Getting Started with Online Trading

If you are reading this, you’re probably thinking of starting a career or side job in online trading. Whether it might be stocks, forex, binary options or crypto currencies, it all boils down to ”online trading”. Well, I can tell you one thing, you have stumbled upon the right website to do so.

At first glance, online trading might seem quite daunting and risky. In reality this obstacle will become easy to overcome and my personal motto therefor is: Everyone can trade! By visiting this website regularly you will gain the insights written by an expert trader, to become successful at trading the financial markets yourself. I personally started out trading forex markets, mainly in Europe, before the Euro. After that I went into binary options and nowadays I trade mostly crypto currencies.

My goal is to prepare you for real money trading as soon as possible. Although demo accounts and trade simulators are great to try trading with or test different investment strategies out with and even bot trading for that matter, they are just not the real deal. This is why I highly recommend anyone who wants to get started with online trading to just trade with a small amount of money, even if it’s just $5. Trading with real money is in many ways different than using demo money, as you might already understand: you will never take the risks with your own hard earned or saved money that you would take on a demo account.

For this particular reason I like you to tell yourself: let’s keep it real. There’s no such thing as fooling yourself you turned $20k into $1m with a demo account and think that you can probably do the same with real money under the same conditions.

On this website you will find reviews written by me, experienced traders and new users of all trustworthy and even scam brokers available online. My advise is to read these reviews carefully before trading at a certain broker. The last thing you want is not being able to cash out your profits.

Also, I will post any new broker promotions, bonuses, changes in terms & conditions and scam broker warnings daily, to make you trade online in a safe and secure environment, under the best conditions possible. As everyone knows, trading can be risky, that’s why I will teach you how to manage your risk and money in separate blog posts from time to time. Anyway, let’s get started shall we?

Why would you want to trade in the first place?

If you have some spare money or have built up some savings, you could choose to deposit your money on a savings bank account. With a bit of luck the bank offers a reasonable interest rate which makes your capital grow slowly as time goes by. Saving your money is a wise way to handle your money and build up capital but it isn’t really exciting and not even that profitable in the long run. Apart from the few percentages interest per year, your capital won’t grow and I have to include a famous Warren Buffet quote here: ‘’No one got rich by saving their money on a savings account’’.

Because of this, more and more people decide to get started trading. When you trade, you invest your money in a company or in the case of crypto investing, in a crypto currency. You invest this money by buying stock or ownership. Once you are an investor, you are basically partially owner of the company you bought stock in. If the company makes profit, you make profit. The more stock you own, the more profit you make, it’s that simple.

However, the company you own stock in, can also belly up, in which case you lose money. Apart from stocks one can invest in commodities, options, futures, forex and even crypto currencies.

Why should you invest your money?

Like I said before, your money will create more capital than on a savings account. But there are more reasons why people want to trade. One of the most obvious ones is inflation. Because of inflation, everyday products become more expensive. It’s inevitable that you will pay more and more for your groceries, clothing and travels every year. Common sense might already tell you that because of this, your capital stays the same but it’s value decreased relatively. The same amount of money buys you less products year after year. By investing wisely, your capital and purchasing power only increase.

Trading in general is also very popular because of the excitement that goes with it. Following the charts and your stock values, when to buy, when to sell, which company to invest in etc. are all examples of choices to be made by a trader. Once the trader is right, significant capital growth can be seen. Of course there are certain risks associated with trading, but these risks decrease as you become a better trader.

Online Trading

Trading was until 2006 only for the rich elite and bankers of the planet and those who could afford expensive trading terminals. Now, with retail brokers for people like you and me available, the entry level got significantly lowered. With the recent launch of crypto currency trading, the barrier is basically removed entirely, as anyone with an internet connection can now trade online from literally one millionth of a penny. This is not even the greatest advantage of today’s trading environment. The by far biggest advantage nowadays is that you can trade from your own home or even your smartphone or tablet on the go, wherever you want, whenever you want.

What to trade?

Once you start trading for real money the first time, you will notice how many options and places you have to invest your money in. Most traders invest their money into stocks, commodities or (digital) currencies. I highly recommend to invest in only one or two products once you start trading. Investing this, maybe slow paced way, gives you great insight in how investing works and you don’t get diluted by all the different products you invested in, hence you don’t have to follow them all every day.

Stocks might be the best way to get started in the online trading world. Although, if you don’t have the money to buy stocks, I can highly recommend crypto currencies. The reason I recommend stocks at first is that there’s loads of company information available online and only using Google you can already make quite informed investment decisions.

Are your investments doing well? Then it might be time to diversify your portfolio and add more products or companies to your investments. For beginning traders, once more, stick to as least amount of different companies or products as possible. Once you are familiar with your investments it gives you the opportunity to actually become an expert sooner or later.

Investing using an online broker

To get started with online trading you will need a so called brokerage account. In the old days you would have to contact your bank to open one and you actually had to make expensive phone calls to your bank’s investment division to open and close trades. Luckily these days are over and nowadays you just sign up within 30 seconds, confirm your mailadres and open and close trades with a single click of a mouse button. Some of the worldwide most popular online brokers are XM, Markets.com and Plus500. These brokers are all cheaper than your current bank, I can assure you that. As a new trader at one of these brokerage firms, you even get a welcome bonus which can be as high as up to 50% of your initial deposit.

I highly recommend comparing the different trustworthy and licensed brokers on this website before you to decide to deposit money with one of them. If you are still doubting which broker to use, don’t hesitate to contact me by live chat or by sending me an email on questions@choosebroker dot com. Eventually the goal of this website is to make you trade online, in the finest way possible, with no problems, at a broker tailored to your personal needs.

Margin Trading

Whenever you trade with your local bank, not only huge fees are charged but also huge amounts. They expect you to invest like at least a couple of thousand Dollars for them to make it worthwhile for them opening a position for you. With online trading at brokers featured on this website you totally eliminate this problem as these brokers are what in the investment world is called: retail brokers. Simplified this means that they don’t care if you trade $1m, or just $10, they are there to facilitate internet traders around the globe, with as minimal requirements as possible.

Most online brokers use a so called margin trading or leverage trading system to facilitate small and individual traders. With this particular construction your investment is multiplied with a certain leverage percentage. Because of this, your investment will be of higher value than on the normal stock exchange or any exchange for that matter. Let’s say you want to trade oil on Plus500, then your leverage will already be at like 1:152, which means you get to trade for 152 times more than you initially put down.

Most brokers give you access to between 1:20 and 1:200 leverage, although there are some brokers that go as far as 1:2000 and upwards. These brokers I do not recommend for beginning traders as these are what professional traders call: all-or-nothing brokers.

Most forex and CFD traders prefer leveraged trading as else it wouldn’t be worthwhile for them, after all, no one wants to invest $1000 to see it go to $1003 or $997 at the end of the day. Although I have to admit here that in the beginning I was a margin trader myself, but as you accumulate large numbers of capital, trading without leverage actually does become quite interesting as it’s almost risk free. If you accumulated enough capital to trade online without leverage, feel free to contact me using live chat or email to questions@choosebroker dot com.

Spread your risk

Investing might sound interesting and exciting but of course it comes with it’s own set op risks. The value of the stock or (crypto) currencies you own can fluctuate within a split second. Before you know it, you might end up with a loss. Therefor, always spread your risk accordingly. It’s a known fact that risky products and investments offer higher ROI (return on investment). But always be sure to back these up with lower risk products that offer you a certain form of safe net for any losses. One particular form of investment that comes into mind whilst writing this are bonds. Bonds give you government level safety set at a certain interest level to back your more risky investments.

Online Trading with a free Demo or Trade Simulator

Most online brokers offer free demo accounts or trade simulators. These give people new to investing all the tools and knowhow to trade with fake, virtual or demo money, before they trade with their own real money. Using a demo account you have nothing to lose as you only play the markets with ‘’demo money’’.

One of these brokers is Markets.com, where you can try investing with $100,000 demo money before you invest anything yourself. If you’d like to open a real account, you even get $25 free real money to trade with after verifying your phone number. This is in my opinion, a great way to learn how to trade the markets. You can practice for unlimited time in real market conditions and test certain investment strategies.

Of course you don’t make any real profit or loss with these types of demo accounts but at least you get to know how the market works. Once more, I am not here to force you to open any trading accounts. I just want you to be 100% sure once you do. Practice with demos as long as you feel you need to.

Keeping it real, like I quoted in the beginning of this article, I strongly do advice to upgrade to a real account as soon as possible so you learn how to trade under real market conditions. The simple reason here being: you’re going to hate yourself for making so much profit on a demo account and getting a diluted idea of real money trading. After all, trading is about growing your capital and not speculating with demo money.

Trading Software or WebTrader?

Most brokers offer their clients professional brokerage software for you to use on the financial markets. If you want to refrain from downloading software on your computer, you can just use the so called WebTrader. This WebTrader allows you to trade the markets from any browser and even from your smartphone or tablet, without downloading anything.

Practice Makes Perfect

Like I said before, there’s no rush in trading online with your hard earned money. Practice unlimited with free trade simulators and demo accounts before you make any deposit at an online brokerage company. Take the time to do extensive research before you do so. Practice as long as you like with the many trade simulators and demo accounts offered by brokers on this website. To use the free demo trading accounts just enter your email address and verify it by clicking the confirmation link. There is literally zero risk involved in trading this way.

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