The Great Advantage of Buying Stock Online

2007-03-08 10:33:40

( Online Shopping )



If you are an investor, buying stock online could be one of the best things you ever learn. It doesn't take a rocket scientist to figure out that the internet is the wave of the future; online stock investing is at the crest of that wave. The Worldwide Web is revolutionizing the way the stock market operates.

Online investing is not that much different from investing through traditional means. Most of the rules are the same, and if you have a good grasp of the stock market you will do well through either avenue. Basically, you buy stock when its price is low relative to its true value, then sell when the price is high relative to its true value. While there are other ways of making money with stocks such as through dividends and short-selling, for the most part it is the buy-when-cheap, sell-when-expensive process that drives the market.

So what does buying stock online offer? It has one big advantage: smaller fees. Investing in the market through the traditional means has been a bit pricey in the past. Full service brokers can charge fees that usually reach hundreds of dollars. Such exorbitant fees kept many would-be investors from participating in the stock markets, since only the rich could afford to engage the services of a broker.

Online stock trading companies have begun to change all this. Since internet-based brokerages have lower operating costs than traditional ones, they can offer lower rates for carrying out transactions. Some brokers now carry out online stock trades at just a few dollars. Called discount brokers, these brokers do not offer the same sort of personal contact and attention that full service brokers do, but they can still get the job done. If you are a person who doesn’t need the financial advice in the first place, discount brokers are the key to higher gains.

So there you have it, the great advantage of buying stock online! Whether you are a seasoned investor or a beginner just starting to build your portfolio, you cannot afford to ignore the savings that online stock trading can offer.


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