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Trading Guide: How to Invest in Stocks & Shares

Guide to Invest in Stocks

Many traders invest in stocks, as well as other financial assets such as currencies or commodities, to build a diversified investment portfolio. This hedges risk, and increases the investor’s chances of survival. In the past decade or so, it has become much easier for individuals to start trading stocks from the comfort of their own homes.

Invest in Stocks Online – The Benefits

Buying and selling stocks can be very financially rewarding. Shareholders get paid a dividend (if the company decides to use profits in that way.) A dividend is essentially a share of a company’s profits. Therefore, the more shares you own of a corporation, the larger your dividend payout.

Investors can also generate a profit by selling their stock at a higher price (than they bought it at.) This is known as capital gains. It should be noted that there are substantial risks to consider when trading, as stock prices can fall. Online stock brokers allow individuals, who may be employed in other sectors/have no trading experience, to invest in stocks.

Accessing The Stock Markets

There are several different stock exchanges internationally, e.g. the NYSE or the NASDAQ etc. Publicly traded companies are listed on these exchanges, and their stock can easily be traded. Online retail brokers tend to charge traders on a “per deal” basis.

Essentially, punters pay a fix charge per deal they make – it doesn’t matter if they purchase 10 shares of Tesla , or 1,000 shares. This system is not ideal, as it may encourage investors to a
void placing many trades. It also encourages traders to place larger trades, exposing them to more risk.

Degiro is an example of an online stock broker, and they charge around $2 per trade (on UK shares.) You can also access the stock markets by spread betting, or contract-for-difference (CFD) brokers, such as IG Index. In spread betting & CFD, you do not own any assets, you are simply speculating. Therefore, you do not receive any dividend payouts (when you own/invest in stocks.)

 

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
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Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

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75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
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  • Bonds
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Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
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Deposit Method

  • Wire Transfer
  • Credit Cards
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  • Paypall
  • Skrill
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  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

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Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
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