In today’s guide you will find everything you need to know to invest by trading online, a complete guide to all aspects of this extraordinary world, which today really allows everyone to go and invest their savings without intermediaries.
We will talk about the basic aspects that interest online trading beginners, as we will analyze the more technical aspects concerning the composition of the portfolio, or even the choice of the best broker as well as the strategies in relation to our risk appetite and our expectations.
Take a look immediately below. We show you the only 4 recommended platforms to invest in the stock market through online trading.
Why do we recommend these?
Because they are the only ones really able to assist you during your entire journey as a customer within the platform and, even if you don’t deposit anything, they give you ebooks and demo accounts for the free trial.
A complete guide, which aims to be the most complete in Italian and which we offer you free of charge to learn both the basics and the most advanced techniques.
We will never tire of repeating what is the great truth of the investment world: in the markets war is made through information and knowledge and therefore those who are better prepared will certainly have greater chances of obtaining good results.
Without forgetting that you can immediately put into practice what you have learned during today’s guide by simply going to open a free practice account with eToro from here, one of the brokers that offer you the best environments for trading online.
What will we talk about in this online trading guide?
There are so many topics that we will have to touch to offer you a true complete guide to online trading. As we anticipated above, the world of online trading is complex, but not for this reason impossible to deal with even for beginners.
We will therefore necessarily have to talk about:
- What does it mean to trade online: because without starting from the basics we will be able to understand nothing of the more advanced topics instead. Even if you think you know what online trading is, we recommend that you pay close attention to this section of our guide;
- On which markets you can trade online: today you have a huge number of markets available to invest in online trading. We will analyze them one by one and we will also advise those most interesting for those who are just a beginner and are taking their first steps. Remember that even in this case you will be able to test your skills and interests before investing with real capital: you can do it also with Trade.com – broker that offers more than 2,200 stocks on all the best markets (with the possibility to invest in real shares);
- Which means investing in the short, medium or long term: because the timing is really everything for those who must decide the right strategy to invest;
- How to choose a good broker to invest: there are hundreds of brokers operating in Europe. How can we choose the best ones? What are the criteria that we must necessarily apply?
- How to reduce risks: investing in online trading also means going to invest in the best way by reducing the possible risks. What are the best tools to reduce risks?
Obviously we will also have to touch on many other topics. These will be the main ones, from which you can develop all the manual we have prepared for you.
Always be aware of the fact that the choice of a large intermediary is necessary in order to work really well on the financial markets.
What does online trading mean?
Investing with online trading means going to buy and sell securities on the financial markets, for speculative purposes.
Don’t be fooled by the term “speculation”. Non-specialist newspapers use it referring to what would be an ethically shameful practice and to few people recommendable.
When we talk instead of speculation for online trading we simply mean that when we operate on the markets we do it to earn: in fact we aim to buy securities at a price and sell them at a higher price, playing on price changes.
There is absolutely nothing wrong, strange or absurd in wanting to proceed like this. Indeed, what the banks do when we choose an asset management product, as do the ever-acclaimed pension funds.
Trading online therefore means focusing on a company, on a currency, on a raw material that we think will increase in value in the future.
Investing in online trading is just that. Nothing more.
On which markets can you trade online today?
We already get to the heart of the story, or to the markets that we can exploit to do online trading.
The first good news indeed comes from here: today even with relatively small capitals we have access to markets that only until some time ago were absolutely inaccessible for those who were not millionaires and could not afford a personal broker.
Below we will analyze everything we need to know, at the market level, starting from investing in the stock market to move on to markets that are certainly less common but equally interesting.
Online trading to invest in the stock market: stocks
The first market that we will analyze in the course of our guide today is the stock market, what is commonly called “stock exchange”.
The stock exchanges are an excellent environment for trading, because they allow you to invest today not only on national stock exchanges, but more generally on all the main companies in the world.
What does this mean and why can it also be beneficial for the small saver?
- There is a huge choice of titles: with the right broker we can really access virtually all the markets that are available worldwide. You can therefore decide to invest in the American, Chinese, German or Italian markets. And with a good broker like Trade.com – here for access to the free demo account you can also decide to invest in all these markets simultaneously, because it is one of those that offers the largest number of stocks and markets;
- There is a huge selection of sectors: think of how many types of companies you can meet on the stock exchanges. From banks to the big steel industry, passing through the automotive, clothing, food and many other sectors. By turning to just one market, you have virtually access to all the major sectors of the real economy, finance and services.
