Blog

Online broker

Online broker is a broker which considered that interfaces with customers online on the Internet instead of meet each other or even face-to-face. Also because of the high costs of bricks-and-mortar brokers, online brokers offer lower fees.

online broker

first we have to know a brief history about online broker. Before the invention of the internet, the investors had to place their orders by a stockbroker, person, or via the telephone. Then The brokerage firm enter the order into their system.

Till 1985, America Online and CompuServe hosted Trad-Plus, a retail trading platform. E-Trade Securities was created by William Porter, one of Trade-Plus’  founders.

Choosing the best online broker

So the most important questions is, among a huge number of online brokers, how to choose the proper one?..

To decide the suitable online broker you should look at the following factors:

account fees

when you make an account in online broker, you will have to bay fees in exchange of using it. Although you have to be very careful avoid account fees completely, or minimize them. So the most of the online broker charge a fee for transferring out funds, so when you don’t pay the fees, your account will be closed. But the Common fees to watch out for those who include annual fees, inactivity fees, trading platform subscriptions and extra charges for research or data.

trading style and tech needs

If you are a beginner investor, you will not be in need to extras, like an advanced trading platform. Although you will be in need to an education and a little hand-holding. That will be provided videos and tutorials on the broker’s website, or in-person seminars at branches.

If you are an active traders you should look for a brokerage that supports that kind of frequency. That will be provided weighing a broker’s trading platforms, analysis tools, research and data offerings.

Published on: 12/6/18, 11:16 AM

Day trading

Day trading is buying and selling financial instruments within the same trading day. So from its name, it’s clear that Day trading is trading only within a day, and Traders who participate in day trading are called day traders.

Day trading

It’s considered as the act of buying and selling a financial instrument within the same day. It’s like a game would be a gainful if played correctly. Or it would turn to be a dangerous game for those who are new, or don’t know how to play.

So, Below I will talk about some Basic day trading tips...

Knowledge is Power

First you have to know the information about basic trading procedures. But you have also keep up knowing the latest stock market news and events that affect stocks – the Fed's plans for interest rates, the economic outlook, etc. trade and keep yourself informed about.

Set an Amount Aside

You should list the numbering of willing to risk on each trade. Putting in your mind that Most successful day traders risk less than 1%–2% of their account per trade. For example, If you have a $40,000 trading account and you decided to risk 0.5% of your capital on each trade, then your maximum loss per trade is $200 (0.005 x $40,000).

Set Aside Time

Day trading actually drain the most or all of your time. So you have to set a limited hours to spare, to not waste your time. As the prosses of day trading requires the trader to track the markets and spot opportunities. And that opportunities can arise any time during trading hours.

Start Small

If you are a beginner, take my advice to focus on a maximum of one to two stocks during a day trading session. Trading with a few stocks.

Day trading So you have to set a limited hours

Published on: 12/6/18, 11:15 AM

Currency trading

Currency trading or currency market, or forex (FX), is considered the largest investment market all over the world. The investment markets play its role immediately which is take the money of investors who don’t know enough about trading ways. So we have to define the meaning of currency trading and is it right for you..

Currency trading

Currency trading which is known as forex (FX), reached $4 trillion in daily average in the year of 2010. Currency market is so big, and the volume came from professional traders. It has improved more retail traders.

How Does Currency trading Work?

Currency trading is a 24-hour market, it opens all the days except Friday evening to Sunday evening. It’s divided into three sessions, the European, Asian and United States trading. In each session there are number of overlap and the main currencies in each market are traded mostly during those market hours.

What Moves Currency?

First, we have to know the reason which moves currency. The increase in stock traders amount take interest in the currency markets for many of the forces which move stock market and the currency market.

Also there is something which called supply and demand. So when the world needs more dollars, the value of the dollar increases, on the opposite when there are too many circulating, the price drops.

 

Currencies which are Traded in the Forex Market

To have a look at Currencies which are Traded in the Forex Market, exotic currencies such as the Thai baht or the Czech koruna are traded in the Forex Market which are traded by retail dealers. the majority trade the seven most liquid currency pairs which are mentioned below..

  • EUR/USD (euro/dollar)
  • USD/JPY (dollar/Japanese yen)
  • GBP/USD (British pound/dollar)
  • USD/CHF (dollar/Swiss franc)
  • AUD/USD (Australian dollar/dollar)
  • USD/CAD (dollar/Canadian dollar)
  • NZD/USD (New Zealand dollar/dollar)
Published on: 12/6/18, 11:10 AM

Brokerage account

A Brokerage account is kind of an arrangement between an investor and a licensed brokerage firm. And deposit funds with the firm and place investment orders through the brokerage. So if you want to own investments like stocks, bonds or mutual fund, you will be in need to have a brokerage account.

Brokerage account

At the first we have the definition of  a brokerage account. A brokerage account is simply considered as an investment account. So first you deposit money into a brokerage account, then you can freely use that money to buy investments such as stocks, bonds and mutual funds. You also have the ability to open a brokerage account at an online broker.

Is a brokerage account right for you?

The most important question is that having a brokerage account is a right choice?. Of course, yes. It’s considered a good decision only if:

  • Your purpose is to purchase and manage your own investments. So having a brokerage account is the right choice.
  • Your purpose is to invest money for retirement. So you will be in need to a specific type of brokerage account called a Roth or traditional IRA. Which are include important tax benefits.
  • Your purpose is to have someone else do the day-to-day work of managing your retirement account or other investments. So you better to opening your brokerage account at a robo-advisor, to have a low-cost alternative. The tasks of the robo-advisor will be to choose and manage your investments for you, based on your goals.
  • Your purpose is for saving for a goal to accomplish in the next five years. So you can buy having a brokerage account to steer clear of the stock market and consider an online savings account.

So In brief having a brokerage account is a right choice of you have a specific purpose.

 

Published on: 12/6/18, 11:05 AM