# Trading Platforms: Features, Types, and Top Examples

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## What Is a Trading Platform?

A trading platform is user-friendly software that allows investors to manage trades and portfolios through a brokerage or financial intermediary. Trading platforms enable access to diverse markets, provide key features such as real-time quotes, advanced charting tools, and educational resources, and facilitate account monitoring. When deciding upon a platform for your investing, be sure to evaluate fees, features, and each provider's reputation. The [best trading platforms](https://www.investopedia.com/best-online-brokers-4587872) should offer a solid mix of robust features and low fees.  

### Key Takeaways

*   There are two main types of trading platforms: commercial platforms for general users, and proprietary platforms developed by financial institutions for their own use.
*   Key features to look for in a trading platform vary widely depending on the trader's goals; they may include real-time data, technical analysis tools, and low transaction fees.
*   Choosing the right trading platform involves considering the fees, features, and specific requirements, such as account minimums or approved trading strategies.
*   Popular trading platforms like Interactive Brokers, TradeStation, TD Ameritrade, and Robinhood offer different advantages, with some focusing on professional traders, while others aim at beginners and retail investors.

## Key Features and Functionality of Trading Platforms

A trading platform is a software system offered to investors and traders by financial institutions, such as [brokerages](https://www.investopedia.com/terms/b/brokerage-company.asp) and banks. They essentially enable investors and traders to place trades and monitor their accounts.

Platforms allow investors to open a variety of brokerage or trading accounts, including [margin accounts](https://www.investopedia.com/terms/m/marginaccount.asp), cash accounts, retirement accounts, and self-directed accounts. Through these accounts, traders can make buy and sell orders for stocks, bonds, [exchange-traded funds (ETFs)](https://www.investopedia.com/terms/e/etf.asp), and mutual funds among others.

Trading platforms often include other features that help investors make important investment decisions. These features can include real-time quotes and interactive charts along with a range of charting tools, streaming news feeds, and premium research. Platforms also may be tailored to specific markets, such as stocks, [currencies](https://www.investopedia.com/terms/c/currency.asp), options, or [futures](https://www.investopedia.com/terms/f/futures.asp) markets.

## Exploring Commercial and Proprietary Trading Platforms

  
There are two types of trading platforms: commercial and proprietary.

*   **Commercial Platforms:** Commercial trading platforms are designed for a range of investors, including [day traders](https://www.investopedia.com/terms/d/daytrader.asp) and retail investors. These sites are easy to use and provide traders with useful features, such as real-time quotes, international news feeds, live, interactive charts, educational content, and research tools. Many well-known platforms are commercial ones.
*   **Proprietary Platforms:** These trading platforms are customized and developed by large brokerages and other [financial institutions](https://www.investopedia.com/terms/f/financialinstitution.asp) for themselves. Using proprietary platforms allows institutions to gain direct access to the markets, which gives them a competitive advantage. Since these platforms are designed for institutional use, they are not available to the public.

> **Fast Fact**
>
> The market for online trading platforms was estimated to be worth $10.03 billion in 2024. This figure is expected to grow to over $14.20 billion by 2031.

## Choosing the Best Trading Platform for Your Needs

### Features

When choosing a platform, traders should see if the features offered match their needs. Day traders might need [Level 2](https://www.investopedia.com/terms/l/level2.asp) quotes and market info like price levels, order sizes, and volume for timing orders.

Traders may also need [technical analysis](https://www.investopedia.com/terms/t/technicalanalysis.asp) tools such as live charts with a range of technical indicators. [Options](https://www.investopedia.com/terms/o/optionscontract.asp) traders may need tools that are specifically designed to help them research, analyze, and test their trading strategies.

### Fees

Fees are also important to consider when choosing a trading platform. For example, traders who employ [scalping](https://www.investopedia.com/terms/s/scalping.asp) as a trading strategy will gravitate towards platforms with low fees.

Lower fees are generally always preferable but there may be trade-offs to consider. For example, low fees may not be advantageous if they translate to fewer or less powerful features.

### Provider

Some trading platforms aren't connected to a specific [intermediary](https://www.investopedia.com/terms/f/financialintermediary.asp) or broker while others are only available when you work with a particular intermediary or broker. As a result, investors should consider carefully the reputation of the intermediary or broker before committing to a specific trading platform to execute trades and manage their accounts. Be sure a provider stands solidly behind all that a platform offers.

