If you are looking to start online trading, there are plenty of platforms that will be able to get you set up to start doing so. The ease of online trading accounts means that anyone can start to trade online, and these type of accounts are even accessible with small deposits. So if you do want to start trading, how is the best way to go about it?
Shop around for an online trading account
When you go onto a search engine and look for an online trading account, it can be tempting to just go for the first one that comes up. Don’t forget, that there are a lot of different trading accounts that not only offer you the opportunity to trade in different instruments, but also the opportunity to get good rates on certain instruments they specialize in.
If you are just going for stocks and shares, then it is quite straight forward as these are the most common accounts, and one of the things you may shop around for may be welcome bonuses. If you are going for something a little more complex like CFD’s or spread betting, you will need to do your research into what benefits each online trading account can offer.
Figure out how you are going to pay
This one sounds like an obvious one, and we do not mean the physical way you are going to pay, but the way you set up an account. To make investing online accessible, a lot of online trading websites now give you the opportunity to pay monthly, rather than pay one lump sum.
There are pros and cons to each different method. If you are going to use one big lump sum to fund your trading, you will get it ‘out of the way’ quickly, but you will also be putting your money into market in one go, and are bound to whatever the price is at that time.
If you spread the cost over a monthly basis, you will spread your risk by utilizing the changing rises and falls of the market. If one month the price isn’t great, you can still gain your losses back the next time the market price is above average on the date you invest. Most online trading accounts let you do this by direct debit so that you do not constantly need to log on to deposit funds.
Learn the basics
This may sound like an obvious one, but many people jump into investments without learning the basics of how to run an online trading account. A lot of online traders give you the opportunity the invest with ‘fake’ money before you deposit.
This is a great way to get used to the markets you are thinking about entering, but also the basics of how to run your account. One of the main things you need to look at is setting automatic functions. It is not realistic to be at work all day and continuously check your investment, but all good online trading platforms will give you the opportunity to set a price to automatically buys and sell at.
You can also use this opportunity to familiarize yourself with the type of information available on stocks, and most of these websites will also have how-to guides and blogs with tips and tricks.
Check to see if there is an app
In an ideal world, you would set up an online trading account, become rich within a week and leave work to live in the Cote D’Azur. Unfortunately, this is a bit unrealistic and the likelihood is that you will need to work full time while you are playing with the markets.
Any online trading website that is well established will usually have a app for iPhone, Android or Windows phone. Not only are these effective at letting you place trades while you are out and about, you can also set them up to send you a notification when stocks hit certain prices. This is especially handy if you are going to trade something like CFD’s and need to keep a continuous eye on the market.