Online Stock Trading
Gone are the days when the ability to deal in stocks and shares was the exclusive privilege of a largely metropolitan-based elite. Online stock trading has totally transformed the trading arena. Now you can trade online from your home computer or laptop. If you have a smartphone, it is even easier. Just download an app, and you can trade on the go whenever and wherever it suits.
The rise in popularity of online stock trading has been a significant step change. Once you have identified the right online stockbroker for you, the only requirements you need to start trading are a bank account, debit card, access to the Internet and a few hundred pounds. There are many online stockbrokers to choose from and it is worth researching the services they offer.
Remember that whilst online stock trading is undoubtedly the cheapest way to trade, it is not a free service. You will pay a fixed fee for each transaction, anywhere from £10 to £13 per trade. Prices per trade using a smartphone app are cheaper and can be as low as £8. The good news is that the more you trade, the cheaper the cost can be, if you shop around. Watch out for hidden extras like quarterly administration charges and remember that you have plenty of providers to choose from.
Even with online stock trading, the taxman will also want his slice of your action. Stamp duty (at 0.5%) is payable on all share purchases and any resulting profits are subject to capital gains tax. If you don’t like that inescapable fact, you may wish to consider more tax efficient routes to the trading market such as Contracts For Difference, or CFDs as they are known.
Once you have chosen an online stock trading service provider, getting started couldn’t be easier and there is plenty of advice and guidance out there to help you find your feet. Online stock trading is as straightforward as that.
Risk warning: Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.