With an online broker, anyone can trade at home like the professionals on the stock exchange. Whether with stocks, foreign exchange, commodities, funds or binary options, with a few mouse clicks positions can be bought or resold from the comfort of your own home and at comparatively low prices. While at the house bank for an order already 50 € or more are due, with the online brokers orders can be converted for a fraction of it. This is due to the fact that there is no advice when trading online. Nevertheless, the demand is huge. This is shown by the constantly growing number of customers. In addition, more and more online brokers are entering the market. The account with a provider is quickly opened and quickly replenished by credit card like the HDFC Millennia card or other payment methods.
Account opening in a few minutes
If you want to open an account with the online broker, you basically get to the first trade in 3 steps. First, investors must register with their personal details and open a custody account. After that, the verification mandatory under anti-money laundering laws must be carried out by post-identification or video-identification procedure and in the third step, the first deposit can be made in order to be able to buy corresponding trading positions.
Deposits are usually possible via bank transfer and instant banking, with major credit cards or with eWallets such as Skrill, Neteller or PayPal. In most cases, the payouts to the bank account, to the credit cards or to the eWallets can also be carried out. The payments are made by a reference bank that processes all financial transactions between the customer and the trading venue or counterpart. It is important that the online broker and the reference bank are based within the EU so that they are subject to European regulations. Thus, in the event of the trader’s insolvency, investors also have some protection through a compensation fund. However, since these are not savings deposits, there is no state guarantee of investor funds through the deposit guarantee fund of the country concerned.
Demo account and training make it easier to get started
When choosing an online broker, investors who are not yet so experienced should make sure that they can first practice trading with a free demo account. In many cases, free training materials and video seminars are also offered to familiarize yourself with the basics of online trading and some trading strategies. Above all, it is important that they familiarize themselves with trading with order additions such as stop loss or limit order in order to minimize the risk of a purchase that is too expensive or a total loss.