Trading As A Business: A Very Worthwhile Question From a Reader

This morning I received a really good question from a client, one that I haven’t gotten in a while.

Here’s what he said:

“Hi Brian,
Hope you and family are keeping well. A quick one for you, I’m looking at trading platforms and have narrowed down to three, namely MetaTrader,  Ninja Trader and Trade Station.

As an experienced trader which one of the three would you recommend?

Thanks”

Now, trading is all about decision-making.

Making good decisions consistently is the name of the game.

And one of your primary tools for information and action is your trading platform.

Problem is, just like trading strategies and systems, there isn’t necessarily one that suits everyone best.

This is a personal and business consideration, and everyone has their own situation.

So here’s how I answered him,

BRIEFLY list out what you need out of your platform, things like:

  • speed,
  • accuracy,
  • specific functions or abilities,
  • ease of use,
  • cost,
  • automation of certain things,
  • ability to rewind charts / backtest, capabilities
  • availability of historical data,
  • customer support

    • quality of service
    • responsiveness
    • availability,
  • ability to backup, export
  • etc
Rank them for importance and if they are a ‘must’ or how important they are.
Now simply review your choices according to these prioritized criteria and
see which fits YOUR needs best.

This should bring the best choice for you to the forefront.

If you find that you have more than one that meets all your criteria, then just go with the least expensive one to get and to keep.”

Now, there are many considerations, some that go beyond direct functionality.

Things like,

“are you locked into one specific broker (say for example with proprietary or customized software), and if you decide at some point you want to move to another, will it be a pain in the rear?”

or perhaps the colors or general VISUAL presentation is not that great but you can’t change it

simplicity versus broad functionality

the learning curve associated with it

I was very pleased to get the email asking this question.

It’s totally worth a few minutes of consideration to make sure that you’re choosing the right platform for you.

Changing platforms can be a huge disruption in your operation and a significant cost in both time and money

Attending to this long term aspect of your trading business is very worth your while, as it will likely save you considerably both now and in the future.

What are YOUR thoughts on this?

Feel free to put in your 2 cents worth on this important topic

Please add your comments below

You probably see something that the rest of us are overlooking, and thus can do a good turn by making it known.

Have a great weekend!

Cheers

Brian

P.S.  Over the next few days, you’ll get a sneak peek at series of video shorts I’m putting together at the request of my colleagues.  I’m sure you’ll like it and I’d appreciate your comments on these as well. 😀

This Post Has 4 Comments

  1. Jeffrey Ludwig

    This is a great example of how to think through a decision-making process like this, but moreover highlights some of the important reasons to do it. Trading (and so many other of life’s arenas) is full of these kinds of decisions, where a little extra up-front effort can pay large dividends down the road. There’s a temptation, after doing some cursory research, to throw up one’s hands and declare “I don’t have time to pick through all this info” or “it’s too much for me to process” or “it probably doesn’t really matter anyway” and make an arbitrary choice based off emotion or expediency (at least, I know it’s a temptation for me!). Besides, who wouldn’t rather be spending their time finding great trades than comparison shopping brokers, or watching trading platform tutorials, or reorganizing watch lists? But taking that little bit of extra time and effort to do any one of these things can end up being worth more than any number of great trades one could have found in the same time! One additional caveat is not to get complacent and think that once you’ve done that work you never need to think about it again. Opportunities change and so do personal needs. Maybe that broker you looked at last year that didn’t impress you has restructured their commissions and would now be a great fit for you; maybe now that you’ve started trading different markets, or on a different time frame, the trading platform that served you so well in the beginning now no longer fits your needs. You won’t know unless you periodically take the time to reevaluate where you are and what you’re trying to do, and assess whether the tools and systems you’re using are helping you or holding you back.

  2. Charles Johnson

    A problem I’ve had with platforms – delays in getting my orders filled, so time and consistency of fill are pretty important matters too.

    Thanks for this post Brian. Good issue to think through.

  3. thom jack

    I’ve worked with and/or watched others work with all three of those platforms. I use Esignal for data, and Ninja for order entry. Works great, and I can use any broker. Platforms that offer both data and order entry seem to do neither all that well. imho

  4. Colin Twigg

    The platform is a decision (or confusion) making interface. But, at the end of the day, it’s for placing orders, & your counterparty needs to be there. So FWIW, I’d have to say it’s platform reliability & price of the broking service than counts to me. & Most Importantly – that they’re going to be there tomorrow. While there might be differences within the platforms mentioned, they’ve all got the basics covered more than well enough to smother the charts & then enough to confuse you some more.

    Unless you’re looking for some special higher end feature to suit your needs, I suspect that a lot of the ‘differences’ are more to do with marketing differentiation. As platforms evolve, or brokers change their products, or as you grow & find your path, you will find systems become redundant & you’ll have to do this exercise & familiarisation over again. Although next time you may have more of an idea of what you’re looking for. I’d agree with what Brian, Jeffrey, & Charles have said too.

    Maybe play whichever ones offer trials on a demo account for a while, to find out how you see the market, & what features you are likely to need – Don’t marry it immediately – it’s a trial & assesment.