OnlineStockTradingMadeEasy by Deyan Dimitrov (ebook reader for surface pro txt) 📕

Page 11 of 11

 

Online Stock Trading Made Easy

 

 

 

 

4. Money Manager/Financial Advisor

 

 

A money manager or financial advisor handles specific needs. They may sometimes also be called by other names. Basically they handle larger portfolios such as those investors dealing with large sums of money to be invested. Money managers are trained to take responsibility for investing and managing large portfolios. A good money manager will be expensive but for obvious reasons, well worth it.

 

You will have to consider the different types of brokers and choose one that meets your needs the best. It will of course, be up to you which one you decide to choose but whatever you choose you should make sure that you follow the proper precautions to protect yourself when trading.

 

Make sure the broker you choose is covered by the Securities Investor Protection Corporation which will protect your assets in a brokerage account for up to $500,000 in the event that the firm fails. This insurance is very important, especially with so many online brokerage firms these days.

 

Remember that the insurance does not cover you in the event of trading losses, even if the broker suggested the trades. You are still ultimately responsible for those losses. Make sure that whoever you decide, you feel comfortable with them and that you can trust them to handle something as sensitive and your money and investments.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© Wings Of Success Page 12 of 12

 

Online Stock Trading Made Easy

 

 

Choosing An Online Broker

 

 

 

Choosing an online broker is an important decision just like in traditional trading you would consider your broker important. While you do not usually need the broker as much in online trading, that doesn’t mean you don’t have to pay any attention to who you use. There are many “discount” online brokers that simply do not have your best interests in mind.

 

You need to learn how to spot the brokers that should be avoided and how to properly select the one that will work best for you. There are certain steps you should take when looking for an online broker or brokerage service that works for you.

 

Customer Service

 

 

You know that customer service is an important aspect of your broker when making trades on or offline. Nothing is more frustrating than not being able to talk to a live person when you have a problem or concern, especially with something that deals with your money. Even if you go with a basic discount broker that you won’t normally speak with, you still want to know where and what their customer service contacts are so that in the event you do need them, you can contact them immediately.

 

If customer service is important to you, you will want to avoid those brokers that don’t have a good, quality customer service system in place. If you care about customer service, you will want to search for a quality, easy to navigate website, phone numbers that give you live people and not just recordings as well as be sure you are provided with satisfactory answers to any questions you may have.

 

Once all of this is determined, one of the next things a person will consider are the fees involved with a particular broker.

 

 

 

 

 

 

 

 

 

 

 

 

© Wings Of Success Page 13 of 13

 

Online Stock Trading Made Easy

 

 

Online Broker Fees

 

 

Broker fees are probably one of the first things you ask about when you want to choose a broker. But to make a good decision about whether or not a particular broker service is giving you a good deal, you need to know what the fees are for in the first place. You need a breakdown of the online broker fees if you are to understand them and what they are all for. It’s important that you know what the standard in fees are as well as what you are being charged for and why you need to pay the charges. This is important so that you are not scammed or over-charged.

 

There are many sites on the internet that offer you super-low prices on your trades. Be careful of discounts brokers, these are brokers that do not provide you with any advice about investments, but who will carry out any investment arrangements for buying or selling that you would like them to. There are called discount brokers, because they will do this for a discounted fee. Any extra services that they provide for you may cost you a large fee.

 

If you are new at investing it may not be a good idea to use this type of broker as you have no one to help you in your decision making. Someone who has enough trading knowledge on their own already might be able to get by with using a service like this. If you are not prepared to do the research and leg work involved with investing then it would be wiser to use a full-service broker.

 

A full service broker will provide you with vital information that is needed to make a wise investment decision. They do the majority of the leg work that is involved and will give you their opinion on what they think would and would not be a good investment. This may or may not be helpful. Make sure to look into their personal track record so as to get a better feel of the quality of broker that you will be working with. Of course, you will pay more for this service than you would for a discount broker, but if you are inexperienced investors it will be worth the extra fee.

 

Below are some more tips you should know when considering broker fees from an agency whether online or offline.

