Professional trading platform in South Africa
What is a professional trading platform?
Every investor or trader today has the opportunity to operate independently with all instruments that are traded on stock markets: bonds, shares, currencies, futures, options, fund units, etc.
With the increasing speed of information exchange and the productivity of the software, investors can enter into transactions from anywhere in the world. The exchange is replaced by a trading terminal window on a personal computer or even a smartphone.
Whether you are an experienced investor or you are just getting started with trading in South Africa, finding the right professional trading platform can help you succeed. Of course, the specifics of trading on different terminals will vary, because of the different interfaces, functionalities and tools. It will take you some time to get accustomed to working with them, but after a few times they will become clear to you.
Now let's talk more about online trading platforms.
A trading platform is a software which gives you interactive access to the market and enables you to make transactions online.
On the basis of the charts broadcasted by the trading platform, a trader makes a decision about the deal. The quality of information provided by the platform determines the success of trading, because the terminal shows not only what is happening in the market at the moment, but also gives an opportunity to study the development of the situation in the past.
It's much easier for experienced traders to choose a trading platform, because they know what features are needed for profitable trading, but for beginners it's a bit harder to find their way around. That's why we suggest you to take note of the main parameters you should pay attention to when choosing the software:
- Reliability of operation - the terminal should function without technical failures. For those interested in long-term trading these disadvantages are insignificant, but for short-term traders, delays in processing trading orders may lead to lost profits.
- Fundamental and technical analysis capability - any strategy should be based on an adequate analysis of current positions and the factors that affect the price of the asset being traded. Understanding technical analysis is not only useful for speculators, but also for investors, for whom it is equally important to open and close trades at better prices.
- Convenience of interface - the platform should have a clear interface so that the user does not get lost in it and can easily find the necessary sections. You as a user should be comfortable to work with the screen, so a good terminal provides an opportunity to change the colour of indicators, background or chart itself.
- Functionality - a trader should not have any difficulty in placing futures, insurance or pending orders. Additional advantage of the terminal is availability of trading volume monitoring window, and important macroeconomic events which can trigger violent market reaction.
- Mobile application - even if you plan to trade mainly from a personal computer, having a mobile application is important. Sometimes you may need to open or close a position urgently when you are on the road or on holiday. But in order to do so, a broker must give you access to a wide range of instruments via the app. Plus, you should also pay attention to how stable, fast and secure the app is.
These are probably the most important points to pay attention to.
If the choice of an electronic trading platform is made correctly, a convenient and clear program will be a good assistant to the trader. After all, its potential, speed of transactions, profits depend on the capabilities of the interactive platform.
There are many online traders, but their preferences may vary: some are more interested in stocks, others in options or currencies, etc. Therefore, platforms can also be specifically adapted to specific markets.
Platform for online stock trading
Shares can be traded in different ways. Investors make their choice based on experience, risk appetite and available capital. Shares are traded on the stock exchange all the time, changing their price depending on the success of the issuing company and the state of the market. Stocks can rise or fall substantially in a matter of minutes.
You can make money from classic speculation (buy low, sell high), as well as from medium- and long-term investments (buy and hold for a long time, earning dividends and profits from the growth in the value of the stock). CFD contracts are an excellent solution for trading stocks with a modest deposit. They allow you to take advantage of leverage. You can use CFDs and earn on both the rise and fall of stocks. Traders tend to be more active, trying to profit from small movements in the price of an asset. When trading actively, it is imperative to place a stop-loss - an order to limit losses. The size of stop-loss is determined on the basis of trading strategy and market volatility.
A platform for online forex trading
Today, the forex market is a place where daily trading, trades and currency transactions take place, the volume of which is hard to even imagine. A professional trading platform makes it possible to exchange one currency for another. The exchange rate of one currency compared to another is determined by the demand as well as the supply of market participants.
Speculative trading is made possible by fluctuations in currency rates, and this in turn can be a source of potentially high returns. Traders profit from both appreciation and depreciation of currencies. If we consider the currency pair USD/JPY - American dollar versus Japanese yen, the base currency is the US dollar, and the quoted currency is the Japanese yen. And if the base currency becomes more expensive, the quoted currency becomes cheaper, and vice versa. Forex brokers, as well as the foreign exchange market itself, offer many instruments for long-term investments, intraday trading or short-term speculation.
