How does online trading work?
There was a time when trading in the financial markets was the preserve of the rich or those pursuing it as a profession. If you weren’t an investment banker or super-wealthy, then it was once something of a closed shop. However, the recent advances in technology around the world and changing attitudes around financial trading has seen this change in modern times. Now if you are a Singapore based entrepreneur and you want to invest in stocks or currency it is entirely possible.
What is online trading?
The main reason that trading is open to the normal entrepreneur in Singapore or any other region in Asia now is online trading. The internet has allowed anyone with a computer, an internet connection and some cash to become a trader from their own home. That is naturally great news for entrepreneurs in the region who can now be involved with trading on the financial markets.
But how does it all work? In simple terms, the internet has allowed online brokers to create systems which you can then use to place trades on the financial markets. This access is what has really changed as in the past you needed to go via a brokerage firm who would control the trades for you. Online trading allows you to make the decisions on any trades and reap the benefits without paying a large fee to a stockbroker.
You simply create an account with an online broker and then use the platform to open trades and manage your portfolio. Most are very easy to use – open and closing trades is done with the click of a button! All have reporting functions with the latest charts to track how your investments are faring.
What can you trade in online?
Broadly speaking the major things that most entrepreneurs within Asia and globally will trade in online are stocks and currency. The Singapore Exchange is thriving since it was founded in 1999 and has around 750 companies listed that you could invest in. This is a great place to trade stocks online and many brokers will allow you to do so. The other major market that many trade in online is the Foreign Exchange (or Forex) market. This is a big player with a daily volume of around $5 trillion! There are also many brokers online who allow you to trade this market and try to predict where currency pair prices will head.
News is key for online trading
One important aspect for trading online is keeping up to date with the latest news. Financial markets are very sensitive to breaking stories or latest reports which make it vital to always know what is happening. One way to do this is to search out the latest stock analysis and discussion online each day to be sure you have the freshest news to assist your trading decisions.
Online trading is an entrepreneur’s dream
A successful entrepreneur is always looking for new revenue streams and opportunities to make money. Getting involved with trading stocks and shares online is a great option as, when done right, it can help build up your wealth over time.