| How does an average Joe trade these days? Can he | | | | option available to investors but brokerage fees for |
| afford a broker or a financial advisor? | | | | phone orders would be higher as it requires human |
| Trading through an Online stock trading company is | | | | intervention. |
| the only way to go when it comes to trading stocks. | | | | Initial Deposit - Even best stock trading company |
| The advent of online stock trading has brought | | | | would require a minimum initial deposit in order to |
| trading to the regular masses and made online | | | | trade stocks on their site. A minimum initial deposit |
| brokerage company a lasting institution of the | | | | can start at $500 and go all the way up to $10,000 |
| financial world. There are plenty such online stock | | | | or more. If an investor's account balance go below |
| brokers available. These brokers are doing aggressive | | | | this deposit amount, penalty fee of $10-20 (or more) |
| marketing these days to capture new investors. | | | | will be charged to them every month. |
| Stock trading online is undoubtedly a beautiful way of | | | | Tools / Newsletter - Investing in stock can be |
| automating the entire trading process without any | | | | facilitated by brokers if they could provide their |
| human intervention. But don't forget, it is very much | | | | investors with streamers which allow an investor to |
| like any other business. You do need initial capital, | | | | see current prices of stocks. Not only that, online |
| actionable plan to work upon, risk appetite to bear | | | | brokers facilitate investors with "Trading Newsletter" |
| losses and not to mention your dedicated time and | | | | which includes all that you need to trade in stocks. It |
| resources. A businessman does require educational | | | | is very comprehensive and has information on new |
| qualification and thorough knowledge of his field of | | | | trading picks, stop loss points, daily targets, short and |
| business. Similarly a trader is expected to have | | | | long term strategies and some other educational tips |
| educational enhancement ability which can aid him in | | | | on stock trading online! |
| his research on underlying company stock trading. | | | | When online stock trading was not in place, each |
| There are plenty of online brokerage firms available in | | | | investor used to have a broker who not only did the |
| market. Four important criteria to be kept in mind | | | | transaction but served as an advisor also. Now in |
| while selecting your online broker are as follows- | | | | online trading era, individual investors make most of |
| - Brokerage fees / Commissions. | | | | their decisions on a "gut feel" without doing any |
| - Initial deposit | | | | research exercise. But the irony is these investors |
| - Newsletter | | | | usually don't have any trade plan into place. They |
| Brokerage Fees - Broker usually charges some | | | | don't approach this financial market in a planned and |
| percentage amount of each transaction (be it buy or | | | | disciplined manner. Result is they get exposed to high |
| sell). So more transactions you make, more money | | | | risks! |
| you have to pay to the broker. So essentially | | | | Online stock broking is one of the best medium |
| brokerage is dependent on number of transactions | | | | available for investors to do stock trading if they use |
| and amount of transaction. Phone orders is also one | | | | this tool in an efficient manner. |