Main features of a trading platform, every new trader should know before starting trading CFDs

A new trader should open a DEMO account first to observe various features like charting, automatic signal by an independent 3rd party, etc:

A new trader can open a DEMO account with any CFD provider (broker) online with a few clicks to observe various features of the trading platform (terminal), pros & cons of the same. An ideal trading terminal should have all the common CFD instruments in various asset classes like Equities, indices, FX, commodities and also Cryptos. A beginner or even an experienced trader can check the charts, technical indicators available in the trading platform for the technical analysis part, which is most vital for trading. If the trader is not much convenient with technical analysis, he can also take the help of professional guidance/education and also some algo/auto trading signal service available with various brokers/ terminals (ideally should be provided by an independent 3rd party signal provider/software).

Application of stop-loss; i.e. risk management and position sizing essential:

A trader should learn how to place a buy/sell order along with stop loss and take profit levels; proper stop loss is very important for a small retail trader or even big institutions for risk management; otherwise entire trading capital may wipeout for a wrong trade, resulting in even debit balance. A trader should acknowledge any wrong trade and exit early or with the planned stop-loss; normally 10-20% of trades may go wrong. At the same time, a trader should place an order in advance to take profit; i.e. cover order (as due to volatility or any other unpredictable reason, a trader may not be able to cover always at an ideal profit level).

In an ideal trading terminal, a trusted brand in the European CFD provider/brokers space, having over 25-years of service, one can find all the standard terminal features:

Here one has to open an account with basic KYC documents and some personal information. After the DEMO stage, one has to transfer some funds to convert the trading account into active. One has to log in with his unique user id and password. He will find the above screen (most popular instruments). If he likes to trade in EURUSD, he has to click the symbol/instrument (EURUSD) and then he will find the chart & order window.

Here he can place buy or sell orders either at the current market price (market order) or different (lower/upper) price (limit order). A trader can choose lot size from minimum to maximum as per his risk-taking/funding capacity. To minimize risk, he can also place a pre-determined STOP LOSS (SL) and TAKE PROFIT (TP) order at the same time. He could also place SL and TP orders later manually or through another GTC (GOOD TILL CANCEL) or GTD (GOOD TILL DAY & TIME). A trader could also place a Buy/Sell order through GTC or GTD.

Instrument info: Here a trader can also view all information (including leverage) of an instrument.

Market info window: Here a trader can view all the intraday price information of an instrument (like day high/low, nominal price change, and also in terms of percentage. Additionally, a trader can also view real-time trading sentiment based on long/short positions by other traders to gauze the underlying demand/supply dynamics of the instrument.

A trader can also view a live economic calendar including a short definition/significance of the underlying data, which may affect the overall market as well as any specific instrument, he is trading. Additionally, he can also access a premium service like ‘signals’ (buy/sell levels with target and stop loss), which is generally provided by an independent 3rd party ‘signal provider’ or software algo to avoid any conflict of interest. 

A CFD provider/broker usually offers various marketing promotions, trading/margin bonus offers to encourage retail trading participation, which may be a regular source of income besides long-term wealth creation.

A trader can also access all the trading-related information/data in the trading terminal like digital contract notes of a day (buying/selling gross P&L, any brokerages, and regulatory charges and net P&L). He can also view the account statements and activity long. 

Deposit of funds to the trading platform/with the CFD provider (broker):

After opening an account with a CFD provider/broker, a trader can transfer/deposit margin funds through various options as per his convenience and the country of origin/location.

Withdrawal of funds from CFD provider/broker: A trader may want to withdraw his profit from time to time or completely withdraw the full fund as per his discretion. There are several options, but usually, it’s convenient to place the withdrawal request through the same bank/payment gateway or payment wallet from where it was deposited initially

Usually, there are some transaction charges and conditions for withdrawal. A trader should first deposit a minimal amount like $15 and then withdraw the same as a ‘test’ to gain confidence and know the actual process of fund withdrawal before deposiing a bigger amount for real trading.

Bottom line:

A trading terminal is a primary requirement for an online trader and thus he should consider all the factors/features of the trading terminal of a trusted broker/CFD provider before starting real-life trading. A trader should also calculate applicable brokerages and any regulatory charges for trading; i.e. total cost of his trading (as a percentage) and minimum breakeven point/pips before starting trading. A trader should also compare brokerage charges, regulatory charges, other conditions, and services among various CFD providers/brokers before opening an account.

The online trading platform of a well-regulated, trusted broker is safe & secure. Most of the online web/exe based trading terminals are secured by unique/encrypted user IDs and passwords for logging in, which may be very difficult to break. Some of the exe/web-based trading terminals may also open with a specific PC (motherboard ID) with additional security (2FA) features like a specific ID card number or OTP with the registered mobile number. 

Even if some hacker gets unauthorized access to anyone’s trading terminal, in most of the cases, the hacker can’t withdraw/transfer funds to his bank account as generally a trading terminal is only linked with the registered bank account or payment bank of the client. Any payout from an online trading account will be generally credited to the designated/registered bank account or KYC compliant payment wallet of the client.

Generally, almost all the trading terminal has an automatic time out feature, if unattended by the client for more than a specific period (like 30 or 60 minutes). So, if a client, trading in his home with an online terminal, someone from his family may not access the terminal intentionally or unintentionally, even if the client goes out of the home for some time, without closing or logging off the trading terminal. The online trading platform is safe. For pro-traders, a PC (exe/web) based trading terminal is ideal, while for small retail traders, an app-based mobile trading terminal is more affordable, convenient, and preferable.