Stock market investing online tips

The Internet has opened many money making opportunities to the everyday user. Stock market investing has been part of this revolution.

How Does an Online Share Account Work?

Users deposit funds into a share account and these funds can then be used to make investments much like an online gambling bank roll. These funds can then be withdrawn when required.

The online trading website then makes trades as instructed by the user. This can all be achieved without the use of a telephone and is quick and safe. A good website in the UK is The Share Centre. The Share Centre even lets the user set up a practice account so they may get used to the system without risking funds.

Advantages of Investing Online

The principal advantage of trading online is not the convenience but the superb range of analysis tools that are made available by the trading sites.

Online trading sites allow the user to track potential investments and analyse their performance. With the click of a mouse traders can “watch” the share prices over time and see percentage losses and gains. Most online trading sites will also allow the user to view detailed company information, including how they perform against other companies within the same sector.

Costs of Investing Online

Site Tariffs (Commission)
Capital Gains Taxes
Stamp Duty (in the UK)

All online stock trading sites have their own individual commission tariffs and the potential trader should shop around for the best price. For the most part online trading sites charge less to buy shares than they do to sell them. What should also be considered is the amount of trading the user is going to be trading because many sites will offer reduced tariffs in exchange for a subscription fee.

Free Online Trading

Whilst free online trading is not really possible some sites will offer commission free investment opportunities in exchange for adding funds to a share account.

Batch Buying versus Instant Buying

Many sites offer varying tariffs on when shares are bought and sold. If a buyer wants to buy shares instantly then there is generally a higher tariff. If buyers don’t mind having their shares purchased in the sites’ batch buys then the price is lower. Online trading sites have batch trading times throughout the working day (normally three times a day). Batch trading is useful for the long term investor but instant trading is essential for those wishing to make profitable trades day to day.

For those wanting to start investing online, the commodities sector is an attractive area to begin. Gold, in particular is very popular at present due to the weak dollar. Whether this continues remains to be seen. For more information please read Predicting the Future Price of Gold. Another popular investment area at present is the eco friendly sector. Please read Green Stock Market Investments for more information.

Green Stock Market Investments that Make Money

What Are Green Investments?

Green investments can be broadly defined as investments in which the companies/funds involved somehow look to improve the environment.

Of course what constitutes a true “green” company can be open to interpretation. Individual investors’ opinions will differ on what they believe is a “green” investment to them. Therefore, like all investments, it is wise to gain as much information as possible about a potential company before making any deals.

Examples of Green Investments

Alternative Energy
Husbanding Services
Pollution Reduction

Alternative energy businesses might include wind farms, solar power companies and other producers of renewable energy sources.

Husbanding services include carbon offsetting through reforestation, organic farming and rain water harvesting in construction.

Other green investments might be companies who might not be actively involved with improving the environment but operate their business in a highly eco friendly manner.

Why Invest in Environmental Business?
In an increasingly environment conscious world, eco business looks set to be the next hot stock market investment. Moreover eco-friendly / green investments have the advantage that they have a positive moral cause.

Green Investment Funds

Instead of investing in individual companies or businesses, there are numerous eco friendly/green fund options that consumers may wish to put their money into. As environmental funds are a still in their infancy and are a constantly developing investment avenue is impossible to state whether their potential might be.

How to Trade and Invest in Eco Friendly Companies

Investing and trading in Green/Eco Friendly Companies is exactly the same as investing in any other company. If you are new to investing a recommended article to read would be Stock Market Investing Online.

Risks of Green Investment

Like all new investment opportunities and supposed “hot” stock market trends eco friendly/green investment should be classed “high risk” at this point. This is not only because it’s a constantly evolving industry but also because certain aspect of green business are still under dispute.

For example trading in reforestation to offset company carbon footprints could potentially be incredibly lucrative but its success depends on many factors such as a the agreement to worldwide consensus on the reforestation trade, consumer trust and implementation issues.

Furthermore the state of the environment is a subject that consistently divides scientific opinion and it’s hard to be sure of facts and what is simply media scare mongering.