If anybody told your great-grandmother that with one item, she can speak to people across the world, get resources from across the world, get a university degree, take photos, listen to music, stream videos, and even trade stocks, she would probably have called the person’s bluff. Yet, the advent of the internet is a reality we all are in today and it is amazing.
Since the emergence of the internet, the business world and its various activities have been met by a massive turnaround. Businessmen and women can also access clients and potential customers across the world, all using their mobile devices.
Also in the world of investing, the internet has added a lot of flavor to the way investments are publicized, accessed and made.
The main requirements for trading stocks are having access to a broker and having access to the right information to be able to make decisions and all of these are the things online stock trading has come with.
Like many of the revolutions of the digital age, online stock trading has provided ease, accuracy, and access for all who use it.
There is no gainsaying the fact that the internet has improved the stock market and has created a whole new world where exchanges and trade can take place digitally, with literally the push of a button.
What Is Online Stock Trading?
Online stock trading is the process of buying and selling shares or stocks in a stock market on a digital platform or the internet.
Online trading could generally include bonds, stocks (shares), futures, international currencies, and more. With stocks, it holds all the processes of any other trading in the stock market, with the exception that it is done online.
Trading stocks online improves the former ways and processes in which stocks were being traded. Just the same way you need to get a registered broker to help you purchase stocks in the stock market, you also need an online broker to help you trade stocks on any trading platform you use.
You need to select an online broker who interfaces with customers over the Internet instead of face-to-face then he/she directs your trade and store your money in an account.
Before Choosing An Online Stock Trading Platform
Before you start the online stock trading process, you need to find a platform and essentially a broker. To do so, you must first have a clear idea of what you want and what you are willing to put in place to achieve it.
In other words, how much do you plan to invest? Do you plan to invest in trades frequently or not? Your level of experience in trading, and how much direction you need. A good trading platform would have different products for the investor’s different investing goals – just like traditional brokerage firms.
Another key requirement is security. The first element of security involves having a broker or platform that is duly registered as a dealing member of the Nigerian stock exchange.
Knowing that you are now using the internet, security should be taken into further consideration by the platform being used. Does this online stock trading platform have a form of insurance where any form of fraud or loss occurs?
Another thing you should be wary of is the kind of customer service available.
Good online stock trading platforms provide customer service round the clock to ensure you experience no setbacks when making your investment decisions.
The platform should be able to educate you especially on how to navigate the platform itself as well as how to interpret investment information/ data.
Find a platform that represents you on your transactions within the Nigerian Capital Market, executes stock trades on your behalf, reconciles your outstanding dividends and stocks, helps you transfer shares, and so much more.
Online stock trading might have numerous advantages, but being on a platform that doesn’t meet your investment needs is a counterproductive approach and care should be taken in selecting a platform to trade your stocks on.