How exactly do I make an online stock trade?

Online trading has become really big since the Internet started. Everyone can trade stocks online. With the big boom of online stocks came many online stock trading companies like ETrade, Ameritrade, Scottrade, TD Waterhouse, and Charles Schwab.

How exactly do you make an online stock trade?

First you sign up with one of these online stock trading companies.

Then they will help to setup an account online for IRA's, Mutual Funds, Money Market funds, Options, and trading of regular stocks.

You determine what trades you want to do, you pay for them, and then the online stock trading company handles the transaction for you.
When you choose which online stock trading company you want to work with, consider the following points:
- Fees for trading online range from $5 all the way up to $49 or several times that. Pick one that fits your budget.
- Each company is a little different so do your research to find a company that fits how much trading you plan on doing.
- Find a site that offers trading tools that allow you to track the market in real time, analyze trends, and place trades instantly. This will be a valuable tool.
- Online trading companies also offer an unlimited amount of research you can do with financial reports and histories of all stocks you want to trade.
- You want a company that allows you to view your portfolio online and programs that will help you determine where to allocate your $$ so that it grows at a steady clip.
- Be sure to read all documents available about companies and check any references you might need, etc.
- Check for hidden fees many online banking institutions charge a quarterly management fee on many accounts if your balance is not high enough.

Let's take a look at some of the different online stock trading companies, and what they have to offer:

Ameritrade: Ameritrade online trading offers the lowest Internet equity trade amounts in the business. They offer high tech trading tools. They also offer special features like streaming quotes, intra-day charts, real-time account information and more. They also offer the Advance Analyzer, which is a charting and research tool that watches for trends and takes advantage of potential income opportunities. This is a trading company that is great for the more sophisticated online trader.
ETrade: Etrade offers $6.99-$9.99 stock and options trades. So, they are cheap! They also offer tools to help you setup a strong portfolio. Their banking has high yields and no ATM fees. They are also convenient, as all the forms you need are online. They are great for the beginner, as ETrade helps you learn about the various types of trades you can make, stop loss order, options trading, market order, etc.
Charles Schwab: Charles Schwab is great for the person who wants it all in one. They offer banking and trading, and also offers online trading. They have trading and investing, advice and research, retirement planning, banking and lending and market insights. They are a little bit more pricey, but their online reports are great and filled with answers to all your questions. They also offer online support and a toll free number. They charge a quarterly management fee, but are great for the beginner or the more sophisticated trader.
Scottrade: Scottrade is inexpensive, as they offer $7 trades on all online market and limit orders. One huge benefit is that you pay the same low commissions regardless of the number of shares you trade. There are no inactive account fees or account maintenance fees. They are great because they are cheap, cheap, cheap, as they offer low rates, low start up fees, and fairly good service. They have 240+ local branches to help you in person, and offer all the regular market information, a breakdown of account options and types, and up-to-date stock quotes and listings.

So, choose your online stock trading company and start trading!

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