A
lso known as online share dealing,
online trade stock is one of the most innovative ways of making money online. It is basically a way of buying and selling shares on an online platform. The
online trade stock process is a fairly simple one. This guide will take you through the basic steps for a beginner and how to avoid unnecessary expenses.
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Opening an online trade stock account
The first thing you will need to do is open an
online trade stock account. There are many trading platforms/ stockbrokers available online, but you will need to find the right one for your needs. Finding the right stockbroker is a critical factor in avoiding unnecessary expenses as a beginner.
To do this, you need to compare the different stockbrokers and their rates. For example, one broker, Halifax, charges £11.95 per online trade. Another broker, Motley Fool charges £10 per online trade. As you can see, different brokers have different rates and terms, and it is advisable to compare them before deciding on one.
After selecting the stockbroker, setting up a trading account is simple. With a debit card and bank details, you can start trading. However, the stockbrokers require you to deposit some amount into the account. The minimum deposit for trading differs with the brokers, with some starting at £100 while others require higher deposits.
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Selecting stocks to trade
After you have successfully set up a trading account, you will need to decide on the stock you wish to trade. The stock name you select will give a quote price, normally at pence per share. After you choose the amount you wish to spend, a real-time quote is given, and you will then have a time period of about 15 seconds to execute the trade. Only the deposited money is available for trading.
When getting into online stocks trading, it is important to note that there are taxes payable and they vary with the volume of trade. There are conmen masquerading as potential trading partners too, and you should be wary of people calling you for trading deals.
