Trading stocks can be quite a daunting experience for beginners. The market is full of jargon and acronyms, and it can seem like there are almost as many websites about trading stocks as there are stocks themselves.
Fortunately, most trading platforms have made it easy to get started with stock investing. There are several types of trading platforms, which vary based on their level of sophistication, user-friendliness, and features offered.
Some options might be better suited for new traders than others; however, each has its unique selling points that set them apart from the pack.
We’ll cover everything you need to know about some of the most popular options available today when it comes to trading stocks and investing your hard-earned money in the stock market
What is a stock trading platform?
A stock trading platform is a type of website that allows users to buy, sell, and store different types of securities, like stocks, bonds, and commodities. You’ll find numerous trading platforms online, including Interactive Brokers, E*Trade, and Wealthsimple.
These sites can be great tools for both beginners and experienced investors looking to expand their portfolios. They can also be good alternatives for investors who want to trade stocks but don’t have the time or money to invest in a full-time trading strategy.
Popular Stock Trading Platforms for Beginners
Trading platforms for newbies can be an excellent way to learn the ropes of investing in the stock market. Many platforms are specifically designed to help beginners get up to speed quickly.
Let’s take a look at some of the most popular options available today when it comes to trading stocks and investing your hard-earned money in the stock market.
Robinhood
Robinhood is probably the most popular trading platform for newbies. The platform is completely free to use, and users don’t pay commissions on stocks, ETFs, or options they trade. How does it work? Users can buy and sell stocks directly through the app and can also trade options and cryptocurrencies.
IQ Option
Another popular choice for beginners is IQ Option. This platform is completely free to use, and there are no hidden fees or commissions. How does it work? It’s incredibly straightforward to start investing on this platform.
Investors can choose from a list of more than 90 tradable assets, including stocks, options, and commodities. With IQ Option, investors also have access to several advanced trading options, such as auto trading and advanced order types.
Pros of Popular Stock Trading Platforms for Beginners
Generally free to Use: Unlike investing in the stock market with penny stocks, trading with the above platforms is completely free to use.
Wide Selection of Securities: With these platforms, you can trade stocks, ETFs, options, and commodities.
Invest in Popular Assets: Popular trading platforms make investing in assets as easy as selecting which securities they want to buy.
Low-Cost Options: Many trading platforms offer low-cost options that make it easy to buy and sell stocks.
Cons of Popular Stock Trading Platforms for Beginners
Limited Trading Options: While many trading platforms offer advanced trading options, some do not.
Difficulty in Understanding Trading Platforms: Many trading platforms are complex, which can make them difficult to understand.
Not All Brokers are Licensed: Investing money in the stock market can be risky, and some platforms don’t offer user protection.
Conclusion
Stock trading can be a thrilling and profitable experience, but it’s important to remember that it’s a gamble. When you invest in the stock market, you’re betting that the company you purchase a stake in will do well enough to return your investment, either through increased profit or increased share price.
If you’re just starting, it’s best to use a low-risk platform with a low minimum deposit. Popular trading platforms like Robinhood, Robinhood Crypto, and eToro are designed to attract new investors, but they also provide a low-risk way to get started.
