bbmanhattan
@bbmanhattan

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WHAT IS AN INVESTMENT PLATFORM, AND HOW TO CHOOSE ONE?


As a small business owner, you may have considered investing money in the stock market but don't know how to do it through an investment platform - you may not even know what an investment platform is and how it works! If so, this post is perfect for you.



Many people are in the same situation. Investing in the stock market (and especially doing it right) can be complex if you don't have the right guidance.



However, investing money as a small business owner doesn't have to be so complicated. Once you know the basics about the stock market, it's time to understand what an investment platform is and then choose the one that best suits your needs.



However, before we get ahead of ourselves and look at specific trading platforms, let's look at what a trading platform is, how it works, the benefits of using one, and how to choose the best one for you.


What is a trading platform?
Simply put, an investment platform is a software that allows you to trade on the stock market and manage your investment accounts. It is an option for ordinary people (not stock market professionals) to buy and sell stocks, bonds, and mutual funds without the need to work directly with a broker or investment manager.



In some ways, you can think of an investment platform as something akin to online banking. By the way, this is exactly how DotBig (https://dotbig.com/) positioning itself.  When you log into your online banking, you can transfer money and schedule your bills to be paid directly from your bank account, rather than having to go to a branch in person and ask a bank representative to do it for you.



Like online banking, there are stock trading platforms that offer a variety of different functionalities. But at their core, they all serve the same purpose: they allow you to trade on the stock market from the Internet. 


How does an investment platform work?
Stocks are bought and sold through a transaction or exchange. Traditionally, the only people who could do this were stockbrokers because they have a license that allows them to do so. In addition, these transactions were usually - and still are - done in person from the trading floor of the exchange, such as the New York Stock Exchange.



But today, buying and selling stocks can be traded through a broker both over the phone and electronically. This is where an investment platform comes into play. This platform acts like an online stockbroker in that it can perform the same tasks that a flesh-and-blood broker would do for you.



An investment platform allows you to research on your own using various reports and analyses and request to buy or sell stocks on your own, without the need to speak directly to a broker.



Advantages of using an investment platform as a small business owner

If you own a small business, using an investment platform has several advantages:



- By using an online investment platform, you don't need to contact a broker and wait for a response if they are currently unavailable. You can log into your account on the platform at any time and do research or make a trade.

- As a small business owner, you are sure to always be short on time. Speed and efficiency are essential in everything you do. In addition, the time you spend researching investments or making trades probably doesn't coincide with the time the brokers are available to help you. You can indeed request a trade outside the opening hours of the stock exchanges, but it won't be official until the exchange reopens.

- Another great advantage of using an investment platform is that you can research your own which trades are right for you. All the information you want to get is at your fingertips. This allows you to make decisions independently, and you are not left wondering if the buy and sell suggestions your broker makes are based on personal preferences rather than objective data.

- The final advantage is that investment platforms usually charge lower fees than traditional brokerage companies, which have higher costs.


Final Words
As a small business owner, you want to make good investments to bring you the highest possible returns. The stock market, when handled properly, is an option for investing and watching your money multiply.



And today, achieving just that is easier than ever through online investment platforms. But before you dive into one and start trading, you need to understand how they work. Learning and educating yourself is always the best way to make good decisions and select the tool that best suits your needs.

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