ETF trading platform in Qatar
Trading is becoming increasingly popular in today's world. Unlike the classic method of investing, where you had to call your broker and order a transaction for each transaction, you can now perform all transactions yourself through a convenient online platform. This guarantees a high speed of transactions. The online system works millions of times faster and services hundreds of thousands of people at a time. Even during times of high volatility. The online platform gives access to complete and up-to-date information about the market situation. To stay up to date, the investor has to call the broker all the time. In such a mode it is easy to lose important data which can give higher profits or help to avoid losses. Telephone communication almost completely eliminates earning on price differences during the trading day. Information through an online terminal is provided in real time. Traders can monitor news, quotes, orders, view transaction history and set up alerts.
In addition, online trading allows you to start investing without having a sizable initial capital. Now you can start with just a few dollars!
Internet trading platforms offer different financial instruments for trading. Today we will look at the relatively new, but already winning traders' approval, ETF financial instrument and choose the best ETF trading platform in Qatar.
Investing ETF funds
What is an ETF?
Exchange-traded funds or ETFs (an acronym for Exchange Traded Funds) are investment funds whose shares are traded on a stock exchange. ETF funds have become widespread in recent decades.
An ETF follows the structure of a chosen underlying index. Unlike an index mutual fund, one can do everything with ETF shares that one would do with an ordinary stock in stock trading. This is the main advantage of an ETF over a UIF - transactions in ETF shares may take place throughout the trading day, and their price changes depending on the activity of market participants. Actually ETF is a new type of securities that acts as a certificate for a portfolio of shares, bonds, exchange-traded commodities.
Shares (units) of an ordinary mutual fund cannot be traded on the stock exchange - there is a special procedure, approved by law and the fund's charter, for their purchase and sale. Shares in an ETF fund, on the other hand, can be bought directly from any brokerage account. This fact leads to differences between the specifics of investing in an ETF fund and an ordinary mutual fund.
ETF shares have high liquidity: if shares of a mutual fund may be bought and sold only once a day because their value is updated only after the close of trading by dividing the value of all net assets of the fund by the number of units, shares of an ETF fund may be bought and sold at any time during the entire trading day because their value, like the value of ordinary shares, is determined by the behaviour of trading participants.
Also, when trading ETF shares, due to the fact that it takes place directly on the stock exchange, no additional fees can be charged, which may be stipulated for the purchase/sale of ordinary investment units, which are traded through specially authorised persons.
How to invest in ETFs in Qatar? Which platform to choose?
Within the stock market, we have investment platforms, also known as brokers. Through them, you can buy and sell ETFs while watching quotes in real time. There are many different brokerage offerings available now, so you should do a thorough analysis of each one to choose the best one.
If you're thinking about investing in ETFs in Qatar, online brokers are the direct answer.
The broker must, of course, be licensed and have a good business reputation in the investment market - research this information before choosing a particular broker. It's also important how user-friendly the online trading platform that your chosen broker will offer you. Here are some of the elements you should research before you sign up for an investment platform:
- Commissions for using the platform.
- Communication channels and user services.
- Terms and conditions of use.
- Select ETFs (make sure you can buy the ETFs you are interested in).
- Check the trading tools offered by the platform.
Also make sure the platform is easy to use for you personally, that is: you find the options you want intuitively and easily, you easily understand how it works and you can react quickly to the situation.
Opt for platforms which offer a demo account for trial trading so you can learn without risking your money.
Check the limits of the platform - they should be suitable for you.
We have chosen a platform that meets all the points above, and that is easy to use, informative and feature-rich. Below we look in detail at the benefits of the ETF trading platform we have chosen.
The registration process on the trading platform is fairly straightforward and takes a couple of minutes. To do so, you need to go to the website of your chosen broker and do the following:
- Click the "Register" button to enter the email address and password you will use for your account. It is very important to remember these details and even back them up in case you forget them.
- Go to your mailbox and open the automated email sent to you by the system to click on the attached link, thus confirming the registration of your account.
The easy registration is one of the advantages of the platform, as it doesn't make you feel uncomfortable when you start trading.
