Online Trading Platform: A new norm for retail traders

  • Online Trading
  • 09.02.2022 05:10 am

The development in the software department has caused considerable growth in various fintech sectors. The previous regimes of visiting the exchange to place certain market orders have been mitigated as traders can now access the best quotes and all instruments from the comfort of their homes.

Traders have to use an appropriate broker to trade online and download their software. These platforms come with various features and functions to help traders get the most out of their trading. To help understand the advantages and discuss how this software is valuable, we will discuss its significant characteristics and see its potential for retail investors.

How does online trading work?

Before diving into the topic, let us clarify how online trading works.

  • Trading online requires a smooth internet connection with a good piece of hardware such as a mobile phone or a PC
  • Traders have to install the mobile application or the software and log in with their respective account
  • Orders are sent through the application to the broker, which processes them and sends them to the exchange
  • Depending on the liquidity, the order will be filled immediately or with a slight delay. After the execution, traders can see it within their trading platform and manage it

Xtrade Trading Online Platform offers some of the best spreads and fast execution in the markets.

Essential Characteristics of Online Trading Platforms

Now that we know how online trading functions let us dive into the features of the online trading platforms.


One of the most important things for traders is to access the instrument they wish to trade within the market watch. While this is mainly dependent on the broker, the software should be compatible to display all the assets sorted efficiently. With multiple instruments available to trade within a single application, investors do not have to jump from one broker to another.

Support for Trading Robot

Trading robots trade the market on auto mode without manual intervention. They are becoming a hot topic for retail investors as they can generate an excellent passive income. These algorithms are built specifically for a single trading platform. The complexity of an EA can vary according to the software's functionality. A good application can support a variety of robots, including high frequency and arbitrage.

Via backtesting functions, it is possible to test your algorithm or strategy for an extensive period before implementing it on the charts. Optimization features within the online trading platform can help find the best set file for a specific instrument.


Charting tools are available within most trading platforms and can help traders perform their analysis quickly. This is especially useful for scalpers who have to trade the markets within seconds. Trading software now comes equipped with many tools such as trend lines, Fibonacci intervals, support and resistance lines, and indicators that can be employed on the screen.

Some brokers may use a third-party platform to offer their services to traders, while others may develop their own software with enhanced features that matches their services.


Trading orders are of many types, including stops, limit, GTC, etc. Your online trading platform can support all or some of the latest available choices.

While it is possible to trade from software, traders can also enter their orders through an online website if available.

Summing up Online Trading Platform

The difference between professional and retail traders has been reducing over the past years mainly due to technological development and the internet. Now retail traders have access to the best quotes and fast executions thanks to the facilities offered by brokers and online trading platforms. To make the most out of this software, traders should learn their functioning before usage.

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