The Best Trading Platform for Beginners

Reading time: 7 minute(s)
A man sitting on the floor with an opened trading platform in laptop

A reliable platform is the basis for both traders and investors. The XTB platform combines all the features of a professional trading platform, which was also built with beginners in mind.

In this article you will learn:

  • What is a trading platform?
  • Use cases of best trading platforms
  • Why is the correct choice of platform so important for beginners?
  • Features of best trading platforms for beginners
  • xStation5 - innovative trading platform

In the past, traders would meet at fairs and stock exchanges where they would buy, sell and speculate on future price fluctuations. Today, in the era of the Internet and technological development, such a place is an investment platform, which is an aggregator of global markets from currencies, commodities, raw materials to stocks and cryptocurrencies.

Choosing the right platform is extremely important and depends on it, among other things, the quality of trading or the safety of financial deposits gathered on it. Online broker is usually a first step to the financial world. In this article we will answer the basic questions related to the choice and functionalities of such platforms and investment accounts. We will present the possibilities of our own, modern and reliable platform xStation5.

What is a trading platform?

A trading platform is a place where you can trade thousands of instruments and stocks through internet access. In fact you can do this from anywhere in the world. The best platforms for beginners also offer access to a mobile version so that the platform provides you with access to quotes from your phone. In the current times, such platforms are gaining popularity because everything is happening fast and trading platforms allow you to react to the market events instantly. You can expect the following from the best platforms:

  • Faultlessness
  • Speed of operation
  • A clear graphical interface
  • Real-time trading
  • Access to thousands of instruments and markets
  • Extensive charts and indicators section 
  • Market analysis
  • Educational zone
  • Access to expert customer support

Use cases of trading platform

An illustrated infographic with charts and icons referring to investingAs the name suggests the primary function of the platform is to provide and enable real-time trading. However, we will go a little deeper and show you what else you can use it for:

  • Creating technical and fundamental analysis
  • Facilitated instrument selection
  • Tracking global economy and instrument prices
  • Looking for market advantages and opportunities
  • Own interpretation of the market in real time
  • Viewing of market analysis created by specialists
  • Gain knowledge through a learning platform
  • Familiarise yourself with the platform's graphical interface

Technical and fundamental analysis

A hand pointing investing chart on a laptop screenTechnical analysis is used by both amateur and professional traders and investors to determine the future price reaction based on its past behaviour. Stock market is not only one place where it's used - also commodity, cryptocurrencies or oil traders use it to estimate resistance and support zone. Built-in, ready-to-use indicators such as Fibonacci Retracements, Bollinger and Elliott Waves, Relative Strength Index (RSI) and hundreds of others allow you to use deeper analysis inside a trading platform. On the other hand, fundamental analysis of the stock market can be performed using financial ratios, cash flows and other metrics from company reports. Ratios such as P/E, P/B, EV/EBITDA or P/FCF are known to almost all investors worldwide for determining undervaluation or overvaluation of company shares.

Easier selection of instruments and real-time trading

An optimal platform should contain clearly sorted instruments, ready to trade with displayed prices, in real time. The search engine will allow you to instantly find the quotes of the instruments you are interested in, e.g. shares or raw materials. Then you will be able to follow their changing prices and observe market reactions to publications or important data.

Searching for market advantages and opportunities on your own

With access to fundamental and technical analysis, technical tools and information provided by analysts, it will be easier for you to look for investment opportunities on the market and analyse current price behaviour. As a result, you may be more likely to gain an edge. The final interpretation of price behaviour and market participants is always up to you. Do you expect prices to rise? You can start trading CFD inside the XTB platform instruments by taking a long position (BUY). Or are you betting on falling prices? The CFD instruments will allow you to take a short position (SELL), which will allow you to make a profit if the price of the instrument falls. However, bear in mind the high risk is always involved in trading and using financial leverages may increase your losses not only gains.

Market Analysis, Education and Customer Service

The best trading platforms have a dedicated team of analysts that provide clients with fresh information and analysis of specific sectors and companies on a daily basis. With an educational platform, operating the platform will no longer be a problem, your knowledge of financial markets will increase. In case of any questions or problems the professional customer support is at your disposal, which accepts complaints and is ready to answer your questions 24 hours a day, 5 days a week via chat, phone, and e-mail. Investors who are looking for the best investment platforms usually want to have access to stock markets and be able to invest in exchange traded funds. Online broker offer is also wider with Contracts for Differences (CFDs) access at minimum trading fee.

The xStation5 platform

The xStation5 platform was created and is still improved thanks to the joint effort of experienced traders, programmers and graphic designers. Thanks to that we are sure that the platform meets the expectations of our clients. All the features mentioned above are fulfilled by the modern and intuitive xStation5, which is available in web, desktop and mobile app (xStation) versions.

Why is the correct choice of platform so important for beginners?

The choice of platform is very important. It determines, among other things like:

  • Your comfort in trading and investing
  • The safety of your capital stored in the investing platform
  • The quality of the time spent on the platform
  • The speed of your orders and instructions

Comfort

The most well-developed and graphically pleasant platform means comfort and satisfaction with the time spent in it. Our graphic designers have made sure that the xStation5 interface is friendly and legible also for beginners. Multi asset investment platform allows you to invest in exchange traded funds with multiple educational resources. There is no financial services compensation scheme or platform fee. Access to the investment platform in XTB is free (there are no account fees), as well as brokerage accounts.

