Best Online Trading Sites
Having a reliable online trading site is one of the most important decisions you have to take if you are going to trade online successfully. Thanks to the arrival of the digital era there are a vast amount of online brokers that are competing with each other in the industry: this is very positive news for traders as it means that the commission fees have significantly decreased. On the other hand, it could be a bit confusing for beginners traders figure out which are the online trading sites that best suits their needs.
We have compared the best online trading sites in this guide: take a full look at the different characteristics of each of them before making a decision. Below we have also provided some general guidelines that will help you understand why we have selected those trading sites and the most important things to look for when opening a new online trading account.
How to get started trading online?
There are two main ways you can generate a consistent profit by trading online. The first one is to take advantage of the gains you will get when the price of a financial asset you own has increased over time. The second is to get an income from dividends of a company that will pay you as a shareholder.
Once you have decided what the best online trading site that suits your needs is, you are ready to start investing. You will see that using a trading platform is quite easy and in short-time, you will be able to start buying and selling shares. Nowadays even the best online trading sites allow you to begin trading only with a small deposit of around £100. If trading online is straightforward, most difficult is to ensure that you make successful trades and also that you do so consistently.
It is important to highlight that, like any other form of investments shares do carry a level of risk and there is the chance that you will lose all the money that you have invested. For this reason, it is essential that you only invest the money that you can afford to lose.
How to find an online trading site?
Before you can start buying and selling financial assets online, you will need to find an online trading site that can offer you a reliable trading platform. As mentioned there are many options available, and if this is positive as the costs are lower than it used to be, it can be a tricky task to find the best provider.
Some investors tend to opt for the trading platform offered by their bank. We believe this to be an old-school method that can hurt your online trading career. As we have seen with the arrival of the digital era the opportunity to trade online are endless, and it is likely that, by shopping around a bit, you will find trading sites that have, not only lower fees but also a much wider range of features that will enhance your chances of being a successful trader.
How to compare Online Trading Sites?
Even though picking the best online trading site is a subjective decision, there are some features you can objectively compare the different online brokers:
Fees – Every online trading site will charge you a fee for every transaction. Some will cost you no commission, but you will need to pay the spread. Some providers will also charge you an annual fee on top of the trading commission so it is vital that you know what you are going to pay and what you will get in return.
What can you trade – some online trading sites will only allow you to trade some financial assets while others will have lots more options. The rule is that the more they can offer the better so you might be looking at those trading sites that allow you to trade CFDs, forex, indices, currencies and much more, so look for this functionality if it’s important to you.
Ease of use – some online trading platforms could be complicated to use and navigate. Considering that if you want to trade successfully, you will have to be able to take decisions very quickly, it is crucial that you pick a provider that has a trading platform that is easy and intuitive to use and that is also available on mobile devices.
Respond to your needs – the trading site you select should respond to your needs. For example, if you are a casual investor, you won’t need to have complicated trading platforms that have lots of advanced functionalities.
Access to market data – you will take some of your decisions based on what is happening in the market at any given time. For this reason, it is imperative that the trading platform you have selected will provide quick information about the changes in share prices. You surely want to avoid those trading sites that have delayed market updates that can lead you to take wrong decisions.
Research – if you want to be a successful trader you need to have the right level of research and also take advantage of expert analysis that is offered by some online trading sites. For this reason, compare what the added value provided by the trading sites as some do offer education and analysis as part of the trading package are.
Trade methods – are you limited to only place trades online, or you can also do via mobile devices. How accessible if the trading site’s platform?
Customer support – having reliable customer support when you most need it is vital as when trading you are continuously learning, and things can happen very fast. The best online trading sites have customer support 24/7, and this is what you should request.
Security – this is one of the most critical aspects to ensure your funds are safe. It is essential you check what are the measures in place to protect your sensitive and financial data at all times.
License – last not least is to make sure the online trading sites you are selecting are all licensed in the UK by the FCA (Financial Conduct Authority).