The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!
We can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.
Majority of the brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.
If you are a newbies to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading stocks before you start trading online.
You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.
To start off, you will need to choose from one of the several brokerage firms around. Some popular on-line brokers for internet traders and traditional brokerage firms include:
- DBS Vickers Securities
- Lim and Tan Securities
- UOB Kay Hian
- OCBC Securities
- Philip Securities Research
You can reduce your brokerage fees when you buy shares.
If you're a PLUS member, this is a good deal as you get linkpoints when you trade as online brokerage are the same when compared with the other securities firm.
Every time you trade, points are accumulated and you can exchange them for shopping vouchers or other services.
When you sign up, there'll be a few things that you can choose to apply for.
Electronic Payment for Shares (EPS)
In the past, any outstanding payment to your brokerage had to be settled in the form of cheques. This form of payment conveniently links your bank account to your brokerage, so that you can login into your Internet banking account and pay for any outstanding contracts there.
Central
Depository (CDP)
- Register for Free and Retrieve your Shareholding Online
or via Email.
All stocks that you own are held in your CDP account. If you have never traded stocks before, you most likely do not own a CDP account, and your very first brokerage account will come with a CDP account opening form that you can fill up as well.
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