- Trading used to mean making a call to a stock broker to place an order.call image by Nicolas Chensky from Fotolia.com
In the old days, trading stocks meant you had to make a call to your stock broker to submit buy and sell orders, or rely on the broker's judgment to place stock trades on your behalf. Modern-day technology puts you in the driver's seat and allows you to make stock trades instantly right from your home computer. All you have to do is meet a few basic requirements to get up and running. - Online brokerage accounts allow you to trade from your home computer.computer image by Orlando Florin Rosu from Fotolia.com
Online brokerage accounts are available from an abundance of stock brokerage companies. Just about every bank and financial institution that conducts stock trading also offers an online brokerage account option to clients, and having a brokerage account is a requirement to being able to place stock trades. In order to open a brokerage account, you will need to provide complete information including your name, address and federal tax ID number. You should carefully review the offerings of several different firms before making a final decision since different brokerage firms offer personal trading accounts with varying features and different levels of service. - A computer with an adequate processor speed is essential for effecting online trading.circuit imprime 3 image by daniel sainthorant from Fotolia.com
For successful online trading, you will need to have a home computer equipped with enough power and memory to effectively conduct trades in an online environment. Some trading platforms offer real-time trades timed with the actual market movements, and you will need a computer capable of keeping up. Different brokerage firms offer different trading platforms, which may have varying requirements for computer operating systems, memory and processor speed. A quick phone call to make an inquiry or a check of the brokerage's website page of frequently asked questions will indicate what level of processing you need from your computer. - Fast, reliable Internet speed is important for online traders.Four White Plug In Telephone Jacks Going to High Speed Modem image by Chuck Alexander from Fotolia.com
If you plan to place trades online from your home computer, you must have a reliable high-speed Internet connection. Inconsistent high-speed Internet or dial-up services are not typically sufficient to support the trading platforms for online trades, and they are inadequate for placing accurate trades when seconds can make the difference between closing out a trade profitably and failing to do so. - You will be required to fund your online trading account to conduct trades.100 s bills image by charles taylor from Fotolia.com
Funding is a requirement for anyone who wishes to place online trades. The various brokerage firms will have different requirements for the minimum deposit to open a trading account. For individual investors making occasional online trades, a brokerage account can be maintained for as little as $50. For frequent traders or online traders who wish to start an independent brokerage service, the minimum dollar requirements to open and maintain a brokerage account can start out at $25,000 and increase upward to over $100,000 or more.
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