- Liquidity: with a good broker you can buy and sell shares in near real time. What do we mean? We mean that to trade online on the stock exchange – once you have chosen an efficient broker like 24option – here to learn more about the official site in preview you can buy and sell your shares instantly. This is a great advantage over much less liquid markets, such as those of mutual funds.
These are three points that are the basis for those who want to trade online successfully and therefore make investing in the stock market one of the fundamental markets for those who are taking their first steps.
They are so advantageous as markets that banks offer them less and less frequently, precisely because the poor financial products they offer you would have no reason to exist if everyone decided to invest with the stock market.
Even for the stock market, if you are completely fast of any trading operation, we recommend starting with a free demo account that will allow you to test the market before investing your capital.
A good starting point can be the eToro demo account (open it for free at this address), a demo account that allows you to invest with 100,000 euros of virtual capital in all the best stock exchanges in the world.
We believe – and we have no fear of being denied in this particular issue – that the stock market is one of the most interesting for online trading and that it should therefore be taken into due consideration for your future on the markets.
The other markets to invest in online trading
Then there are a whole different series of markets that you can definitely take into consideration to make up a good investment portfolio.
Also in this case we will face them one by one, certain of being able to offer you an address guide to your future operations in the world of online trading, a world that is surely, at least in our way of looking at things, dominated by stocks but where we must necessarily learn to look around with intelligence.
Trading online with Forex
Forex is the currency market, or the market where currencies are traded against each other. It is a market that many believe – erroneously – intended only for specialists, while in reality it has characteristics that should make it very interesting even for those who are taking their first steps:
- For those who invest in the short term, you can also start with a minimum smattering about technical analysis, or investing mainly having at the base the analysis of the graph;
- It is the most liquid market in the world: which means that everyone can have their say, even those who invest with extremely limited capital;
- It is relatively easy to follow even at the macroeconomic level. The news that must be followed is in fact the same that must be followed for all the other main markets.
You can also decide to simply accompany the currency market to the stock market, with a broker offering you both markets.
Trade.com offers you both the best shares and the best currencies, as well as a large number of other markets, which allows you, like all the others we mentioned in our guide today, to invest at the beginning also with an account free demo.
Online trading on raw materials
Raw materials are hot material, in the sense that they are followed by many professional investors and form the basis of many professionally managed portfolios.
It must be said that perhaps they are not the best asset for those who have started investing recently and who will still have to approach what is one of the most risky markets that exist with due precautions.
However, nothing prevents you from allocating a residual part of your capital and your own portfolio to raw materials such as oil, natural gas, gold, silver or even food raw materials.
You will find an excellent assortment of this type of asset from brokers like 24option – here for a free demo demonstration, which allows you to invest not only on the raw materials, but also on the two markets that we have mentioned above, ie stocks and Forex.
Online trading with cryptocurrencies: who is it convenient?
Cryptocurrencies have been on everyone’s lips for a few years now. Bitcoin, but also Ethereum, XRP and many others, have made the fortune of those who had the intelligence to invest in this specific market in advance.
But is it still worth investing today? The same warnings that we have just made for raw materials apply. We are in front of a category of assets that in fact can offer a lot in terms of returns but that require the investor to have a certain propensity to risk.
Here too, with the right broker you can go to invest, accompanying an equity investment to one, smaller, in cryptocurrency.
To do this, once again, you will need a quality broker that will allow you to invest in all these assets, ie a broker like eToro – here to invest with 100,000 euros of virtual capital, which allows you to go and invest in cryptocurrencies, as well as a very large selection of stocks, currencies and commodities.
Invest in online trading with indexes
We close our review with the indices, or rather the securities that replicate the performance of different stocks in the same stock exchange, with the ability to offer a good diversified investment with only one security in the portfolio.
The indices are close relatives of the shares and certainly a good alternative for part of our capital.
Choose the indexes that best suit your needs and that best blend with your trading strategies and then go and invest in combination with your best actions.
Online trading: is it suitable for beginners?
Absolutely yes. Despite the fact that there are still hesitations to push those who do not have a great experience to invest in this type of market, it is equally true that both the brokers and the markets themselves have changed greatly.
It is equally true that many brokers offer you the possibility of investing in stocks and other types of assets, accompanying this investment with two fundamental tools for the less prepared, ie beginners:
- Training: all the best brokers today offer videos, webinars, conferences, books and in-depth articles to begin to have an important smattering regarding the best concepts for online trading. You can check for yourself what the best training brokers offer, like 24option for those who have just started trading online;
- Demo accounts: we will never tire of repeating that the demo account is the best of the gyms that a beginner has available. If you have never traded, you can also immediately open a demo account to actually see what it is and to conduct your first operations without the hassle of losing money that you saved with sweat. eToro offers the non plus ultra of demo accounts and allows you to invest with 100,000 euros of virtual capital on all the best markets and also to invest in the stock market!
