Know The Simple Steps to Open an Online Trading Account :)

… There are definite advantages to opening an online stock trading account.

Know what all you need to do for opening an online trading account

Unlike traditional brokers, online firms don’t require confusing brokerage fees and sky-high commissions.

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And as for convenience, it’s hard to beat the ease of researching companies, viewing your portfolio and placing orders at the click of a mouse.

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With all the ease the Internet brings to the Information Age, opening an online trading account could not be made any easier than it already is.

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All you need to do is:

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1. Pick an online stock broker

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Essentially, online stock brokers come in two forms - discount stock brokers, and - discounted discount stock brokers.

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The primary difference between these two different types of online stock brokers is the commission they charge.

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Nonetheless, most online stock brokers do not provide their clients with research information about which stock to buy and sell (which is one reason why their commissions can be so low).

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But, one of the most important aspects you have to consider before opening an online trading account is to find out whether or not they have instant ‘real time’ access to stock trading prices.

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If not, and there is a time-lag between the quoted price and your buy/sell price, you could find that this ends up costing you far more than the commission would otherwise have cost.

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Therefore, be prepared to pay a higher commission for a more instantaneous stock quote price.

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2. Completing the online application

Having decided on which online stock broker to open your trading account with, you then need to complete the online application form.

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3. Joining Fees

In addition to a per trade commission fee, some online stock brokers will charge you an introductory new member fee when opening your online trading account.

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However, competition among online stock brokers being intense these days, they offer very attractive joining promotions.

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It is advisable that you do not base your whole decision of opening an online trading account on just the aspect of the value of joining fees.

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4. Deposit your money

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When opening the online trading account, you’ll be instructed as to how to deposit your money with the broker.

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In some cases you can make your deposit via credit card, in others you’ll need to make a physical payment into a bank account.

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Once you have completed the online application form and deposited your money, you’ll be free to start trading.

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To know more about the state-of-the-art Online Trading facility, click here.

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