Did you know that with a single click, you can buy and sell stocks in some of the world's largest traded companies such as Apple, Amazon or Facebook? Online stock trading is more affordable than ever today, but how to get started can seem scary. How to find the best online stock trading account? How can you choose the best online stock trading platform? How do you actually do stock trading online?
In this article on how to trade stocks for beginners, we answer these questions - and many more - about how to start trading stocks online. We will direct you to one of the best online stock trading sites that can assist in your trading decisions, in addition to providing you with some advice on stock trading to get started and sharing it with you in the best way on how to learn to trade stocks in a completely risk-free way.
What is stock trading?
Stock trading is the process of buying and selling shares in a company listed on the stock exchange from your computer, laptop or phone through your broker for trading, in the hope of making a profit from the change in prices up or down when using CFDs for trading.
The buying and selling of shares in public companies is controlled and managed by an exchange such as the London Stock Exchange or the New York Stock Exchange. Historically, traders resorted to these exchanges to buy and sell shares with other traders in what was called a "trading hole".
Nowadays, traders do not have to visit the exchange and can instead participate in virtual stock trading online just by having a suitable broker account. By opening a stock trading account, the broker acts as a link between the trader and the exchange.
In fact, with Admiral Markets UK Ltd, you can open an Invest.MT5 account and actually invest in stocks and ETFs from 15 of the largest exchanges in the world. You can also get free real-time market data, create a pool of side income by collecting dividend payments, trade on MetaTrader - the most popular online stock market trading program - and enjoy many other benefits.
Accounts can be opened with a minimum deposit of € 1 with investment fees starting at $ 0.01 per share and minimum transaction fees of only $ 1 on US stocks.
How to trade stocks for beginners
To start sharing online trading, it is important that you have the right stock trading tools and resources. Here's how to get started trading stocks for beginners:
1. Choose the best stock trading account according to your capabilities
Your trading account is your connection to all other individuals in the world who wish to buy and sell stocks. If you want to buy shares in a particular company like the oil giant BP, then you need to find someone who not only owns BP shares but is also willing to sell those shares to you. Basically, this is what the broker does for you - it connects you to the stock market and other shareholders, hence the term "stock market".
A stock trading account with an online broker gives you access to their trading platform where they can deliver buy and sell orders to other buyers and sellers through their connection to the stock exchange, which manages the stock market and lists the shares of the companies that you want to trade.