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Be glad that you live in the Internet age! People
used to pay a lot of money in order to hire a broker
to buy and sell stocks for them. Now, with the
competition of the numerous online brokerages,
trading stocks can be dirt cheap. In fact, there are
banks who offer free trades online just to get your
business. With consumer prices for everything from
gas and groceries to clothing and housing going up
every day, it’s nice to find the true bargain of
online stock trading.
Even if you have to pay for your trades, you’ll find that they range
economically in price from $2 to $25 per trade. The services are affordable
enough so that almost everyone will be able to participate in the stock market
trade if they want to. In addition to stock trades, you’ll find that most sites
also offer you incentives like investment videos, the ability to test trades
without actually purchasing anything, and tap research. For a service that used
to come with no frills attached unless you were willing to pay big bucks, it’s
now become a buyers market.
Finding the best online brokerages can be a
challenge - but, with a little help, it doesn't have to be.
Don’t select your brokerage just because it offers cheap rates,
however. There are a lot of other factors you need to consider
before choosing who you want to trust with your money, such as:
- How many trades will you be making in a
month? Are you planning on buying and
holding the stocks long term, or do you want
to become a day trader? If you’re only
planning on an occasional trade or two, it
could be well worth your while to pay a
little more for a broker so that you get
more service and research capabilities.
- Are you planning on doing your own
research and investments, or will you feel
more comfortable hiring someone to advise
you? If you lack confidence in your own
trading skills, or don’t want to take the
time to do the research yourself, once again
you’ll need to pay a little more for
assistance.
- Are you a patient or impulsive buyer?
It’s now so easy to buy and sell with just
the click of a mouse that you can make big,
costly mistakes if you often just fly by the
seat of your pants. If you can’t trust
yourself to patiently consider and make
smart trades, get yourself some help.
You’ll want to compare several online brokerages
before choosing one. Since the prices are now so
competitive, the real difference will lie in the
services each site offers. One good place to start
is with Investing Online Resources Center (IORC).
This site comes to you independently and
non-commercially, so you’ll know you can trust them
not to try to steer you to certain interests. The
website will give you links to independent rankings,
comparisons of services offered, as well as feature
articles about investing. Websites which
offer market information, such as MarketWatch, CNBC, and Yahoo!
finance will provide you with a lot of tools, strategies, and
trustworthy information to help you with you online stock trading.
You can also try looking at online investment guides such as
business.com, TechniTrader, and Value Line. You’ll find more
information than you’ll be able to absorb, and none of it will cost
you anything. The most important trading rule the pros pass on to
new investors is to do plenty of research into the stocks and
companies they are thinking of investing in. With the Internet as
your textbook, it only takes a little time and effort in order to
give yourself an excellent education.
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