A raft of new trading platforms and updates to existing ones are allowing investors easy access to their portfolios. Both casual investors and more serious ones are now able to trade from almost anywhere.
The popularity of trading in securities has risen since mobile apps made this available to anyone. The Wolf of Wall Street may have also played a part, and you may wonder is it possible to day-trade in penny stocks because of the movie.
ASX trading platforms have made it possible to trade in many securities from the convenience of the home office or the bedroom.
What are ASX trading platforms?
ASX refers to the Australian Securities Exchange. Like the London Stock Exchange, the ASX allows access to lit markets.
To buy and sell securities on the ASX you would need an authorized broker. These brokers can charge significant fees. They are one of the reasons that the general public was not dabbling in stocks and shares before now.
Trading platforms, however, have made it possible and easy for a complete newcomer to buy and sell securities. Investopedia defines a trading platform as a tool used to manage market positions. You can open, close, and manage your positions while monitoring live streaming stock fluctuations on a trading platform.
Are ASX trading platforms safe and secure?
Ecommerce has grown massively over the last few years, and online transactions are threatening to put an end to many traditional retail ventures.
One reason that online sales of goods and services have skyrocketed is the level of security that is now employed. Data breaches are of course a concern, but by and large, most ecommerce transactions happen quite safely.
The new wave of ASX trading platforms takes their user’s data and protection very seriously. Often, an ASX trading platform will have a number of partners that they use to protect their customers.
For instance, this Marketech review shows how this particular platform has teamed up with Macquarie Bank to provide each of their customers with a CMA.
A CMA is a cash management account, and this allows the investor to manage their funds through a secure portal.
What things can go wrong with ASX trading platforms?
When choosing the right trading platform for you, it is possible that you may pick one that doesn’t suit your needs.
Many people using Robinhood have found out that the app didn’t meet their needs. During the infamous GameStop incident, Robinhood restricted trading due to a lack of funds to perform transactions. This left investors furious with the platform, and in some instances, out of pocket.
Difficulties and technical problems can sometimes happen with the ASX too, and it suffered a major glitch in November 2020 which shut the market early.
Another problem that you may encounter with the wrong trading platform is that your stocks may get pooled with other investors. This can leave you open to fraudulent activity. The best ASX trading platforms will allow you to own your stocks outright.
Finding the best of the new wave of ASX trading platforms
A good starting point for a beginner may be to speak to an ASX participant broker. They can give you professional advice and you may even decide to trade through a broker this way.
However, if you feel that you wish to control your trades yourself, then an ASX trading platform will let you do so. The key is to find the best one.
There are many trading platforms for the ASX, and they all perform the same role. The differences lie in their features and tools.
Some of the more well-known trading platforms include Sharesies, CMC Invest, SelfWealth, Superhero, and Marketech.
It is important to make sure that the trading platform you choose allows you to access ASX securities. Etoro, for instance, is a very well-known trading platform but it only allows trading in US stock.
How to find the best ASX trading platform for you
If you are interested in investing and using these modern trading platforms, you will need to decide on a few other things first.
What is your trading strategy; are you a day trader, wanting to short the market, or are you looking for long investments? Are you new to trading, and what kind of investment budget do you have?
Sharesies’ platform for instance is good for newcomers and is aimed at beginners who want to invest tiny amounts at the start to get a feel for trading. Others looking for slightly stronger trades would appreciate the live streaming of Marketech and Think Markets’ trading platform.
Using comparison websites should help you to find the share trading platform that suits your needs and your style of trading.
Summary
Whether you see yourself as the next Jordan Belfort, George Soros, or a more casual investor, these new ASX trading platforms can help you to get started.
Finding one that has ease of use, a good UX, and good financial tools can help your effectiveness in the market. The technology behind finance and trade, or FinTech to be correct, allow detailed charts and up-to-the-moment pricing to be shown on screen.
This technology now allows anyone to try their hand at stock trading. Set your budget, choose the right platform, work out your strategy, and away you go.
