With so much time on their hands and not many things to do while staying at home during the quarantine period, many working professionals have turned themselves into amateur stock traders. Thanks to advancements in fintech and the advent of the free commission movement, ordinary people can start investing in the stock market easily. If you are an absolute beginner who has no experience in the stock market and would love to get started, now is absolutely the time.
With so much time on their hands and not many things to do while staying at home during the quarantine period, many working professionals have turned themselves into amateur stock traders. Thanks to advancements in fintech and the advent of the free commission movement, ordinary people can start investing in the stock market easily. If you are an absolute beginner who has no experience in the stock market and would love to get started, now is absolutely the time.
How the Free Commission Movement Help Shape the Market
Prior to the free commission movement, you had to pay for every transaction you make. Even if the trade ends in a loss, you still have to factor in the commissions both for opening and closing it. It may be only a few dollars each trade, but for a small investor, this amount can really add up, depending on how often they trade. Imagine for example that you tend to make three trades a day. This amounts to paying six times the standard commission, regardless if you make money or not. If you only have $1000 to start, the money you pay to your broker can add up real fast.
Thanks to the free commission movement that started in 2019, now it’s possible to trade as many times as you want, without paying a dime in commission. How do the brokers make money if they charge no commissions? You may ask. The answer is: They make money by routing your order to the right market maker who will then reward them a tiny commission for bringing them business. Instead of getting paid by you, now the broker is getting paid by another party.
How Technology Is Changing the Way People Invest
Many years ago, it was considered something elite to be a stock trader. You must possess the latest trading software, have a relationship with your broker, or have access to exclusive news sources to successfully navigate the market. This all changed as technology evolved. Today, you don’t even need a computer to trade stocks. Many mobile applications have been developed to allow you to watch the market and make trades directly from your mobile. There’s no need to call your broker to place a trade either. With just a few taps on the screen, stocks can be bought or sold whenever you see fit.
Due to the convenience, more and more people are drawn to the stock market. People who would otherwise be unable to access it had the change not taken place. Would you imagine yourself turning into a stock trader while still working at your day job? Better yet, would you be able to trade stocks if you have a full-time job working at Amazon warehouse? Thanks to technology evolution, all of that has been made possible.
Take Trading 212, a simple yet powerful online broker offering stock trading on both desktop and mobile devices. They offer a beginner-friendly mobile app that you can use to access the market and make trades. Best of all, they are commission-free. You read that right. You will not be required to pay a dime in commission. Another plus sign is that they charge zero fees for deposits and withdrawals. The account opening process is a breeze, with the longest step being you waiting for them to verify your identity. With such an amazing trading app available, no wonder why so many people have chosen day trading as their next hobby and probably career interest.
For more information visit the site about on how to start day trading.
Which Trading Application Is Best for Non-US Beginner Traders?
Many of us have heard of Robinhood, the revolutionary trading app that takes the financial market by surprise. If you are not a US resident, there’s bad news for you if you reside outside the US: Robinhood is only available to US residents. What can you do if you want to benefit from the commission-free movement but do not reside in the US? Before you get disappointed, there’s another top trading application that targets exactly what Robinhood misses: Trading 212. Trading 212’s mobile app has been rated the number one in the UK since 2016 with over 14 million downloads and 85,000 reviews. Trading 212 accepts clients from over 100 countries around the world. The minimum initial deposit is set at $1, and they don’t charge any fee for deposits and withdrawals. For those of us who have limited funds to start with but want to keep learning as they grow their account, Trading 212 is a perfect place to start. You can also visit this site to know more about trading like scalping vs swing trading.
Buying Fractional Shares
What if you want to invest in hot stocks like Tesla, Microsoft, or Zoom but the share price is too high for your budget? Until recently, those with limited funds had to stay away from expensive stocks. Now, thanks to the fractional share buying option that Trading 212 offers, you can purchase a fraction of expensive stocks depending on how much you have in the account. Have $500 but a single share of Tesla costs $2000? Now you can own 0.25 of a Tesla share with no problem. Best of all, the transactions will cost you nothing.
Client Fund Protection
Trading 212 deposits its clients’ funds into separate bank accounts which are protected under the following regulations:
- Investors Compensation Fund (ICF) which offers 90% compensation for up to €20,000.
- Financial Services Compensation Scheme (FSCS) which covers up to €85,000 of the deposited fund.
