If you want to try your hand at online investing, make sure you explore all the options and consider the investment software programs that are part of the package.
Online brokers allow you to buy and sell stocks online. The online software that you get to utilize this service largely takes the place of a human broker. You use real money, except for some software that allows you to “test” your results. The investment software allows you to track, screen, and trade stocks, and then you request your trades online and get verification of the sell or buy order. Some online brokerages have the option where you can talk to live brokers and do broker-assisted trades as part of their service.
Online investing isn’t just for buying and selling stocks, although that seems to be the most popular online use for investing. Some investment firms allow their customers to purchase bonds, futures, mutual funds and options. These investing practices are considered to be more advanced forms making investments and should be approached with caution.
I’ve explored some of the options for investing online and here’s what I’ve found. They are listed in no particular order and without specific recommendation.
TD Ameritrade – This online brokerage firm has been providing services since 1975. The minimum to fund an account is $1000 for IRA’s and $2000 for non-IRA. There are sometimes promotional offers available. The cost to buy/sell stock is $9.95 per online trade. There is a fee schedule for other options that include getting a stock certificate, fees for subscriptions to some of the online tools, and more. TD Ameritrade offers online investment software tools. Some are provided at no fee and some have a subscription cost. These tools include Command Center 2.0, which allows you the ability to research stock and options trading. You can enter orders and view status. Other software tools offered include Pattern Matcher, QuoteScope, Options 360, StrategyDesk, and more.
Website: http://www.tdameritrade.com/welcome1.html
Scotttrade – This online brokerage firm has been in business for over 25 years. The minimum to fund an account is $500, or $2000 for option accounts. The fee for online stock trades is $7.00. The trading website offers research and intuitive tools at no charge. There is an advanced trading platform available for larger accounts, software that offers streaming quotes, and options software. There is also software that allows access from a mobile device.
Website: http://www.scottrade.com
E*Trade – Also in business for over 25 years, this company has a fund minimum of $1000. The fees for an online trade start at $12.99 per sell or buy order and decreases based on assets or volume of trades. The software available allows website trading, has screening options and also appears to have some educational options.
Website: https://us.etrade.com/e/t/home
Wall Street Survivor – And if you aren’t ready to deposit money. Try the “game.” This free online game will teach you how to use the software, how to read the stock prices and help you learn the lingo. Since 1990, the company that made this game has provided the top Business Schools in the United States with Stock Market simulations. These simulators have been used to teach business students the fundamentals of trading stocks, bonds, mutual funds, futures, currencies and options. Now you can try. Utilize this free download to learn how to make stock trades. This game is the closest thing to a real brokerage account, without taking the risk of losing money before you know what you are doing. Learn while you are interacting. The game offers a “virtual” money account so you can track how you’ve done. You execute fantasy trades in real time, with real information. The financial data feed is the same one used by brokers world-wide. The games Research Center includes programs that allow you to personalize data and charts on the stock market. It also comes with a calendar to track your earnings and a stock screener. There are additional tools that can help you expand your stock trading knowledge and learn to make informed decisions.
Website: https://www.wallstreetsurvivor.com/home.aspx#1
Summary
One thing I’ve learned since I’ve started researching investment software is that the more I know, the more I need to know. My husband and I want to start small and see if we can’t make informed choices and control at least a small piece of our own destiny. If we already have researched the stock we want to buy, why would we just turn that over to someone else? We’ve always been gamblers, and we’ve always known our limits. I believe those are two very important qualities if you plan on utilizing investment software to actually trade online.
The third important quality is knowledge. Do the research, ask the questions and compare the options. Then start small, or start with virtual money in the game and work up to real money in an online brokerage account. Good luck!