Best Trading Sites for 2020

• Broker’s Reputation
• Charges and Fees
• trading platform functionality

• Watchlist

This section will enable you to organize the markets and people you are interested in investing in and copying. The best part is that you can create multiple lists such as ‘People to copy’ and ‘Favorable stocks.’

• Portfolio

The portfolio section is the epicenter of the eToro platform. This is where you view your open trades and analyze your trading performance.

• News feed

This is similar to the news feed section on Facebook where you will see what the traders you have followed are saying and doing.

• Trade markets

In this section, you will able to research and trade in the markets available. eToro offers a wide range of trading options such as stocks, currencies, commodities and indices.

• Social Trading

This is the heart of the platform. You will be able to search traders who you want to follow and copy. Fortunately, there are various filters that will help you narrow down the searches.

• Regulated by financial authorities

The first factor that you need to consider when choosing a trading site is whether it is regulated or not.

After all, you would not want to invest your hard-earned money on a site that is not legitimate. A good online trading site should be authorized by a reputable regulatory agency. Some of the most popular regulatory agencies around the world include the Financial UK’s Conduct Authority (FCA), US’s National Futures Association (NFA), Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), etc.

If a trading site is regulated, then it means that it abides by standard practices and can keep your money safe.

• Secure trading platforms

Most online trading platforms will require you to submit vital financial and personal data when opening an account.

For instance, you may be required to provide copies of your passport, utility bills as well as bank and credit/debit card information. If the broker platform does not feature proper security measures, your personal and financial information may be at risk. So, it is important to conduct thorough research to ensure the trading site has excellent security measures.

• Low transaction costs

No matter the kind of trading you will participate in, you will be subjected to transaction costs. Every time you enter a trade, you will incur either a commission or a spread.

High transaction costs can hugely impact your overall profitability. This is a critical factor, especially for high volume traders. Take note that a good trading site does not have to be expensive. So, take the time to thoroughly search for online brokers that offer quality services at affordable spreads and commissions.

• Quick deposit and withdrawal processes

A good trading site should allow you to deposit and withdraw funds without any difficulties.

There is no reason why a Futures, CFD or Forex Broker should make it hard for you to withdraw your funds. The only reason why a trading site holds your money is to facilitate trading transactions. So, the withdrawal process should be quick and smooth.

• Fast trade execution

You must choose a trading site that employs excellent trade execution practices. A reliable trading platform should also fill your trades at the best market rates.

Under normal market conditions, there is no reason why a trading platform should not fill your trade at or very close to the market rate. For instance, if the EUR/USD market rate is at 1:3000, your trade should be filled at that price or equivalent micro-pips. A slight difference can make it difficult to win that trade. The speed at which the platform fills your trade is also essential, especially if you are a scalper.

• Reliable customer service

Since you are investing your hard-earned money, it is advisable to choose a trading site with reliable customer service.

You should be able to quickly contact a customer support agent in case you face any problem. Some trading platforms can be kind and helpful during the account opening process but very terrible once you have already deposited funds. Make sure to avoid this kind of trading sites.

• User-friendly & Intuative

You should choose a trading site with a user-friendly and stable interface.

MetaTrader 4 is the most popular trading interface and is perfect for both beginners and advanced traders. It is also better if the trading site you’re interested in offers a demo account. This will enable newbie traders to get acquainted with the platform first before they start trading real money.

• Create a trading plan.

A trading plan is a written set of rules that indicate your entry and exit strategies as well as some points on how you want to manage your money. Even though it is a time-consuming endeavor, it is a vital step that can help you become a successful trader.

Due to the advancement of technology, it is now easy to test a trading strategy before executing it using free demo accounts. This practice is commonly known as backtesting, where you use historical data to test trading ideas. It helps determine whether a trading strategy is viable or not. If the backtesting shows good results, you can apply the approach in real trading.

After backtesting, you will be able to a good trading strategy. The most important thing is to stick to this trading strategy. Going outside the trading plan is a poor trading practice and can lead to significant losses.

• Take trading seriously.

To become a successful trader, you must approach online trading as a business and not as a hobby or a permanent job.

If you treat it like a hobby and not make real commitments, trading can be very costly. Also, if you see it as a stable job, it can be frustrating because most markets are volatile, and you can’t expect a monthly paycheck. For those wishing to trade but without the time, or financial flexibility you may wish to consider mutual funds or ETFs as a less risky place to put your money.

Since it incurs losses, expenses, taxes, stress, risks, and uncertainties, you must conduct proper research and strategize smartly to maximize your potential returns.

• Take advantage of available tools and resources.

You should make use of charting platforms that can offer you numerous ways to view and analyze the markets. Also, getting regular market updates on your smartphone allows you to keep tabs with how the financial markets are doing.

Most trading sites offer free educational resources so make sure to study them.

• Keep practicing.

If you want to become a successful trader, you should remain focused and try to learn more each day. You should also familiarize yourself with other trading strategies.

Remember that understanding the markets and all the intricacies involved in trading is an ongoing process.

• Risk only what you can afford to lose.

It is advisable only to risk the money you can afford to lose.

You should never commit money meant for other important obligations such as your kid’s school fees or mortgage payments. You must never allow yourself to think that you are ‘borrowing’ from such critical commitments. Most markets are very volatile, and there is always a possibility that you can lose money.