Whenever you decide to become micro (or not micro) investor – the first question will be – which is the right trading platform for me? How to choose the right one and not regret after. In this article we will share our own experience of how to choose the right trading platform, which factors are essential to consider, and how to make the right choice. Let`s go!

            We have no doubts that you have already researched available platforms (including history, background, ownership, and many other factors), but here are the five things you should be aware of before starting.

The first will definitely be the price of service. Platforms usually charge customers per transaction, so we would suggest you choose one with a flat fee instead of %, which would provide you with transparency and confidence. Always better to pay fix amount – you never know – maybe tomorrow your investment appetite will grow, but a flat fee per transaction will keep your costs at the same level.

Another thing to consider – is how Bank charges you for stock trading – which usually is % of the amount you want to place as a deposit for trading, plus portfolio management fees plus the charges for funds withdrawal. All that makes Banks completely out of the game for small, micro investors – it makes no financial sense (sorry, Banks!). 

Number two – minimum balance. The correct answer to that – is no minimum balance requirement, period. Whatever amount to have – trading platforms should let you in. If it makes sense for you – it should make sense for them too.

Next, the third thing to consider – is platform convenience and flexibility – that is what we usually call UI/UX. You can ask us – why it is so important. We can guarantee you – there will be a situation when you will want to buy or sell stocks on the go. The mobile app is critical – you must have a trading tool ready 27/7/365. The goal of user-friendly interface in simple words to cut transaction time. Do you remember all those traders with bulky telephones from movies? That’s why they don’t have a mobile app back then. 

#4 information assets and research tools that the platform will provide you with itself. It could be training on how to use the platform itself, a training session on trading tools that are available through that platform, or a virtual trading platform for beginners, where you can try all tools without any risk of losing money. Stat data and analytics that will help you in decision-making. It should be online, automated brief, and comprehensive. For example – it has no point to receive it once a week via email – it would not help.

Number five – good customer support, yes, seems to be a basic one, but it times of chatbots it is very important to have a real person, which could help you in a situation when you need it. 

Especially when you just started your journey as a micro-investor – at an early stage you might have a lot of questions, so please consider that as well.

Stay tuned with Finsmarta!