Professional trading platform in the UAE
What is a professional trading platform?
Investing was not as easy as it is now, but thanks to the Internet modern traders have a great opportunity to make a stable passive income from the comfort of their home, without any extra effort. Professional trading platforms are helping them to do this. They provide the opportunity to invest in different sectors of the economy. There are many such electronic platforms in the UAE, and you only need to choose the best one for yourself. But to make things easier for you, we will take you closer to the concept of a trading platform and explain what you need to look out for when choosing one.
A professional trading platform is the software through which a trader gets online access to international exchange and over-the-counter financial markets.
Essentially, it is a virtual trading room where traders and investors from all over the world come together to operate successfully. The main purpose of these platforms is to provide clients with a comfortable, simple and easy to use trading environment. In order to participate in trading, investors and traders need to register with the platform. It is very important to adhere to the rules and regulations of the trading area to avoid any kind of fraud. Such electronic trading platforms are really useful for beginners and experienced traders alike, as they allow you to trade in a safe and transparent environment.
An electronic trading platform offers a number of advantages. For instance, you can work at your own schedule and choose the time when you want to trade. You will also be able to make trades from anywhere in the world. All you need is a laptop and an internet connection. A handy mobile app, available on all modern platforms, allows you to be always in the loop, as your phone is always with you.
You will always be able to choose from the many trading tools the platform offers to suit your trading needs.
By using the trading platforms you will benefit from lower commissions and if necessary you will be able to cancel transactions at any time, etc. Through such an electronic trading platform, it is very convenient to be informed about the latest events and trends in the international financial markets 24 hours a day. To follow daily asset price updates, which in turn helps to determine how you can maximize the returns on your investment.
We've talked about the benefits of professional trading platforms, but now let's see what the requirements are for them?
Of course, a modern platform has to be functional. This includes availability of various timeframes, tools for technical and graphical analysis, and various types of charts. Also, the additional functions such as one-click trading, the ability to install custom scripts, add-ons and applications.
Reliability of the platform is also of great importance. Getting information and making transactions through an online platform is convenient only when it works smoothly, at high speed and without slowdowns.
Especially for beginner investors and traders, a user-friendly interface is very important. The presence of all indicators on one screen, allows you to quickly respond to changes in the markets. You need to be able to interact comfortably with the operating system of your computer or mobile device.
When choosing an online trading platform in the UAE, take into account everything we told you about and also know that there are platforms that are adapted to specific markets. That's what we're going to talk about now. Platforms specifically designed for specific markets offer the opportunity to trade in those markets that are important to you.
Platform for online stock trading
The most popular material on the stock exchange is of course stocks. The main purpose of buying a stock is to make a profit. There are two ways to make money: by receiving dividends from the purchase of shares in the traditional way, or by receiving income from the difference between the buying and selling prices of shares.
Stock trading platforms offer the opportunity to trade CFDs on shares of companies from all over the world. This is the most profitable tool, which allows you to earn fast with a minimum of free money.
The advantage of these contracts is that they allow you to use leverage, which is very convenient if you do not have enough money for a deal. It is important to know that trading CFDs with leverage comes with an overnight rollover charge. In short, you will have to pay for each night that your position is open. And so leveraged stock CFDs are more suitable for short-term trading. By trading stocks, you will be able to manage your investment portfolio and to diversify. You will have to make a choice between long-term and short-term investing. But it is also possible to combine both investment and speculative activities. The choice is yours.
Platform for online forex trading
The foreign exchange market is one of the main components of the modern global economy. It is the most liquid and largest financial market in the world. In the foreign exchange market (Forex), traders can exchange one currency for another, thus making profit from a slight increase or decrease in the value of the currency.
Base currency is the type of currency you are selling. The currency you are buying is called the Quote currency.
Base currencies are the most traded pairs in the forex industry, they have the most liquidity. Many currencies are paired with the USD, such as EUR/USD and USD/JPY. Other popular currency pairs among traders are EUR/JPY and EUR/GBP. Speculation is made when a trader correctly predicts when one currency will rise or fall.
The online forex trading platforms allow traders to monitor currency rates 24 hours a day, and the ease of execution and account management are important considerations in choosing the platforms. Good electronic marketplaces offer real-time analysis tools, expert market commentary and the best educational resources on the market to support their traders and help them develop their trading strategies. Market liquidity, wide range of financial instruments and low minimum deposits make currency trading attractive to investors.
Platform for online options trading
Today's stock exchanges are inconceivable without option contracts. An option is a contract that gives the buyer of an option the right, but not the obligation, to buy or sell at a specific moment in time and at a predetermined price an asset. This can be stocks, currencies, commodities, securities, etc. You can make potentially unlimited profits by buying an option, but only if the option price moves in the direction you want.
In the worst case, you only lose the fixed payment you paid for the option. Options are divided into American and European Options by the way they are exercised. American options can be exercised at any time before the expiration date (the date of the option contract) and European options only strictly on that date. Options are used both for speculative gain and for hedging risks. The investor will only risk the amount he or she pays for the option. You can trade options using leverage and many financial instruments. Note that the strike price, current value of the underlying asset, time to expiration, interest rate and volatility of the underlying asset are all factors that affect the price of an option.
Nowadays in online trading binary options are actively used, where the trader's task is to analyse and predict the direction of the asset's movement.
The assets can be currency pairs, indices, commodities, cryptocurrencies. If the trader's prediction turns out to be correct, he will get his investment back and earn additional income. If he is wrong, he loses the amount of the transaction. Accessibility, simplicity, good income and possibility to start with a small investment makes binary options interesting for traders.
