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Trading in shares can be a great way to increase your savings, but may seem daunting to beginners. Online trading is now available and a range of courses are offered to allow beginners to do so with confidence and safety. There are risks involved, and the decision to invest your own money is one that should be considered carefully.
Share buying courses: CFDs, equity Indexes, foreign exchange rates, and listed stocks
The Australian Securities Exchange (ASX) offers free trading courses to beginners. The market fundamentals course takes only ten minutes to complete, and covers Contract For Difference (CFD), which refers to a contract between two parties in which there is a difference between buying and selling prices. Equity Indexes, foreign exchange rates, and listed stocks are also covered in these very quick online courses. These are also available through the NAB.
Online share trading: stockbrokers and online share buying tools
Online trading differs from conventional trading in that all trading happens online and your accounts are held online. Macquarie Prime, for example, offers online trading. To begin you will need to purchase a package for your computer, or some offers may allow you to use one for free if a minimum amount is kept in your account (for example, Morrison Securities offers free use of their HTMLIRESS program if you keep a minimum of $5,000 in your account). These online tools may be used to manage all aspects of your portfolio. Commissions are also charged, ranging from about $20.00 to $ 50.00 per month, or a very small percentage (0.5%, for example) for larger amounts (over $100,000 transaction value traded).
A stockbroker can offer you advice on getting started, what share traders to go through and online trading tools. The ASX lists stockbrokers on its compiled directories, which includes information on types of brokers (full service - who offer advice on the best shares, non advisory - cheaper, and do not offer advice, or international trading). If you trade shares in the traditional way, you will need a stockbroker, but may not if you use online trading.
The online tools are effective and generally provide the guidance you will need to use them. There is a selection available, but it is advisable that you choose one provided by an institution that you trust and take advantage of those free tutorials before you begin.
