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Getting Started With Online Investing

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Getting Started With Online Investing

Are you considering investing online, but still on the fence about it? Have you been researching online brokers, combing through information about stocks and mutual funds, studying online databases, reading analysis and searching for potential stock buys? Online brokerage sites have improved dramatically in recent years, and trading online now has a number of key advantages:

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Cost 

Online trading tends to be far less expensive than trading with a traditional broker. You’ll pay an average of around $10 per trade with an online account versus many times that when using a broker over the phone. You’ll be able to trade more frequently and at a reasonable cost.

Trade What You Want, How You Want 

A lot of traditional brokers won’t sell certain types of stocks or securities like penny stocks; with an online account, in most cases you’ll have the flexibility to buy and sell just about any type of security you wish with any frequency, without resistance.

Trade Any Amount

While a traditional broker wouldn’t be too excited to trade a small amount of stock for you, with an online brokerage account, you can do so easily and at a low commission per trade.

Tools and Reports

Using an online brokerage site, you’ll get access to a suite of excellent tools that help you track your investments and their performance over time. You’ll have access to these tools whenever you wish, 24 hours a day.

You can’t deny the convenience factor; trading online is immediate and hassle-free, with no need to pick up the phone (although most online brokers do offer you this option if you need it.) Sound appealing? If you’re raring to go with online trading and investing, here’s a guide for getting you up and running in no time:

1. Save Money to Invest

While you don’t need too much money to get started with investing, having funds to invest comes first. You should have at least $50 or more to invest, but there are many online brokers that require no minimum deposit. Ideally, you should average into your chosen stocks and funds over time by buying shares gradually each month.

2. Learn the Basics

Investing has its own language and terms, and you’ll need to know the basics in order to get started in an informed way. Learn about traditional types of trading as well as more innovative options like digital options. Study websites like InvestorWords and Investopedia to ensure that you have a decent grasp of online investing language before starting.

3. Trade Practice Accounts

Prior to trading with your own money, consider taking a trial run with an online trading simulator. You can test out investment strategies with “pretend” money via any number of simulators available online today. Doing so will help you assess your risk tolerance before trading your own hard-earned money.

4. Choose An Online Brokerage Firm

Research online brokers, read testimonials about them and choose one that is highly recommended. Be sure and select a broker you genuinely like, feel comfortable with and can trust. Ones size does not fit all, so find the broker that’s right for your situation and preferences.

5. Keep Learning

While the above steps will get you started with online trading and investing, there’s much more to it if you really want to be successful long-term. Never stop learning and growing as an investor. Read relevant articles and websites that apply to the type of trading you favor. Implement stop losses, know your limits, maximize gains and learn as much as you can from others who have been successful.

I am the founder of Startup Today. I am the main writer and have put in many hours of work into creating this blog. If you want to find out more about me then lets get in contact.

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