Whilst some may be excited about investing, many of us avoid getting into it because of the hassles involved.
With the endless phone calls to gathering information, the lack of tools and most importantly - the lack of time to plan and keep a systematic track of your portfolio, the last thing you want to do is end up in a situation where you rely heavily on a broker.
The World Wide Web:
Now, thanks to the rise of the World Wide Web, people can do practically anything virtually, and that includes online trading. Both beginner and advanced investors have the ability to trade stocks, options, forex and futures all over the world with ease and rapidity.
The use of online trades has increased the number of discount brokerages because internet trading allows many brokers to further cut costs and part of the savings can be past on to customers in the form of lower commissions.
Another benefit of online trading is the improvement in the speed of which transactions can be executed and settled, because there is no need for paper-based documents to be copied, filed and entered into an electronic format.
The online world of investing largely eliminates all the major hassles of investing. It provides a wealth of information, analysis and tools that enable you to take more informed (and paperless) decisions. Investors also enjoy the luxury of being able to trade anytime, anywhere and at their own time and convenience.
Anyone over the age of 18 can trade stocks online as long as they have a computer, an Internet connection and a bank account.
To begin investing online you need to register for an online trading account with an online trading service provider.
In most online services, you are given three accounts when registered:
- Trading account, which enables you to transact online.
- An Internet enabled bank account for online money transfers through Internet.
- A demat account, where your shares will be deposited.
In this section we'll provide you with a wealth of information so that you can determine whether online trading is for you.Visit Yahoo!7's Education Centre for more information.