What Trading Websites Should I Use As a Beginner?
So you’re ready to become your own stockbroker with online trading. The learning curve can be a bit steep in understanding how the stock market operates, but lots of trading websites offer plenty of tools to set you up for success. Read on to learn how beginners can get into online trading.
What Is Online Trading?
To buy and sell stocks, you can hire a licensed stockbroker to execute trades on your behalf, or you can use one of the many online trading websites and do the trading yourself. Any investment in the stock market comes with some risk, but with some research, you can learn the ins and outs of how the market works. Trading websites offer educational tools, market analysis, and graphs to study. They can help you learn how certain stocks perform and give you tools for smart investing.
Choosing a Trading Website
As you navigate the world of online trading, think about how the following features can best help you:
- Educational resources: Some sites use articles or blog posts to teach and others offer webinars or videos. Check out the library of tools and try a few to see how they fit your learning style. An interactive quiz or practice trades with pretend money might give you a boost of confidence.
- Navigation: Consider if the site feels user-friendly to you, if it’s easy to find what you’re looking for, and if a mobile site is important.
- Transparent fee structure: Before you make your first trade, figure out if the site is clear on what each transaction will cost you, if anything. Fees can build up over time and eat into your returns.
- Reputation: Reading unbiased reviews and rankings from actual users can go a long way in helping you choose a site. The stock market moves fast, and the website should be reliable and responsive to your trading requests.
- Account minimums: If you aren’t ready to invest a big chunk of your savings into stocks, a site with no minimums might be the right fit. Some even offer the ability to purchase fractional shares of the more expensive stocks offered by big companies.
- Customer service: Some sites offer 24/7 customer service by phone or by chat, which may help you if you know you’ll be trading outside business hours. If you anticipate wanting help from a real person, a strong customer service department may be the site for you.
What to Consider Before Online Trading
It can be useful to approach online trading with at least two bits of knowledge. The first is that the stock market can be volatile and there’s an inherent risk in trading. The second is to make sure you choose your budget limits and stick to them. You’ll likely feel more confident and calm in the midst of an unsettled market if you’re prepared for losses and if you haven’t invested more than your budget allows.
Armed with ongoing education and experience trading online, you may see good returns on your investments.