 

 

 

 

 

 

 

 

© Wings Of Success Page 14 of 14

 

Online Stock Trading Made Easy

 

 

Minimal Fee

 

 

Most brokers have a minimal fee that they will charge for opening an online brokerage account. These fees normally range between $5-40 per trade. It also depends on the type of trade and how it is made. For example, plain internet, non-broker assisted transactions will be cheaper. There might also be a minimum to how many shares you need to purchase to lock in that quoted price. Make sure you always read the fine print to see if there are other stipulations involved. Check the ad or agreement to see if it states which services the advertised rate will actually entitle you to. In most cases there will be higher fees for limit orders, options and those trades over the phone with your broker. Also, the advertised commission rate may not apply to the type of trade you want to execute.

 

Deposits

 

 

You also need to check and see if there is a minimum deposit for the trades that you want to place with that particular broker. Make sure you see how much of an initial deposit the firm requires for opening your account because many companies require high minimum balances. Some companies will want as much as $10,000 to start. This might be fine for some investors, but many can not afford this high of a deposit.

 

Have you ever heard the saying “you get what you pay for”? This tends to be the case with online trading as well. The cheap services will get you cheap product. You will likely not have any assistance and customer service might not even be reliable or customer friendly. If you know what you are doing, you might be okay with a broker like this but if you need more help with your trades, you will only be frustrated with cheap online broker services.

 

Product Selection And Other Extras

 

 

When you are looking to select an online broker, pricing is not the only thing you want to consider. Product selection is also very important. Not every broker offers every service and every type of trade. You need to make sure that the broker you are looking to choose offers the types of trades that you want to place.

 

 

 

 

 

 

© Wings Of Success Page 15 of 15

 

Online Stock Trading Made Easy

 

 

In addition to the product itself, there are other “extras” that you will want to consider and look to see if a particular brokerage service offers it. While most people choose a broker based on the fact that they want to purchase stocks, you also need to keep in mind that there are other investment options that may not be available through every broker and you need to check for this first.

 

For example, if you want:

 

 

CDs

 

Municipal bonds

 

Futures

 

Options

 

Gold/silver certificates

 

Commodities and more

 

 

You will want to choose a broker that gives you these other options as well as a good deal on trading stocks. You might get in on a good deal with a broker online only to find that later when you go to purchase another type of investment, they don’t offer it. It’s more efficient for you to find a broker in the beginning that will offer the different options you need and want. So what are some other options and extras that you might look for when choosing the broker that is right for you? Make sure you look into this fully so you do not end not being able to make the trades that you want.

 

Another thing to look for is a return on cash. This will mean that you are likely to always have some amount of cash in your brokerage account. How much will depend on the specific broker but a common amount is about 3-5% interest on this money.

 

You should contact the broker to find out exactly how much, if any at all, they offer. You can also look for extras such as credit cards, checking accounts and more. Some will let you write checks from your account or use a card that will be deducted from your account.

 

You also need to be cautious of those brokers that offer big deals in the beginning just to reel people in such as “Free $100 in trades when you sign up!” These offers may sound good in the

 

 

 

© Wings Of Success Page 16 of 16

 

Online Stock Trading Made Easy

 

 

beginning but once you are locked into a broker and you check out the fine print, you may find that they have nothing better to offer you. Always be careful.

 

Alternatives To Online Trades

 

 

Although it is easier and more convenient to make your trades online, it’s also a good idea to have a backup plan. You can’t always be at your computer to make a trade, check the current options, etc so it is nice if you have a back up broker that you can contact for when something interferes with your ability to do it online. For example, would if you are unable to access your computer or if for some reason there is a complication that prevents your online broker from taking trades that day?

 

If you have alternative options such as:

 

 

Touch tone telephone trades

 

Fax order of trade

 

Talking to a broker personally

 

 

This will prevent lost trading on days or times when you can’t access the computer. With many types of trading, a lost day is not critical but there are some types of trading where it is essential that you can get a trade to go through whenever you need to, even if it is at short notice. If you are unable to get through on the internet, you need a backup plan.

 

However, you also need to keep in mind that when you use alternatives to your online trades, it will cost more. So make sure you look into the prices fully before you use an alternate service. Have a set idea of what you will do when something does occur. When you have a plan ahead of time, it will prevent surprises it when the time comes to need it.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© Wings Of Success Page 17 of 17

 

Online Stock Trading Made Easy

 

 

Financial Advisors And Other Experts

 

 

 

As we briefly mentioned before, there are other people to help you in addition to brokers. There are financial advisors and other experts out there. However, if you are looking to