Anyone who is interested in investing in the market has to approach a stock trading company, but all too often people make the mistake of going for the cheapest one without considering the range of services the company offers.
The essential services a stock trading company may offer include:
The latest stock market information
Market reacts very quickly to any relevant news. If you have to spend time searching the Internet in a bid to gain access to the latest market information, youre losing valuable time. The stock market information typically includes the market summary, corporate calendars, world markets, indices, dividends and new floats. Having this information easily accessible by your stock trading company makes your life a lot easier.
Company announcements
By law, publicly traded companies are under obligation to disclose any information that may affect its short-term and long-term prospects and profitability and the pricing of their shares. If you've already invested in a company or are planning to do so, a big plus is being able to receive all the company announcements by email, or see them online when you log into your account.
Access to market depth
You need to be able to see the market depth, i.e. the list of buyers and sellers and the quantities and prices that they're prepared to trade. This information alone can be an important indicator of the direction of the price action for the day.
Tools for technical analysis
Fundamental events eventually drive the markets up or down, but it is the technical analysis that explains the psychology of the market. At a good stock trading companies you have access to stock charting software with a whole range of technical indicators you can apply to stocks you're trading.
Trading platform
A trading platform combines the charting software with real-time data, and the ability to buy and sell shares, options, CFD's and place stop-loss and conditional orders.
Historical data
Historical data is not only about what a company did in the past - it also reflects what the company is capable of, how volatile the price action is, how long-term trends may look like, etc.
Portfolio management
The portfolio management software allows you to quickly see how your shares are performing, their net worth, trade history, current holdings and other relevant details.
Research data
A big stock trading company would employ market analysts to research companies and and report their findings to assist you in making informed decisions.
Reasonable rates
Gone are the days when brokers could charge 3% for placing your orders. Today, the proliferation of online brokers means that the on-going trading costs are well below 1% and on the decline. Many stock trading companies offer a discount if you complete a certain number of trades per month.
In short, picking your stock trading company carefully has major impact on your share trading because the range of services they offer is critical for your success.
