Free Online Trading

Written by Jacey Harmon
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There is a wide selection of trading instruments that investors can choose from. Stocks, bonds, options, futures and currencies are the most commonly traded investment vehicles. Trading has been expanding in recent years thanks in part to the massive growth of the Internet. The stock market peak in 2000, and the ensuing two year bear market, helped alternative trading instruments gain in popularity amongst traders.

Free Online Trading and Trading Resources

An overwhelming majority of trading instruments have commission costs involved. Whether you are trading stocks, bonds, or futures contracts, there will be a broker and hence a commission. Only foreign currency trading does not carry a commission for each trade. That is not to say that there aren't any costs involved with currency trading: the difference between the bid and ask is essentially the "cost" of the trade.

Every kind of trading requires some level of analysis, for which there are two main types: fundamental analysis and technical analysis. Fundamental analysis can be described as studying the inner-workings of what is being traded. Studying the earnings and revenue growth of a company is a fundamental analysis technique for stock traders. Studying the economic growth and prospects of an entire country would be fundamental analysis for a currency trader. Whatever type of trader you are, there will be several free online resources for fundamental analysis.

Technical analysis can be described as studying the price movement of the trading vehicle. Every type of trading uses some sort of technical analysis. Technical analysis works because it shows the collective conscience of the millions of individuals involved with the market. Learning to read charts and identify their trends and patterns is a great way to become a successful trader. There are many services that provide basic charts for all types of trading vehicles for traders to analyze.

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