Online Stock Trading

Written by Michael Federico
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There are several different reasons why more people are trading stocks online each year. Some people simply do not make the kind of trades that warrant the cost of a personal broker. Most brokers require minimums, charge high trading fees, and take commissions. Going this route just doesn't make sense for a person who is buying or selling a few hundred dollars worth of stock.

People who make larger deals and are willing to take greater risks can still find benefits in trading online. Commissions and fees are generally incredibly low with online brokers, so a person gets to hold onto more of the money he makes on the market. Also, trading online usually gives a person more control over his own portfolio. He buys what he wants when he wants and he sells when he sees fit. It is actually this aspect of online trading that has given rise to most of its detractors. They claim that laymen are not equipped to judge when a stock should be bought or sold. However, most online trading sites provide members with ample information and research, so they can make educated decisions.

Online Stock Trading Fees

Some sites will charge people an initial joining fee. Others will allow a person to sign up for free. Most sites charge a flat fee per trade and a commission based on the number of shares traded. However, commissions do not generally approach those charged by traditional brokers.

People can find a number of sites that charge less than $10 for a trade. Commissions vary, but they should never be more than a couple of dollars for a 100 shares of stock. Sites that allow a person to trade directly on the major exchanges without using a go-between of any kind will often offer the lowest trading prices.

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