ONLINE TRADING

Please find information on investments and online trading options available to the individual consumer. Each trading product can be applied for and generally controlled online; and are suitable for both the casual and serious investor.

Forex Trading

In the ever-changing conditions of the forex trading market, it is sometimes difficult to keep up. The value of each currency fluctuates minute to minute in relation to the movements and investments of traders. Anyone can get into the foreign exchange trading market, and for beginners it is highly recommended to get hold of a good trader who can guide you through the process. You can even start by trading virtual money - this will give you the chance to practice until you feel ready to give real money trading a go. Just look for a "Demo Account" when comparing trading platforms.

CFD Trading

CFDs are 'Contracts for Difference' - these are contracts between two parties (a buyer and a seller), whereby the seller agrees to pay the buyer the difference between the current value of an asset (usually shares, sometimes indices) and its value when the contract ends. There is no set time limit for the contracts and positions are renewed at the end of the trading day. If the asset's value is negative in comparison to the original value, then the buyer will be in deficit and will make the payment instead. In its usual form, the buyer is the client, and the seller the brokerage company. Effectively CFDs allow individuals or companies to speculate on share price movements without the need to actually own the asset.

Futures Trading

Futures trading allows investors to take positions on largescale commodities without having to raise a large amount of initial capital. By paying an Initial Margin (usually of between 2 and 10%), the trader can open a Futures Contract. This allows him or her to buy or sell a specified commodity at a specified date in the future. This is set at a 'futures price' - in other words, the market determined price. When you choose a Futures trading broker, you will notice they are all connected to a central Futures Exchange, and most country has their own Exchange. These are tightly regulated, usually by a Government-led regulating body (such as the Financial Services Authority in the UK). Main commodities traded on are food products such as grains, meat, and soya, metals, energy, currencies, or services such as interest rates.

Share Dealing

Shares dealing or trading is good for long term investment. By buying shares in a company, the trader becomes a part owner of that company. The size of the stake depends on the amount of shares bought. There are various types of shares, from 'ordinary' to 'preference', and these vary in the power they give the shareholder within a company. Shares can rise and fall in value, and the shareholder's canny management of shares brings a profit from either buying or selling shares. There are various aspects which will affect share price and value, including market trends and economic climate of a country.

Most share dealers trade via a stock broker, who in turn uses a central exchange. Using a stock broker is the best and easiest practice when trading shares. Shares dealing is as any trade type a 'high risk' activity as it can lead to loss of money, but with patience and plenty of analysis and research, it can be a rewarding way to invest.

Financial Spread Betting

Financial spread betting allows you to trade on stocks and shares without paying commission fees or stamp duty. This is because it is online trading which takes place without the use of a stockbroker.

Using an online trading service, the trader is given a spread on a live underlying market price. Then, the trader can bet on whether this market will go up or down. Profit is made when the trader makes the correct bet, and will earn on the stake multiplied by each move the market makes in the trader's favor. When the trader is incorrect, the loss will be made on the stake multiplied by each move the market makes against the trader.

Advisory Trading Services

Advisory Trading Services are designed to help investors and traders to get more out of their money. By using an advisory trading service, the investor can gain information, resources and educational material for all trade-related topics. This is intended to help him or her to gain better results when trading.

Trader Training Services

There are many Trader Training Courses available today – both local and international companies offer a specialised service for traders and investors to gain more information on a range of investor-related topics. Many online trading companies which offer trader training courses do so both 'live' – that is, at a location which investors can physically visit – or via online 'webinars'.

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