Always watch out for scams in stock market investment and online trading
What do we mean by eye to scams? We mean that unfortunately there are many non-legal operators who were born with the aim of cheating you and who cannot in any way help you prosper in the markets.
Fortunately, recognizing them is relatively simple:
- When you are offered automatic gains you run like hell. Although today’s trading software has evolved, it cannot in any way offer trading without commitment and that it can bring results automatically. Anyone who offers you such a thing is trying to trick you and go fishing from your wallet;
- When something is too good to be true, it usually is. Nobody gives you anything, let alone online trading. When something, an offer or a profit, they seem too good to be true, generally they are;
- Choose only licensed and recognizable brokers: no scam operator is able to obtain a European license, because this license presupposes the presence of thorough checks and that in any case are extended over time.
Stay away from scammers, because it is precisely the best way to lose all the money you had thought of earmarking for investment in the stock market.
Who should I contact to trade online?
There are basically two different alternatives to go to invest in the stock exchange or in any case in the markets through online trading.
On the one hand, you have banking platforms, or securities deposits that the bank offers to customers and that, at least on paper, should offer a good level of market access, with the security that only banks would be able to offer us.
On the other hand, we have CFD brokers, brokers that allow us to invest through contracts for difference and that are born with the specific aim of offering our finances an outlet to the markets.
Below you can consult the list with the operators recommended by our team to invest by securely trading online. Tested platforms with a high degree of reliability and quality ( minimum rating: 8/10).
Why not not trade online through a bank
The banks all or almost all offer an investment platform that should at least offer access to Piazza Affari and the main European and American markets. We absolutely don’t recommend this choice for reasons essentially mirroring those just listed in favor of CFD brokers, that is:
- Banks can offer you platforms that are not modern and suitable for you. The tools for trading available to your bank are not very customizable, often cumbersome and do not have many automatic features that, instead, the platforms available to brokers can offer you. Especially if you want to monitor the performance of many titles and multiple exchanges, having an excellent platform is an absolutely fundamental choice.
- The securities available to the banks are numerically limited. You will therefore not be able to diversify how much you should invest. Making sure not to invest everything on a single stock is in fact one of the most important rules of trading, and obviously serves to increase one’s chances of earning and contain any losses we could sustain if we lose value in our actions.
- The banks charge very high trading fees. This obviously does not suit small investors and their needs, which obviously impose not to pay staggering figures every time the bank’s financial advisor performs an operation on our behalf.
They are enormous problems, which must surely be faced by anyone who wants to approach markets in a serious way and above all with the aim of prospering on them.
Fortunately, today everyone has that of CFD brokers who specialize in online trading and stock market investment, just like eToro and we’ll talk about it in great detail in the next chapter.
Why invest by doing with online trading with CFD brokers
The best interlocutor for your online trading operations is definitely the CFD broker, like the ones we got to report to you several times during our guide today.
With a CFD broker you will have huge advantages over the bank. After all, you are in front of the solution that is most frequently used by trading professionals and allows you to invest without any kind of limit on any market, saving and more efficiently.
The reason is quickly stated and summarized here in some convenient points:
- only the brokers have access to the latest generation trading platforms. It is in fact essential to understand that only a software (proprietary or open source, your broker will advise you about it) high-performance and modern can allow you to follow more grants together, to automate many operations and, in general, to simplify your life. These are resources which allow the investor to exchange securities abroad in an automated manner, taking advantage of useful features such as take profit and stop loss.
- Brokers can offer you lots of different stocks to invest in. Not only your favorite actions like the Amazon or the Juventus title, but thanks to a good broker you can exchange hundreds of other titles around the world, thus allowing you to implement increasingly complex and profitable profit strategies.
- Costs with brokers are increasingly competitive. Unlike what we will see in the next paragraph concerning banks, the costs proposed to the client by a good broker are not much lower, but the necessary investment will be really paltry. A great way to start our adventure in the world of trading with due caution.
Obviously, one must also know how to choose the right broker: it must in fact be in possession of all the licenses necessary to legally carry out this profession. These licenses, issued by various authorities around the world, will allow us to be sure that the financial broker to whom we entrust our savings is not an improvised adventurer like there are too many around but a true professional in the sector.
In the next section we will identify the characteristics of the best CFD brokers, those that can operate in a regime that is at least equal to that of the best intermediaries we have ever had the chance to meet on the markets.
