Identification

Trading online begins with opening a brokerage account. Once an investor subscribes to a brokerage service, he can begin making buy and sell orders on stocks and mutual funds at will. Stocks can be held for long periods of time or investors can trade on a more frequent basis, even daily.

Features

Most brokerage websites offer trading tools and research to supplement the trading products. For instance, by entering the trading symbol for a stock, a chart illustrating past performance vs. a stock market index can appear in moments.

Benefits

A benefit of trading online is speed. This is because stock prices can rise and fall in seconds. By placing an electronic trade order online, an investor is likely to capture the current price or something extremely close to it. When orders are facilitated over the telephone, an alternative to online trading, time and money can be lost.

Considerations

Consider that a safe Internet network is vital for investors who intend to trade stocks online. Personal information must be provided in order to open a brokerage account and trade stocks, details such as a bank account and Social Security number. Ensure that a computer is protected with the appropriate software to create a safe network and guard against security breaches.

Technology

In addition to trading via a computer, investors can download software applications and trade stocks through certain hand-held wireless devices. A software application from online brokerage E*Trade, for instance, allows investors to trade stocks via a mobile device including an iPhone, according to The New York Times.

Source:

New York Times: A Convenient Way To Track Your Struggling Investments

More Information:

The Motley Fool: Is Online Trading Secure