New Clients Can Get Free Shares
Another motivation to sign up for a Trading 212 account includes its free share bonus for new traders. As long as you sign up for a new trading account using a referral link given to you by an existing Trading 212 client, both you and your friend will receive a free share. To take advantage of this offer, sign up using my referral link and the free share will be deposited into your account after it has been verified. You are free to sell this share whenever you want. What are you waiting for? Remember that the natural tendency of the stock market is to gain value over time, so even if you don’t buy and sell stocks often, merely keeping the stock in your account for a few years will help you benefit from its appreciation.
Prior to the free commission movement, you had to pay for every transaction you make. Even if the trade ends in a loss, you still have to factor in the commissions both for opening and closing it. It may be only a few dollars each trade, but for a small investor, this amount can really add up, depending on how often they trade. Imagine for example that you tend to make three trades a day. This amounts to paying six times the standard commission, regardless if you make money or not. If you only have $1000 to start, the money you pay to your broker can add up real fast.
Thanks to the free commission movement that started in 2019, now it’s possible to trade as many times as you want, without paying a dime in commission. How do the brokers make money if they charge no commissions? You may ask. The answer is: They make money by routing your order to the right market maker who will then reward them a tiny commission for bringing them business. Instead of getting paid by you, now the broker is getting paid by another party.
How Technology Is Changing the Way People Invest
Many years ago, it was considered something elite to be a stock trader. You must possess the latest trading software, have a relationship with your broker, or have access to exclusive news sources to successfully navigate the market. This all changed as technology evolved. Today, you don’t even need a computer to trade stocks. Many mobile applications have been developed to allow you to watch the market and make trades directly from your mobile. There’s no need to call your broker to place a trade either. With just a few taps on the screen, stocks can be bought or sold whenever you see fit.
Due to the convenience, more and more people are drawn to the stock market. People who would otherwise be unable to access it had the change not taken place. Would you imagine yourself turning into a stock trader while still working at your day job? Better yet, would you be able to trade stocks if you have a full-time job working at Amazon warehouse? Thanks to technology evolution, all of that has been made possible.
Take Trading 212, a simple yet powerful online broker offering stock trading on both desktop and mobile devices. They offer a beginner-friendly mobile app that you can use to access the market and make trades. Best of all, they are commission-free. You read that right. You will not be required to pay a dime in commission. Another plus sign is that they charge zero fees for deposits and withdrawals. The account opening process is a breeze, with the longest step being you waiting for them to verify your identity. With such an amazing trading app available, no wonder why so many people have chosen day trading as their next hobby and probably career interest.
Which Trading Application Is Best for Non-US Beginner Traders?
Many of us have heard of Robinhood, the revolutionary trading app that takes the financial market by surprise. If you are not a US resident, there’s bad news for you if you reside outside the US: Robinhood is only available to US residents. What can you do if you want to benefit from the commission-free movement but do not reside in the US? Before you get disappointed, there’s another top trading application that targets exactly what Robinhood misses: Trading 212. Trading 212’s mobile app has been rated the number one in the UK since 2016 with over 14 million downloads and 85,000 reviews. Trading 212 accepts clients from over 100 countries around the world. The minimum initial deposit is set at $1, and they don’t charge any fee for deposits and withdrawals. For those of us who have limited funds to start with but want to keep learning as they grow their account, Trading 212 is a perfect place to start.
Buying Fractional Shares
What if you want to invest in hot stocks like Tesla, Microsoft, or Zoom but the share price is too high for your budget? Until recently, those with limited funds had to stay away from expensive stocks. Now, thanks to the fractional share buying option that Trading 212 offers, you can purchase a fraction of expensive stocks depending on how much you have in the account. Have $500 but a single share of Tesla costs $2000? Now you can own 0.25 of a Tesla share with no problem. Best of all, the transactions will cost you nothing.
Client Fund Protection
Trading 212 deposits its clients’ funds into separate bank accounts which are protected under the following regulations:
- Investors Compensation Fund (ICF) which offers 90% compensation for up to €20,000.
- Financial Services Compensation Scheme (FSCS) which covers up to €85,000 of the deposited fund.
New Clients Can Get Free Shares
Another motivation to sign up for a Trading 212 account includes its free share bonus for new traders. As long as you sign up for a new trading account using a referral link given to you by an existing Trading 212 client, both you and your friend will receive a free share. To take advantage of this offer, sign up using my referral link and the free share will be deposited into your account after it has been verified. You are free to sell this share whenever you want. What are you waiting for? Remember that the natural tendency of the stock market is to gain value over time, so even if you don’t buy and sell stocks often, merely keeping the stock in your account for a few years will help you benefit from its appreciation.
