New Traders Discover Benefits of Cloud-Based Trading Platforms

Cloud-based trading platforms have made it easier for investors to take advantage of trading opportunities in real-time.

cloud-based trading platforms offer great benefits to investors
Shutterstock Photo License - Alexander Limbach

Cloud technology is changing the state of many different industries. The financial sector is one of those most heavily influenced by cloud technology.

Finance companies are projected to spend $68.8 billion on cloud services by 2028. The market is growing at a rate of 20.5% a year. A number of different sub-sectors of the financial industry are driving demand for cloud technology.

One of the financial verticals most affected by cloud technology is online financial securities trading. A number of trading platforms rely on cloud technology to operate more efficiently and cut costs.

Cloud Technology Helps Traders Achieve Higher ROIs

Trading on the financial and stock markets has become progressively easier over the last couple of decades, mainly thanks to the rapid integration of the internet into our daily lives. More than 10 million people are actively engaged in Forex trading as of today, something which would have likely been unimaginable in the era before the internet was so ubiquitous.

We have previously talked about the benefits of using AI for financial trading. Cloud technology has helped traders make better trading decisions. Some of the benefits of cloud technology for financial trading are listed below:

  • The cloud makes it a lot easier to place quick trades. This enables traders to take advantage of trading opportunities in real-time, which is crucial in a world where new updates can change the direction of financial markets in a matter of minutes.
  • Cloud-based trading platforms are less likely to crash, so traders can take advantage of opportunities without delays.
  • Cloud-trading platforms tend to be more cost-effective, so traders don’t have to pay as high trading fees.

There are loads of benefits of using the cloud to make trading decisions. However, there is still going to be a learning curve for new traders. Getting started with trading is not that complicated, as long as you take the time to research the market, figure out what tools are available, and have the patience to develop a viable long-term strategy.

Advantages of Web-Based Trading Platforms Using the Cloud

Web-based trading platforms have been growing in popularity. Online trading platforms are enjoying an annual growth rate of 6.4%, with expectations that the total value of the market will go over $13 billion by 2026. As stated above, the cloud has made these trading platforms even more valuable. These solutions offer many advantages over traditional platforms, making them a prime candidate for a beginner who’s just starting to explore the field.

Some of the benefits of using cloud-based trading platforms over traditional solutions include:

  • Platform independence: you can access the platform on any device and are not bound to a specific operating system or app store;
  • Constant updates: developers don’t have to spread their resources across multiple fronts and can concentrate on improving one centralized solution instead;
  • Easy integration with auxiliary tools: many web-based platforms offer API access for developers interested in taking full advantage of their potential.

The cloud is completely changing the future of trading. Savvy traders will leverage cloud-based trading platforms to their advantage.

Figure Out What You Want to Trade

It’s important to settle on a particular market before going any further. There are several main options to pick from stocks, ETFs, and currencies. Trading currencies on Forex is an easy way to get introduced to the overall concept of trading and is widely available through many brokers.

Stocks are also an option worth considering, but you should build up some experience before going in that direction. Otherwise, they can be a risky investment if you don’t understand the market in enough detail. ETFs are a safer alternative to stocks, as they bundle different stocks in a manner that distributes the risk more evenly. The lower risk associated with ETFs comes at a price though – your earning potential is also more limited for the most part.

How to Start Trading Through a Web Terminal

Now that you’ve picked your target area, you can start using a web terminal to trade. One of the more popular options on the market is the MetaTrader 5 Web Terminal. It’s specifically aimed at Forex traders, and the recent update on Web Terminal by MetaQuotes is suitable for those looking for a good balance between access to different tools and easy integration.

The tool offers an approach balanced between convenience and depth, displaying data in a condensed manner while still providing you with access to features that can help you make the most of your trades. It runs entirely in your browser, and thanks to its adaptive design, you can take advantage of its functionality on any device.

Using the MetaTrader 5 Web Terminal is also a reasonable choice for those concerned about security. Since the terminal runs exclusively on your broker’s server and not on a centralized one shared with other users, you will have more control over your trading data.

On top of that, there’s no fee required to use the service. If you’re looking for a relatively easy way to get started with trading through a web platform, this is an option worth exploring.

Use a Practice Account First

Many cloud-based trading platforms offer the option of setting up a demo account with fake money. Take full advantage of that option and don’t let go of your practice account until you’re truly comfortable with what you’re doing. It will take a while to learn the ins and outs of the market, and practicing in a safe, controlled environment with no risk involved is a good way to prepare for what you’re about to experience.

Whenever you run into a problem or don’t understand why a situation developed the way it did, make sure to talk to other traders online and ask for assistance. The community is generally welcoming to newcomers and you’ll get plenty of valuable insights from people who’ve likely experienced the same problems as you.

Understand the Tax Implications

Don’t forget taxes! You may be able to connect to financial markets all over the world via the cloud, but you still have to pay taxes in your jurisdiction of residence. Depending on where you live, trading can have some serious tax implications and may even require the services of an accountant. It’s better to sort this out at the very beginning while you’re still starting out, rather than scrambling to find someone on short notice once you realize that your tax return is going to be much more complicated than you anticipated.

Hiring an accountant is not even as expensive as most people think – you can get one for as little as $300 if your trading has been relatively uncomplicated through the year. There are also tools that can allow you to handle your taxes yourself, which will cost you around $100 – $200 per year, depending on the set of features you’re interested in.

Moving on to More Advanced Strategies

Once you’re comfortable performing simple trades and have managed to stabilize your position on the market, it’s time to move on to exploring more advanced trading strategies. Things like Forex scalping and positional trading require some underlying experience with the market, so don’t attempt to jump on those until you’ve mastered the basics.

At this point, you should also have a good understanding of the cloud-based platform(s) you’ve chosen. Understand the full toolset you’re working with and how it can benefit you in every situation. Know how to reach out to the company behind the platform for support if you run into any problems. And take the time to experiment with automation solutions. Even if you don’t consider yourself good at programming, you can still learn how to automate some basic tasks.

Cloud Trading Offers Huge Benefits for Traders

A growing number of traders are taking advantage of cloud-based trading platforms. As a new investor, you may want to consider these benefits.

Whether you do it full-time or part-time, online trading can be a good way to earn a steady income once you overcome the initial learning barrier. Web-based trading platforms are probably the best way to approach this right now, given their convenience and availability. You must enter this field with the strong intention to learn more over time. There is a lot of ground to cover already, and new solutions keep coming out on a regular basis, requiring you to stay on top of your learning.