Hints and Tips
July 26, 2011
There’s no shortage of research and information about individual stocks – after all, stocks in companies are the basic “currency” of the stock exchange, so it’s not surprising that there’s plenty of information out there about them.
But what about broader advice on how to get the best out of your online trading experience? Fortunately, there’s lots of information online, both from online trading providers themselves and other advice sites, that will give you very useful hints and tips to really maximise the performance of your online trading account.
Here’s a few of the pieces of advice that tend to be common across most websites and providers:
- Use the research tools: most online trading providers offer access to in-house and other research analysts. These reports typically discuss a company’s prospects, and often take a broader industry view to help you think about deeper trends that might influence a stock. You can never rely entirely on external research – you ultimately have to make your own decisions on trading – but read everything you can, especially when it’s part of the fees you’re already paying!
- Get real-time alerts: the stock exchange moves at a very rapid pace. The value per share of individual stocks can move widely during a trading day – it’s not unusual for the stocks of very large, ASX-100 companies to move by a dollar or more every day. So finding out news about company announcements, or key industry or economic developments, often can’t wait until tomorrow. Many providers now offer instant alerts, delivered by SMS or email. While these generally cost a bit more, for an active trader, they can help you get the information you need much closer to real-time.
- Use tools to limit your risk: most online providers will allow you to specify conditions under which you want to buy and sell – for example, a common tool is a basic “conditional order”, meaning that once a stock has hit a price you nominate, and your specified volume has been traded, the order is automatically placed. This can help take some of the emotion out of trading.
All of the major online trading providers offer good website and phone-based support. You should take the time to review these before you choose a provider – the nature and usefulness of their support services is a good indicator as to how good a partner they will be for your trading experience. For example, Etrade offers a very user-friendly website that will give you a step-by-step summary of the online trading process.
Best Value Online Trading Products
| Company | Product | Standard Brokerage | Star Rating | Go to Site |
|---|---|---|---|---|
 |
Silver | $15.00 | ||
 |
Share trades Internet Preferred | $19.95 | ||
|
Gold | $15.00 | ||
 |
E*TRADE Standard | $19.95 | ||
|
CommSecIRESS | $19.95 | ||
 |
Rapid Trader Standard | $20.00 |
This table is based on the 'Casual' profile which is characterised as trading 10 times per year. 'Best value' is determined by Canstar Cannex star ratings with 5 stars denoting outstanding value.
Consider whether this general financial advice is right for your personal circumstances. You may need financial advice from a qualified adviser. Read our detailed disclosure here.
Legal textTo the extent that the online trading information on this website constitutes general advice, this advice has been prepared by RateCity Pty Ltd ABN 12 122 743 542 AFSL & ACL 316710. The information has been prepared without taking into account your individual investment objectives, financial circumstances or needs.
Before you decide whether or not to acquire a particular financial product you
should assess whether it is appropriate for you in the light of your own personal
circumstances, having regard to your own objectives, financial situation and needs.
You may wish to obtain financial advice from a suitably qualified adviser before
making any decision to acquire a financial product.