Is Low Cost Share Trading Right For You?
You’ve probably been reading about low cost share trading and wondering whether it’s right for you. If so, read on to learn about some options. Using a low cost share trading service is a great way to start investing in stocks. There are many benefits, but there are also some cons. Here are some things to consider before signing up with a service. Firstly, make sure you know what you’re getting into before you start trading.
Secondly, ensure you don’t overextend yourself. One of the most common mistakes made by self-directed investors is not rebalancing their portfolios enough, or not at all. The proliferation of low cost share trading apps has led to a glut of options. However, choosing the right one can be a bit tricky. One important consideration when choosing a low cost share trading service is understanding who owns your investments. Many low cost share trading platforms follow a custodian model, which means your money is pooled with other investors and not the beneficial owner.
CMC Markets is one example of a low cost share trading service. This Australian company is listed on the UK stock exchange and is compensated through third party links. CMC Markets has won several awards for its outstanding business performance, and offers high-quality educational resources and dedicated customer support to help you trade shares without paying an exorbitant amount. CMC Markets’ platform is not only commission-free, but also offers low margin requirements and low leverage.
Stake is another example of a low cost share trading service. The platform allows you to invest in over 2000 stocks listed on the ASX and US-based exchanges. There is no trading fee, although Stake does charge 70bps for FX when depositing and withdrawing your money. Regardless of the low cost of Stake, it is definitely worth a look if you’re looking for a low cost share trading service.
ANZ is one of the ‘big four’ banks in Australia, and it has a well-developed trading division. ANZ shares include everything listed on the Australian Stock Exchange, S&P 500 companies in the US, and almost all FTSE 250 companies in the UK. In addition to Australian shares, the brokerage company also has shares listed on over 30 international exchanges, including NASDAQ, NYSE, and Eurozone. These options are great for those looking to expand their trading portfolio beyond Australia.
CMC markets also has a live trading platform. To start trading, you’ll need to log in to the CMC market’s website. You can browse the list of available stocks by asset class and instrument. The platform is intuitive and easy to use, and you can even customize your layout to suit your needs. You’ll need to provide your national insurance number and tax status to be able to start trading. It’s worth mentioning that CMC does charge brokerage fees for online trades.
It is hard to beat the share market and investing in cheap stocks is risky. You have to look for low-cost stocks with good growth prospects. Nevertheless, low-cost share trading has its advantages. However, you must be aware of the risks involved. Although there are many low-cost shares available, it is important to remember that investing in the stock market is a high-risk affair. Hence, you must be prepared for the risk of losing money.