Platform for online commodity trading
Commodities include raw materials, minerals and foodstuffs. The most liquid commodities are oil, precious metals, grains, sugar, meat, corn and coffee. Commodities are a great asset to diversify your portfolio and benefit from changing macroeconomic trends. The commodities are special because they are produced and traded in large quantities, which guarantees a global supply and sufficient liquidity for the market.
You can use several commodity trading options on the platform.
- Options - you buy the right to buy or sell a commodity at a specific price over a period of time.
- ETFs - commodity ETFs are funds that track the performance of a group of futures or stocks.
- Stocks - The most traditional way to invest in any commodity. You simply buy shares of companies and wait for them to appreciate. For example, you might buy shares in an oil refinery or a gold mining company, etc.
- CFDs are contracts that exchange the difference between the entry and exit price of a trade. To be successful in trading these CFDs you need to follow the global commodity consumption market. The most profitable CFD are those for metals. Their prices are very volatile and are subject to speculative influence.
By using a professional online platform you will be able to create profitable strategies for trading, using a wide range of indicators and technical analysis tools.
An online trading platform for ETFs
ETFs are exchange-traded funds that have become widespread in recent decades. They are traded on exchanges almost all over the world. An exchange-traded fund is a finished portfolio of assets (commodities, stocks, securities, etc.) that are bought and sold as one share.
So by buying a share in an ETF you can invest in an entire industry segment at once.
ETFs allow an investor to effectively become an equity investor, with ownership of a percentage of the investment portfolio. An exchange-traded fund may also have an actual share portfolio. Such a portfolio is assembled by professional market participants. And it's quite possible that such a fund might give a good return. By trading ETFs, investors have ample opportunity to diversify their investment portfolios in ways they could not have done on their own, at least not without investing huge sums of money and paying hefty transaction fees. ETF shares can be traded throughout the trading day and their price changes depending on the activity of market participants.
Online cryptocurrency trading
Cryptocurrencies are one of the main, though young, trends in the investment world today. Professional cryptocurrency trading platforms are designed to buy, sell and exchange rare and popular coins and provide a wide range of tools for trading and market analysis. You need to decide for yourself what your trading goals are, are you an investor or a trader? Do you just want to buy bitcoins and hold them for a while, or are you an active trader and want to make money now using altcoins? On the platform you can trade quite a wide range of cryptocurrencies (Bitcoin, Litecoin, Ethereum) and others in the form of leveraged CFDs.
Leveraged cryptocurrency trading ensures that you will make above-average profits, but only if you have proper analysis and price predictions for a particular digital coin. But above-average losses are also possible if you are wrong. Instruments like stop-loss and take-profit protect your capital and help you minimize your risks. Online trading platforms provide 24/7 technical support for comfortable cryptocurrency trading. A variety of deposit and withdrawal methods, some even offer deposit bonuses with every deposit.
Online index trading
A stock index represents the value of a group of stocks from one country and shows the overall, current performance of that particular stock index. For example, the NASDAQ 100 index comprises the stocks of the 100 largest companies on the NASDAQ exchange, or the Nikkei 225 index of Japan, which is calculated from 225 stocks of the largest Japanese companies by capitalization, etc.
Investing in an index means automatic diversification, because your investment represents dozens of stocks. And because indices allow you to diversify by sector and even geographically, makes them much more profitable than investing in individual stocks. Exchange indices can be analysed with almost any indicator, technical analysis or candlestick analysis.
A rising stock index indicates that the stocks of the companies in it are strengthening and growing, respectively, if the index is falling, it means that companies are doing poorly.
Please note that index trading is only available during trading hours of the exchange, which is linked to a particular index. Or when a particular sector of the index is open for trading.
How to start using a professional trading platform in the UAE?
In our article we have tried to explain to you what a professional trading platform is, what requirements it needs to meet, and we have also looked at electronic trading platforms adapted to specific markets.
Let's break down how to get started with a professional trading platform in the UAE. The first thing you need to do is to register with the electronic platform of your choice.
This is easy and fast.
You have to fill the registration form. In the online form provided by the system you have to provide the required data. Specifically, your email address, a password known only to you, etc.
It is important that you check all the details carefully before submitting. If mistakes are made or information provided is incorrect, you may have problems withdrawing money.
After completing and submitting the form, you will receive an email to activate your account.
Once you sign up with all the modern platforms, you have the possibility to open a demo account, which is absolutely free and has an unlimited time limit.
On your demo account you will have a virtual amount of money that you will need to make test trades.
Once you have used the dummy amount fully, you can extend it as many times as you like until you feel ready to fund your real account and start trading and making real money.
Don't pass up the chance to practice with a demo account. With it, you will be able to test the platform and see whether it suits you. You will become familiar with the financial instruments that you will trade.
Using a demo account you will check how your strategy will work, identify all the pros and cons, so that you can bring it to perfection.
Funding a Live Account
Opening a real account will require you to make a deposit.
This is usually the smallest minimum amount set on the platform. It is important that you familiarize yourself with the fees before making a deposit, and then choose a payment method, currency type and enter the deposit amount. You can increase this amount at any time, if you wish. To do this, you will use the payment systems listed on the platform. Using the same payment systems, you will also be able to withdraw your funds easily.
To conclude the article, it has to be said that there are many trading platforms operating in the online space nowadays. And it might be difficult for you to decide on the best one among them. But there's no need to rush, just.
Take the time to find out a lot of information about all the trading platforms available in the UAE. Read user reviews, ask about the company's image. Assess the convenience of the platform itself. Note that the best brokerage platforms offer free training, free trial demo account, low initial investment amounts, and technical support is available 24/7 to help you.