If you’re new to shares or need a little help, Money's step-by-step guide prepared by Maria Bekiaris tells you how the internet can make investing easier and cheaper.The internet has changed the way many of us go about our day-to-day lives. For investors it’s made it easier, and cheaper, to invest in shares and funds. There are about 20 online brokers in Australia. Commsec and E*Trade are two of the biggest, now controlling close to 80% of the online broking market, but some of the smaller brokers still have a lot to offer investors. When it comes to choosing an online broker there are a number of issues you need to consider.
Website usability
Let’s start with the website – is it easy to navigate, can you find the things you need quickly?
What it costs
The fees are based on the size of the trades and are usually tiered. Mark Johnston, director of Investment Trends, says it’s important to look at the base price rather than the discount price when comparing brokers. Another thing to look out for is whether a monthly access or subscription fee is charged on top of the brokerage fee. If you think you may need to make trades over the phone, make sure you find out about the price for that too as it tends to cost more.
Trading products
Most brokers let you buy and sell shares listed on the ASX, but it’s worth finding out what other products you can trade. This may include managed funds, options, warrants and international shares.
Trading tools
Find out what tools the online broker has that can help you manage your portfolio and monitor market movements.
Doing your homework
Before making any investment decisions it’s important to do your homework. The more research available on the site, the better off you’re likely to be. You’ll generally get access to news services, ASX announcements, market commentary and regular newsletters. You may even get access to buy/sell recommendations. Some brokers even have regular seminars their clients can attend.
Account requirements
No matter which broker you choose, you’ll need a bank account to settle your trades. Some brokers will require you to set up an account with a particular institution, while others let you use your normal account. Also find out whether you need to make a minimum initial deposit or maintain a minimum balance. It might be tempting to go for a broker with the most bells and whistles, but if this costs more you really should weigh up whether you really need all the extras.
Looking forward
Over the next few months and years we’re likely to see the online broking industry continue to grow and change. “All of the online brokers will be seeking to match one another’s offers,” says National’s Maddock. “Consequently, we can expect increased evidence of CFDs, short selling and retail managed funds appearing as part of online offers.”Infochoice’s Orrock says we can expect continued consolidation, as evidenced by the news in early June that E*Trade had taken over HSBC Stockbroking. Johnston agrees, saying that although there’s already been a fair bit of consolidation in the industry, we’re likely to see more in the future.
Determine Your Financial Future
the following five profitable and distinct educational financial targets:
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To provide you with all the free information and financial advice, so that you can learn to invest profitably in stocks and be able to successfully manage your financial future.
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To help you easily acquire many new profitable investing skills and expand your economic, savings, financial, investing and stock market knowledge.
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To present a clear, easy and safe investment e-Book and educational method by which you will be able to invest profitably in the stock market.
4. With the Profitable Expert Financial Services and Investing Advice:
To bring you in a position to accomplish profitable investments in equities, easily manage to make money now and plan for your financial future and
5. With the Professional and Expert Stock Brokers and Financial Advisers:
To achieve excellent returns on your stocks and investments and to familiarize and provide you with our excellent financial news, stock market investing, finance, art and stock brokerage services.
1. With the Online Investing Education and the Investing, Stock Market and Financial Planning Tutorial and guide:
To provide you with all the free information and financial advice, so that you can learn to invest profitably in stocks and be able to successfully manage your financial future.
2. With the Investment Guide:
To help you easily acquire many new profitable investing skills and expand your economic, savings, financial, investing and stock market knowledge.
3. With the Stock Market Guide to Profitable Investments Book:
To present a clear, easy and safe investment e-Book and educational method by which you will be able to invest profitably in the stock market.
4. With the Profitable Expert Financial Services and Investing Advice:
To bring you in a position to accomplish profitable investments in equities, easily manage to make money now and plan for your financial future and
5. With the Professional and Expert Stock Brokers and Financial Advisers:
To achieve excellent returns on your stocks and investments and to familiarize and provide you with our excellent financial news, stock market investing, finance, art and stock brokerage services.
A Guide to High-Yield, High-Risk Stocks
The classic image of the stock market is that of a place where fortunes are made and lost throughout the course of the day, and where those who take the biggest risks are rewarded by a hefty payout when all is said and done. Of course, this is the movie version of the market… no matter how thrilling the day-to-day dramas of investment trading become, they'll never compete with the images of the stock market that have been created for the silver screen.
