Stock trading definition for dummies, How to buy stocks online explained by ForexSQ experts, A lot of people would like to invest in the stock market and buy stocks online, but lack of knowledge and sufficient spare time to learn are common barriers to investing in various financial markets. If you are one of those people want to start online stock trading and make money online by buying stocks, the experts at ForexSQ have compiled the following introduction to buying and selling shares in the stock market.
What is Stock
When a company offers shares for sale to the public, it does so through an “initial public offering” (IPO) on the primary market, after which security companies send the funds obtained during that initial sale to the company. Thereafter, the company does not profit or lose money from future fluctuations in the share’s price. Stockholders are the only ones who experience gains and losses based on share price fluctuations in the secondary stock market, not the company itself.
Since many brokerage firms offer incentives in the form of salaries and bonuses to managers, those managers obviously want stock prices to rise in order to reap rewards based on increased stock prices.
When you purchase stock in a company, you are literally purchasing an ownership interest in that company and your interest grows with each share of stock purchased. As an owner, you will share in the future profits (or losses) of that company and are entitled to any stockholders’ voting rights associated with ownership of that particular stock.
Before the internet, brokers had to be physically present on the trading floor to participate in the outcry system of gesturing and yelling at others on the trading floor. Trading can now be conducted online via a plethora of online brokerage firms in exchange for a fee or commission on each transaction, So now you can buy stocks online.
There are a lot of things to consider before committing your hard-earned money to potentially risky financial markets. Before engaging in any risky investment, it is always wise to have at least minimal knowledge about the arena in which you invest. Potential investors have a wide variety of information available at their fingertips on the internet to aid in learning about brokers, stocks, market trends and trading platforms.
Although it is possible to conduct your own trading, beginners should rely on the expert advice and wisdom of an experienced broker. There are full service brokers and discounted brokers and deciding which to utilize is determined by what you want them to do for you.
As discussed below, a full service broker is committed to your financial well being and offers sound advice about your financial future. Discount brokers rely on stellar customer service to attract new customers since they only conduct online stock trading (offer no financial advice) and rely on quality services to bring in new investors, thereby increasing their own profits.
Deciding on whether to work with a full service broker or a discount broker is the first step necessary in trading shares in the stock market.
Full service brokers offer the full realm of their knowledge and expertise of investments as well as future advice about your particular financial situation, whereas a discount broker only conducts trades and does not concern him or herself with your financial future. Both are paid via fees or commissions based on your trading history, but you will obviously pay more for a full service broker because they do a lot more for you than just trade shares.
A stockbroker is licensed to buy and sell investments only after passing a series of tests and being approved by whatever licensing authority exists. In some countries, there are no governmental regulatory bodies relating to online stock trading, so be sure you familiarize
yourself with the specific laws under which brokerage firms operate in their particular country before you agree to use the services of a broker located in any foreign country. In the United States, most brokers possess a Bachelor’s Degree in marketing, finance or some other related field and are overseen by the Securities and Exchange Commission (SEC).
Make sure that the broker you choose offers customer service during the times when you anticipate needing it and that it’s offered in the language you speak.
Success in Online Stock Trading
The importance of familiarity with the market in which you invest cannot be understated. It’s just plain stupid to invest your money in something about which you know nothing. Many investors simply do not have time to devote to learning about the stock market and choose to rely on the expertise of investment professionals like the account managers at ForexSQ.
The only disadvantage of relying on an account manager for your investment decisions is that you don’t learn anything from the trading decisions of an account manager. Many investors have no desire to learn about the stock market, but do desire to increase their incomes so they don’t mind relying on someone else to make those important decisions.
If you want to be the one making all the decisions and buy stocks online by yourself, it is best to educate yourself thoroughly about the market that interests you and continue researching any and all markets in which you invest your money.
Also, you have to be able to withstand the pressures and anxieties associated with “gambling” your hard earned money. If you crumble under pressure, you should go with an account manager rather than conducting your own trading … for your own financial well being.
Another important element key to successful investments is to make use of the research services offered by your broker, downloading relevant financial reports and following your investments from beginning to end.
Other Investment Markets
New investors to the stock market might also be interested in other investment opportunities, of which there are many. Thousands of companies offer their stock for sale publicly, but online stock trading is not the only investment trading platform. You can invest your money in just about anything that interests you, including CFD trading, agricultural commodities like corn and soybeans, precious metals like gold and silver, binary options trading , bonds, foreign currencies trading, Spread betting, and a huge variety of other types of investments.
Stock Brokers List In UK, Europe, South Africa, Asia
Fxpro Forex Broker Founded in 2006, London-based FXPro is an online broker offering Stocks and Forex trading along with CFD’s. The MT4, MetaTrader5 and cTrader online trading platforms are available.
Plus500 is a company providing online trading services to retail customers. Plus500 broker provides Stocks and binary options trading to all traders around the world except U.S citizens, The company was founded in 2008 and provides trading in CFDs on a range of financial markets.
IG Group is a UK-based company providing trading in financial derivatives such as Stocks, binary options, contracts for difference and financial spread betting and, as of 2014, stockbroking to retail traders.
CMC Markets is a UK-based financial derivatives dealer. The company offers online trading in spread betting, contracts for difference and foreign exchange across world markets.
24option is one of the world’s leading binary options trading platforms. Trade binary options on 60-second options of commodities, indices ,stocks and Forex.
HYCM previously known as HY Markets broker is headquartered in London and is authorized and regulated by the Financial Conduct Authority of the United Kingdom.
eToro is a social trading and multi asset brokerage company that has registered offices in Cyprus, Israel and the United Kingdom.
