Do you want to start your own account with a broker? Perhaps you want to try your hand at investing in the stock market. Either way, you will need to learn the ropes of trading. The best way to do this is to research the best online brokers for beginners.
There are many trading brokerage platforms online – and not all of them will be right for you. If you are looking for a trading platform with stellar customer support, no hidden commissions or fees, and a suite of tools to guide you on your trading experience, then look no further than TradeOr!
Back To The Basics
Before we run through the key features of TradeOr, it is vital to understand some basic definitions. Here is a simple glossary of the terms you will encounter as you research the best online brokers for beginners.
An online broker, or brokerage firm, is a trading platform to buy and sell financial assets. These can vary from stocks, options, futures, cryptocurrencies, or more. Once you have opened a trading account and verified your identity (if necessary), you simply deposit funds to start trading. Certain brokers, including TradeOr, will let you fund your trades with alternative deposits such as cryptocurrency.
Stocks vs. Shares
These two terms are often used interchangeably. “Stocks” means a portion of ownership of one or several companies. “Shares” refers more specifically to the ownership of a particular company.
A loan between two bodies. Bonds can represent debt obligations between companies and government bodies. Investors often choose bonds because of the interest payments they accrue.
ETF stands for “exchange-traded funds.” Essentially, ETFs are bundles of securities that you can buy and sell on an exchange. They combine assets such as bonds, commodities, and stocks, and the idea is that they reflect their corresponding index’s performance in the markets.
One of the biggest financial trading grounds, forex or “financial exchange,” refers to the global marketplace of currencies.
You’ve guessed it: day trading simply describes the act of buying and selling shares or other financial assets on the same day. These active traders will typically make a large number of long and short trades to capitalize on short-term price fluctuations in the market. Professional day traders make their living by trading will hold their assets for at least one night and perhaps weeks. Swing trading seeks to profit from short-term price changes (“swings”) in the markets, and therefore volatile stocks or currencies are best for this trading strategy.
The terms “volatile” and “volatility” are often used in trading. When referring to the markets, volatile suggests risk — the more a price changes, the higher or greater its volatility. Therefore, volatile assets change frequently and drastically, bringing potential magnified gains (and losses).
Bullish vs. Bearish
A bull market or bullish assets are those which are moving up in value. A bear market, on the other hand, is where (bearish) assets are going down.
You will also come across limit and stop orders, candlestick charts, and Bollinger bands – and the list goes on. The glossary of trading terminology is exhaustive, but you do not need to know all of these terms at once. Some of the obscure investing styles and mathematical indicators you may never use depending on how you choose to trade. As a beginner trader, your best bet is to find a user-friendly brokerage platform with the right tools to arm you for your first foray into the markets.
Best Online Broker For Beginners
On your search for the “best online broker for beginners,” remember one crucial caveat: there is no single “best” broker. It’s all relative. Some traders may require full service brokers where market access and available assets take priority. Others could value a plethora of educational resources and learning tools more highly. Navigating the markets for the first time can be a daunting undertaking, and never underestimate the importance of having help at hand. Some of the best online brokers for beginners will have a customer support team at hand to answer questions and unlock the full features of their trading platform.
Trade the markets with the right tools at your disposal
Take our trading platform as an example. Here at TradeOr, we pride ourselves on a client-centric approach where our customer support team is available 24/7 to guide you on your trading journey.
TradingVIew is a cloud-based trading tool. It is also a social network for a market conversation alongside professional-grade charting software – think of it as the Facebook of trading!