It is possible to make money from the comfort of your home, by trading online. Whilst the internet may be awash with “work from home get rich, quick” schemes which are not always what they appear, and a number of gambling sites; there is a way to build on the savings you have in more of a traditional way. Just online.
Online share trading accounts offer an innovative way to conduct a very traditional transaction. But are they really worth it?
Reasons for trading online
One of the real benefits of online share dealing is that you can find so much information online, and it’s right at your fingertips. Also many online brokers provide extra services including alerts, tips for the day, real time prices, news and analysis. Most importantly they offer speed of execution, with trades being concluded much quicker than dealing with a broker in person or over the phone.
The biggest advantage, however, is that the cost of share dealing is much lower online. For some services you can start without any initial outlay, whilst any fees charges are fairly minimal.
Range of investments
Of course it depends on the online broker, but those offering the best quality packages will provide you with a great range of potential investments. This can include, but are not limited to, the following:
- Shares quoted on a recognised stock exchange
- Unit trusts and OEICS
- Government bonds
- Corporate bonds
- Investment trusts
- Exchange traded funds / commodities
Over the last ten years, the online landscape has changed. Where once there may have been fear over processing personal details online; now it is the norm. Still, when dealing with potentially high levels of money, it can still be a little daunting. It is therefore, essential to choose a reputable online dealing service which offers a secure area and various levels of protection for your funds. This is absolutely essential.
Do the research
When dealing online you are on your own. Once you complete the online transaction, your broker carries out the deal for you. There is no direct communication and advice between you. This puts the pressure on your to make the big decisions on your own. There is no need to see this as a disadvantage however. Whenever you make any share transactions it’s vital that you fully research the market and understand what you’re doing. It should always be this way. Use the online tools available to you and you’ll be fine.
Limiting your losses
When dealing online, it’s also possible to place a stop order loss. This is a function where you establish an automatic sell order if your stock falls below a certain level. This is ideal to stop any losses spiraling out of control. The markets at the moment can be volatile, so it’s worth looking into this option when setting up.
Share dealing is a serious business, so don’t take it lightly. Just because you’re dealing with numbers on the screen doesn’t make it any less real.
You can certainly make money online through share dealing, but always proceed with an element of caution. If you’re trading from home, make sure you use an express delivery service too.