More and more people are realizing that trading online is a rewarding and enjoyable pursuit. It takes a few simple steps to start and, if managed correctly, the rewards are handsome, but it’s not without risk. The big question: how to trade online? Arguably there are many factors involved, risk management being a key factor on the road to success. There are, however, some common factors to consider when establishing an online trading strategy. Our research and trading ideas will assist you with each of these stages, allowing you to tailor your own plan, and ultimately your success or failure. Remember, on-line trading is by no means a ‘safe investment’. The financial markets can and will fluctuate – be prepared to take the rough with the smooth.
So, what should you consider before deciding how to trade online? The first consideration is your on-line broker. On-line trading accounts, such as that offered by Accendo Markets, allow you to buy and sell stocks, commodities, currencies and indices. This can be done through an exchange or OTC, either via a derivative (such CFDs) or by buying the underlying asset (such as conventional share trading). Accendo Markets charges a commission or spread on each trade, depending on the account type that you have. If you decide to trade CFDs, your trading platform will connect you to stock exchanges; you’ll enjoy multi-venue trading for the best pricing and tightest spreads. The range of markets offered is a key consideration when deciding how to trade online.
Another important factor before deciding how to trade online is the market research on offer. In order to trade online effectively, adequate knowledge of the market you intend to trade is essential. Information sources such as live news channels, RSS feeds, financial reports and statements are invaluable; it can all aid in assessing the market and guide your buying/selling strategy. Good charting software is also essential before deciding how to trade online. Accendo Markets’ trading platform provides you with up to the minute news and the latest charting software, all at no extra cost.
When considering why and how to trade online, how is online trading better than traditional, phone-based methods? Traditionally, trading was conducted exclusively via brokers; people and organisations who would act as the middle party between investors and investees. They were able to conduct trades remotely, usually through the telephone network e.g. being connected to the exchange/trading floor. For a transaction to occur, the investor would have to contact the broker, who would then be able to place the trade. This was time consuming. The rise of the Internet has now increased the efficiency of trading process; investors can make investments directly through electronic broker accounts online. As an Accendo Markets online trading client, you’ll get the full benefit of the best trading platforms on the market for the fastest execution. You’ll also enjoy our execution-plus service – you’ll be assigned a professional trader to act as your account manager, tutor and broker combined. Your trader’s role will be to help you learn how to trade online to the best of your ability.
Our team will give you the information, tips and tools to help you decide how to trade online. They will tell you:
- Which technical indicators online traders use
- How to read technical indicators for the best results
- How to place a trade online
- How to use automatic orders to trade for maximum impact