Friday, October 28, 2011

How to trade stocks online?

Trading in stocks is no longer the same like 10 years ago. With the revolution of Internet, trading stocks is now much easier, faster and cheaper. I strongly urge all of you at least to try and open up an online trading account even if you're not ready to start your trading business.

Benefits of Online Trading
1. You get cheaper brokerage fees. Normally in Malaysia it will up at a rate of 0.42% compared conventional brokerage fee which can be up to 1.25%. That's more than 50% saving.

2. Connect directly using the web and provide you with faster and better view of the price and volume compared to using a remisier.

3. You'll be able to check out more data such as volume, moving price range, chart, some technical data, etc and these data is difficult to provides to you by your remisier.

4. You can check out your stocks anytime, anywhere as long as you have Internet connection. Go traveling around the world and still monitoring your stocks. 

5. Better control of the price by setting Good To Date and Good to Day which means you won't missed the chance of buying it when the price dropped until your desire price.

You see that there are many advantages of online trading. How do you get started?

1. If you're already having a trading account with a stockbroker, you'll just need to inform them you need to activate your online trading which normally comes free. 
2. If you're new to stock trading. Go to any stockbroker of your choice and open up a trading account and tell them you need to have online trading. They'll assist you in opening up your CDS (Central Depository System) with a mere RM10.
3. You're required to also provide them with some documents including of your income statement, IC. 
4. You'll need to deposit a minimum amount into the trading account but this differs for different stockbrokers. 

I personally used CIMB Securities for Malaysia's stock market due to my preferential rates with them, however I saw RHB Investment Bank providing an online trading platform that is quite impressive and you may check it out.
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