The first advantage of investing online is that you eliminate almost all intermediaries. A few years ago, it was mandatory to go through a broker. Today, this is done in just a few clicks.
This ease of access also makes trading more attractive, as it is cheaper. Having your broker execute your orders costs money. Online trading users thus significantly reduce their costs. Even if the brokers support their clients virtually, the prices are much more attractive. Many brokers offer their services for less than €10 for each order placed, and some do not require any starting capital.
In addition, it is possible to place transactions almost instantly, at any time of the day, to monitor your investments, your gains and your losses in real time from a smartphone or computer.
The criteria to take into account when choosing your trading platform
If you want to invest in shares on the stock market, you can take advantage of more volatile markets, even though they present higher risks. We can cite cryptocurrencies, Forex or “tracker”, stock market indices or ETFs (Exchange-Traded Funds, which means “funds listed on the stock exchange”), which are financial products allowing the purchase and sale of baskets of shares and bonds in a single transaction, as if they were ordinary shares…
Whatever your preferences, you must choose a trading platform, and the one best suited to your preference needs, because each has its specificities. AvaTrade, the award-winning online CFD (“contracts for difference” *) broker, which offers numerous trading platforms and has offices around the world, has also established its Top Trading Platform 2022.
Practice before investing in the stock market
Before starting, it is essential to orient your choice according to the instruments you wish to invest, your knowledge and your experience in independent trading. Some sites offer online training, financial information and decision support tools. Some even allow access to other users’ virtual portfolios to copy the best traders!
That said, as with any investment, 0 risk does not exist and losses can be real. It is therefore essential to invest only the money that one is capable of losing. Even though trading is easier, it is also easier to make mistakes.
At AvaTrade, it is possible to open a demo account to train without taking risks and to take advantage of tutorial videos, with lessons for beginners but also advanced trading strategies.
*CFDs (“contracts for difference”) are financial products with leverage, which allow you to bet on the rise or fall of an “underlying asset” without ever holding it.