Advancements in technology have led to new tools and improved access to opportunities that in the past was only accessible to the learned and the powerful. Take for example stocks trading; it was not so long ago that only rich people could make money from stocks trading as it required huge amounts of money to be able to buy stocks and have to know how the stocks market worked and to have a broker in order to trade. There was a lot of technical jargon that only those who can keep up with it was able to take advantage of the stock market. However, with the internet and the vast number of programs that can support trading in the stock market such as Paper Trading Platform, has opened this field to the general public. Now anyone with tons of practice can successfully make money from trading in stocks.
Paper Trading Platform
A paper trading platform is a computer program that enables the user to work with a simulation of the trading of various equities and options without the risk of losses or failure. The software is designed to be an educational tool for those who are teaching others on how to invest and trade online or to enable brokers to have their clients experience what it is to do actual trading and how they can lose or gain from their trading decisions. The program is fully customizable so that you can add your own logo, your rules, content information, website design and dashboard user interface. This program can immensely help traders and brokers and even individuals who would like to learn about trading even before they fully invest in it. The software can track the progress of the user and is accessible with a single click at any time of the day.
Realistic Paper Trading Platform
Just like any other simulation program, a major criticism is that it does not really represent the real thing. In a simulation software, you just pretend to be flying a plane, or operating a machine or trading stocks. The program is designed to approximate as closely as possible the real rules in trading and working with real data. However, not all simulation software are equipped for this. Most of the time, it just use built in data and preprogrammed rules, which is why most users would end up disliking the program and often saying that it does not really teach them anything useful in terms of trading in real time. Paper trading platform is designed to mimic trading in real world conditions from equities and options, ETFs and spreads, streaming level quotes, streaming charts and real-time order execution. It also has various trading options which includes option chains, multi leg options, option strategies and trends and OTO/OCO. All of which ensures that the user is able to make decisions and learn the ropes of trading in the most realistic situation that is as if they are actually doing real-life trading without the risks of losing money. It sharpens their trading skills and prepares them for the real thing as well as giving them the advantage of knowing what to expect in terms of trading.
Customized Paper Trading Platform
The best thing about paper trading platform is that it can be fully customized to suit the needs and goals of the client. It is designed to be customized by simply dragging and dropping into the platform without any programming skills. You can add on any logo, content, rules, data, analytics and any third party content with just plug and play options. If you are an educator, you can customize the dashboard and the content and rules to reflect your trading perspective and goals. You can put in monitoring tools and can track the performance of your students so you can identify which of them are making gains and which are not. You can also provide individualized instructions and set target goals for each student. If you are broker and your clients want to understand the ins and outs of trading, then you can use the paper trading platform for them to practice on. You can even set it to your local language so that the clients would not get lost with all those terminologies and be easier for them to comprehend. You don’t even need any new hardware to run the program as it can be run in their home computers and mobile gadgets, there is no installation or downloads involved and can be run on various operating systems, even MAC OS and Linux.
Advantages of Paper Trading Platform
Using a paper trading platform has a number of advantages and all of which is designed to make learning how to do trading a bit easier and more enjoyable. First, using a paper trading platform makes investing fun without the risk of losing money. Since it is a simulation software, users will have to follow the rules of trading, make decisions, buy or sell when they want to and see if their choices would lead them to success or failure, without actually losing money in the process. Trading is always intimidating to the uninformed, and one way of encouraging people to invest in trading is to increase their knowledge and skills on it. You can choose which stocks to sell or buy in real-time conditions and will be able to learn what factors drive your actions and choices so that when you do the actual trading you are more empowered to do it and be less intimidated by it.
If you are looking for individual investors, paper trading platform can help you attract investors who are willing to test out their skills and your strategies in a real-world scenario. By providing them with your own customized paper trading platform, they will have the venue to try out their ideas and see for themselves how your stocks perform in the market and whether it is moving or not and what decisions they have to take to grow their investment in your stocks. As they practice and learn, they become confident investors and will become bold clients in the future.
As a wealth manager, you need to demonstrate to your clients how you can be able to help them gain in trading stocks and most people are averse at having someone else take charge of their hard earned money. You can use paper trading platform to show them how your firm works, what brokerage services you offer, your trading platform and trading partners. If you do trading based on market reports, then you can give them access to this reports and they can make use of those reports to inform their trading decisions. When they are able to see how much you can help them grow their money, they will be more than willing to pay for your services for the real deal.
One way of driving customers and potential clients to your trading platform and brokerage firm is to give them a taste or to experience your trading platform for a trial period. With paper trading platform, you can give potential customers the chance to experience your unique content and user-friendly platform. Minimize the risk of losing customers by giving them free access to your platform using paper trading to mimic your actual platform. Your clients will become more interested at how easy it will be for them to learn trading and know the kind of service that you provide.
Millennials and digital natives appear to drive every market base and they have the tech savviness to understand how trading platforms work, however, they are afraid to invest. By using paper trading software, you will be able to present trading and your services to young professionals in a language that they can actually understand. Once they are able to experience stock trading and how they can actually make money from it, they will become converted to investing in stocks trading. There is no better way to reach millennials than by having them try out everything first.
Paper trading platform is not just for new or prospective clients, but it can also increase customer engagement b having them do the trading themselves and they can test out their ideas and strategies and see whether it works for them or not. Most people start investing with a small amount that they are willing to risk. But just like in any business, the greater the investment, the greater the gain. The software allows the customers to practice and hone their strategies without having to risk their money.
The Future is in Trading Platforms
More and more people are now trying out their luck at stocks trading, and even if the trial and error approached in the past, nowadays, it is technology driven as much as any other industry. Thus, you can invest and make money and trade in a trading platform or you can hire wealth managers or brokerage firms to handle your money. Whatever the choice is, most investors need to make sure that their money is in good hands. So let them try out the paper trading platforms and see for themselves how realistic and easy to use it is.