Saturday, June 9, 2012

What are the differences between online stock trading systems?-online broker, online trading platform, financial markets, investment, day trading, finance

What are the differences between online stock trading systems?


by Stella McAlister


As the world economy continues moving along the downward spiral, college professors are considering stock trading as an alternative employment opportunity. Many traders agree that stock trading can generate substantial extra funds if done properly.

Most current stock trades are performed through online brokers and the first step is to find ideal stock broker for your purpose. When choosing an online stock trading platform for your needs it is worth considering only the trustworthy ones.

You will be stressed enough with choosing the proper day trading strategy so unreliable stock broker can make things only worse. Why should you care about paying less a few cents on each trade if your broker fails to execute your order in time and you lose thousands?

For this reason, a beginner investor should check if the chosen online trading platform is trustworthy or not. You can simply use a search phrase that includes the stock broker name together with scam or review in your search.

Of course, a lot of those positive reviews are paid for by brokers themselves. You can definitely trust multiple negative reviews implying that if the online broker is unreliable it is most likely true.

There are a few questions that you should find out before you sign up with a specific trading platform. These include the commission for each stock trade, the availability of free research tools, the amount of initial deposit.

The first question is the amount of trading commission which is of key importance for short term traders. If your goal is to make money on selling and buying quickly then you will probably be paying a commission of up to ten bucks for each security trade.

Cost of online trades may be of lower importance if the goal is to save for retirement. In this case, you will most likely put 70-80 percent of the money in American top stock such as Hewlett Packard stock. One fourth of the remaining funds can be divided between technological startups and biotech stocks.

Many investors would also like to get some free stock research tools that will allow for easy stock picking. These include stock price dynamics, oscillators used in technical analysis and company prospects.

Before you can actually start trading you will need to fund your account with about a thousand dollars that can be transmitted via bank transfer. Experienced investment analysts also recommend to verify whether there are any hidden fees for withdrawing or adding funds to your account.

Many online trading platforms also offer free trial account with virtual funds. You can spend virtual 50 thousand dollars to learn how the platform works and to test your trading strategy.

In a modern technological world many online platforms can be viewed on smart phones and tablet PCs which may be important for advanced users who would like to check the stock dynamics regularly. Thus, finding online broker may be quite time consuming but will save a lot of time later.




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