An example that we can raise to standards without any fear of being denied is definitely 24option – here to test it with a practice account always free, which allows you to go and invest in all the markets you can imagine, at extremely reduced costs and without any kind of limitation.
How to recognize a good trading broker
What are the characteristics that a good broker must have to be considered one of the best to trade online or on the other markets that we have reported to you during our guide?
There are actually different ones, which we advise you to always keep in mind before making your choice:
- License: must always be present. Brokers who do not have a license from a European country must be considered series B and when they do not have a license at all, not even issued by non-European authorities, they must always be discarded;
- Markets: there are many stock exchanges and the brokers that offer you a greater number of markets must be taken into greater consideration. Better to have more titles available than to have fewer. We will have more freedom to invest and above all we will have the opportunity to operate by seizing every opportunity that the markets can offer;
- Platform: the software that is made available to you to invest in the stock exchange is of fundamental importance and therefore you will need to pay great attention to it. What do we mean? We mean that without the right tools it will be enormously more difficult for you to go trading the right way;
- Commissions: the best brokers offer the possibility of investing in the stock market without commissions. All you have to pay is a tiny difference between buying and selling, a difference that is often 90% lower than the commissions that are offered by banks.
With these criteria in mind you will always be able to choose the most suitable broker for your transactions, that broker who will be able to be your shoulder for all your future online trading operations.
Trading online is NOT a scam
We know it. There are hundreds of people whose only goal is to express negative opinions about everything, even without trying it.
The fact is that online trading and investing in the stock market are far from being a scam and indeed can offer an ideal environment in which to develop one’s portfolio.
By choosing a good operator for online trading, you can enjoy the advantages of these markets without exposing yourself to potential scams.
Online trading is not a scam and anyone who claims otherwise has no idea what he is talking about.
Just start on the right foot by choosing a licensed broker, guaranteed and allowing you to go and invest in all the markets that interest you. Trade.com also responds perfectly to this identikit and is truly one of the best for those who want to get closer to the bora market on the right foot.
A good strategy for trading online must start from the time horizon
We remind you that a good strategy for trading online and in any type of online trading market can offer you, it must start from the time horizon you have in mind:
- Those who invest and want to operate in the short term must have greater attention to technical analysis and above all to read the chart. In this case then the markets must be followed with greater consistency and it will generally be necessary to try to operate on more volatile securities;
- Who invests in the medium term: it can also integrate the fundamental analysis within its strategy and can certainly benefit from the tools for semi-automatic trading, such as conditional orders;
- Those who invest in the long term: will have to choose completely different securities, generally between those securities that have a low but relatively constant income. The long time horizon can also extend to several years, which is why it must be chosen only by those who have a really solid strategy and control capacity.
However on our site you will be able to find important insights regarding the composition of a good strategy and its implementation.
Without forgetting that today you have an extraordinary possibility available: before putting real money on your strategy, you can go and invest with virtual capital to test these strategies. A great, huge advantage for those who want to go and maybe experiment with strategies with a different time horizon.
The new tools for online trading: copy trading
We cannot but point out to you in this guide of ours today also the Copy Trading, a system that was invented by one of the brokers that we recommend more frequently on our pages and that allows you, even if you are a beginner, to go to invest in the main markets.
With copy trading, in just one click, you can in fact go and copy the portfolio of successful investors, who may have already had excellent results in the past.
This is a great opportunity, especially for beginners, who should always keep in mind an irrefutable fact: there are no automatic systems to make a certain profit on the markets and therefore it will be necessary to choose the trader to be copied with a certain foresight.
The broker that offers this service is the evergreen eToro – and allows you to test this system even with a practice account, without there being any obstacles even if you currently have no capital to invest.
Conclusions: online trading is a wonderful adventure
We conclude with what is our opinion, which should easily be apparent from all the texts we publish on our site. We are facing a great opportunity with online trading, an opportunity that just until recently we could not even have imagined and that today is really affordable for everyone.
We advise you to learn what you can about online trading and to start investing even with a free demo account, to touch what we are talking about and maybe come back here looking for more information.
Online trading, if done in the right way, can really be a wonderful adventure, an adventure that sees in this guide your starting point.
Do not hesitate to take your first steps also thanks to the use of a free demo like this one here: today you really do not lack anything to begin to invest seriously in the markets that interest you most and to perhaps begin to set your strategies to be successful in the stock market.
And if something isn’t clear to you, don’t hesitate to contact us. We will be more than happy to make the issues that caused you some difficulties more understandable.