Security

Investing is connected with risk and engaging your own money. So it is good when it is in a safe place, right? That's why we recommend using proven, regulated brokers. The funds gathered by XTB clients in the platform are kept in separate bank accounts. Online brokerage accounts may be attacked by hackers but in XTB withdrawal from account may proceed only on Client, verified bank account.

Quality of time spending

Thanks to sections such as Education or News you can gain knowledge while spending your time on the platform and review the analysis created by our analysts. Thanks to this, your time at xStation5 will definitely not turn out to be wasted. Also customer support access is one of key elements of investing platform quality. You can analyse and track Your investment portfolio any time. Trading account is a place where you 'meet' with financial markets. The quality of it is a key also for beginner investors which want to use investment platforms.

Speed of the platform

The quotations of the instruments change rapidly, which means that the reaction time is sometimes crucial. With our xStation5 order execution model, you can benefit from immediate execution in 'market' mode. The Trading and Programming Departments are constantly making sure that execution happens as fast as possible. The average execution time for all instruments on the xStation5 platform is less than 440 milliseconds. Opening and closing positions inside trading accounts should be as fast as possible due to high volatility of financial markets and CFDs. Beginner investors should remember that financial education is very important and is a first step to consciously use a trading account.

Features of best trading platforms

Actually, having read the previous chapters you already know what to pay attention to when choosing a platform. However, to conclude this important topic we will present exactly what features the best investing platform for beginners should have. Brokerage accounts offer a range of investment options. Bullets below may allow you to make a potentially optimal choice.

  • Security of personal data and funds deposited in investment account
  • Reliability and user-friendly interface
  • Instrument search and trading engine
  • Automatic order and position calculator
  • Access to brokerage account data and history of it
  • Quick and high-quality service
  • Access to a large number of financial instruments
  • Indicators for easy analysis, chart editing 
  • Technical and fundamental analysis indicators
  • Access to market news and analysis
  • Professional customer support and complaint handling
  • Access to investing and trading education

xStation5 - new generation trading platform

A computer screen with a typical investing chart data presentedThe xStation5 platform offers a whole range of modern conveniences designed to make users' trading easier and more optimised. Such things include:

  • Free of charge DEMO brokerage account, which allows you to get acquainted with the platform and access it from the level of the computer and mobile phone in the xStation5 mobile application
  • Advanced order calculator, which allows for automatic calculation of the order size depending on the settings, helping traders save time
  • Access to analytical materials and financial reports prepared by the Analysis Department
  • Macroeconomic Publications Calendar
  • Built-in Market screener to select companies and make selection easier
  • Hundreds of tools for editing and viewing charts and technical analysis
  • Up-to-date stocks information such as dividend payouts and financial report publication dates 
  • Instant order execution with millisecond 'market' execution
  • Access to advanced defensive trading orders on equities and CFDs
  • Dedicated, free “account manager”, to help you start your adventure in the financial markets 
  • Professional claims handling and 24/5 professional customer support.
  • Stock and fund screeners; allow you to buy and sell investments any time

 

FAQ

It's hard to choose the best platform, users and investors have different preferences and requirements. Of course a low cost investment platform may be a key, especially for interactive investors. When platform fees are zero, Your account costs nothing. However You should remember that fees on CFD trading are normal and You should be able to find costs in investment platforms or ask customer support. Know your needs first and decide what you would like to use the platform for. Then read about them and choose the one that seems most intuitive to you. Remember that if You are a long term investor, You will probably search platforms with a lot of stocks and ETFs and if you are a trader, you will search those with CFD contracts. Some trading platforms have a broad offer of both stocks and CFDs. Remember that it is important that the broker who provides the investment platform and services is regulated and honest. Always verify this before depositing funds. Remember that platforms for beginners should be intuitive and customer support should be able to help.

 

This is not entirely true. That's right, trading financial instruments or stocks can give huge profits but it is very risky. Risk-conscious investors can take advantage of this opportunity and verify their analytical skills. However, it is worth remembering that trading can lead not only to great profits but also great financial losses. Remember to manage your risks and educate yourself.

 

Definitely yes because an investor needs to know exactly what he is buying and the price he is paying for the shares of a particular company. Above all, fundamental analysis, which has already been brilliantly described in many well-known books by Warren Buffett's mentor Benjamin Graham, among others, is helpful. Bear in mind that there are no mutual funds on XTB platform, instead of this investors can use hundreds of ETFs (Exchange traded funds).

 

The answer to this question is not obvious either. It is true that the intuitive interface of a trading platform can be comfortable, and this can translate into more convenient use of the platform or faster decision-making. But keep in mind that an investment platform cannot force you to make a decision. Some brokers provide clients with a news section, where recommendations from market analysts are published, but even these are no guarantee of profits. 

 

Yes, if the money is deposited in an brokerage account maintained by a verified institution. Security mechanisms work differently in different brokerage companies. You can make withdrawals from the XTB investment platform only to your own bank account verified by XTB employees and confirmed by documents. This significantly reduces the risk of a potential hacking attack and any embezzlement of your money.

 

This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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