Once you've opened an online share dealing account you will be able to trade shares over the internet wherever you are providing you have access to a computer.
To keep the cost of trading down, many people choose to open execution only share dealing accounts. But what are they? What are their advantages? And how do you find the right stock trading account?
What are 'execution only' share dealing accounts?
There are two main ways to trade shares. When you use a stockbroker you generally pay for their services in return for receiving advice on the stock market and which shares to buy and sell.
Alternatively, you can use an 'execution only' service. Here, the company that handles the trade for you doesn't provide any advice on the transaction. They simply carry out a trade according to your wishes.
As this type of service is not advising you, you will generally find that this form of share trading is cheaper, although the responsibility for the deal lies with you.
However if you are new to share dealing you may find it easier to begin by using a stock broker. By doing this you will get advice on your trading as well as the service you will get from an execution only account, this could help you to get a better understanding of the market and make better decisions on your trading.
The advantages of online share trading
Increasing numbers of execution only share dealing accounts offer online share trading, and the majority of online share dealing accounts operate on an execution only basis.
There are many advantages to being able to trade shares online in this way including:
- Easy access to information and charts in real time
- A quick and easy way to conclude a transaction
- Secure web based services
- Lower trade prices
Finding the best execution only share dealing accounts
If you're looking to open an execution only stock trading account you should always shop around for the best deal. Just as comparing prices can help you save money on credit cards or home insurance, doing a little bit of homework can also help you save money when you trade shares online.
For example, the fees charged for each trade vary from company to company. And, you will often find that many companies offer even cheaper trading if you buy and sell shares on a regular basis.
Additionally, the best online stock trading services offer a variety of ways to access their service (online, by telephone or on your mobile) and some even let you see a 'virtual portfolio' of your investment holdings.