| The process of stock trading has of course evolved | | | | is an obvious point to check, the fee's can vary a lot |
| a lot over the years as technology as developed. In | | | | and if you are doing hundreds or thousands of trades |
| the early part of the 20th century you had to | | | | a year it can add up to quite a lot of money. Did you |
| physically visit a stock brokers office or trading room | | | | know that you can just call up your online broker and |
| to buy and sell stocks. | | | | ask for a reduced commission charge?, yes you can, |
| When the postal mail became into common use you | | | | I've done it. Of course they don't advertise it but if |
| could then buy and sell stocks by mailing a letter to | | | | you do a lot of trades they will want to keep your |
| your broker, of course today nobody would dream | | | | business. |
| of doing either of these. | | | | 3. Have you planned what you will do if you are in a |
| Today the most common form of trading uses either | | | | trade and your internet connection goes down for |
| the telephone or stock trading online. When using the | | | | any reason, it could be a power failure, problems with |
| telephone to trade stocks you can still do it by | | | | the internet or your PC crashing?. If you are in a day |
| speaking to a broker and giving them your clear | | | | trade you will want to telephone your broker and |
| instructions, or you can do it all yourself by using | | | | manage your trade, probably you will just want to |
| some form of menu system using the digital key pad. | | | | close it. How will your broker deal with your call, will |
| But by far the most common form of trading is done | | | | they answer quickly, will they look at charts for you |
| online, so what do you need to know about stock | | | | and describe what is going on?. Make sure that your |
| trading online?, more than you may think! | | | | broker has good telephone support. |
| Here are some points that you may not have | | | | 4. Are your trading funds safe?, make sure that your |
| considered: | | | | broker is a member of SIPC, the Securities Investor |
| 1. Virtually every broker can do stock trading but | | | | Protection Corporation, which protects against losses |
| what about options, Forex and futures?. While you | | | | caused by the financial failure of the broker-dealer, |
| may not be interested in trading either Forex or | | | | but not against losses resulting from depreciation in a |
| futures it is quite likely that at some time you will | | | | security's value. Usually accounts are protected by |
| want to trade options online, even if it is just | | | | the Securities Investor Protection Corporation (SIPC), |
| covered calls. Make sure that your chosen broker | | | | up to $500,000 (including up to $100,000 for cash |
| allows you to trade all the markets that you want to. | | | | claims). |
| 2. Of course the fee's charged by your online broker | | | | |