How to Find a Good Trading Software for an Online Brokerage Business
An online brokerage business is only as good as its trading software, so it is essential to find a good trading platform which perfectly caters the needs of such a business.
Since there are numerous such platforms on the market, to properly compare them, you need to focus on a few essential factors, which determine the success of a trading business.
But don’t worry, as we have put together a helpful guide, which will help you navigate your options and choose the best trading platform for your needs.
Look for a white label solution with easy integration features
First of all, the stock trading software that you choose should allow you to pick the desired language and provide you with several design options, so that you can create an interface that matches your brand’s identity, while also allowing you to provide your end users with personalized services.
Furthermore, since you probably already work with other partners, it is essential to choose a solution that ensures seamless 3rd party integration.
This way, your traders can continue to use their favorite tools, without leaving the trading platform. For a fast and easy setup, look for platforms which feature good APIs and FIX adapters.
Check for compliance and industry standards
While you should not dismiss any option, you will have higher chances of success if you choose a reputable software provider which has been on the market for several years, instead of a new provider which may or may not be able to rise to the industry’s standards.
Moreover, make sure to choose a provider which regularly updates their trading tools to keep up with all rules and regulations required in this industry.
Opt for reputable hosting solutions and expert tech support
For an increased reliability, multi-tenancy and proper scalability, it is advised to choose a trading platform which is cloud hosted in AWS. Nonetheless, if you have your own server, make sure to choose a platform which can be hosted on your server.
Ideally, you should also have some talks with the tech support before you commit to a trading platform, to make sure that they have the financial and the technological expertise to help you if you were ever in need of assistance.
Don’t forget your budget
Up until a few years ago, software solutions were standardized, and small trading businesses could never afford high-end trading platforms.
However, due to the latest tech advancements, modern software solutions are now available with pay-per-use pricing plans.
The best trading tools feature RESTful APIs and flexible widget designers which allow you to offer your users the latest trading tech with minimum IT costs.
Look for flexibility and easy customization
A good trading tool should be compatible with all browsers, and all operating systems, including mobile systems. Moreover, it should have customizable features that allow you to create an interface that can perfectly cater to the needs of your business.
This includes everything from pre-integrated and customizable parameters, unlimited tables and dashboard combinations, custom design themes, 3rd party integration, proprietary widgets and much more.
Live market data and comprehensive strategy options
Needless to say, a good trading tool should update in real time and provide you with live quotes and streaming data. For high-frequency algorithms, look for a trading platform with configurable latency.
A good trading tool should also allow you to create multiple watch lists and customizable charts, and give you the option to trade directly from the charts or the lists.
Make sure it also configured for the order types that you usually use and that it allows you to monitor working orders as well as historical orders with real-time status streaming.
To match all trading strategies, a trading platform should also a profit/loss calculator, an options optimizer, a probability calculator and multi-leg options that allow clients to adjust their strategies based on their risk tolerance and historical performance.