Should you invest your money online?
You have some money to invest. But you don't want to spend a lot of time meeting with or selecting a stockbroker. Should you invest your money online? Is an online brokerage house the right choice for you?
The Internet is now home to several online stockbrokers. It's easy to set up an account with online brokerage houses such as Etrade, Scotttrade and Zecco. And once you have an account, you can immediately begin selecting stocks that interest you.
The reason for this is simple: When you invest money online, you never really know with whom you're working. The person behind that other computer screen can be anyone. If that bothers you, it might be time to return to traditional investing.
Of course, if you invest wisely, you can also see that money grow, sometimes dramatically. In this regard, there is little difference between online investing and offline.
But investing your money online does come with its own risks. When you invest money through an online brokerage, you aren't meeting in person with a stockbroker. You aren't even talking to a broker over the phone. You have no idea who is behind that online home page.
If you're uncomfortable with online investing, though, there are steps you can take to ease your misgivings. First, research any online brokerage with which you're considering working. Read financial magazines or Web sites. Many of them rank the more popular brokerage houses. They'll tell you whether the online broker you're considering has a reputation for fair and ethical business practices.
Finally, before investing any money online, investigate the commissions that different online brokerages charge. These may vary widely. The lowest commission doesn't always equal the best online broker, of course. But you don't want to work with an online brokerage house that charges commissions that are far higher than everyone else charges.
Make sure, too, to only invest your money online with a Web-based brokerage that you've heard of. You don't want to take a chance on investing with a company that may be inexperienced or teetering on going out of business. Instead, go with the established online brokerages, places such as Etrade and Scottrade.
That doesn't mean, though, that you should invest money online without first doing the proper research. Do your homework to make sure you are investing with an online brokerage you can trust. And don't invest in any company's stocks until you first research both the company and the industry in which it does business. - 23222
The Internet is now home to several online stockbrokers. It's easy to set up an account with online brokerage houses such as Etrade, Scotttrade and Zecco. And once you have an account, you can immediately begin selecting stocks that interest you.
The reason for this is simple: When you invest money online, you never really know with whom you're working. The person behind that other computer screen can be anyone. If that bothers you, it might be time to return to traditional investing.
Of course, if you invest wisely, you can also see that money grow, sometimes dramatically. In this regard, there is little difference between online investing and offline.
But investing your money online does come with its own risks. When you invest money through an online brokerage, you aren't meeting in person with a stockbroker. You aren't even talking to a broker over the phone. You have no idea who is behind that online home page.
If you're uncomfortable with online investing, though, there are steps you can take to ease your misgivings. First, research any online brokerage with which you're considering working. Read financial magazines or Web sites. Many of them rank the more popular brokerage houses. They'll tell you whether the online broker you're considering has a reputation for fair and ethical business practices.
Finally, before investing any money online, investigate the commissions that different online brokerages charge. These may vary widely. The lowest commission doesn't always equal the best online broker, of course. But you don't want to work with an online brokerage house that charges commissions that are far higher than everyone else charges.
Make sure, too, to only invest your money online with a Web-based brokerage that you've heard of. You don't want to take a chance on investing with a company that may be inexperienced or teetering on going out of business. Instead, go with the established online brokerages, places such as Etrade and Scottrade.
That doesn't mean, though, that you should invest money online without first doing the proper research. Do your homework to make sure you are investing with an online brokerage you can trust. And don't invest in any company's stocks until you first research both the company and the industry in which it does business. - 23222
About the Author:
Spare Dollars is a save money blog which contains advice on saving money, making money and how to invest money. For more advice on these topics, including how to invest money online, visit us today at SpareDollars.com.
posted by X - Men @ 7:00 AM
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