financial instruments (such as bonds, shares and other securities) online. 

Sound daunting? It doesn't have to be. To help you make the best decision, we've broken down the non-negotiables when choosing an online trading platform.

 

Trading Platform Non-Negotiables

If you've started doing your research, you'd be well aware of the many online trading platforms available. There are two general ways in which you can begin the investment process. Firstly, if you want step-by-step guidance, you’ll need to hire a professional stockbroker to advise you on which investments to choose. Secondly, if you're here and reading this article, you probably feel comfortable managing the process yourself. Hence, a low-cost, easy-to-use platform is the way to go.

 

Tip 1: Identify Your Needs

Before you dip your toe into the myriad of platforms, take a minute to narrow down what you need from your desired platform. Every investor's decision will differ depending on their goals and where they are in the process. A beginner will likely look toward educational resources, customer support, and perhaps a platform that offers training trades.

 

Tip 2: Look for a User-Friendly Interface

Your choice of platform should be easy to use and beginner-friendly. Education materials, such as video tutorials, to get you started are a bonus. 

You also want an intuitive and well-positioned platform with the most critical analysis tools in front of you, allowing you to close or quickly modify open positions. 

Similarly, you want the speed at which the platform operates to be timely, avoiding network data problems that could potentially affect the execution of your trading.

 

Tip 3: Easy-To-Use Tools

There are different ways to utilise trading software, and the tools offered by the platform you select should work to help a beginner trader. 

Trading signals are one such tool. They work to give signals on current trades and trends, with the idea being to help you identify a profitable trading opportunity. Pre-filled profiles can help customise the signals sent to your account.

Trade analysers are another tool that helps traders by analysing current trends. The tool considers recent trades whilst examining the history of specific assets, which enables it to make predictions that can help you decide which equities or assets to trade.

Automated bots are another tool to consider, whereby artificial intelligence creates bots that learn habits from leading traders. With the ability to closely monitor trades made by industry leaders, they can automatically apply to your account for the same trade position.

 

Tip 4: Security and Stability

For trading to be successful, having a reliable and secure platform is extremely important. Check that your broker has its licence with ASIC, the required regulatory authority within Australia. If so, you're good to go––regulated brokers offer trusted, safe and reliable trading platforms.

 

Tip 5: Transparent Fees Structure

Choose a platform that has a transparent pricing structure and is upfront with its fees from the get-go. For example, the user-friendly trading platform Superhero sets out all of its fees in an easy-to-read schedule that is readily available online to potential investors. For further ease, they promise to advise account holders before charging a fee. 

Most importantly, never sacrifice security to save a few dollars on fees––don't be drawn to unregulated brokers offering overly low trading costs. The headache of recovering funds from a scam is rarely successful.

 

Tip 6: Live Customer Support

Trading is a fast-lane process, especially for a beginner. Look for a trading platform that offers phone, email and live online chat support.

Okay, those are some of the features you need to consider when choosing the right trading platform. Now let's look at the process.

 

So What's Out There...

A lot. But here is one you might want to look at– Superhero. It's an online platform that allows its traders to invest in Australian shares, U.S. shares, and ETFs. You can also invest your super without needing a self-managed super fund. It aims to make investing for beginners accessible and understandable.

There is no one way to guarantee a return on your investment, but with some research and a suitable platform, you’re off to a good start. Altus is here if you need more robust financial advice about wealth management, retirement planning, and superannuation.​​