### Requirements

Trading platforms may have specific requirements that must be met before you can open an account and/or trade. For example, day trading platforms may require that traders have at least $25,000 in [equity](https://www.investopedia.com/terms/e/equity.asp) in their accounts and be approved for [margin trading](https://www.investopedia.com/terms/b/buying-on-margin.asp). Options platforms may require that traders be approved to trade various types of options before they can use the trading platform.

> **Important**
>
> Charles Schwab officially acquired TD Ameritrade for about $22 billion in 2020. The acquisition resulted in client assets valued at over $6 trillion and approximately 28 million brokerage accounts.

## Top-Rated Trading Platforms You Should Consider

There are hundreds—if not thousands—of different trading platforms, including these four popular options:

*   **Interactive Brokers**: Interactive Brokers is a top choice for professionals due to its low fees and global market access.
*   **TradeStation**: TradeStation is favored by algorithmic traders who prefer to execute trading strategies using automated scripts developed with EasyLanguage.
*   **TD Ameritrade**: TD Ameritrade is a popular broker for both traders and investors, especially following its acquisition of thinkorswim.
*   **Robinhood**: Robinhood is a commission-free trading platform targeting millennials. It started off as a mobile app and now has a web interface as well. The platform [makes money](https://www.investopedia.com/articles/active-trading/020515/how-robinhood-makes-money.asp) from several sources, from interest on cash in its accounts to selling order flow to large brokerages.

The most popular platform for many [foreign exchange (forex)](https://www.investopedia.com/terms/f/foreign-exchange.asp) market participants is MetaTrader, which is a trading platform that interfaces with [many different brokers](https://www.investopedia.com/the-best-metatrader-brokers-8765896). Its MQL scripting language has become a popular tool for those looking to automate their trading in currencies.

## What's a Trading Platform?

A trading platform is essentially a software system typically offered through a brokerage or other financial institution that lets you trade online, on your own. A trading platform gives investors an online interface through which they can access various markets, place trades, monitor positions, and manage their accounts.

Trading platforms can offer a number of other features, as well. Broadly speaking, these include real-time quotes, live business and financial news feeds, instant access to a wealth of streaming and historical financial data, technical analysis tools, investment research, and educational resources.

## Is There a Good Trading Platform for Beginning Traders?

E\*Trade and TD Ameritrade are choices that beginners may want to consider. TD Ameritrade has excellent educational resources that can help novice traders understand the markets and become more comfortable with trading before actually placing trades. E\*Trade's user-friendly interface can eliminate the frustrations a beginner might have trying to navigate a trading platform.

## What Is a Day Trader?

A day trader is a trader who makes multiple trades in a single day, rarely (if ever) holding a position overnight. Day traders try to take advantage of intraday price movements and market inefficiencies to make money. They tend to use technical analysis to help them time their market entries and exits. Day trading requires focus, dedication, and discipline.

## The Bottom Line

Trading platforms are crucial tools that investors need to execute and manage market positions online, on their own or with the help of financial professionals. They offer user interfaces that range from the basic to the highly sophisticated. The right trading platform for you depends on how much capital you have, your investment needs and goals, and your experience. Be sure to consider all fees, features, and user-friendliness before you select one.

> **Article Sources**
>
> 1.  Verified Market Research. "[Online Trading Platform Market Valuation — 2024-2031](https://www.verifiedmarketresearch.com/product/online-trading-platform-market/)."
>     
> 2.  Nasdaq. "[Schwab Closes TD Ameritrade Buyout, Creates a Broker Behemoth](https://www.nasdaq.com/articles/schwab-closes-td-ameritrade-buyout-creates-a-broker-behemoth-2020-10-07)."
>     
> 3.  Interactive Brokers. "[Why IBKR](https://www.interactivebrokers.com/en/index.php?f=1338)."
>     
> 4.  TradeStation. "[Desktop Platform](https://www.tradestation.com/platforms-and-tools/desktop/)."
>     
> 5.  TD Ameritrade. "[thinkorswim Trading Platforms](https://www.tdameritrade.com/tools-and-platforms/thinkorswim.page)."
>     
> 6.  Robinhood. "[Investing for Everyone](https://robinhood.com/us/en/)."
>     
> 7.  Robinhood. "[How Robinhood Makes Money](https://robinhood.com/us/en/support/articles/how-robinhood-makes-money/)."
>     
> 8.  MetaTrader. "[Company](https://www.metatrader5.com/en/company)."