The advent of the internet gave greater opportunity for stock trading. Traders could trade stock at their PCs in their own home and trade stock globally all through the day and night. Traders from rural areas can not only trade stock online but get real time news and stock quotes instantly on the internet. Comparing online discount brokers is helpful and suggested.
The first step before setting up a stock trading account is to get all the equipment required for effective stock trading. A good computer and large size monitor or three monitors will do the job for a beginner. Good trading software will help easy trading once the account is set up. A high speed internet broadband connection is required to get instant stock quotes, to communicate instantly with the stockbroker and to make quick decisions based on the inflow of stock information. A good UPS will ensure constant power supply.
The second step is to find a reliable trading platform. Online reviews, articles in the newspaper, the past experience of friends and relatives and the Better Business Bureau are good resources to find the background of broker firms. The Federal Trade Commission has a list of violations by broker firms on their website. FINRA the Financial Industry Regulatory Authority has a Broker Check tool on their website to help potential traders evaluate brokers.
Before setting up the account the trader should test the support provided, and the customer service of the broker by asking questions to the broker. The trader should check if the portfolio of the broker has all the trade groups that the trader is interested in. Statements and transactions should be instantly viewed online to help traders mitigate losses if any. Many brokers have demo trade facilities. Traders can check them out before signing up to see if the trading style is suitable to their unique needs. Traders must shop among brokers to find the most affordable broker who offers a spectrum of facilities and tools for easy trading. Brokers should also help traders by doing the required research about the stock, arrange bank deposits and withdrawals and give advice on tax implications to traders.
Once a good trading platform and broker is chosen, traders can sign up. A form will be presented on the website. Traders will need to enter their personal details like their name, address and telephone number. Generally potential traders need to be adults. If children are attempting to trade, the parent or guardian should act as custodian. The potential trader will need a bank account where profits can be deposited or payments for stock purchases can be withdrawn. A minimum balance may be stipulated by the broker.
For security purposes a password and a password question will be required. In these days when there is an imminent danger of an identity thief misusing the identity of the trader, maximum safety is required. The broker’s website may require entry of a security code before traders log in on the website.
Setting up an online trading account is simple and user friendly. Signing up with the right broker is the hard part. Read financial blogs for more information and tips.