What features can you expect in an online share dealing account?

Tuesday, 25 September 2012 10:25

Online stock trading: a popular option

Online stock trading: a popular option

Getting involved with web-based share trading can be useful for investors looking for a fast, efficient way of managing their transactions. Take a look at our guide below to find out about the different features you may be able to use in your account when dealing in shares and other investments online.

A word of caution before we begin: your investment value can fall as well as rise and it is not possible to guarantee any income from it. You should therefore be prepared to lose the money you have invested and be aware that past  performance is not a guide to how it will perform in the future.

Buying and selling

Engage in online trading and you'll soon find that buying and selling shares couldn't be easier – or quicker. Most tools offer the ability to purchase and  sell shares with the click of a button, which is especially convenient for busy investors who don't have time to instruct a third party to buy or sell for them in person or over the phone.

One key feature that any reputable online trading  platform will offer is the ability to place limit and stop orders, which give instructions to take a certain action – i.e. buy or sell – when a particular share increases or decreases to a pre-specified level. This means you don't have to manually monitor the market yourself to take advantage of market movements.

You can also set up alerts to be sent to you whenever a specific share moves to a particular level. This can be useful if you would prefer to assess your options before making any move, rather than having your trading  facility automatically buy or sell on your behalf.

Data galore

Obtaining a good understanding of the market you want to invest in is crucial if you're serious about getting involved with stocks and shares dealing. A quality online trading tool will give you easy access to all the information you need to make informed investment decisions.

A key feature you should look for is an at-a-glance view of your current position – i.e. whether you're making a profit or a loss on each of your investments. You should also be able to see information and news on specific companies you have bought shares in at the click of a mouse, together with expert analysis and performance-related statistics.

Other useful data that may be provided could include information on particular investment classes, general business and financial news, and background information on share trading that should be especially useful for relatively inexperienced investors.

Account assistance

Any decent provider of online trading tools will make it easy for you to obtain help when you need it, whether it's with the basics of web-based share dealing or assistance with the more technical aspects of your account.

This could come in the form of a comprehensive help section on the provider's website, a number you can call to speak to a real person or simple-to-follow demonstrations that show you exactly how to make the most of your online account.

Reading online guides and generally gathering as much information as possible on how to use your account will make it easier for you to get to grips with online trading, especially if you're new to the practice or don't usually use the web much.

 

Comments

Finance articles

  • What is the difference between CFDs and spread betting?

    Contracts for difference (CFDs) and spread betting are often grouped together when people talk about financial trading. While they certainly have similarities, it's important to understand how they differ if you want to start trading with either instrument.

  • A guide to understanding your pension allowances

    If you have decided that a Self Invested Personal Pension (SIPP) is your best option in terms of retirement planning, you need to make sure you fully understand the rules relating to taxation and pension allowances – and are aware of the recent changes.

  • How to decide whether a SIPP is right for you

    Self Invested Personal Pensions (SIPPs) are becoming increasingly popular among those seeking greater control over their retirement income. However, they're not for everyone. Read our guide to find out how to decide if SIPPs are for you.

  • A guide to securitised derivatives

    If you have been trading online for some time and feel as though you are ready to branch into a different form of investment, securitised derivatives are one of your options. As these are complex instruments, it is best to only trade them if you have experience.

  • What features can you expect in an online share dealing account?

    Getting involved with web-based share trading can be useful for investors looking for a fast, efficient way of managing their transactions. Take a look at our guide to find out about the different features you may be able to use in your account when dealing in shares online.

View More Articles

Related stories

AGA Rangemaster sales hit by recession

A weekly guide to the stockmarket results to look out for

AGA Rangemaster saw a 25 per cent fall in profit in the first six months of this year. Interim results from WPP & G4S are the focus next week in our investment round-up.

Can a monkey with a pin outperform investment experts?

Give me a dart and i'll show you what to do!

Pete Comley, author of a new book called 'Monkey with a pin' explains his perspective on why so many investors fail to earn the returns they expect.

RBS to follow Barclays as next bank fined over Libor scandal

Barclays shares fell by 15.5 per cent yesterday

RBS is likely to become the next bank fined by the Financial Services Authority over the manipulation of the Libor inter-bank swap rate.

Facebook shares flat after first day of trading

Facebook shares had a disappointing opening day's trading

Shares in Facebook had to be rescued twice by underwriters to maintain their initial $38 valuation and closed at $38.23 in a faltering state for Facebook shares.

Greg Secker on the euro debt crisis: The markets are not human

Greg Secker is the CEO and founder of Knowledge to Action

Greg Secker, a former currency trader looks at the euro debt crisis and concludes that the markets are likely to undermine whatever decision Europe's leaders make.

Glazer's aim to control Manchester United by selling shares without voting rights

Manchester United Football Club have been given approval to float on the Singapore stock exchange

Manchester United Football Club has been given clearance for a £600 million flotation on the Singapore stock exchange but reports say that two thirds of shares to be issued will exchange voting rights for a higher dividend.

The top five reasons you should consider spread betting

There are a number of reasons why you should consider spread betting

Whether you are an experienced investor or looking to get into the stock market for the first time, there are a number of reasons as to why you might wish to consider learning to spread bet as an alternative to traditional stock purchases.

Osborne launches legal challenge against EU over Tobin tax

George Osborne says London will be unfairly penalised

George Osborne confirmed that the UK is planning to launch a legal challenge against the European Union over its proposed financial transaction tax.

Newsletter sign up

Interests

In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: