Although the potential multifold reward tempts novice investors in the financial market, the financial scammers are trying their utmost to take it away. A recent report suggests that various financial criminals have up their ante in this time of lockdown caused by the Covid-19 pandemic. As a result, the UK courts’ total value of alleged fraud cases has already hit 140 million in 2022.
The scammers are mainly targeting online platforms. According to the UK’s fraud report service, British investors lost around 113 million pounds to the crypto scammers alone last summer, up from the 77 million lost in 2019. While the fraudsters show no signs of slowing down, some platforms are better equipped to deal with fraudulent activities. Therefore, the essential way to avoid financial scammers is finding and investing through a reliable online trading platform.
- What is an online trading platform?
- Ways to find the UK’s best online trading platform
- Bottom line
What is an online trading platform?
Platforms for online trading in the UK like finecobank.co.uk are the most innovative financial tools that use computer software to operate trades in a network-based marketplace. Usually, trading can be performed for free or at a discount, depending on the financial intermediary. With a trading platform, the traders maintain a funded account and conduct trade on securities. This network-based environment enhances financial security, information transparency and market liquidity. It also allows the traders to interact satisfactorily. Furthermore, online trading platforms in the UK can tailor to fit the particular needs of specific markets and usually conduct all the activities within a set regulation. In the UK, all trading platforms must be authorised by the Financial Conduct Authority (FCA).
Ways to find the UK’s best online trading platform
While there is no accurate guarantee of getting an investment return, a perfect trading solution can lead you towards success. Profitable investment inevitably requires using a suitable brokerage service to make an alignment with the investing goals. Today we will break down the simple steps which will guide you to choose the best online trading platforms for the UK market:
Step 1: Get aware of your necessity
The basic but essential step is to get to know about your needs. But, unfortunately, we often tend to make decisions in a hurry which later creates trouble for us. As financial markets punish hard for even a simple error of judgement, we have to think adequately before starting to tap on the brokerage ads.
What is your investment goal? What type of investors are you? What kind of trade do you want to execute? These are some basic questions which you need to know before going for the final decision.
Step 2: Explore the options
When you are clear about your needs, it is time to narrow the field a little bit. The network-based markets have a variety of options for you. All you need to do is research all options and try to know about the crucial elements for your investment goal. Then, scroll closely through the wide range of available options, selecting the right investment products for your trades. The things which you should consider while carving through the options are:
- The regulation and policy of the stockbroker
- Guarantee of Account protection and online security
- The offer and facilities offered by the account
- Authorisation of the appropriate regulatory bodies
Step 3: Figure out the fees
While there may be more important things to focus on, getting a clear idea about the pay system for using a particular platform is equally important. A small premium is justifiable for some platforms as it may offer more advanced features than the competitors. Besides, acquire information about the commission rate. The commission mainly executes based on the account size and how often you trade. So, by determining the fees and commission, you can quickly get the idea about which brokerage is too pricey to consider and which fit best to your investment goal.
Step 4: Assess the trading platform
After successfully determining the fees, it is necessary to test the broker’s platform. While it can be expected that the brokerage should have an accurate description of its features and tools, it is best to evaluate the platform quality by giving it a test drive. The question in mind while assessing a platform should be:
- What type of securities can you trade on this platform?
- Are the price changes streaming in real-time?
- Can you set up your watchlist and alerts?
- Which types of orders can you place?
Step 5: Customer service and help centre
Before going for any platform, try to evaluate how well the customer service is. If you are a new customer, be informed about how well the platform educates its clients. It would help if you also searched for investment ideas on how to interpret data. Finally, get a clear idea about the help centre when seeking help for any conflict.
Step 6: Depositing and withdrawing funds
If you are investing to supplement your regular income, knowing about the ease of moving the deposit fund is essential. Although it is not difficult to withdraw money in this circumstance of fintech revolutions, it is always wise to know about your preferred platform’s deposit, withdrawal, and fund settlement.
Step 7: Get going and have patience
Once you are done with selecting your appropriate trading platform, start your operation. First, start slow and learn the ropes with patience. Then, utilise the available educational and research tools, outline the best investment strategy, and put all of them into the work; the sky’s the limit!
When contemplating the best platform for online trading in the UK, the investor must consider the underlying features, trading fees, available resources and the concise information centre. By following this general guide, we hope you find the online trading platforms in the UK that will meet your needs to the best. In the end, whichever platform you choose, make the best use of the tool through continuous learning and first-hand practices. After all, the platform is just a tool whose success depends on the user utilising it.