Online trading portals facilitate buy & sell of financial instruments. These free stock trading platforms to cut trading cost are amazing.
Online trading platform, also known as electronic trading platform or portals, is a computer software program that allows trading of financial instruments. Investors & traders can utilize these portals to open, close & manage their market positions.
Electronically trading platforms typically provide live market quotes directly from stock exchanges. Additionally, they also provide trading tools such as charting packages, news feeds as well as account management functions.
According to the National Futures Association (NFA) in US, the general standard requirements for electronic trading systems should include authentication (in form of passwords, tokens or digital certificates), encryption, transaction recording standard, as well as pricing and slippage standard.
Some of the financial instruments available for trading on an electronic trading platform include equities, bonds, currencies, mutual funds, commodities, & derivatives.
These trading platforms are frequently offered by stock brokers to their clients (traders & investors) either free of cost or at a discounted rate. It is usually offered in exchange for maintaining a minimum fund in account and/or performing a specified number of trades/month.
Investors & traders can easily utilize these trading platforms using internet to get live streaming prices & near instant execution of orders. Here are 6 best share trading platforms or terminals for low cost trading:
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(1) Robinhood App Trading Portal
It is one of the most popular free stock trading platforms to cut trading cost. Robinhood is an innovative stock broker that provides trading access to more than 5,000 equities & ETFs. Traders & investors can buy and sell US listed stocks without paying any brokerage fees.
This brokerage cost typically runs from $7 to $10 per trade with other brokers. Robinhood app is designed to provide an easy-to-use interface that is cheaper than most of the stock brokers.
Additionally, it provides facility to track stock performance & keep tabs on the overall stock portfolio. This mobile-friendly app is well-equipped with latest technology to achieve respectable execution speed as well as free real-time data access to its users.
According to a post published in TechCrunch, zero-fee stock trading app Robinhood has reached over 2 million total users as on April 26, 2017.
It has achieved 17 percent month-over-month growth of its revenue-driving Robinhood Gold subscription product.
Robinhood prefer to make money from optional services such as broker assisted phone calls ($10/trade), listed foreign securities ($50/trade), foreign security cancel/trade adjustments ($15/adjustment), Robinhood Gold subscription ($6/month), collecting interest on cash & securities & many more.
It also provides the facility of share trading on margin for a flat fee based on debit balance instead of particular interest rate charged by most brokers. However, its users don’t have to maintain a minimum account balance for trading purpose. It is something required by most of the stock-swapping service providers.
But, Robinhood is not suitable for those who are willing to trade mutual funds, bonds, options or OTC stocks. It is mainly due to unavailability of these financial instruments. Finally, it is available for trading in US & Australia only.
- Stock Trading Platform: Shutterstock