The advantage of working on Forex is the ability to trade around the clock, the minimum entry threshold, as well as many solutions for diversifying risks.
If you want to make good profit from currency trading you have to develop your trading strategy and tactics, combining the level of profit you want and the level of risk you can afford, because everyone knows that the higher the risk, the higher the profitability. It is very important for a currency trader to use fundamental and technical analysis.
An online options trading platform
An option is the right to trade an underlying asset at predetermined terms up to a certain date in the future (expiry date). In the futures market, options are on stock indices, currencies, commodities and the most liquid stocks. An option is a right, not an obligation. That is, you can refuse to buy or sell an asset, paying only the designated commission. This is very handy if the market turns in a different direction than you want it to.
Options can be bought and sold - like all securities and derivatives. By working with options you cover your risks, you get fixed income, you can profit when the market is rising and when it is falling. Options can be used to obtain a fixed income by receiving a premium. In this case there can be no physical purchase of asset and also options can insure your investment - premium on options can compensate for possible losses from change of value of underlying asset.
Such kind of financial trading as trading with binary options differs advantageously. This approach to exchange trading has become the most popular because of its high returns, accessibility and simplicity. The profits in binary options trading depend on the correct forecast made by the market participant. For a contract to be profitable you need to determine the price direction of the chosen asset before you complete the trade. If you make a correct forecast, you will earn about 80% (rate depends on the broker) of your investment, if not, you lose all your investment in the option.
Platform for online commodity trading
Various commodities and commodity derivatives are traded on these platforms. Commodities are considered to be varieties of raw materials, minerals and foodstuffs. The most liquid assets are oil, precious metals, grains, sugar, meat, dairy products, corn and coffee. On this exchange, speculators earn the same high returns as they do on securities, currency pairs and indices.
Commodities are good for diversifying your portfolio and taking advantage of changing macroeconomic trends. Because of the way commodity prices fluctuate, they can often be used as a hedge against inflation.
The main factor influencing the quotes of commodities is the current supply-demand balance.
The greater the number of buyers willing to buy a product that is currently in short supply, the higher its price will be. If few buyers are willing to purchase a particular commodity, there are too many such goods on the market, and their value will thus fall. The platforms offer the opportunity to trade commodities in several ways. They include commodity ETFs - using a single trade, you can invest in several assets. Or a simple and convenient way is the leveraged Contracts for Difference (CFD). But be aware that trading CFDs offers you extra flexibility in your trading, but also increases your risk exposure. Finally, the purchase of shares in companies that are directly linked to a specific commodity (mining and metals companies, logging companies, oil companies).
Online ETF trading platform
ETFs appeal to first-time investors and those looking for a passive way to make money from investments. ETFs invest in specific assets, which can be gold, securities, currencies, etc. They are often based on stock indices which allow you to buy into the broader market, such as Dow Jones, S&P 500 and others. These funds also build up portfolios of assets and issue their own shares, where each one includes a 'slice' of all the assets that the fund has bought.
With ETFs, an investor can invest in several companies at a time in micro shares, with good diversification, and also profit from growth stocks and dividend payments (on the companies included in the ETF portfolio).
ETFs can be traded in a variety of ways. They can be traded speculatively, intraday, they can be held as long-term investment positions or used for hedging purposes. It all depends on your strategy. ETFs, which have good liquidity and narrow spreads, are a great tool for trading. Because ETFs can be traded like stocks, investors can place various orders (stop loss, take profit, limit orders, etc.).
Online cryptocurrency trading
Cryptocurrency trading is a potentially very lucrative activity. Cryptocurrency trading is no different from similar markets for stocks, currencies, and commodities. There is the same trading: the exchange of fiat money for cryptocurrencies and back. The trader's job is to buy the cryptocurrency at the lowest price and sell it at the highest. It is best to buy popular cryptocurrencies. They are easy to sell and the most liquid. They tend to be the most stable and the fastest growing assets. The leading currencies right now are BTC, ETH, EOS, XRP, ADA, DASH and so on.
For trading cryptocurrencies, as elsewhere, chart analysis is widely used. Chart analysis can tell you a lot about where the price is headed in the future.
