Online Share Trading UK for beginners
I’m a complete trader beginner. Where do I start?
The first thing you will need to do is set up an online account with the many online brokers that are available in the UK. To help you with this task we have reviewed, tested and selected the best online brokers so that regardless which one you will pick, you can be certain that you are in very good hands (see online share brokers comparison table here).
As you will be able to see it is much easier than it was in the past. Online brokers companies are facing a huge competition which means that they have lowered the entry points. You normally need just a minimum deposit of around £100 to start a new account.
How do I find the right online broker account for me?
If for example you are starting trading with a very small amount than it is best to look at the likes of AvaTrade. They only require £100 to be deposited to create a new account and you will also be able to access, free of charge, their demo where you will be able to test your trading strategies without the risk of incurring in losses.
We do suggest to stay away from brokers that charge higher fees if you trade biggest sums. Although initially this might not have a significant effect on the bottom line, overtime it will especially if you are going to be a successful trader.
What do I actually have to do to trade?
Online brokers in the UK normally offer a massive amount of financial assets that can be traded however if you are interested in shares than you will need to follow those quick steps to get going. First of all you need to select one of the brokers that do allow to trade shares online: most do but some are limited to forex so make sure you check which are the assets that you will be able to trade before opening a real money account. Secondly you will need to select the stock name you want. At this point you will be given an indicative price which is normally in pence for share. Than you can decide the amount you want to spend and deal. You will be getting a real-time quote and you normally have 15 seconds to complete the deal. At that point the money will be cleared from your online account. Although some online brokers do offer leverage it is safe to only deal with the amount of money you have deposited especially at the beginning to avoid bad surprises.
What’s the best account for regular traders?
There are lots of sites that are offering regular trading online accounts for people that are trading frequently. Normally online brokers do offer a number of accounts and the best one will ultimately depend on how much you are prepared to invest and how much you will trade. The majority of online brokers will charge customers with the spread however others will have fix commission. It is important you understand fees costs as they could well make the difference between being a successful or unsuccessful trader.
How easy is it to get stung on online trading?
Where can I find more information?
The main aim of TopTradingPlatforms.co.uk is to make your life easier when moving the first steps into online trading. For this reason we have sections where you can read more and also compare not only the brokers but also the trading platforms that are being offered.By browsing your site you will get all you need to start trading online: our experts are continuously providing useful tips on how to approach the online trading so make sure you visit our site frequently as you will never stop learning in this field
Case Study – Online Trading Stock: Pumped up by oil prospects
‘I didn’t invest on shares for many years but recently I become interested in online trading as those brokers have worked hard to bring down all the barriers that would separate the small investors and the financial markets. I decided to trade BP stock in the believe that the price has gone below the true value. I was tired of seeing the 2%-3% returns on savings being wiped out by inflation and so I have signed up with AvaTrade and started trading there. The process of signing up was really simple and in very short time I was trading on BP stocks. BP has made £22bn last year and I can’t see the oil price going down in the near future.
I won’t be day trading so there are no extra costs for me in addition to the spread which sounds very good as I am looking for a long time return. I was sceptical as to whether online trading share was a good bet but I am starting to change my mind after seeing some great services out there and good potentials. Also I have done my homework and I have checked that those companies are fully regulated by the UK FCA which means in the unlikely case they go burst I will get my money back’ – Lucas Miller