Markets.com broker offers seamless trading of over 300 trading assets. Trade stock, indices, currency, Binary options and CFDs with zero commission or fees on our top notch trading platforms, mobile or web.
AvaTrade was founded in 2006 in Dublin, Ireland and is licensed and fully regulated in the EU and BVI, as well as Australia, Japan and South Africa.
The XM.com CFD broker was established in 2009 in the Republic of Cyprus using the name Trading Point of Financial Instruments Ltd. The broker is regulated by CySEC as well as the UK’s Financial Services Authority (FSA).
Alpari Ltd was created in Russia in 1998 but moved its headquarters to the UK where it is registered and strictly regulated by the Financial Securities Authority (FSA), Alpari UK has merged with Alpari Global and Alpari US is registered with and overseen by a number of regulatory agencies.
FXTM is an acronym for ForexTime.com, The FXTM forex broker is owned and operated by its holding company FT Global Services Ltd and is based in Cyprus, Belize and Europe’s trading capital of London, UK.
The easyMarkets broker is the result of the re-branding of “easy forex“, the name under which this broker was established in 2003. The easyMarkets firm is headquartered in Limassol Cyprus and maintains satellite offices in London UK, Sydney Australia and Warsaw Poland.
London Capital Group
London Capital Group Ltd was founded in 1996 in the United Kingdom and regulated by the Financial Conduct Authority (FCA) of the UK. LCG trading began offering capital spreads in 2003 and is one of the leading financial services firms in the UK offering a wide range of investment assets that include Contracts for Difference (CFDs), stocks, indices, major currency pairs, binary options, soft commodities, oil and precious metals.
Fxstay broker team provide professional Forex managed accounts service to their clients.
Fxstay team provide VIP managed accounts use dedicate teams which include international traders to Managed investors account with low risk. Fxstay is one of the best stock broker in the world specialized only in managed accounts service.
Online Stock Brokers In Switzerland
Dukascopy Bank SA is known for its transparency in its Swiss SWFX market place. In June 2011, the product is officially referenced on Dukascopy Bank‘s official web site.
Swissquote Group Holding SA is a Swiss banking group specializing in the provision of online financial and trading services.
Online Stock Broker In Australia
Pepperstone broker is founded in Australia, Melbourne and has offices in USA, Dallas and China, Shanghai.
Stock Broker In Denmark
Saxo Bank is a Danish investment bank. It was founded as a brokerage firm in 1992. SaxoBank is one of the best online stock broker in the world.
Online Stock Brokers In U.S
TD Ameritrade is an American online broker based in Omaha, Nebraska. The TD stands for Toronto-Dominion. TD Ameritrade Holding Corporation is the owner of TD Ameritrade Inc.
FMR LLC or Fidelity Investments is an American multinational financial services corporation. It is the fourth largest mutual fund and financial services group in the world. Founded in 1946, the company has since served North American investors.
The Merrill Edge is an online discount brokerage service provided by Bank of America Merrill Lynch. Launched on June 21, 2010, Merrill Lynch is a part of Bank of America’s retail banking division.
The Charles Schwab is one of the leading providers of U.S. investment services including online investing, shares trading and research capabilities.
Interactive Brokers Group Inc is a true online ECN brokerage, You can trade bonds, stocks, Forex, options and futures in bulk orders with this broker. The broker headquarter is at Greenwich, Connecticut of United States.
TradeKing is a discount online brokerage firm, providing online trading tools for self-directed investors to buy and sell stocks, options, bonds and mutual funds via electronic trading platforms or by phone.
Scottrade is a privately owned American financial firm headquartered in Town and Country, Missouri. Its founder, former President and the current CEO is Rodger O. Riney. Scottrade has 503 branch offices around the U.S.
Capital One Investing
Capital One Investing previously known as Capital One ShareBuilder is a brokerage firm with its headquarters in Seattle, Washington. You can buy stocks, options, mutual funds, Bonds and ETFs as partial shares via the ShareBuilder Investment Plan and PortfolioBuilder.
The Forex.com broker Owned by parent company GAIN Capital . Operating since 1999, FOREX.com was a first mover in bringing currency markets to the retail trader.
Forex Capital Markets, better known as FXCM, is an online stock broker based in the United States. Outside the US, FXCM also provides trading in contract for difference (CFDs) on major indices and commodities such as gold and crude oil.
OANDA broker is a Canadian-based company, In 1996, OANDA Corporation, the US subsidiary, was incorporated in the state of Delaware.
Other Online StockBrokers
The brokers list below is without Any Rating and its just for your information to know more about other brokers, If you want to open demo or live online trading account then use brokers at top of this page, this list will update.
24option – HotForex – InstaForex – GCI Trading – Fxopen – Trade360 – Interactive Brokers – Tradeo – IQ option – Z.com – TradeKing – OptionsHouse – Capital One Investing – TD Ameritrade – eTrade – Charles Schwab – Fidelity – Merrill Edge – Exness –
As you can see, there are many factors to consider before investing your money in the stock market. In addition to all the above, the most important factor to remember is that financial markets are geared toward making money for Wall Street, not you. It behooves you to glean as much knowledge as possible about any trading platform in which you want to invest and to engage in continuing education about investment markets to stay apprised of the most recent investment news, trends and recommendations.
Please feel free to contact the professional investors at ForexSQ to answer all your investment questions and direct your friends and family members to this article for their edification about investing in the stock market.
How To Buy Stocks Online By ForexSQ Infographic team
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