How to Invest Your Money in the Stock Market Online

As we talked a little more and invest in the stock market in general to define some terms used at the same time we struck the difference between stocks, mutual funds and bonds. He had also explained that it is essential that before investing money must: have money for emergencies, never invest what is not willing to lose, and only invest in shares of industries that you know or you have information about.

To invest your money online you should look for a company where you can deposit funds electronically from your bank account and with whom you can then invest in the shares you want. Below is a series of questions I asked a representative from Scot trade to understand more the process of investing online:

Scot trade is not the only company that offers neither this service nor the best, but has a good reputation. You can do a search on Google for Online Trading companies to see what they offer.

What is the minimum to open an investment account?

Scot trade does not have a minimum balance to be maintained or a minimum amount of investment you have to make each month, but requires an initial deposit of $ 500 to open the account.

What is the minimum value of shares I can buy? Do I have to buy 100 shares of a company or just whatever action I want?

You can buy as many shares you want. The fee for these actions will be the same for much or little it shopping. For example, if you buy 20 shares of Apple (APPL) and each one costs $ 90 the amount of the transaction would be $ 1.807 US dollars. If the stock goes up to $ 100 and you want to sell in the transaction receive $ 1.993 US dollars. As you can see that each purchase or sale of shares cost $ 7 commission.

What are the restrictions on the purchase and sale?

No restrictions. You can buy and sell stocks as often as desired. Just keep in mind that each transaction has a total commission of $ 7.

When I buy or sell, the share value is calculated with the value of the end of the day (end of day price) or the value is real-time (when I buy)?

The value of the share is the same as in that moment when you buy or sell. For example, if the value of APPL at 2:00 PM is $ 94 US dollars and you decide to buy the shares at that time that is the value you will receive. If you perform the purchase or sale after the market closed will receive the share price when the stock market opens the next day.

This is also known as “Market Order”. You can also buy and sell in a process called “Limit Orders” which buys or sells shares as soon this reaches a certain value; e.g. APPL sell shares when they are trading for less than $ 85 US dollars.

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