Trading Platforms

There are 3 main types of platforms and a 4th not so widely used.

Software - This is the most stable, robust way to run a trading account. You download and install your brokers platform onto your computer just like any other piece of software. The advantages are speed of execution, stability and features. The disadvantages is it is not portable and you may have problems installing the software behind corporate firewalls like at your place of work for instance.

Browser - This is where you are communicating your orders to your broker via an internet browser. There are no downloads, you are viewing market prices via a web page. The advantage of this platform is that it is very portable, you can view this type of platform anywhere you can get the internet including usually at your place of work. The disadvantages are the speed is usually a lot slower which can make a lot of difference to your trade fills, the features of the platform will be greatly reduced versus the installed software version, the stability of this platform will greatly be dependant on the stability of the browser you are using.

Mobile Phone - developments in mobile phone technology means that today you can place your orders directly from your handheld device. The big advantage is that you can trade from anywhere you can pick up a signal. The disadvantages are, depending on your connection, you will get much slower speed and ultimately execution of your trades, loss of connection will greatly affect your trading. The features will be greatly reduced and the amount of data displayed will be greatly reduced compared to a normal screen but to keep an eye on your positions they are a very useful tool.

3rd party API programs - These are type of programs are not so well known as the others. They are usually an execution platform or charting package that can communicate with your broker either with there permission or covertly, they tend to offer features that your broker does not. Most broker platforms are limited in some way, there will always be at least one feature that you would like that your broker does not provide, 3rd party programs can add these features to your platform. The disadvantages are that this will be a separate program you have to run alongside, the 3rd arty company may not write their software compatible with your broker. The advantages is that you will have much greater control of the data and the execution, enabling execution from charts and automated trading.

Traditional - This list does not include the original way to execute your trade, by phone, your broker will still accept orders by phone although they may charge for it.