Online trading is the process of buying and selling financial instruments using the Internet, so there is basically no human interaction. Nowadays everyone can trade stocks, ETFs, mutual funds, options, bonds or other instruments from everywhere in the world, just using a laptop or a smartphone, but there are a lot of things you have to prepare to start trading, if you don’t want to lose part or all your money by investing in the financial markets.
Certainly, the most important thing is to educate yourself before you consider any type of investment or investment strategy. So, you need to study and learn everything about financial markets, financial instruments, fundamental analysis, quantitative analysis, technical analysis, risk management, financial planning, etc.
Theory without practice is not sufficient to start trading online, so before you start to invest real money it is necessary to put your knowledge into practice. There are many brokers that offer free trading account which can be used to start trading online with virtual money, so without risking your real money. Only after this, you can start thinking to invest your money in the financial markets, but before this you need to make a financial planning, determine your risk profile and create the optimal investment portfolio. Now you are ready to start trading online, so you need to open a trading account with your bank or a reputable broker. Here are the essential requirements you have to open a trading account online and start trading:
- You should have an internet connection and a laptop or a smartphone.
- You should have 18 years old and above before opening an account.
- You should have a proof of identification issued by the government and other accepted institutions.
- You should have the minimum amount of money requested by the bank or the broker.
After opening the account, you need to transfer your money to the trading account and start buying the financial instruments you had chosen to invest during your analysis. Lastly but not less important, you must monitor your investments every week or every month, because everything changes over time and you can risk to lose part or all your money that you have invested in the financial markets.