Demo account availability
To get started, you will be offered a free demo account. The system automatically credits this account with a certain amount of virtual money so that you can make your first test transactions without the risk of losing real money. The platform we chose credits the demo account with $10,000 of fictitious money, and this amount is more than enough for training in the beginning. If it turns out that the training wasn't effective and you don't have enough test money, you can renew it and try again.
The value of a demo account cannot be overestimated. It is an exact replica of a real account, with one difference: your real funds will be in your real account. So, by using a demo account, you can obviously see how the system works: how best to buy or sell a stock, how to use the stop-loss or multiplier functions, for example, and so on.
Plenty of depositing options. Low Limits
To start trading on the platform, you have to fund your real account. There are a number of methods you can use to fund your account, click on the 'make a deposit' tab and choose the one that suits you best. You can use your credit card or you can use our online systems to fund your account. The minimum deposit amount is only $10. This allows you to start trading without having much capital.
Regardless of the situation, keep in mind that trading is a risky business, so if you don't have enough experience, you'll have to start with small amounts to avoid significant financial losses in case you fail.
You will be able to withdraw money from your account using the same payment strategy you used when you deposited your funds. The system allows withdrawals as low as $2.
Availability of convenient tools for successful ETF trading
On the platform, you'll find many tools and features to make trading easier. To at least protect their trades, traders use stop loss and take profit features. What are Stop Loss and Take Profit? They are a type of stop order (or stop loss), which helps set a limit on the transactions, upon reaching which the trade will be automatically closed.
A stop loss is a pending order which allows you to "put off" your losses, literally stop your losses. This order is concluded in the fact that trader defines the amount that he is ready to pay in case of loss and sets this value in the settings of the trading platform. If the trader suffers a loss as a result of the transaction, the transaction will be closed automatically when the stop loss level is reached.
Take Profit is a pending order that, unlike Stop Loss, fixes not losses, but profits of trader. When setting this pending order trader designates the level of maximum profit growth. When it is reached, the deal is also closed automatically and the trader does not risk playing on too high trend.
On our platform, setting these orders is very easy, on the right hand panel you will see the options "Stop Loss" and "Take Profit", all you need to do is to specify the deal limits.
Here you will also see the "Multiplier" option, with which you can activate the leverage action. It is easy to activate by selecting the multiplier size and activating it. But be careful, as using leverage increases the risk of losing a larger amount in the event of a bad trade.
Using the multiplier is not recommended for traders with little trading experience.
Availability of indicators for technical analysis
A successful trader must be able to analyse technically, using special indicators. Indicators help to predict market changes and considerably simplify calculation of prices in the future. The mission of market indicators is not limited to price forecasting. They inform a trader about important changes - including the second the price gains or exceeds a value. The work of the best thesis indicators frees the trader from performing calculations. The market participant only has to correctly assess the trading signals of the indicator. If a trader knows how to "read" an indicator, it will not be a problem to place the "right bet".
The platform we are reviewing is equipped with almost all known indicators, which you can use by simply selecting the one you want on the bottom panel of the platform.
A good choice of ETFs to invest in
You will find 23 ETF options on the platform.
You can read about the fund directly on the platform - there is a description, a brief overview of the fund and an analysis. You will also find historical statistics - simply select the relevant period and study the fund's behaviour. You will also see all the latest news on the selected ETF - you can follow the latest news by subscribing to the platform's blog, or you can set up the news feed to be displayed directly on the trading room screen. This is very convenient.
Convenient menu, informative, the ability to analyze a particular fund - all this is an undeniable plus in the side of choosing this platform for trading ETFs.
Other important features of the platform
Actually, these are not all the benefits of the ETF trading platform.
Other important pluses of the platform is the educational section with lots of video tutorials that you can learn for free. The platform is very flexible in its settings - you can choose different colour schemes, different options for displaying charts, the number of working windows, different time intervals to track and so on. You can also view the statistics of certain assets for different timeframes, communicate in an interactive chat with other traders, participate in tournaments and view the ready-made market analysis provided by the platform.
If you run into any difficulties, you can always ask for technical support, which is available 24 hours a day, 7 days a week. Support is available in 17 different languages.
With all the benefits of the platform, we think it's the best platform for ETF trading in Qatar.
Open a demo account today and see for yourself!