One of the most important decisions you will have to take in your trading life has nothing to do with the shares or the bonds you are going to buy. It’s about how you are going to get it done, especially when you are buying them online. How do you know what to trust?
The use of stock exchanges, whether dividend-paying or speculating on their prices, is an increasingly widespread practice, because it allows you to earn money by making your savings grow. Of course, the risk of loss is also present, but depending on how you buy and sell your shares, this risk can be reduced. If you are wondering how to buy and sell shares of large listed companies directly online, such as Apple, Google and Allianz, here are some explanations that might interest you.
Choose Between a Broker or a Bank
A large part of investors and institutions that buy equity securities do so in order to become a shareholder. It is the simplest use of stocks and their main objective. When a company issues shares, it is possible to buy directly online. However, for shares already listed, it is necessary to do this through an intermediary who can be an online broker or through a bank.
Of course, it is also possible to buy shares directly from sellers who have themselves bought these shares, in the same way that you can resell your shares.
Buying and selling stocks with banks online
The simplest system to buy and sell shares is to go through the investment products offered by banks and purchase them online. Thanks to the 100% online operation of these banks, you can, very simply, place your orders to buy and sell shares directly on the internet without moving.
The advantages of this system are many because it is your bank that will take care to execute your orders and therefore to buy and sell your shares becomes easy. To take advantage of the stock exchange through this means, you must subscribe to a PEA, a securities account or even life insurance, which are the main product banks in the stock market.
The only disadvantage of this method is the fees may be higher than what you should pay if you were buying and selling your shares yourself. However, the costs of these banks rarely exceed 4%.
One of the main advantages of banks’ investment products is that your purchases and sales of shares are supervised by intermediaries specializing in the stock market and you can benefit from advice.
Buying and Selling Stocks with Brokers Online
Another method is to use an online broker. Their functioning is almost the same as that of banks operating online, with the difference that you do not benefit from a follow-up and advice. However, the costs here are lower, since it is you who decide alone the actions to buy or sell your shares.
These online brokers also allow you to make profits through stock exchanges, without having to actually acquire them. All you have to do is to speculate on the evolution of their course. The tools for doing this are CFDs and binary options.
In short, there are several methods to buy and sell shares on the internet. Before you decide on any of these solutions, be sure to evaluate the costs involved, as well as your level of knowledge. Based on these criteria, each of these two methods has different advantages. It is also necessary to understand the system of quotation of an action in order to be able to speculate on this type of assets.