How To Setup Your First Online Stock Trading Account

The internet has made some very difficult transactions easier to execute than they were before now. One of these transactions is investing and trading stocks over the internet. It has been statistically estimated that in the last 5 years alone more millionaires have emerged than in the previous twenty years. This of course is as a result of the access to information and the ability to buy and sell with ease. One of the many ways people have made a lot of profit online is by the buying and selling of shares. To start trading online though, you will need an online stock trading account.

This is possible by having a stock trading account. Opening an online stock trading account is easy to do. It won’t take you time because you can set one up very easily. The very first thing you need to do is find a reliable online stock trading platform or service providers. This can be done by searching for them and investigating them online. You can also ask some of your friends and colleagues and see what trading account they’re satisfied with. Make sure you also find out the fees and rates that come with the account and the trading fees for stocks.

To open an online stock trading account, you will need to provide personal details such as your name, birth date, your home and office address, your various phone numbers and other information so that they can verify and then create your account. For most new users, it is required that the trader be above 18 years. But these days, it is possible for kids to open stock trading accounts online. But in cases like this, the childrens’ parents will be the custodian of the account. This is to make sure that you’re aware of how your son or daughter trade. Imagine what would happen if a child was to place a trade of $900,000 for just nine thousand (9000) shares of a particular company only to find that the price of the shares have dipped to $40 per share. So, in most cases, the trader must be deemed mature enough to make financial decisions. For the kids, the child must be at least 13 years old.

One other thing that you will have to do when carrying out your registration is the inclusion of password questions. These are meant to protect your account against online hackers and thieves who would want to steal your money. Sometimes, you are even issued a certain pass phrase that you are supposed to type in after your password. This would only be known by you since they are encrypted. Therefore, even you will not be able to access your account page unless you enter the image, word, or phrase.

If you have more questions about opening an online stock trading account then visit a local headquarters of companies such as Scottrade and eTrade. Both have hundreds of locations and their associates will help you answer any other questions that you might have.

Source by Sameep Shah

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