Then you are exactly right on this page! With more than 8 years of experience in the financial markets, I will explain the first steps and show you what things you need to pay attention to in order to achieve long-term success. Learn with professional information how online trading works and how to make money with it!
Advantages of online trading in test & comparison:
Before online trading, trading fees on the stock market were very high. The infrastructure at how long does exness withdrawal take has been automated, saving huge fees. Traders used to have to contact your broker for a position opening or closing by phone, which had a seat at the park trading. Poor price execution was not uncommon, because it took time to place orders in the market.
Through the Internet, the stock exchange was converted to electronic trading. Worldwide traders now have direct access to the exchanges and you always get a direct price execution in a few milliseconds. Online trading has a lot of advantages compared to manual trading in the past and is a blessing for every trader in comparison.
Which markets and financial instruments can be traded in online trading?
Traders in online trading resort to leveraged derivatives or other financial instruments 90% of the time. This means that the trader can open a larger position with a smaller margin. In many markets it is necessary to resort to high leverage. However, from my experience, it always depends on the personal trading strategy.
The choice of markets is indeed very large. There are so many markets including financial products that you would probably spend several days just counting the markets. In the following points I would like to introduce you to the best known markets and financial products for the private trader.
Markets:
- Forex (currencies)
- Stocks and stock indices
- Commodities and metals
- Government bonds and corporate bonds
- ETFs (multiple stocks in one index)
- Cryptocurrencies
Financial products:
- Forex via the interbank market
- CFDs (Contracts for Difference)
- Futures (forward contracts)
- Shares and ETFs
- Options
- Certificates
How much starting capital is necessary for online trading?
In general, online trading is possible from just a few euros starting capital. Some brokers even offer trades with the stake from 1€ or a few cents. Online trading is possible for any capital size. For example, beginners can start with a small stake and increase it later. The markets are very liquid (high trading volume).
However, not every financial product is available with a small stake. For example, to trade futures contracts, you need several hundred euros in margin and thus move a very large buzzer on the market. It is recommended to open a futures account only from 20,000€. For the private trader, trading CFDs and Forex is the most popular, because here you can easily use small as well as large capital.
- Trading is possible from just a few euros
- The necessary starting capital depends on the financial product