Cryptocurrency attracts traders with its volatility, which can fluctuate by tens or even hundreds of percent per day. This volatility in price has made digital assets a favourite tool for speculators. Users trade the cryptocurrency for quick profits.
When choosing a platform, check the list of cryptocurrencies offered and examine the tools the exchange offers. For example, is there a stop-loss order available on the trading platform? This is a bid that allows you to buy or sell a cryptocurrency if its price reaches a certain level. You can trade with leverage by taking control of the company's funds. To make such transactions, you leave your capital as collateral. If the borrowed amount is lost, the exchange will take the pledged funds to repay the debt. So think carefully and assess the risk.
Online index trading
Stock indices are indicators that show the performance of a set of assets. They may include all the largest stocks in one market, stocks in a sector, or any other type of asset. Indices are used to give investors an idea of how, on average, an instrument within an asset class, market or sector has performed over a period of time. Since an index is simply a list of securities, it cannot be traded directly (but can be traded as a future or CFD). Trading stock indices can be very attractive to traders because of the nature of an index as a broadly diversified financial instrument.
Indices cover a wider range of stock markets, allowing you to invest in many companies in a single trade. For example, FTSE 100 covers the 100 largest companies traded on the London Stock Exchange, CAC 40 is a French stock index for which the calculation is based on the 40 largest companies in France, EURO STOXX 50 is an index based on the value of the 50 largest companies in Europe.
How to start using a professional trading platform in South Africa?
The key step to start trading online in South Africa will be to choose a reliable and profitable trading platform, because, as we mentioned earlier, your investment results will depend on it. So you need to make sure that the electronic trading platform meets your personal criteria and brings you convenience while you are using it. If you have already made your choice and are ready to use a professional trading platform in South Africa, then all you need to do is register on it.
Be sure to read the terms and conditions of the exchange. They may contain a lot of crucial information. For example, the company may not provide services to users from your country. Or trading on the exchange will only be available after verification. This is also a requirement for withdrawal of funds.
Once you have decided on your choice, you will register and enter into an agreement to provide you with services on the financial markets.
By registering, you accept all the terms and conditions stipulated in the brokerage agreement.
Registering on the platform is quick and easy. It will not cause any difficulties. All you need to do is provide some personal information requested by the broker, an email address and, of course, a password of your own (no-one else needs to know it!). Once you've filled in and submitted the form, you'll receive an email. To activate your account, click on the link in the email. It is important that you give correct information in the form, otherwise you may experience withdrawal problems.
If you are new to trading virtual assets and don't want to risk your money, you can create a demo account. Technically, such an account works in the same way as a brokerage account and provides the most accurate picture of the essence of trading. But more importantly, if you are new to trading, this is a great way to get to know the market, the trading platform, the financial tools available, the charting package and the trading tools provided by your broker.
By using the Demo Account, you will be able to learn how to open and close positions, setting Stop Loss and Take Profit levels, etc. Demo accounts are available from almost all modern professional trading platforms. In most cases the account is free of charge, while an additional benefit is that the demo has no expiry date and may be upgraded.
When you open a trading account, you make a deposit of the amount specified for the platform. This amount is usually small, only a few dollars. But of course, you can deposit a larger amount. Using the payment systems that are listed on the platform, you can easily deposit and withdraw your funds whenever you want. Some brokers now support popular e-wallets.
And I also want to draw your attention to the following: when choosing a site, you should consider how to deposit and withdraw funds. The more of them, the more convenient it will be to use the exchange. Also, the number of withdrawal and depositing options may be an indication of the company's reputation.
As a rule, popular payment systems do not work with exchanges involved in illegal activities or with proven complaints from customers.
It is worth remembering that it is worth enquiring about fees and charges before you make a deposit. You will also need to choose the payment method, the currency type and only then enter the desired amount. Finally, it is important that the company you are dealing with has a solid reputation. Here, first, you should pay attention to the online reviews. Who better than the traders themselves to give a real, unbiased assessment of the trading platform? The best brokerage platforms offer free training, a free demo account and reasonable initial investment amounts. Technical support on such platforms is available 24 hours a day. This ensures that you can always talk to a support agent, regardless of your location.