There is a small grain of truth to those images from the movies, however… those individuals who choose to deal in high-risk stocks can make a lot of money if they handle the risks correctly. If they don't, however, then there's a good chance that they could lose their entire investment. Below you'll find more information on the world of high-risk (and high-yield) investments, including ways to help insure yourself against major losses when dealing with higher levels of investment risk.
Defining High-Risk Investments The first thing that needs to be covered when talking about investing in high-yield, high-risk stocks is exactly what is meant by the terms “high-risk” and “high-yield.” The risk of the investment is usually due to the very fickle nature of that particular stock… though it may be growing in value rather quickly, it's obvious that the growth is going to stop soon and a very rapid and severe descent is going to begin. The yield of the investment, on the other hand, refers to the money that could potentially be made by buying stocks early on in the increase in price, and then selling just before the value starts to plummet. Fortunes have been both made and lost (sometimes in the same day) with high-risk trading; the key is knowing exactly when to start buying or selling.
How to Trade High-Risk Stocks When trading high-risk stocks, it's almost essential that you have access to your brokerage account and that you'll be able to buy or sell shares as soon as the price begins to fluctuate in one direction or the other. This can be done online, via the telephone, or in person if you don't use an online brokerage firm. You can also usually set up hold orders which will start buying the stock when the price reaches a certain level (up to the amount that you've specified) and that will begin selling shares as soon as the price drops below a certain point. Many online brokers allow these types of hold orders, and they can allow you to go about your regular day without having to watch the market ticker the entire time.
Guarding Against Loss Of course, even with hold orders or a dedicated broker you can still end up losing money when dealing with high-risk stocks… that's how they earned their name. In order to minimize this potential for loss it's important to have a well-diversified stock portfolio to fall back on. If your high-risk investments begin to fall in price too quickly and you end up losing money by the time the shares have been sold, the relatively stable value of some of your core portfolio stocks and indexes will help to even out your losses. The fall of the higher-risk stocks might even stimulate some other portions of the market, causing an increase in other stocks in your portfolio. This will help take some of the sting out of your loss, and may end up giving you a greater long-term gain than you might have had from your short-term investment that went sour.
There is a small grain of truth to those images from the movies, however… those individuals who choose to deal in high-risk stocks can make a lot of money if they handle the risks correctly. If they don't, however, then there's a good chance that they could lose their entire investment. Below you'll find more information on the world of high-risk (and high-yield) investments, including ways to help insure yourself against major losses when dealing with higher levels of investment risk.
Defining High-Risk Investments The first thing that needs to be covered when talking about investing in high-yield, high-risk stocks is exactly what is meant by the terms “high-risk” and “high-yield.” The risk of the investment is usually due to the very fickle nature of that particular stock… though it may be growing in value rather quickly, it's obvious that the growth is going to stop soon and a very rapid and severe descent is going to begin. The yield of the investment, on the other hand, refers to the money that could potentially be made by buying stocks early on in the increase in price, and then selling just before the value starts to plummet. Fortunes have been both made and lost (sometimes in the same day) with high-risk trading; the key is knowing exactly when to start buying or selling.
How to Trade High-Risk Stocks When trading high-risk stocks, it's almost essential that you have access to your brokerage account and that you'll be able to buy or sell shares as soon as the price begins to fluctuate in one direction or the other. This can be done online, via the telephone, or in person if you don't use an online brokerage firm. You can also usually set up hold orders which will start buying the stock when the price reaches a certain level (up to the amount that you've specified) and that will begin selling shares as soon as the price drops below a certain point. Many online brokers allow these types of hold orders, and they can allow you to go about your regular day without having to watch the market ticker the entire time.
Guarding Against Loss Of course, even with hold orders or a dedicated broker you can still end up losing money when dealing with high-risk stocks… that's how they earned their name. In order to minimize this potential for loss it's important to have a well-diversified stock portfolio to fall back on. If your high-risk investments begin to fall in price too quickly and you end up losing money by the time the shares have been sold, the relatively stable value of some of your core portfolio stocks and indexes will help to even out your losses. The fall of the higher-risk stocks might even stimulate some other portions of the market, causing an increase in other stocks in your portfolio. This will help take some of the sting out of your loss, and may end up giving you a greater long-term gain than you might have had from your short-term investment that went sour.
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