Not so long ago, trading stocks was an exclusive endeavor, and the only way to be a part of this business was being a Wall Street resident and knowing the right people off the bat. In the present, with the advent of Internet and integration of online financial services, the possibility to get involved and grow into buying stocks online is at each one’s fingertip.

Stocks represent shares of a company’s ownership, and are traded in a central stock market. There is extensive research on the trends and patterns of this arena, and both qualified proffessionals and wannabe billionares alike take interest in being involved, for it can be a business where you get rich overnight. However, money can go away as fast as they have been earned, or even faster, and a fair amount of patience, focus and expertise is required to make a living from this pursuit.

Buying and selling stocks depends on taking risks and researching. Researching can be done in two ways: either through fundemantal analisys - based on the company’s public statements, financial reports and future strategy - or through technical analysis - finding various patterns in the rise and fall of stock prices. A profficient stock trader should use a mix of both when doing his research, plus reading success stories and participating in online courses that regard financial exchange. A zero risk involvement in buying stocks online consists of engaging with various online stock trade simulators, or investing in penny stock markets. It’s a job that requires consistency and study, but it can offer quick gains if done right.

Buying stocks online
One of the most important decisions you will have to take in your life as an investor has nothing to do with the shares, the Sicavs or the bonds you are going to buy. I want to talk about choosing your broker online stock market. How do you know which one suits you best? Here are some tips for choosing:

Discount is not always the best solution

It’s best to start by asking a broker for complete services. They are often of great help to novice investors who may still need to gain confidence and become familiar with the markets. Once you are more confident, you can manage your investments more.

The key: availability

Try to join the company’s website at different times, especially during peak trading hours. Check how long their site puts to load and click on a few links to make sure there are no technical problems.

An alternative market allows more flexibility

Although we are all crazy about the internet, we can not always be in front of our computer. Check out the other options the company offers for stock market investments. There are other alternatives such as placing orders via your phone’s keypad, by fax or by your good old flesh broker.

A word to the wise: make sure you take note of the prices for these options as they often differ from those of an order passed via the internet.

The importance of the broker’s notoriety

What do others say about the broker’s services?

Just as you must do some research before buying an action, you should glean as much information as possible from your broker.

The price does not do everything

Quality is paid for. Like any good or service, price refers to quality.

Do not open a broker account just because it offers the lowest commission. The rates displayed vary widely ranging from less than 2 euros to a decade of euros per order.

You will often find inscriptions in small print indicating exactly what services you are entitled to. Most of the time, rates will be higher for limited orders, options and all transactions over the phone.

You may find that the advertised rate does not apply to the type of transaction you want ...

Minimum investment capital may be high

Look at the amount the company asks you to pay to open an account.
Pay attention to fairly high minimum balances. Some brokers ask for up to 50,000 euros of minimum capital to open a certain premium account. This may be suitable for some investors, but (unfortunately) not at all.

Product selection is essential

When choosing a broker, many of us launch too quickly in the stock purchase. Remember that there are other investment opportunities, such as certificates, bonds, UCITS, ETFs or options.

buying stocks online are quoted with two prices: the bid price and ask price. the bid price is the highest amount a buyer is willing to pay for a given stock, while the slightly higher ask price is the lowest amount a seller will accept. If a company’s stock is traded frequently, the difference (called the “bid-ask spread”) should be only a few cents. remember that market orders will be filled at the current price, and since prices change every few seconds, your final cost may vary somewhat from the estimate
so once you’re fairly comfortable trading, you may want to explore more advanced options. A ‘limit order’ allows you to specify the price you’re willing to pay. For example, say you want to buy 100 shares of XYZ Corporation, but you don’t want to pay more than $20. If you place a limit order at that amount, it won’t be filled until the price drops to $20 or less. Similarly, a ‘stop loss order’ can be used to automatically sell your stock if it dips below a specified price, allowing you to lock in gains. But take the time to understand how stop loss orders work: if you’re not careful, your shares could be sold at bargain-basement prices if the market suddenly plunges.